Botanee Goes Public, Winona Announces Shu Qi as Its Brand Spokesperson

Botanee Goes Public, Winona Announces Shu Qi as Its Brand Spokesperson

At 9:25 a.m. on March 25 (Beijing time), Yunnan Botanee Bio-Technology Group Co., Ltd. (stock code: 300957, hereinafter referred to as "Botanee") went public on the ChiNext Market of Shenzhen Stock Exchange. The senior management of the Group invited loyal consumers to ring the bell in person to witness the historic moment, which made it one of the top enterprises in China's cosmetics industry in terms of market value. Moreover, Shu Qi, an international movie queen, was officially announced as the first-ever spokesperson of Winona, a core cosmeceutical brand of Botanee for sensitive skin. The inspiring news has driven China's cosmetics industry into a new era of competition.

Photo: Botanee gets listed on the Shenzhen Stock Exchange on March 25.

On the night before its IPO, Botanee held a grand appreciation banquet in Grand Hyatt Shenzhen, graced by the presence of representatives of the Board of Directors and shareholders, senior management of the Group, government representatives, partners, and representatives of consumers and employees. At the banquet, Dr. Guo Zhenyu, Chairman and General Manager of Botanee Group, remarked in his speech, "The listing of Botanee stands as a significant milestone and a new beginning in the Company's journey. Botanee has experienced evolution since its inception. Our strategies have changed, but two key points remain steadfast—the passion in our hearts and our commitment to strategic goals. Botanee has seized the opportunities for rapid growth, growing into a leading player in the cosmetics industry. As we look ahead, Botanee will insist on our vision to bring health and beauty to everyone. We will stay true to our mission of creating China's skin health ecosystem, and continue driving the progress of the skin health sector in the country."

Photo: Dr. Guo Zhenyu, Chairman and General Manager of Botanee Group, delivers a speech.

Afterwards, a representative of Winona's loyal consumers said, "I am honored to be invited to participate in the historical event of Botanee, the parent company of Winona. It is a proud experience in my life. Hundreds of millions of loyal users have always trusted and loved Winona. In our hearts, Winona is the representative of the high-quality Chinese goods because every product gives us a really efficacious healthy skin care experience." More surprisingly, Yang Liping, a national treasure artist, premiered the Spring Ox Dance, an original artistic dance work like those at the Spring Festival Gala, at the banquet, implying that Botanee will welcome the bull market in the Year of the Ox. The world-renowned dance artist born as a member of the Bai ethnic group in Yunnan felt more close to Botanee, founded in her hometown. With her commitment to promoting China's minority culture, she said she was very happy that her work created with dedication was premiered on the stage of a Chinese brand in the spotlight, which was a rare glorious stage that can spread China's culture and art to the world.

Photo: Yang Liping, a national treasure artist, debuts the Spring Ox Dance.

Photo: Botanee's loyal consumer representative makes a speech.

Previously, China's cosmetics industry saw a small climax of IPOs. However, Botanee, as a dark horse, turned out to be the first listed company that focuses on cosmeceuticals.

According to a report by an investment institution, China's cosmeceutical market reached RMB 74 billion in 2019, and is expected to exceed RMB 100 billion by 2025. The listing signifies Botanee's official announcement of its readiness to be a benchmark of Chinese products in the segment.

1

With a decade of efforts, Botanee becomes a leading cosmeceutical enterprise

Since its inception in 2010, Botanee, based on a decade of expertise, has managed to position itself as a leader in the cosmeceutical industry. As a healthcare group integrating R&D, production and marketing with focus on skin health internet + business, Botanee is committed to creating China's skin health ecosystem and advancing the country's skin health sector.

Photo: Headquarters of Botanee Group

In terms of product R&D, Botanee has cooperated with scientific and technological talents in dermatology, botany and biology at home and abroad to develop an integrated platform for collaboration among companies, universities and research institutes. It has introduced three high-end talents such as French Professor Philippe Humbert, President of the International Society of Cutaneous Pharmacology, to explore the efficacious skin care ingredients hidden deep in Yunnan's plateau plants. Moreover, the Group has utilized cutting-edge science and technology to ensure each product becomes a model of cosmeceuticals. The safety and efficacy of Botanee's products have been clinically verified by 54 hospitals. Regarding marketing channels, Botanee maintains a balance by leveraging offline channels while focusing on online platforms. Embracing internet-based thinking, the Group has integrated its offline and online presence and achieved collaboration of all sales channels. Reaching diverse consumer groups helps Botanee accelerate sales growth and enhance overall profitability.

ach brand targets a specific market segment to meet the needs of consumers with different skin types in various age groups. From 2017 to the first half of 2020, the proportion of sales revenue of core brands other than Winona in main business income increased from 0.32% to 0.94%, and that in operating revenue was also growing. At the same time, differentiated positioning of each brand helps cover multi-age and multi-level customer groups, continuously improving the market position of other skin care brands such as sub-brands.

