This article only represents the author's own views.
Proya Cosmetics Co. Ltd. (603605.SS) achieved a major feat in 2024, becoming the first Chinese cosmetics company to log sales of over 10 billion yuan ($1.4 billion). That milestone represented an important advance in the company’s 10-year plan to become one of the world’s top 10 cosmetics companies, which would require annual revenue of 50 billion yuan, according to founder and Chairman Hou Juncheng.
But Proya’s recently released midyear results for the first half of 2025 seemed to dim those chances, showing slowing revenue growth, even as the company disclosed it may complement its current Shanghai listing with a new Hong Kong IPO to raise funds to boost its global visibility. The market was squarely focused on the slowing growth, with investors driving the company’s shares down by more than 10% over the next two weeks.