Is Proya Cosmetics profitable in 2025?

Yes. Proya reported FY2025 net profit attributable to shareholders of RMB 1.50 billion, down 3.5% YoY, on operating revenue of RMB 10.60 billion, down 1.68% YoY, the company's first-ever annual revenue decline, as of December 31, 2025.

Is Proya Cosmetics laying off employees?

Headcount has shrunk modestly: Proya had 3,252 employees as of December 31, 2025, down 4.18% (142 people) from the prior year, consistent with a broader revenue slowdown rather than a large-scale layoff event.

Could AI replace Proya Cosmetics?

Unlikely. Proya uses AI as a tool for consumer analytics, marketing, and ingredient-synergy R&D (disclosed at Cosmetic 360 Paris, October 2025), but regulated NMPA manufacturing, brand trust, and physical distribution remain untouched by frontier AI as of 2026.

Who is Proya Cosmetics' biggest competitor?

Domestic rivals Mao Geping and Shanghai Chicmax are outgrowing Proya using its own Douyin/KOL playbook: Mao Geping grew revenue 31.3% and Chicmax 17.3% in H1 2025, while Proya's flagship brand fell 10.39% YoY in 2025.

Who owns Proya Cosmetics?

Proya is publicly listed on the Shanghai Stock Exchange (ticker 603605) since November 2017. Founder Hou Juncheng remains chairman; his son Hou Yameng serves as CEO and, as of July 2026, also chairs newly consolidated subsidiary Flower Knows.

Is Proya's flagship brand still growing?

No. The core PROYA brand declined 10.39% year-over-year in 2025, its first-ever contraction, with its share of group revenue falling from over 80% to 72.5% as of December 31, 2025, even as total group revenue also fell 1.68%.

Consumer brands · China

Proya Cosmetics Co., Ltd.

proya.com ↗

Mass-market Chinese skincare maker behind the PROYA brand, sold mainly via Douyin and Tmall.

Losing its protection

Assessed 25 July 2026 · Evidence as of 25 July 2026

The structural protection is eroding.

On the recordSince 25 July 2026 · Checkable from August 28, 2026 · Every call on the record Checkpoint: Q2 2026 earnings, checking whether the PROYA brand decline stabilizes and selling costs fall from 49.6% of revenue

The call

Proya is still China's biggest mass skincare seller by name, but its main brand is shrinking while faster domestic rivals eat the growth it used to own.

Proya makes skincare and cosmetics sold mainly through Chinese livestream shopping and retail, with a 20-year history and university research backing. It faces a real problem: its flagship brand shrank 10% in 2025 while competitors Mao Geping and Chicmax are growing 31% and 17% by using the same livestream strategy but faster and cheaper. The company is spending half its revenue on ads just to keep sales flat, which squeezes profits. The one thing that could change everything is whether Proya's recent acquisitions (like the Flower Knows brand) and its push to list in Hong Kong actually spark new growth, or whether those moves just distract from a business losing its edge.

Why

AI pressure: None apparent. AI tools help run ads and livestreams for everyone in this market, but no AI product replaces buying skincare. Could AI do the core job? Unlikely.

Bigger players: Mao Geping Cosmetics and Chicmax. Both domestic rivals grew double digits in H1 2025 on the same Douyin playbook while Proya's flagship brand fell 10.4% for the year. Could a giant copy it? Yes, easily.

What protects it. Still the profitable, dividend-paying market leader with a top-2 Douyin GMV spot and two decades of buyer data.

What would change this call

Proya's Q2 2026 earnings (due ~Aug 28, 2026) show PROYA brand revenue trend. Would show whether flagship brand decline is stabilizing or worsening.
Selling expense ratio reported in FY2026 filings versus 49.63% in FY2025. Would show whether marketing spend needed to defend sales is rising or easing.
Mao Geping and Chicmax report H1/FY2026 revenue growth rates versus Proya's. Would show whether domestic peers continue outgrowing Proya or the gap narrows.

