Core Viewpoint - Ying Tong Holdings Limited is preparing for its IPO on the Hong Kong Stock Exchange, aiming to raise a total of HKD 1.127 billion by issuing 333.4 million shares at a price of HKD 3.38 per share [4]. Group 1: Company Overview - Ying Tong Holdings is a brand management company specializing in perfumes, cosmetics, skincare products, personal care items, eyewear, and home fragrances [5]. - The company has a portfolio of 72 external brands as of the last feasible date, with the number of brands increasing from 52 in 2023 to 73 by 2025 [6]. Group 2: Financial Performance - For the fiscal year ending March 31, 2025, Ying Tong Holdings reported revenue of RMB 2.083 billion, up from RMB 1.7 billion in 2023 and RMB 1.864 billion in 2024, representing a growth of approximately 23.5% from the previous year [7]. - The gross profit for the same period was RMB 1.048 billion, with previous years' gross profits being RMB 855 million and RMB 938 million [7]. - The operating profit for the fiscal year 2025 was RMB 268 million, compared to RMB 223 million in 2023 and RMB 232 million in 2024 [7]. Group 3: Revenue Breakdown - In the fiscal year ending March 31, 2025, revenue from perfumes accounted for RMB 1.688 billion (80.9% of total revenue), skincare products contributed RMB 151.9 million (7.3%), and cosmetics generated RMB 226.2 million (10.9%) [8]. Group 4: Shareholding Structure - The company is a family-owned business, with Liu Ju Rong and his wife holding 100% of the shares prior to the IPO, and they will retain 75% of the shares post-IPO [10][16].

Core Viewpoint - Ying Tong Holdings Limited is facing significant challenges as it aims to become the "first listed perfume company in China" while navigating a competitive market and declining profit margins in its core perfume business [1][9]. Group 1: Company Overview - Ying Tong Holdings is the largest perfume group in China, excluding brand owners, and the third-largest overall by retail sales as of 2023 [2]. - The company has a history dating back to 1987, initially introducing a Parisian perfume brand to the Chinese market and later managing Hermès perfume products [2][3]. - The company launched its own perfume brand "Santa Monica" in 2022, marking a significant step in its brand development [2]. Group 2: Financial Performance - Ying Tong Holdings reported revenues of CNY 1.699 billion, CNY 1.864 billion, and CNY 2.083 billion for the fiscal years ending March 31, 2023, 2024, and 2025, respectively, totaling approximately CNY 5.646 billion over three years [3][4]. - The company's net profits for the same periods were CNY 173 million, CNY 206 million, and CNY 227 million [3]. - Perfume sales accounted for a significant portion of revenue, contributing CNY 1.504 billion, CNY 1.524 billion, and CNY 1.688 billion, representing 88.5%, 81.7%, and 80.9% of total revenue, respectively [4][5]. Group 3: Profit Margins and Challenges - The average selling price of perfumes has remained relatively stable, with CNY 215.6, CNY 216, and CNY 220.3 for the respective years, but the gross profit margin has declined from 49.1% to 48.4% [5]. - The company relies heavily on external brand partnerships, with over 70 external brands, including luxury names like Hermès and Van Cleef & Arpels [3][6]. - The company has faced challenges in maintaining its brand partnerships, with some agreements not renewed, impacting revenue significantly [8]. Group 4: Future Plans and Market Position - Ying Tong Holdings plans to use the proceeds from its IPO to develop its own brands, expand direct sales channels, accelerate digital transformation, and enhance brand recognition [1]. - The company operates a retail brand "拾氛气盒" with limited success, having only five offline and four online stores, indicating a need for improvement in market acceptance [6][8]. - The competitive landscape in the perfume market poses a significant challenge for Ying Tong Holdings as it seeks to reduce reliance on external brands and establish a stronger market presence [9].

Group 1 - The company, Ying Tong Holdings (06883.HK), plans to globally offer 333 million shares, with 33.34 million shares available in Hong Kong and 300 million shares for international sale, plus an over-allotment option of 50.01 million shares [1] - The subscription period is from June 18 to June 23, with a maximum offer price of HKD 3.38 per share and an entry fee of approximately HKD 3,414.09 for a board lot of 1,000 shares [1] - The total expected fundraising amount is HKD 1.03 billion, with a net amount of HKD 950 million, intended for the development and expansion of direct sales channels, further development of proprietary brands, acquisition or investment in external brands, enhancing brand awareness, working capital, and accelerating digital transformation [1] Group 2 - The company is the largest perfume brand management company in China (including Hong Kong and Macau) by retail sales in 2023, with a diverse portfolio that includes perfumes, cosmetics, skincare, personal care products, eyewear, and home fragrances [2] - The company has a leading position in the perfume sector in China due to its long operational history, extensive knowledge, and resources for managing and promoting numerous international perfume brands [2] - The projected net profits for the company for the fiscal years ending March 31 are expected to be CNY 173 million, CNY 206 million, and CNY 227 million for 2023, 2024, and 2025 respectively, with year-on-year growth rates of 1.30%, 19.28%, and 9.96% [2]