Core Viewpoint - Beijing Plant Doctor Cosmetics Co., Ltd. is preparing for an IPO, with plans to issue up to 26.67 million shares, accounting for at least 25% of the total share capital post-issue [2] Financial Performance - The company projects revenue of 2.116 billion yuan, 2.150 billion yuan, and 2.155 billion yuan for the years 2022, 2023, and 2024 respectively, with net profits of 168 million yuan, 229 million yuan, and 242 million yuan for the same years [2] - The gross profit margins for the years 2022, 2023, and 2024 are expected to be 55.22%, 60.34%, and 58.90% respectively [2] Product Segmentation - The main revenue driver is the water and lotion cream segment, projected to generate 1.218 billion yuan in 2024, accounting for 56.52% of total revenue [3] - The essence and essence oil segment is expected to contribute 465 million yuan, representing 21.59% of total revenue, while face masks account for 16.28% [4] Sales Channels - The company employs a mixed sales model, primarily through distribution (66.72%) and supplemented by direct sales (33.28%) [8] - As of the end of 2024, the company operates 4,328 offline chain stores, with 3,830 authorized specialty stores and 498 direct stores [4] Market Position - Plant Doctor holds a 0.8% market share in the Chinese cosmetics market, ranking 9th among domestic brands [8] - The company’s revenue from the distribution model in 2024 is projected to be 1.366 billion yuan, accounting for 63.37% of total revenue [8] R&D and Competitive Edge - The company maintains a stable R&D expense ratio of 3% to 3.5% over the past three years, which is higher than several listed competitors [9] - Collaboration with the Kunming Institute of Botany has led to the development of a star product featuring Dendrobium orchid [9] Challenges - The company faces inventory pressure, with stock increasing from 192 million yuan at the end of 2023 to 223 million yuan at the end of 2024 [9] - Regulatory penalties on some stores due to violations have raised concerns about potential impacts on sales and performance [9]