Core Viewpoint - Shanghai Linqingxuan Cosmetics Group Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, with CITIC Securities and Huatai International as joint sponsors [1] Company Overview - Linqingxuan is a high-end domestic skincare brand in China, focusing on anti-wrinkle and firming skincare products, known for its natural camellia oil-based skincare solutions [3] - The company pioneered the "oil-based skincare" concept and launched its first camellia oil facial essence in 2014, which has since sold over 45 million bottles by June 30, 2025 [3][4] - Linqingxuan offers a full range of high-end skincare solutions, including essence oils, creams, toners, emulsions, serums, masks, and sunscreens [3] Financial Performance - Revenue for Linqingxuan was approximately RMB 6.85 billion, RMB 7.97 billion, RMB 11.98 billion, RMB 5.25 billion, and RMB 10.42 billion for the years 2022, 2023, 2024, and the six months ending June 30 for 2024 and 2025, respectively [4][8] - Gross profit figures for the same periods were approximately RMB 5.39 billion, RMB 6.54 billion, RMB 9.98 billion, RMB 8.66 billion [9][10] - The company has maintained a dominant revenue share, accounting for 99.1% to 99.0% of total revenue across the reported periods [4] Market Position - Linqingxuan ranked first among all domestic high-end skincare brands in China by retail sales in 2024, holding a 1.4% market share, and is the only domestic brand in the top 15 high-end skincare brands in China [4] - The high-end skincare market in China is rapidly growing, with the market size expected to increase from RMB 749 billion in 2019 to RMB 1,144 billion in 2024, and projected to reach RMB 2,185 billion by 2029 [4] Market Opportunities - The market for high-end anti-wrinkle and firming products is expected to grow from RMB 594 billion in 2024 to RMB 1,555 billion by 2029, with a compound annual growth rate (CAGR) of 21.2% [5] - The market for facial essence oils is projected to reach RMB 139 billion by 2029, with a CAGR of 21.3% from 2024 to 2029 [6] Sales Strategy - The company has established a comprehensive sales network utilizing an OMO (Online-Merge-Offline) approach, combining diverse online channels with a strong offline presence [7] - Offline channels include direct stores and partnerships with retailers, while online channels encompass direct sales and sales through online retailers, enhancing brand engagement and consumer touchpoints [7]

Core Viewpoint - Lin Qingxuan is the only domestic high-end skincare brand among the top 15 in China, focusing on anti-wrinkle and firming products, with a strong emphasis on natural ingredients like camellia oil [1][7]. Company Overview - Founded in 2003, Lin Qingxuan specializes in high-end skincare products, particularly those based on camellia flower ingredients [3]. - The flagship product, Camellia Essence Oil, launched in 2014, has sold over 30 million bottles and has been the top-selling facial essence oil in China for 11 consecutive years [5]. Product Development - Lin Qingxuan has developed a range of patented ingredients and products, including various serums, creams, and masks, totaling 188 SKUs as of December 31, 2024 [6]. - The company has introduced several successful products, such as the Camellia Black Gold Anti-Wrinkle Cream, generating significant revenue in its first year [6]. Market Position - As of 2024, Lin Qingxuan ranks first among domestic high-end skincare brands in China and is the only domestic brand in the top 15 overall [7]. - The brand leads the market in high-end anti-wrinkle and firming products among domestic brands [7]. Customer Engagement - Lin Qingxuan has over 4.3 million active customers, with an average annual repurchase rate of approximately 34.6%, surpassing the industry average [8]. Distribution Channels - The company operates 506 stores, primarily in shopping malls, with a significant portion being direct-operated stores, ensuring consistent customer experience [10]. - Online sales have seen rapid growth, with a compound annual growth rate of 51.2% from 2022 to 2024 [10]. Financial Performance - Lin Qingxuan's revenue has grown from 691 million yuan in 2022 to 1.21 billion yuan in 2024, with a compound annual growth rate of 32.5% [12]. - The company achieved profitability in 2023, with adjusted net profits exceeding 200 million yuan in 2024 [13]. Future Plans - Lin Qingxuan aims to expand into Southeast Asian markets as part of its globalization strategy [11]. - The company plans to use IPO proceeds to enhance brand value, sales networks, production capabilities, and technological development [14]. Industry Outlook - The high-end skincare market in China is projected to grow from 74.9 billion yuan in 2019 to 114.4 billion yuan in 2024, with anti-wrinkle products expected to see a compound annual growth rate of 21.2% [14].