On October 30, 2020, the parent company of Perfect Diary Guangzhou Yixian E-commerce Co., Ltd. (hereinafter referred to as "Yixian E-commerce") submitted a prospectus to the United States Securities and Exchange Commission (SEC) for listing in the United States. In the years before that, Yixian E-commerce completed a total of more than $240 million in financing.

Yixian E-commerce is a brand new brand rapidly emerging in the field of beauty and skin care in China through social media communication and the "ultimate cost-effectiveness strategy", which has developed to a revenue scale of 3 billion yuan in just four years. It has been developed for more than ten years and is not equal to China's leading cosmetics and skin care enterprises, such as Pelaier.

But under the rapid expansion, the worries of perfect diary are also obvious. "Before, Perfect Diary quickly made market scale through the low-cost strategy of burning money. Under the market space of tens of billions of dollars in China, there will also be a cost-effective market. But it is clear that at present, the profitability of Perfect Diary has been a problem." Bai Yunhu, general manager of Shanghai Yuemakeup Information Technology Co., Ltd., told China Business News.

Listing in the United States(About the perfect diary us)

On October 30, 2020, the parent company of Perfect Diary, Yixian E-commerce, submitted a prospectus to the United States Securities and Exchange Commission (SEC) and will go public in the United States.

In response, Shen Meng, director of Xiangsong Capital, said: "The founder of Yixian E-commerce was born as a professional manager in the United States, and there are many American funds in multiple rounds of financing. Together with Amazon, Pinduoduoduo, etc., American shares have a reasonable understanding of the valuation of e-commerce enterprises. However, the flexibility and institutional nature of Hong Kong shares and A-shares are not as good as those of American shares, which is the reason why Yixian E-commerce chose to list in the United States market."

According to the public data, Perfect Diary was founded in 2016. The team founder Huang Jinfeng was born in P&G and used to be the COO of the famous e-commerce facial mask brand Yunifang. After its establishment, Perfect Diary caught the wind of social media and quickly rose in the industry through the "extreme cost performance strategy". Up to now, Yixian E-commerce has three beauty and skin care brands: Perfect Diary, Little Otin and Wanzixin.

In terms of business performance, the prospectus shows that in the third quarter of 2020, Yixian e-commerce revenue was 3.272 billion yuan, up 73.20% year on year; However, it suffered losses in the third quarter of 2020, with a net profit of - 500 million yuan.

On the eve of the IPO, Yixian E-commerce completed a US $140 million financing in September this year. According to the data of Tianyan, up to now, Yixian E-commerce has obtained more than 240 million US dollars, a total of five rounds of financing. The prospectus shows that the current equity structure of Yixian E-commerce is: Huang Jinfeng holds 27.7% of the shares; Hillhouse Capital, True Fund, Gaorong Capital and Maybe Cat Holding Limited hold 13.8%, 10.5%, 9.2% and 8.3% respectively.

Bai Yunhu previously told reporters: "In the current Chinese cosmetics market, Perfect Diary belongs to such a type: under the rapid iteration of China's commercial society and the rapid change of channels, the performance of such brands depends not on the precipitation of time and brands, but on capital. This makes them have a strong capital attribute. Investment institutions will require cash out within a certain period of time, and similar beauty brands also have Huaxizi Therefore, listing is the only way to perfect diary. "