Chinese beauty company Shuiyang Group (水羊集团) spent RMB 1.99 billion on selling expenses in January–September 2026, 54.32 percent of revenue on a simple calculation, up from 50.47 percent a year earlier. Revenue rose 7.58 percent and net profit attributable to shareholders fell 25.77 percent, its third-quarter report of 30 October shows.
Selling expenses rose 15.80 percent, twice as fast as revenue
Selling expenses for the nine months were RMB 1.992 billion, against RMB 1.720 billion a year earlier, an increase of 15.80 percent on a simple calculation. Revenue grew 7.58 percent to RMB 3.668 billion over the same period.
Cost of sales was almost flat at RMB 1.164 billion, so gross margin rose from 66.00 percent to 68.25 percent on a simple calculation. Administrative expenses rose 9.65 percent to RMB 211.11 million and research and development spending rose 5.55 percent to RMB 79.10 million, also on a simple calculation.
Unit: %
January-September, selling expenses as a share of revenue · CMB calculation · Source: Shuiyang Group, 30 October 2026
View as table
| Item | Value |
|---|---|
| Jan-Sep 2026 | 54.32% |
| Jan-Sep 2025 | 50.47% |
| Item | Jan–Sep 2026 | Jan–Sep 2025 | Change |
|---|---|---|---|
| Revenue | 3,667.57 | 3,409.02 | 7.58% |
| Cost of sales | 1,164.45 | 1,158.98 | 0.47% |
| Selling expenses | 1,992.31 | 1,720.40 | 15.80% |
| Administrative expenses | 211.11 | 192.53 | 9.65% |
| R&D expenses | 79.10 | 74.94 | 5.55% |
Third-quarter revenue rose 27.34 percent
Revenue for July to September was RMB 1.158 billion, up 27.34 percent year on year. Net profit attributable to shareholders rose 9.39 percent to RMB 13.76 million, and net profit excluding non-recurring items rose 49.23 percent to RMB 15.45 million.
For the nine months, net profit attributable to shareholders was RMB 100.87 million and profit excluding non-recurring items fell 24.61 percent to RMB 98.72 million. Net operating cash flow fell 23.14 percent to RMB 145.27 million.
Unit: %
Year on year · Source: Shuiyang Group, 30 October 2026
View as table
| Item | Value |
|---|---|
| Q3 revenue | 27.34% |
| Q3 net profit to shareholders | 9.39% |
| Q3 net profit excl. non-recurring items | 49.23% |
| Jan-Sep revenue | 7.58% |
| Jan-Sep net profit to shareholders | -25.77% |
| Jan-Sep net profit excl. non-recurring items | -24.61% |
Inventory write-downs pushed impairment losses to RMB 45.51 million
Asset impairment losses for the nine months were RMB 45.51 million, compared with RMB 34.70 million a year earlier. The company said the increase mainly reflected provisions for inventory write-downs.
Inventories were RMB 812.13 million at 30 September, against RMB 752.44 million at the start of the year. Prepayments rose 36.62 percent to RMB 197.48 million, which Shuiyang attributed to higher advance payments to suppliers.
Convertible bonds were redeemed and long-term borrowings doubled
Shuiyang’s board approved the early redemption of its convertible bonds on 13 July 2026. The company redeemed the 14,303 bonds still unconverted at the 3 August record date at RMB 100.602 each, including interest.
Bonds payable fell to zero and capital reserve rose 147.22 percent, which the company linked to conversion and redemption; equity attributable to shareholders rose 30.54 percent from the end of 2025. Short-term borrowings fell 90.43 percent to RMB 30.00 million, while long-term borrowings rose 109.33 percent to RMB 601.30 million.
Coming up · We may follow up with a comparison of selling-expense ratios across China’s listed cosmetics companies for January–September.
