港股IPO观察 | 龙丰集团：高增长光环下的三重现实隐忧

Core Viewpoint - Longfeng Group is seeking to become the first "cosmetic retail stock" in Hong Kong by submitting an IPO application, but faces challenges due to its reliance on physical stores, tight financial conditions, and concentrated family governance structure [1]. Group 1: Business Model and Growth - Longfeng Group operates 29 physical retail stores in Hong Kong as of June 30, 2025, with 97.2% of its revenue coming from these stores, while online sales contribute only 1.7% [2]. - The company's revenue grew from HKD 1.094 billion to HKD 2.460 billion from FY2023 to FY2025, with a compound annual growth rate (CAGR) of 50% [3]. - The number of stores increased from 16 in FY2023 to 29 in FY2025, but same-store sales growth dropped from 64% in FY2024 to 5.6% in FY2025, indicating a negative impact on existing stores from new openings [3]. Group 2: Financial Performance - The gross profit margin improved from 24.9% in FY2023 to 31.9% in Q1 FY2026, driven by an increase in high-margin beauty product sales, which rose from 28.0% of revenue in FY2023 to 33.3% in FY2025 [3]. - Despite a high gross margin, the net profit margin decreased from 7.2% in FY2024 to 6.9% in FY2025, which is below the industry leader Watsons' margin of 8%-10% [3]. - As of June 30, 2025, the company had a net current liability of HKD 331.6 million and short-term borrowings of HKD 625 million, with cash and cash equivalents at only HKD 33.6 million, indicating a significant debt repayment gap [3]. Group 3: Governance and Market Position - Longfeng Group is a family-controlled business, with 100% ownership by the founder's family, raising concerns about transparency and fairness in related party transactions [5]. - The company paid HKD 13.65 million in rent for five stores leased from the controlling shareholder, which accounted for 9.8% of total rental expenses, but lacks detailed third-party valuation disclosures [5]. - As a business heavily reliant on the Hong Kong market, which accounts for over 97% of its revenue, Longfeng Group's performance is closely tied to local economic cycles, consumer confidence, and tourist traffic [5].