Core Viewpoint - A third-party testing agency has reported the presence of Sudan Red, a banned substance for 20 years, in multiple skincare products, raising concerns about product safety and regulatory compliance [1][5]. Group 1: Testing Results - The testing revealed that several skincare products contained Sudan Red IV, with concentrations ranging from 435 to 1982 µg/kg [1]. - The source of Sudan Red in these products is linked to ingredients such as "eel extract, neem leaf extract, and moringa seed oil," which are supplied by a company based in Singapore [5][7]. Group 2: Regulatory Context - Sudan Red IV is classified as a prohibited ingredient in cosmetics according to the "Cosmetic Prohibited Ingredients Directory" [3][5]. - The chemical is an artificial azo dye, primarily used for coloring in industrial applications, and is not permitted in food or cosmetic products in China [5][3]. Group 3: Industry Response - Several brands have responded by either conducting product tests or removing affected products from sale. For instance, "Hua Xizi" has taken its product offline while others like "Farmacy" and "Chillmore" are investigating supplier compliance [8][9]. - The involved supplier, Campo Research (S) Pte. Ltd, specializes in natural plant-based cosmetic ingredients and has a global distribution network [7][6].

Core Viewpoint - The recent detection of Sudan Red in various skincare products has raised significant consumer concerns, leading to responses from multiple brands and potential implications for the beauty industry [2][4]. Group 1: Detection and Response - A video by "Dad Evaluation" revealed the presence of Sudan Red in several skincare products, with one sample showing a concentration of 1170 ppm [2]. - Following the video, multiple brands, including Huaxizi and Yuru, have acknowledged the issue, with some initiating product testing and temporarily removing affected items from sale [4][7]. - The National Medical Products Administration has classified Sudan Red as a banned ingredient in cosmetics since 2021, highlighting the regulatory implications for brands involved [2]. Group 2: Brand Impact and Financials - Yuru, a brand under the publicly listed company Liren Lizhuang, has experienced declining revenues from 32.42 billion in 2022 to an expected 17.28 billion in 2024, indicating financial pressure [8]. - The brand's performance is critical as it has been positioned as a key growth area for the company, particularly with its saffron-based product line [8]. - Huaxizi has faced previous controversies, including a legal case related to public relations, which may affect its reputation and consumer trust in light of the current Sudan Red issue [9].

Core Viewpoint - The National Medical Products Administration (NMPA) announced that 18 batches of cosmetics, including the "Miao Ling Yan Liang Miao Miao Brightening Mask," failed to meet safety regulations due to the presence of prohibited ingredients such as betamethasone acetate, flumethasone, dexamethasone, and metronidazole [1] Regulatory Actions - The NMPA has instructed drug supervision departments in Beijing, Shanghai, Zhejiang, and Guangdong to investigate the manufacturers and registrants of the non-compliant cosmetics [1] - Companies involved are required to implement risk control measures and conduct self-inspections and rectifications immediately [1]