Core Viewpoint - The stock price of Shanghai Liren Lizhuang Cosmetics Co., Ltd. (605136 SZ) rose by 5.10% to close at 13.19 yuan per share, ending a five-day trading surge, despite the company indicating that its products containing "ergothioneine" contribute less than 1% to overall sales revenue, thus having minimal impact on its performance [1][6]. Company Summary - Liren Lizhuang's stock price has seen a cumulative increase of 61.10% from May 15 to May 21, with a turnover rate of 67.05%, significantly higher than the industry average [1]. - The company has reported a continuous decline in revenue over the past four years, with a revenue of 1.728 billion yuan in 2024, a year-on-year drop of 37.44%, and a net loss of 24.4 million yuan, a decline of 182.64% [6]. - In Q1 2025, the company recorded a revenue of 361 million yuan, down 23.58% year-on-year, and a net loss of 18.32 million yuan, which is an increase in losses compared to the same period last year [6]. - The company has indicated uncertainty regarding its ability to turn a profit in the first half of 2025 [6]. Industry Summary - Ergothioneine has recently gained attention in the market, with companies like Kelong Pharmaceutical promoting products containing this ingredient, leading to a surge in related stocks, including Liren Lizhuang [2][5]. - Ergothioneine is recognized as a fifth-generation antioxidant and is increasingly popular among consumers due to its superior performance and higher product prices compared to competitors [5]. - The ingredient is known for its various physiological functions, including free radical scavenging and anti-inflammatory properties, and is used in some cosmetics and skincare products [5].