Core Viewpoint - Natural堂 has officially submitted its IPO application to list on the Hong Kong stock market, aiming to capitalize on the favorable market conditions and competitive pressures from other domestic beauty brands [1][2]. Group 1: IPO and Market Position - Natural堂 is the third-largest domestic cosmetics group in China and the second-largest domestic cosmetics brand based on retail sales projected for 2024 [2]. - The company has seen a significant increase in its online sales channel, with the proportion rising from 59.7% in 2022 to 68.8% in the first half of 2025 [5]. - The CEO, Zheng Chunying, and her family control approximately 87.82% of the voting rights, which may limit the influence of minority shareholders [3]. Group 2: Financial Performance - Natural堂's revenue for 2022, 2023, and 2024 is projected to be 42.92 billion, 44.42 billion, and 46.01 billion respectively, with net profits of 1.39 billion, 3.02 billion, and 1.90 billion [4]. - The company's gross profit margin has improved from 66.5% in 2022 to 70.1% in the first half of 2025, but its net profit margin remains relatively low at 7.8% [6]. - Compared to competitors like Perleya and Shuangmei, which have seen significant revenue and profit growth, Natural堂's growth has been modest, with revenue growth rates of only 3.48% and 3.58% in 2023 and 2024 respectively [4][6]. Group 3: Brand Strategy and Challenges - Natural堂 operates five main cosmetic brands, with the flagship brand contributing over 94% of total revenue, indicating a lack of diversification [5][6]. - The company has not successfully developed new growth brands, unlike competitors who have launched successful new lines, which poses a challenge for future growth [6]. - The conservative management style of the founder may have contributed to the slower growth and lower profitability compared to more aggressive competitors [4][6].