Core Viewpoint - The Chinese skincare brand HBN, under Shenzhen Hujia Technology (Group) Co., Ltd., has submitted its IPO application to the Hong Kong Stock Exchange, highlighting a growth model driven by deep research and rigorous validation, transitioning from "ingredient claims" to "evidence-based support" [1] Group 1: Research-Driven Innovation - HBN was founded in 2019 with the brand philosophy of "making true efficacy a reality," adhering to a long-term development path of "slow research" [4] - As of September 30, 2025, HBN's R&D team will consist of 103 members with diverse backgrounds in dermatology, medicine, cell biology, and synthetic biology, showcasing interdisciplinary collaboration [5] - HBN ranks third among domestic brands in the number of new cosmetic ingredients registered as of September 2025, indicating innovation extending from product formulation to the source ingredient [7] Group 2: Market Position and Product Innovation - HBN has become the youngest brand among the top ten domestic skincare brands in China, leading the market in the segment of improvement skincare products [7] - HBN's A-alcohol skincare products and α-arbutin essence have ranked first in sales within their category for three consecutive years (2022-2024), establishing a clear category advantage [7] Group 3: Building User Trust and Business Health - HBN has developed a comprehensive "full-link multi-dimensional verification system," recognized as the only skincare brand in China to conduct efficacy testing on all products through international authoritative testing agencies [8] - As of September 2025, HBN has accumulated over 4.6 million repeat customers, with average repurchase rates of approximately 35.4% on Tmall and 44.0% on Douyin, significantly higher than industry averages [9] - In 2024, HBN achieved total revenue of 2.083 billion yuan and a net profit of 129 million yuan, with a net profit margin increasing from 3.5% to 9.6% in the first three quarters of 2025 [9] Group 4: Strategic Significance of IPO - HBN's IPO in Hong Kong marks a critical milestone in its development model of "research-driven innovation and evidence-based trust building," providing a reference for domestic brands to achieve sustainable growth in a competitive market [11]

Core Viewpoint - The IPO application of HBN, a domestic skincare brand, signifies a shift in the beauty industry towards a focus on sustainable product innovation and core technological barriers, moving away from mere GMV growth and marketing volume [7] Group 1: Company Overview - HBN's parent company, Shenzhen Hujia Technology (Group) Co., Ltd., has submitted an IPO application to the Hong Kong Stock Exchange, aiming to be the "first stock of true efficacy skincare" [1] - The company has established a rigorous efficacy verification system and is the only skincare brand in China to conduct real-person efficacy testing on all its products through an international authority [5] Group 2: Financial Performance - HBN's revenue is projected to grow from 1.948 billion yuan in 2023 to 2.083 billion yuan in 2024, with a 10.2% increase in the first three quarters of 2025, reaching 1.514 billion yuan [3] - The net profit is expected to rise significantly from 39 million yuan in 2023 to 129 million yuan in 2024, and has already reached 145 million yuan in the first three quarters of 2025, with the net profit margin increasing from approximately 2% to nearly 10% [3] Group 3: User Engagement - HBN has accumulated over 4.6 million repeat customers, with average repurchase rates of 35.4% on Tmall and 44.0% on Douyin, significantly higher than the industry average of 20% [3] - The success of HBN's high repurchase rates is attributed to its strong product matrix, including top-selling items like the α-arbutin essence and caffeine eye cream, which have consistently ranked first in their categories [3] Group 4: Research and Development - HBN has made substantial investments in R&D, with a focus on building a comprehensive research chain covering basic research, raw material innovation, and efficacy validation [4] - The company has published 50 SCI papers, ranking first among domestic skincare brands, and has successfully registered four new self-developed cosmetic raw materials, placing third in the domestic skincare brand category [4] Group 5: Market Trends - The market is shifting towards "scientific-driven growth," with a focus on effective skincare products that address specific skin issues, indicating a move away from generalized marketing concepts [7] - HBN's approach demonstrates that long-term investment in research can build "hard power" and drive high-quality growth and user trust, providing a viable path for domestic beauty brands to compete and move upscale [7]

Core Insights - The company achieved a revenue of 7.098 billion yuan in the first three quarters of 2025, reflecting a year-on-year growth of 1.89%, and a net profit of 1.026 billion yuan, up 2.65% year-on-year, indicating a rational return to growth amidst a challenging consumer environment [1] - The improvement in gross margin to 73.69% from 70.07% and a net profit margin of 14.86% highlights the company's position as a leading player in the domestic beauty market [1] - The company is transitioning from a focus on rapid expansion to prioritizing quality and sustainability, as evidenced by a significant increase in operating cash flow by 196.65% year-on-year to 1.198 billion yuan [1] Financial Performance - Revenue for the first three quarters of 2025 reached 7.098 billion yuan, a 1.89% increase year-on-year [1] - Net profit was reported at 1.026 billion yuan, reflecting a 2.65% year-on-year growth [1] - Operating cash flow significantly improved to 1.198 billion yuan, marking a 196.65% increase year-on-year [1] Brand Strategy - The company is shifting its growth logic from reliance on single blockbuster products to a multi-brand collaboration approach, focusing on structural growth rather than just volume [2][3] - The main brand continues to serve as a core anchor for profit and reputation, with successful product lines validating the closed-loop model of "scientific ingredients - product efficacy - market conversion" [3] - The company is replicating its successful product validation model across other brands, enhancing their market presence and operational capabilities [4] Research and Development - The company maintains a stable R&D expense ratio of 2%, investing 142 million yuan in R&D in the first three quarters of 2025, which is crucial for long-term sustainable growth [8] - Recent collaborations with universities for research projects indicate a shift towards a more integrated research ecosystem, enhancing the company's innovation capabilities [8][12] - The establishment of multiple R&D centers in China and Europe supports a comprehensive research framework, focusing on anti-aging mechanisms and sustainable ingredient development [12] Organizational Changes - Recent management changes signal a transition from founder-led to a more professional governance structure, emphasizing collaboration and system thinking [14][15] - The new management team, with diverse backgrounds, aims to enhance organizational resilience and internal collaboration, aligning with the company's long-term strategic goals [15] - The company is positioning itself as an "enabler" in the beauty industry through strategic investments, such as in the domestic makeup brand Huazhixiao, to connect with younger consumers [16][17] International Expansion - The submission of an H-share listing application to the Hong Kong Stock Exchange marks a significant step towards international capital market entry, enhancing the company's governance and transparency [17][18] - The company aims to leverage its international presence to strengthen its research and innovation capabilities, creating a cycle of "domestic R&D + international innovation" [17][18] - The focus on long-term value creation reflects a shift in corporate strategy from immediate gains to sustainable growth, positioning the company for future success in the global beauty market [18]