THE WHAT? Chinese beauty company Proya Cosmetics has increased its investment in makeup brand Flower Knows, securing a controlling stake as part of its multi-brand expansion strategy.
THE DETAILS Proya acquired an additional 12.6% stake in Flower Knows from shareholder Yang Zifeng for CNY351 million, following an earlier investment made through subsidiary Proya Hainan last year. The latest transaction raises Proya’s indirect ownership in Flower Knows to 51%, meaning the brand will now be consolidated into Proya’s financial results. Flower Knows generated revenue of CNY1.7 billion and net profit of CNY280 million last year, making it Proya’s second-largest cosmetics brand. Proya said the acquisition will strengthen its position in the colour cosmetics category and support its broader multi-brand, multi-category growth strategy. The investment comes as Proya seeks new growth drivers amid slowing performance in its core skincare business, with revenue and profit declining last year. Meanwhile, the company’s makeup brands, including Timage and Insbaha, delivered strong growth.
THE WHY? The acquisition reflects increasing consolidation within China’s beauty sector as major domestic companies look to diversify beyond skincare, strengthen their colour cosmetics portfolios and accelerate growth through strategic brand investments.
Source: YICAI Global
