(Yicai) May 22 -- Shares of Proya Cosmetics advanced after the Chinese beauty and skincare brand said it further invested in Flower Knows, ultimately seizing a controlling stake in the Chinese makeup brand.

Proya [SHA: 603605] closed up 5.1 percent at CNY58.19 (USD8.56) in Shanghai today.

Proya acquired 12.6 percent of Flower Knows from Yang Zifeng for CNY351 million (USD51.6 million), it announced yesterday. This was the second investment made by Proya in Flower Knows this year.

Last August, Proya said it had subscribed for registered capital of CNY370,000 (USD54,400) in Flower Knows through its wholly-owned subsidiary Proya Hainan, becoming the target company’s second-largest shareholder, with a 38.5 percent stake.

Proya now indirectly holds a 51 percent stake in Flower Knows, which will be included in the company’s consolidated financial statements. With revenue of CNY1.7 billion and a net profit of CNY280 million last year, Flower Knows will become Proya’s second-largest cosmetics brand.

Flower Knows will complement the firm’s existing makeup brands to further strengthen its presence in the makeup category and meet its multi-brand and multi-category strategy, Proya pointed out.

Proya has developed rapidly in recent years and reported operating revenue of over CNY10 billion (USD1.5 billion) in 2024, becoming the first Chinese beauty brand to achieve the milestone. However, its growth has slowed down, and its performance has been under pressure since last year.

The firm’s operating revenue fell 1.7 percent to CNY10.6 billion last year from 2024, and its net profit shrank 3.5 percent to CNY1.5 billion (USD220.7 million). The namesake brand Proya mainly focuses on skincare products, with an income of CNY7.7 billion in 2025, down 10 percent from the previous year.

In an effort to achieve breakthroughs, Proya also expanded through other sub-brands for diversification. Its makeup business grew rapidly last year, with its brands Timage and Insbaha reporting operating revenues of CNY1.3 billion and CNY256 million, up 5.4 percent and 125 percent, respectively.

Editor: Futura Costaglione