Chinese cosmetics group Proya (珀莱雅) grew third-quarter revenue 29.76 percent year on year to RMB 2.25 billion, according to its 2026 third-quarter report dated 29 October. Net profit attributable to shareholders fell 61.18 percent to RMB 88.20 million, which the company put down mainly to higher brand promotion spending.
Q3 revenue rose 29.76 percent while every profit line fell
Revenue for July to September was RMB 2.253 billion, up 29.76 percent on the same quarter of 2025. Total profit fell 46.65 percent to RMB 145.82 million.
Net profit attributable to shareholders dropped 61.18 percent to RMB 88.20 million. Net profit excluding non-recurring items fell 65.20 percent to RMB 79.04 million.
Unit: %
Q3 2026, year on year · Source: Proya, 29 October 2026
View as table
| Item | Value |
|---|---|
| Revenue | 29.76% |
| Total profit | -46.65% |
| Net profit to shareholders | -61.18% |
| Net profit excl. non-recurring items | -65.20% |
Proya links the profit drop to promotion spending on new launches and fast-growing brands
The report gives higher image and promotion expenses (形象宣传推广费) as the main reason for the fall in quarterly profit. First, the flagship brand raised promotion spending during the launch period of its core hero products.
Second, brands including Huazhixiao (花知晓), Yuanse Bota (原色波塔), Off&Relax and Jingshi (惊时) entered a period of rapid growth and received more promotional investment. Third, the company said it adjusted its channel mix and the timing of paid traffic purchases (投流) in response to market changes.
Selling expenses reached 53.2 percent of revenue in January–September
Revenue for the first nine months rose 7.46 percent to RMB 7.627 billion. Selling expenses were RMB 4.060 billion, compared with RMB 3.525 billion a year earlier, an increase of 15.16 percent on a simple calculation.
On a simple calculation, selling expenses rose from 49.7 percent of revenue in January–September 2025 to 53.2 percent in the same period of 2026. Net operating cash flow fell 61.06 percent to RMB 466.70 million, which Proya attributed to higher promotion payments and higher payments for goods.
Unit: %
January-September, selling expenses as a share of revenue · CMB calculation · Source: Proya, 29 October 2026
View as table
| Item | Value |
|---|---|
| Jan-Sep 2026 | 53.2% |
| Jan-Sep 2025 | 49.7% |
| Item | Q3 2026 | Change | Jan–Sep 2026 | Change |
|---|---|---|---|---|
| Revenue | 2,252.59 | 29.76% | 7,627.39 | 7.46% |
| Total profit | 145.82 | -46.65% | 1,485.39 | 16.79% |
| Net profit to shareholders | 88.20 | -61.18% | 1,256.10 | 22.46% |
| Net profit excl. non-recurring items | 79.04 | -65.20% | 743.28 | -25.50% |
| Selling expenses | – | – | 4,059.59 | 15.16% |
A RMB 445 million remeasurement gain lifted nine-month net profit
Nine-month net profit attributable to shareholders rose 22.46 percent, but profit excluding non-recurring items fell 25.50 percent. The report books a RMB 445.36 million gain from remeasuring a previously held equity stake at fair value, after Proya gained control of a business through a series of transactions, as a non-recurring item.
Non-recurring items totalled RMB 512.82 million for the nine months. Goodwill of RMB 923.54 million appeared on the balance sheet at the end of September, against none at the start of the year.
Inventories rose 85 percent from the start of the year
Inventories stood at RMB 1.175 billion at 30 September, up 85.1 percent on a simple calculation from RMB 634.72 million at the end of 2025. Prepayments more than doubled to RMB 371.72 million from RMB 169.43 million.
Contract liabilities rose to RMB 265.15 million from RMB 167.29 million. Cash and bank balances fell to RMB 3.009 billion from RMB 5.061 billion.
Coming up · We may follow up with selling-expense trends at other listed Chinese cosmetics companies as their third-quarter reports come in.
