Core Viewpoint - The divorce case involving the controlling shareholder of Liren Lizhuang has drawn market attention, highlighting the impact of personal disputes on company performance and stock value [1][9]. Company Overview - Liren Lizhuang, known as the "first stock of beauty makeup operation," has faced significant challenges in recent years, with a sharp decline in revenue and profitability due to market competition and changing consumer behavior [3][5]. - The company reported a revenue of 1.728 billion yuan in 2024, a decrease of 37.44% compared to 2023, marking a new low [4][5]. Financial Performance - The net profit attributable to shareholders for 2024 was a loss of approximately 244 million yuan, a significant decline from a profit of 29.53 million yuan in 2023 [4]. - The decline in revenue is attributed to the termination of partnerships with several brands, including L'Oreal and Avene, leading to a 38.39% drop in the e-commerce retail business [5][8]. Strategic Shifts - In response to declining performance, Liren Lizhuang has begun to incubate its own brands, such as Yuyongchu and Meiyitang, aiming to capture niche markets within the beauty sector [6][8]. - The company is transitioning from a buyout model to a lighter operational model to reduce financial risks and improve cash flow [8]. Market Impact - The divorce of the company's founder has had a notable negative impact on stock performance, with previous instances showing that such personal disputes can lead to significant market reactions [9]. - The largest divorce settlement in A-shares history remains that of Kangtai Biological, which involved a split of shares worth 23.55 billion yuan at the time [1][9].

Core Viewpoint - Coty is exploring the possibility of splitting and selling its high-end and mass beauty divisions, which could lead to a merger and acquisition scale of hundreds of billions to trillions of yuan, potentially reshaping the global beauty industry [1][4]. Company Overview - Founded in 1904 in Paris, Coty has developed a strong brand portfolio, including luxury brands like GUCCI and Burberry, and has grown to be one of the top ten beauty companies globally [2][4]. - Coty operates over 50 fragrance and beauty brands, divided into high-end and mass segments, with high-end beauty generating 277 billion yuan and mass beauty generating 162 billion yuan in revenue for the fiscal year 2024 [1][4]. Financial Performance - Coty's revenue for fiscal year 2024 was 439 billion yuan, reflecting a 10% increase from the previous year, but the company has faced significant fluctuations in performance [9]. - The company reported a net revenue decline of 2% to 333.3 billion yuan for the first three quarters of fiscal year 2025, with a net loss of 22.2 billion yuan [9][10]. Market Dynamics - The global beauty industry is undergoing significant challenges, including market growth slowdown and increased competition from emerging DTC brands, particularly affecting mass beauty brands [4][12]. - Coty is facing difficulties in finding suitable buyers for its mass beauty division, especially in Asia, due to economic slowdowns and trade tensions with the U.S. [5][4]. Strategic Moves - Coty is in discussions with Interparfums regarding the sale of its high-end beauty business, particularly brands like Burberry and Hugo Boss, which have shown strong growth [4][10]. - The company has initiated a transformation plan aimed at streamlining operations and focusing on key business innovations, with an expected savings of nearly 36 billion yuan between fiscal years 2025 and 2027 [12]. Industry Trends - The beauty industry is witnessing a shift towards high-end and luxury products, with major players like Shiseido and Unilever restructuring to enhance operational efficiency [12][14]. - Coty’s historical capital-driven development and frequent ownership changes have influenced its current strategy to seek a sale [11][12].