With years of great efforts to develop channels and meet consumer needs, Botanee has already delivered excellent market performance.

From 2017 to 2020, the operating revenue of Botanee was RMB 798 million, RMB 1.240 billion, RMB 1.944 billion and RMB 2.692 billion respectively. That from 2018 to 2020 increased by 55.44%, 56.69% and 38.49% respectively compared with the same period of the previous year.

Botanee's net profit attributable to the parent company in 2017-2020 was RMB 154 million, RMB 263 million, RMB 413 million and RMB 544 million respectively. From 2018 to 2020, that increased by 69.58%, 58.12% and 31.94% respectively compared with the same period of the previous year. Even affected by the COVID-19 pandemic in 2020, Botanee maintained a high growth rate.

After the IPO, Botanee will continue to improve product capacity and production efficiency, expand and consolidate marketing network, increase input in brand publicity and enhance the level of informatization. In this way, it will strengthen product competitiveness, enhance brand influence and achieve sustainable and stable growth in operating revenue and net profit.

Botanee will continue to shoulder the mission of "creating China's skin health ecosystem" with Winona as its core strategic brand, and launch the Group's all-brand strategy in the field of cosmeceuticals. By virtue of abundant plant resources in Yunnan, Botanee practices its market-share-first strategy by prioritizing the application of active ingredients from pure natural plants, such as prinsepia utilis oil and purslane extract.

Photo: Extracts from Yunnan's natural plants

2

Winona manages to comprehensively lead the cosmeceutical market in China

On the day when Botanee went public, Winona, its core cosmeceutical brand, officially announced as the first-ever spokesperson Shu Qi, an international movie queen. The news immediately triggered a wave of public opinion on social media platforms, in the show business, in media circles and inside and outside the industry.

Photo: On March 25, Winona, Botanee's cosmeceutical brand, officially announces as its spokesperson Ms Shu Qi, a globally renowned actress in the film industry.

The brand spokesperson Shu Qi released Winona's new television commercial on her Sina Weibo account, where she, in a simple but elegant white dress, roams in the gallery of a beautiful art museum filled with a sense of technology. "Focus on your career, focus on yourself, focus on every aspect, and make every aspect professional." Shu Qi perfectly interprets her attitude of pursuing career and self development, and also represents the self-confidence of many modern women who "focus on every aspect". "Concentration fosters expertise and enables people to become professionals." This philosophy, which Shu Qi upholds and pursues, mirrors the steadfast brand value of Winona ever since its inception. The collaboration between Shu Qi and Winona is based on shared spiritual pursuit.

As a cosmeceutical brand dedicated to the mission of solving common skin problems of Chinese people, Winona has directly entered the sensitive skin care segment with its unique insight and foresight. It is committed to conducting continuous research in the field of sensitive skin problems, providing correct repair and scientific skin care concepts, and advocating precision skin care. This is based on the founder's confidence in scientific research. Inspired by Winona, authoritative dermatologists, biologists and botanists at home and abroad have joined the R&D team, and embarked on their dedicated journey. Winona's dermatology expert team has completed lots of basic research on the root cause of problematic skin and screening of active substances, produced 128 high-quality academic papers which have been published in top academic journals including Nature Communications, and participated in the formulation of 13 expert consensus and guidelines for guiding clinical dermatology in China. Relevant academic achievements have attracted the attention of the global dermatology community.

As a cosmeceutical brand dedicated to the mission of solving common skin problems of Chinese people, Winona has directly entered the sensitive skin care segment with its unique insight and foresight. It is committed to conducting continuous research in the field of sensitive skin problems, providing correct repair and scientific skin care concepts, and advocating precision skin care. This is based on the founder's confidence in scientific research. Inspired by Winona, authoritative dermatologists, biologists and botanists at home and abroad have joined the R&D team, and embarked on their dedicated journey. Winona's dermatology expert team has completed lots of basic research on the root cause of problematic skin and screening of active substances, produced 128 high-quality academic papers which have been published in top academic journals including Nature Communications, and participated in the formulation of 13 expert consensus and guidelines for guiding clinical dermatology in China. Relevant academic achievements have attracted the attention of the global dermatology community.