Key numbers

FY2025 revenue RMB 10.60bn, down 1.68% YoY (2025-12-31)
Flagship PROYA brand revenue down 10.39% YoY (2025-12-31)
Selling expenses at 49.63% of revenue (2025-12-31)

Named risks

Flagship PROYA brand decline (-10.39% in 2025) may continue or steepen through 2026. Severity: high
Selling expenses at 49.63% of revenue signal margin squeeze to defend flat/declining sales. Severity: high
Flower Knows integration risk amid founder demotion and co-founder board exit ahead of Q3 2026 consolidation. Severity: medium
Pending Hong Kong A+H dual listing could dilute shareholders if completed. Severity: medium
Faster domestic rivals Mao Geping and Chicmax replicate Proya's Douyin playbook with no structural barrier to entry. Severity: high

Rivals, as read in July 2026

Rival	Direction	Evidence
Mao Geping Cosmetics	gaining on	Revenue grew 31.3% YoY to RMB 2.58bn in H1 2025 while Proya's flagship declined
Shanghai Chicmax	gaining on	Revenue grew 17.3% YoY to RMB 4.1bn in H1 2025 versus Proya's contraction
Marubi Biotechnology	contesting	Both pursuing A+H Hong Kong dual listing applications as of June 2026
L'Oreal / Estee Lauder	contesting	Single opinion source (Feb 2026) claims Proya overtook them in China online sales in 2025, unverified

Questions people ask

Is Proya Cosmetics profitable in 2025?: Yes. Proya reported FY2025 net profit attributable to shareholders of RMB 1.50 billion, down 3.5% YoY, on operating revenue of RMB 10.60 billion, down 1.68% YoY, the company's first-ever annual revenue decline, as of December 31, 2025.
Is Proya Cosmetics laying off employees?: Headcount has shrunk modestly: Proya had 3,252 employees as of December 31, 2025, down 4.18% (142 people) from the prior year, consistent with a broader revenue slowdown rather than a large-scale layoff event.
Could AI replace Proya Cosmetics?: Unlikely. Proya uses AI as a tool for consumer analytics, marketing, and ingredient-synergy R&D (disclosed at Cosmetic 360 Paris, October 2025), but regulated NMPA manufacturing, brand trust, and physical distribution remain untouched by frontier AI as of 2026.
Who is Proya Cosmetics' biggest competitor?: Domestic rivals Mao Geping and Shanghai Chicmax are outgrowing Proya using its own Douyin/KOL playbook: Mao Geping grew revenue 31.3% and Chicmax 17.3% in H1 2025, while Proya's flagship brand fell 10.39% YoY in 2025.
Who owns Proya Cosmetics?: Proya is publicly listed on the Shanghai Stock Exchange (ticker 603605) since November 2017. Founder Hou Juncheng remains chairman; his son Hou Yameng serves as CEO and, as of July 2026, also chairs newly consolidated subsidiary Flower Knows.
Is Proya's flagship brand still growing?: No. The core PROYA brand declined 10.39% year-over-year in 2025, its first-ever contraction, with its share of group revenue falling from over 80% to 72.5% as of December 31, 2025, even as total group revenue also fell 1.68%.

Timeline

2026-07-22Hou Yameng, founder's son, becomes CEO and chairman of consolidated subsidiary Flower Knows
2026-06-21Proya among firms submitting H-share listing application for A+H dual listing, pending
2026-05-28Proya raises Flower Knows stake to 51% for RMB 351M more, total valuation RMB 2.8bn
2026-03-31Q1 2026 revenue RMB 2.31 billion, down 2.29% YoY
2026-03Skin Clinical Science and Innovation Laboratory established with Shanghai Skin Disease Hospital
2026-01Proya enters OTC channel combining cosmetics and medical devices
2025-12-31FY2025 revenue RMB 10.60bn, down 1.68% YoY, first annual decline in company history
2025-09-10Proya announces plans for Hong Kong secondary listing to fund global expansion
2025-09Proya acquires initial 38.45% stake in Flower Knows for RMB 428M
2025-08Proya launches Energy Series 2.0 with Cellergy pro ingredient
2017-11Proya IPO on Shanghai Stock Exchange, raising approximately RMB 767 million

Revision history

25 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

In the same band

PVH VF Kering