(Yicai) May 20 -- Chinese beauty and skincare giant Proya Cosmetics plans to acquire international brands to fill business gaps in the premium beauty market and enhance its competitiveness, with domestic rivals continuing to gain ground.

Proya is considering overseas asset acquisitions through its branch in Paris to plug holes in various business segments, including baby care, perfume, and men's skincare, Chairman Hou Juncheng said at the Hangzhou-based firm's 2024 annual shareholder meeting yesterday. The newly acquired brands and products would then be introduced into the Chinese market, Hou added.

Overseas acquisition plans remain an initiative with no specific details, Hou pointed out.

Proya became the first Chinese beauty firm with an annual revenue of over CNY10 billion (USD1.4 billion), with its income jumping 21 percent to CNY10.8 billion last year from the previous year. Its net profit rose 30 percent to CNY1.6 billion (USD221.9 million).

For the first quarter, its net profit jumped 29 percent to CNY390 million (USD54.1 million) from a year ago, while its revenue climbed 8.1 percent to CNY2.5 billion.

Proya has bought multiple brands previously, including cosmetics brand C-Trolley in 2019 and Japanese hair and skin care brand Off & Relax in 2021. However, relevant revenue accounts for only a small share of its total.

"'Investment, mergers, and acquisitions are the optimal path for the sustained development of local industry-leading companies," Bai Yunhu, a beauty business expert and founder of Meiyun Space E-commerce, told Yicai.

Yatsen Holdings, the parent firm of Chinese make-up retailer Perfect Diary, previously acquired Galénic and Hong Kong-based skincare brand Eve Lom, while Shuiyang Group bought EviDenS de Beauté. EviDenS and Galénic's main products sell for around CNY1,000 (USD138.70) apiece.

Self-incubated brands are mostly used in the mass market, while premium ones rely on acquiring existing international brands, Bai noted, adding that for the Chinese market, the operating costs of niche or luxury brands are still relatively high.

Editors: Tang Shihua, Martin Kadiev