Shuiyang Shares acquires another international high-end brand.

On October 17th, Shuiyang Co., Ltd. released a record of investor relations activities, announcing the official acquisition of the American high-end skincare brand RéVive. It is understood that the transaction amount does not meet the disclosure standards, but the brand valuation of RéVive is slightly lower than that of EDB acquired two years ago. Shuiyang Co., Ltd. believes this is a highly cost-effective transaction. In the future, Shuiyang plans to strengthen support for RéVive's business in the U.S. market, including synergies in global supply chain and R&D. Additionally, Shuiyang will leverage its e-commerce operation strengths combined with RéVive's independent site in the U.S. to promote the brand's expansion in the e-commerce market.

Shuiyang Co., Ltd.'s Second "EDB"

RéVive was founded by the renowned plastic surgeon Dr. Gregory Brown and is positioned at the cutting edge of scientific skincare. After years of research, Dr. Brown discovered an important small molecule protein called Epidermal Growth Factor (EGF). EGF is widely present in human skin cells, and as its levels decrease with age, it leads to skin aging phenomena such as wrinkles and sagging.

In 1986, Dr. Brown received a Nobel Prize for this discovery and successfully registered related patents in 1994. In 1997, the high-end medical skincare brand RéVive was launched with EGF as its core. RéVive, based on "bio-renewal technology," offers scientifically formulated and efficient products focused on anti-aging, aiming to restore youthful skin, attracting aging women with anti-aging needs.

Public information shows that in 2008 Dr. Brown sold the company to Gurwitch Products, with assets valued at less than twice RéVive's annual sales, approximately $25 million. In 2016, Shiseido acquired Gurwitch Products, including Laura Mercier and RéVive, for $260 million. In 2017, private equity firm Tengram Capital Partners bought back RéVive from Shiseido Americas, and Dr. Brown reinvested and rejoined the company's board.

The brand has a broad presence in both online and offline U.S. markets, reaching over 100 high-end department stores, including all BlueMercury luxury beauty chain stores and the high-end beauty chain Cos Bar.

Additionally, the brand's independent site online sales are rapidly growing.

By replicating high-end brand management capabilities for PA, Shuiyang propelled the brand's performance in China in 2023 to exhibit geometric growth. Currently, the global GMV scale of the PA brand is about $35 million to $40 million, comparable to EDB's level in 2021. The average order value for PA is about $200, positioning the brand in high-end beauty, complementing EDB's luxury brand positioning, thus perfecting Shuiyang's high-end strategy layout.

In recent years, Shuiyang has been actively committed to building a "global emerging high-end luxury beauty brand management group." Currently, it has established partnerships with over 50 international brands, including Ifiden, KIKO, CELLEX-C, MEMO PARIS, MESOESTETIC, NESCENS, LUMENE, among others.

Shuiyang Company has created an innovative model of the "Global Beauty Best CP (China Partner)," promoting the joint development of its own brand system and Shuiyang International CP's two major business systems, and has established deep cooperation with characteristic enterprises in globally developed beauty regions, thereby completing the layout of segmented categories in the large beauty category.

The acquisition of the new brand RéVive further enhances Shuiyang's high-end brand management capability while strengthening the company's brand layout in the U.S. market. According to the semi-annual report of Shuiyang Co. this year, during the reporting period, the company achieved operating revenue of 2.293 billion yuan, an increase of 0.14% year-on-year; however, the net profit attributable to shareholders of the listed company decreased to 106 million yuan, down 25.74% year-on-year; excluding non-recurring gains and losses, the net profit was 119 million yuan, down 19.07% year-on-year.

The semi-annual report pointed out that the decline in net profit was mainly due to the company's focus on brand asset building during the reporting period, striving to amplify brand potential and sustainable development, thus increasing corresponding expenses in brand promotion and market investment, which impacted the operating performance of the current period.

As Shuiyang Co. continues to strengthen its international development and high-end skincare market layout through a "buy, buy, buy" strategy, whether it can demonstrate stronger operational resilience in the future will be closely watched by the CBO.