Core Insights - Shenzhen Hujia Technology (Group) Co., Ltd., the parent company of skincare brand HBN, has submitted its IPO application to the Hong Kong Stock Exchange, raising concerns about the significant disparity between net profit growth and revenue growth, as well as the company's reliance on a single brand [1][2] Financial Performance - In 2023, Hujia Technology turned a profit, with net profit expected to surge from approximately 39 million yuan in 2023 to 129 million yuan in 2024, representing a growth rate exceeding 200% [2] - The company has achieved a reduction in sales and distribution expenses as a percentage of revenue, from 65.1% in 2023 to 57.6% in the first three quarters of 2025, indicating improved operational efficiency [2] Brand Strategy - HBN has introduced a new brand, "Luokexin," but the company emphasizes that this brand is still in the early stages of registration and does not yet signify a move into substantive business operations [3] - The company remains focused on the development of its main brand, HBN, and will disclose any significant progress regarding sub-brands or new business initiatives through official channels [3] Manufacturing and R&D - HBN's products are primarily manufactured by third-party manufacturers, raising questions about the company's long-term ability to establish a competitive edge through deep R&D capabilities [3][4] - The company has established a comprehensive product lifecycle verification system and a 5,000-square-meter integrated R&D center to support its product efficacy claims [4] Sales Channels - Hujia Technology relies heavily on online sales, with over 90% of revenue coming from online channels from 2023 to the first three quarters of 2025 [6] - The company plans to use IPO proceeds to expand its offline channels, having already entered over 5,000 high-end beauty stores and aiming to develop core shopping area counters and direct stores [6]

Core Viewpoint - HBN, a skincare brand, has submitted its application for a mainboard listing on the Hong Kong Stock Exchange, aiming to become the first stock representing "true efficacy skincare" in China and to leverage international capital markets for long-term development [1] Group 1: Company Overview - HBN was founded in 2019 with a commitment to the philosophy of "true efficacy" and a belief in the long-termism of "slow research" [2] - The brand has established itself among the top ten domestic skincare brands in China and is the largest domestic brand in the improvement skincare market [2] - HBN is recognized as a pioneer in the domestic retinol anti-aging sector and was one of the first brands to propose the "morning C, evening A" skincare concept [2] Group 2: Market Position and Performance - HBN's retinol and α-arbutin products have ranked first in sales in their categories for three consecutive years (2022-2024), creating a rare series of enduring bestsellers among domestic brands [2] - The company has accumulated over 4.6 million repeat customers, with average order values steadily increasing [3] - HBN's average repurchase rates on platforms like Tmall and Douyin are 35.4% and 44.0% respectively, significantly exceeding industry averages [3] Group 3: Financial Performance - HBN has experienced steady revenue growth, with total revenue reaching 2.08 billion yuan in 2024 and 1.51 billion yuan in the first three quarters of 2025, reflecting a year-on-year growth of 10.2% [4] - Adjusted net profit increased from 90 million yuan in 2023 to 130 million yuan in 2024, and further to 150 million yuan in the first three quarters of 2025 [4] - The adjusted net profit margin improved from 4.7% in 2023 to 6.2% in 2024, and reached 9.6% in the first three quarters of 2025, indicating a transition to a sustainable growth phase [4] Group 4: Research and Development - HBN has published 50 SCI-indexed papers, ranking first among domestic skincare brands for papers published as the first author [3] - The company ranks third among domestic brands in the number of new cosmetic raw materials registered by its own research and development as of September 2025 [3] - HBN has established a rigorous efficacy verification system and is the only skincare brand in China to conduct real-world efficacy testing for its entire product line through an international authority [3] Group 5: Future Outlook - HBN aims to establish a comprehensive multi-dimensional efficacy verification system throughout the product lifecycle, expanding verification from laboratories to real-world settings [4] - The company is promoting the establishment of industry standards for cosmetic efficacy evidence assessment, which is expected to lead to more standardized and transparent efficacy claims across the industry [4] - The upcoming listing in Hong Kong is seen as a critical step for HBN to transform its systematic research capabilities into broader market influence [5]

Core Viewpoint - Shenzhen HBN Technology (Group) Co., Ltd. is set to list on the Hong Kong Stock Exchange, aiming to become the first stock representing "true efficacy skincare" in China, showcasing a model of sustainable growth driven by systematic innovation in research and development [2][12]. Group 1: Company Overview - Founded in 2019, HBN adheres to the philosophy of "true efficacy" and believes in a long-term approach to research, focusing on building a healthy and sustainable brand development path [4]. - HBN has established itself among the top ten domestic skincare brands in China and is the largest domestic brand in the improvement skincare market, according to a report by ZhiShi Consulting [5]. Group 2: Market Position and Product Leadership - HBN has achieved a leading market position, particularly in the A-retinol anti-aging category, being one of the first domestic brands to propose the "morning C, evening A" skincare concept. Its A-retinol products have ranked first in sales for three consecutive years from 2022 to 2024 [7]. - The company has published 50 papers in SCI-indexed journals, ranking first among domestic skincare brands for first-author publications, demonstrating its strong research capabilities [8]. Group 3: User Trust and Financial Performance - HBN has accumulated over 4.6 million repeat customers, with average transaction values steadily increasing. The brand's average repurchase rates on platforms like Tmall and Douyin reached approximately 35.4% and 44.0% in 2025, significantly exceeding industry averages [10]. - The company reported a total revenue of 2.08 billion yuan in 2024, with a year-on-year growth of 10.2% in the first three quarters of 2025, and adjusted net profits increased from 90 million yuan in 2023 to 150 million yuan in the first three quarters of 2025 [10]. Group 4: Industry Growth and Future Potential - The skincare market in China is experiencing structural growth, with the top ten dermatological skincare brands projected to exceed 30 billion yuan in retail sales by 2024, reflecting a compound annual growth rate of over 16.7% from 2019 to 2024, outpacing the overall industry growth rate of approximately 8.6% [13]. - HBN is establishing a comprehensive efficacy verification system that spans the entire product lifecycle, aiming to enhance the credibility of efficacy claims and promote a more standardized approach within the industry [13][14].