Core Viewpoint - Lin Qingxuan, a Chinese skincare brand, has submitted its IPO application to the Hong Kong Stock Exchange, aiming for a valuation close to 4 billion yuan, which could position it as the first high-end domestic skincare stock in Hong Kong [3][15]. Company Overview - Lin Qingxuan was founded in 2003 by Sun Laichun in Shanghai, initially focusing on handmade soaps and natural skincare products [5][6]. - The brand pivoted towards camellia oil skincare after Sun Laichun was inspired by its unique properties during a visit to a friend in Fujian [7][8]. - The company has only recently engaged in significant financing rounds with VC/PE firms, particularly after facing challenges during the COVID-19 pandemic [10][9]. Financial Performance - Lin Qingxuan's revenue has shown impressive growth, with figures of 691 million yuan in 2022, 805 million yuan in 2023, and projected 1.21 billion yuan in 2024, reflecting a compound annual growth rate of 32.3% [18]. - The company has turned around its net profit from a loss of 5.93 million yuan in 2022 to a profit of 187 million yuan in 2024 [18]. - The gross margin has improved from 78% in 2022 to 82.5% in 2024, indicating enhanced profitability [18]. Product and Market Strategy - Lin Qingxuan's flagship product, the camellia anti-wrinkle repair essence oil, has been the best-selling facial essence oil in China for 11 consecutive years, contributing 448 million yuan to total revenue in 2024 [18]. - The company offers a comprehensive range of 188 SKUs, covering various skincare categories [19]. - Lin Qingxuan plans to expand its market presence in Southeast Asia and enhance its digital and smart operations, including upgrading its membership management and big data analysis systems [20][21][23]. Industry Context - The demand for high-end skincare products in China is rising, with Lin Qingxuan ranking first among domestic high-end skincare brands in 2024 [25][26]. - The successful IPO of Lin Qingxuan may encourage other domestic skincare brands, such as Proya and Shiseido, to pursue public listings, reflecting a growing trend in the industry [24][26].

Core Viewpoint - Lin Qingxuan Biotech Co., Ltd. has submitted its prospectus to the Hong Kong Stock Exchange, aiming to become the first high-end domestic skincare stock in Hong Kong, attracting significant market attention [1] Financial Performance - Lin Qingxuan's revenue for 2022, 2023, and 2024 is projected to be 691.5 million RMB, 805 million RMB, and 1.209641 billion RMB respectively, indicating steady growth [3][4] - The company reported a net profit turnaround from a loss of 5.931 million RMB in 2022 to a profit of 84.518 million RMB in 2023, with a further increase to 186.833 million RMB in 2024 [3][4] - Gross profit margins for 2022, 2023, and 2024 are 78%, 81.2%, and 82.5% respectively, showing an upward trend [3] Market Position - Lin Qingxuan focuses on the anti-wrinkle and firming skincare market, with its core product, the Camellia Oil Anti-Wrinkle Repair Essence, ranking first in sales among all facial essence products in China for 11 consecutive years since 2014, with cumulative sales exceeding 30 million bottles [2] Store Expansion - As of December 31, 2024, Lin Qingxuan has expanded its offline store network to 506 locations, with over 95% of these stores located in shopping malls, reflecting a compound annual growth rate of 17.6% from 366 stores at the end of 2022 [4] Regulatory Challenges - Lin Qingxuan faced penalties for false advertising in 2021, receiving a fine of 50,000 RMB for misleading claims about product efficacy [5] - In February 2025, the company encountered another controversy regarding false advertising, resulting in a fine of 21,000 RMB, which raised concerns about its promotional practices [9]

Group 1 - Lin Qingxuan Biotech Co., Ltd. submitted its prospectus to the Hong Kong Stock Exchange on May 29, aiming for a main board listing, potentially becoming the "first high-end domestic skincare stock" in Hong Kong [2] - Founded in 2003, the company specializes in anti-wrinkle and firming skincare products, featuring natural camellia flower ingredients, and has sold over 30 million bottles of its core product, camellia anti-wrinkle repair essence oil, since its launch in 2014 [2] - Financial data shows revenue growth from 690 million yuan in 2022 to 1.21 billion yuan in 2024, with a compound annual growth rate of 32.3%, and net profit turning from a loss of 5.93 million yuan in 2022 to a profit of 187 million yuan in 2024 [2] Group 2 - The company operates 506 stores nationwide, with over 95% located in shopping malls, leading in store count among domestic and international high-end skincare brands [2] - Online sales are strong, with the company topping multiple essence oil sales rankings on Tmall in 2024, accumulating over 4.3 million active customers and an average annual repurchase rate of 34.6% [2] - The funds raised from the IPO will be primarily used for brand building, channel expansion, supply chain enhancement, technology research and development, brand matrix creation, and digitalization [3]