Eternal Beauty, China’s Largest Fragrance Distributor, Revives Hong Kong IPO Bid

Everlasting Magnificence, China‘s largest perfume distributor, has not too long ago resubmitted its principal board itemizing utility in Hong Kong. The corporate initially filed for an IPO final July.

In keeping with the corporate’s preliminary prospectus, the Hong Kong-based agency works with 66 world manufacturers throughout fragrance, shade cosmetics, and skincare. Its model administration portfolio consists of Hermès, Van Cleef & Arpels, Chopard, Albion and Laura Mercier.

Out of the 66 manufacturers, the corporate has secured unique or sub-licensing rights for 59 in mainland China, Hong Kong, and Macau.

For the latest two quarters, or the six months ended Sept. 30, 83 % of the corporate’s income got here from fragrance gross sales, 10 % from shade cosmetics, and 5 % from skincare merchandise. Remaining revenues comes from Santa Monica, an eyewear model, and retail administration charges.

For the 12 months ended March 31, 2024, income grew 1.4 % year-over-year to achieve 1.8 billion renminbi, or $246 million, whereas gross revenue rose 9.7 % to achieve 938 million renminbi, or $128 million, in accordance with the corporate prospectus. For the six months ended September 2024, income jumped 14.2 % year-over-year to 1 billion renminbi, or $136 million, whereas revenue grew 20 % to 115 million renminbi, or $15 million.

Everlasting Magnificence, based by Lau Kui Wing, a Cathay Pacific flight attendant-turned-entrepreneur, started distributing world fragrance manufacturers in mainland China in 1987.

In 2005, it started working with Hermès to distribute its fragrance items out there. The corporate at present works with a community of distributors and retailers that spans 7,500 factors of sale in additional than 400 Chinese language cities.

Final November, the corporate launched Fragrance Field, a multibrand perfume idea retailer in Shanghai, Shenzhen, and Kunming.

In keeping with the prospectus, Everlasting Magnificence ranked because the fourth-largest fragrance group in mainland China and the biggest model administration firm by fragrance retail gross sales in 2023, with a market share of roughly 8.1 %. In keeping with information from Frost & Sullivan, China’s fragrance market has entered its “high-quality growth stage” and is predicted to develop at a 12 % charge yearly to 47.7 billion renminbi, or $6.5 billion, in 2028.

Per capita spending in China is predicted to develop by a median of 14 % per 12 months from 2023 to 2027, outperforming Japan, South Korea, the USA, and the UK, in accordance with the analysis agency.