Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook following the divestiture of its real estate business and steady growth in the cosmetics segment [5][42]. Core Insights - The company has transitioned its main business focus to cosmetics and pharmaceuticals after divesting its real estate operations in 2023. The cosmetics segment has shown resilience, contributing over 52.8% of total revenue [10][41]. - The company is leveraging a "product + R&D + channel" strategy to build competitive advantages, focusing on marketing synergies, innovation in product development, and a comprehensive online and offline sales network [8][30][34]. - Revenue projections for 2025-2027 are estimated at RMB 38.1 billion, RMB 39.3 billion, and RMB 43.0 billion, with corresponding growth rates of -4.3%, +3.1%, and +9.5% respectively. Net profit is expected to reach RMB 2.4 billion, RMB 2.7 billion, and RMB 3.1 billion during the same period [9][41]. Summary by Sections Market Performance - The closing price of the stock is RMB 7.36, with a total market capitalization of RMB 7,481.95 million and a circulating market value of RMB 7,481.95 million [3]. Financial Data - The company reported a gross margin of 46.49% in 2023, a significant increase of 21.84 percentage points from the previous year, primarily due to the strategic shift away from low-margin real estate operations [21]. Revenue and Profit Forecast - The company anticipates a decline in revenue for 2023, followed by a gradual recovery, with net profit growth projected at +0.2%, +8.8%, and +15.3% for the years 2025 to 2027 [9][41]. Business Segments - The cosmetics segment is expected to see revenue growth of -5%, +6%, and +14% from 2025 to 2027, while the pharmaceutical segment is projected to grow at -5%, -3%, and +5% during the same period [10][41]. - The raw materials and additives segment is forecasted to grow steadily, with revenue increases of +3%, +4%, and +5% from 2025 to 2027 [10]. Competitive Positioning - The company is positioned favorably against comparable domestic brands, with a projected price-to-earnings (P/E) ratio of 28 times for 2026, aligning with industry averages [42]. Marketing and R&D Strategy - The company has invested significantly in R&D, with a budget of RMB 1.16 billion for the first three quarters of 2025, representing a research expense ratio of 4.47% [30]. - New product launches and marketing initiatives are focused on enhancing brand visibility and consumer engagement across various channels, including e-commerce and physical retail [28][34]. Sales Channels - The cosmetics segment's revenue is heavily driven by online sales, contributing 84.2% of total revenue, while offline sales account for 15.8% [34]. - The company is expanding its presence in both online and offline markets, establishing flagship stores on major e-commerce platforms and increasing the number of physical retail locations [34].

Fundraising Overview - The company raised a total of RMB 5,560,621,023.10 from its initial public offering in 2019, after deducting underwriting and advisory fees, resulting in a net amount of RMB 5,279,993,815.60 [1] - In 2023, the company raised RMB 5,918,968,112.35 from a targeted issuance of A-shares, with a net amount of RMB 5,914,724,993.63 after deducting related fees [2] Fund Utilization and Balance - For the 2019 IPO, the net amount raised was RMB 529,407.39 million, with total project investments amounting to RMB 542,500.59 million, resulting in a balance of RMB 15,411.90 million as of the end of the reporting period [3] - In 2023, the net amount raised was RMB 591,750.40 million, with total project investments reaching RMB 592,079.80 million, indicating a balance of RMB 329.40 million [3] Fund Management Practices - The company has established a dedicated management system for the raised funds, adhering to relevant laws and regulations, and has implemented a special account storage system for the funds [6][10] - The company signed multiple tripartite supervision agreements with banks and underwriters to ensure proper management and usage of the raised funds [7][10] Fund Storage Status - As of June 30, 2025, the special accounts for the 2019 IPO have been fully utilized and closed [10] - The special accounts for the 2023 targeted issuance are also set to be closed following the completion of the relevant projects [11] Actual Use of Funds - The company has reported that the funds raised have been utilized in accordance with the planned investment projects, with detailed usage outlined in attached tables [12][15] - Any surplus funds from the projects have been permanently allocated to supplement working capital for daily operations [12][15]