Eternal Beauty, China’s Largest Fragrance Distributor, Revives Hong Kong IPO Bid

Denni Hu
·2-min read

Eternal Beauty, China‘s largest fragrance distributor, has recently resubmitted its main board listing application in Hong Kong. The company initially filed for an IPO last July.

According to the company’s preliminary prospectus, the Hong Kong-based firm works with 66 global brands across perfume, color cosmetics, and skin care. Its brand management portfolio includes Hermès, Van Cleef & Arpels, Chopard, Albion and Laura Mercier.

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Out of the 66 brands, the company has secured exclusive or sub-licensing rights for 59 in mainland China, Hong Kong, and Macau.

For the recent two quarters, or the six months ended Sept. 30, 83 percent of the company’s revenue came from perfume sales, 10 percent from color cosmetics, and 5 percent from skin care products. Remaining revenues come from Santa Monica, an eyewear brand, and retail management fees.

For the year ended March 31, 2024, revenue grew 1.4 percent year-over-year to reach 1.8 billion renminbi, or $246 million, while gross profit rose 9.7 percent to reach 938 million renminbi, or $128 million, according to the company prospectus. For the six months ended September 2024, revenue jumped 14.2 percent year-over-year to 1 billion renminbi, or $136 million, while profit grew 20 percent to 115 million renminbi, or $15 million.

Eternal Beauty, founded by Lau Kui Wing, a Cathay Pacific flight attendant-turned-entrepreneur, began distributing global perfume brands in mainland China in 1987.

In 2005, it began working with Hermès to distribute its fragrances in the market. The company currently works with a network of distributors and retailers that spans 7,500 points of sale in more than 400 Chinese cities.

Last November, the company launched Perfume Box, a multibrand fragrance concept store in Shanghai, Shenzhen, and Kunming.

According to the prospectus, Eternal Beauty ranked as the fourth-largest perfume group in mainland China and the largest brand management company by perfume retail sales in 2023, with a market share of about 8.1 percent. According to data from Frost & Sullivan, China’s perfume market has entered its “high-quality development stage” and is expected to grow at a 12 percent rate annually to 47.7 billion renminbi, or $6.5 billion, in 2028.

Per capita spending in China is expected to grow by an average of 14 percent per year from 2023 to 2027, outperforming Japan, South Korea, the United States, and the United Kingdom, according to the research firm.

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