Photo: Winona, a cosmeceutical brand focusing on solutions for sensitive skin

A major contributor is Winona's flagship product—Sensitiveness Relieving Moisturizing Tolerance-Extreme Cream. With a simplified high-tolerance formula, it is specially designed for hypersensitive skin. Rich in prinsepia utilis oil, purslane essence, bimolecular sodium hyaluronate and natural mushroom glucan, the product has three major effects: soothing, timely relieving irritation and repairing skin barrier. Therefore, it has gained international and academic acclaim.

Thanks to its strong efficacy and eye-catching design, the Cream is very popular with consumers. It has a good reputation and high stickiness in a short time, with the repurchase rate of users reaching 70%. During the 2020 Singles Day Shopping Festival alone, the single product's sales hit a record high of RMB 180 million.

Thanks to its strong efficacy and eye-catching design, the Cream is very popular with consumers. It has a good reputation and high stickiness in a short time, with the repurchase rate of users reaching 70%. During the 2020 Singles Day Shopping Festival alone, the single product's sales hit a record high of RMB 180 million.

Photo: Winona's flagship product—Sensitiveness Relieving Moisturizing Tolerance-Extreme Cream

The wide reputation of the flagship product in the market and among consumers is closely related to the R&D strength and ingenuity behind. With professional certification, super strong product power and professional endorsement of dermatology, the Cream has laid a solid foundation for Winona to quickly establish a cosmeceutical brand image.

According to Euromonitor, Winona ranked first in China's dermatological-grade skin care market in 2019. In the high-speed development of China's dermatological-grade skin care market from 2014 to 2019, Winona ranked first with a market share of 23.4%, surpassing well-known cosmeceutical brands such as Avene, La Roche-Posay, Bioderma and Vichy.

3

Core advantages help build a leading player of Chinese cosmeceuticals

After laying a solid foundation in R&D and channels, subtle marketing has boosted Winona's further growth.

First of all, professional endorsement of dermatology. With 2-4 online expert Q&A sessions every month, Winona has held hundreds so far. Without face-to-face communication, the sessions reduce the pressure of communication and the time and money costs of consumers, and make consumers more trustful of Winona's professionalism, thus increasing traffic to flagship stores and realizing sales conversion.

Second, cross-industry co-branding. Co-branding with China Post and Disney prompted the brand to gain popularity. During the 618 Shopping Festival in 2020, Winona and China Post launched a co-branded customized gift package and merchandise with the themes of "sensitiveness" and "protection", setting off a wave of domestic product craze and attracting a large number of fans in a short time. During the Singles Day Shopping Festival in 2020, Winona and Disney jointly launched another customized gift package, with 100,000 bottles sold during the big promotion.

Third, livestreaming marketing. The brand has held continuous livestreaming sessions. Especially in the big promotion during the Singles Day Shopping Festival, Winona delivered a large number of livestreaming advertisements. For example, during the Shopping Festival in 2020, only six livestreaming sessions by Austin Li brought Winona a gross merchandise volume (GMV) of nearly RMB 200 million. In addition to the cooperation with top- and mid-tier KOLs, store livestreaming is also the core of brand marketing. During the Shopping Festival in 2020, Winona's official flagship store conducted over 80 livestreaming sessions, and finally achieved a GMV of RMB 200 million, too.

The listing of Botanee, the parent company of Winona, is a monument to its comprehensive strength and market recognition. Relying on a professional and strong background in dermatological skin care, it has steadily entered the cosmeceutical segment worth RMB 100 billion.

On the day of Botanee's listing, Winona, in cooperation with Tmall Hey Box, launched its first early anti-aging essence specifically for sensitive skin, known as Double-Repair Ageless Essence. This product aims to offer a more professional, scientifically proven anti-aging solution that caters to the needs of sensitive skin, thereby setting a new benchmark in anti-aging care for this skin type. During the new product release, consumers have the opportunity to receive exclusive gifts upon paying a pre-order deposit. Visit https://winona.tmall.comto get this product. Let's maintain healthy and youthful skin with dual repair mechanisms with antioxidants and anti-glycation elements.

Photo: Winona joins hands with Tmall Hey Box to make a debut

Botanee will continue to create more brands and products like Winona, which has gained wide acclaim in the market and among consumers. While Botanee comprehensively promotes the steady development of the skin health sector in China, its group operation has taken shape. With a strong multi-brand matrix, it will occupy a larger market share in an all-round way, and make every effort to build a leading player of Chinese cosmeceuticals.