Lafang China

Lafang China released its 2026 interim report, with net profit attributable to the parent company surging 484.5% year on year to 37.18 million yuan. The company's first-half operating revenue was 440 million yuan, up 7.2% year on year; net profit attributable to the parent after deducting non-recurring items was 36.2 million yuan, up 1,474.5% year on year; and net operating cash flow was 43.8 million yuan, up 85.1% year on year. Second-quarter net profit attributable to the parent was 15.72 million yuan, successfully turning from loss to profit. The company said that during the reporting period it continued to advance business and category structure optimization and quality upgrades, deepened refined operations and cost control, and drove sustained enhancement of profitability.

The beauty and personal care sector rose 3.58% intraday. Lafang China gained 9.98%, SYoung Group rose 6.35%, Marubi Biotechnology climbed 5.03%, Shanghai Jahwa advanced 4.31%, and Huaye Spice added 4.12%. According to the National Bureau of Statistics, cosmetics retail sales in June 2026 reached 45.6 billion yuan, the highest for the same month in nearly a decade, up 12.6% year-on-year. For the first six months, total cosmetics retail sales amounted to 244.5 billion yuan, a year-on-year increase of 6.3%. Haitong International noted that China's cosmetics industry entered a stock competition phase in 2026, with full-year retail sales growth expected to reach 11%, and the market share of domestic brands likely to rise to 51%. Shenwan Hongyuan believes the industry is entering a new development cycle driven by efficacy innovation, where research and development of functional ingredients and clinical validation capabilities will become core competitive barriers.