Core Viewpoint - Ying Tong Holdings is launching an IPO, offering 333 million shares globally, with a listing date set for June 26 on the Hong Kong Stock Exchange, marking its position as the first publicly listed perfume company in China [1] Company Overview - Ying Tong Holdings has established a unique business model focused on localizing international brands in China, which has allowed it to maintain a competitive edge for over 42 years [3][5] - The company collaborates with 72 external brands, with 52 being perfume brands, and has long-standing partnerships with key players like InterParfums and Hermès [3][5] Market Position - The Chinese perfume market is experiencing rapid growth, with a projected market size of 229 billion RMB in 2023 and a compound annual growth rate (CAGR) of approximately 15% [13] - Despite the growth, the penetration rate of perfumes in China is only 5%, significantly lower than in Europe and the US, indicating substantial market potential [13] Business Strategy - Ying Tong Holdings emphasizes a long-term approach, focusing on brand value and avoiding excessive price competition to maintain brand integrity [11][14] - The company plans to invest IPO proceeds into four main areas, including deepening its agency business, enhancing perfume product development, acquiring validated brands, and launching innovative retail projects like "Scent Box" [15][18] Financial Performance - The "Scent Box" project is expected to have a gross margin increase from 66.1% in the fiscal year ending March 31, 2023, to 75.7% by March 31, 2025, with plans to open 100 self-operated stores within three years [18] Consumer Insights - Ying Tong Holdings has accumulated over 2 million user data through its CRM system, enabling personalized services that cater to the diverse needs of consumers in the high-turnover perfume market [18]

Core Viewpoint - Ying Tong Holdings Limited is facing significant challenges as it aims to become the "first listed perfume company in China" while navigating a competitive market and declining profit margins in its core perfume business [1][9]. Group 1: Company Overview - Ying Tong Holdings is the largest perfume group in China, excluding brand owners, and the third-largest overall by retail sales as of 2023 [2]. - The company has a history dating back to 1987, initially introducing a Parisian perfume brand to the Chinese market and later managing Hermès perfume products [2][3]. - The company launched its own perfume brand "Santa Monica" in 2022, marking a significant step in its brand development [2]. Group 2: Financial Performance - Ying Tong Holdings reported revenues of CNY 1.699 billion, CNY 1.864 billion, and CNY 2.083 billion for the fiscal years ending March 31, 2023, 2024, and 2025, respectively, totaling approximately CNY 5.646 billion over three years [3][4]. - The company's net profits for the same periods were CNY 173 million, CNY 206 million, and CNY 227 million [3]. - Perfume sales accounted for a significant portion of revenue, contributing CNY 1.504 billion, CNY 1.524 billion, and CNY 1.688 billion, representing 88.5%, 81.7%, and 80.9% of total revenue, respectively [4][5]. Group 3: Profit Margins and Challenges - The average selling price of perfumes has remained relatively stable, with CNY 215.6, CNY 216, and CNY 220.3 for the respective years, but the gross profit margin has declined from 49.1% to 48.4% [5]. - The company relies heavily on external brand partnerships, with over 70 external brands, including luxury names like Hermès and Van Cleef & Arpels [3][6]. - The company has faced challenges in maintaining its brand partnerships, with some agreements not renewed, impacting revenue significantly [8]. Group 4: Future Plans and Market Position - Ying Tong Holdings plans to use the proceeds from its IPO to develop its own brands, expand direct sales channels, accelerate digital transformation, and enhance brand recognition [1]. - The company operates a retail brand "拾氛气盒" with limited success, having only five offline and four online stores, indicating a need for improvement in market acceptance [6][8]. - The competitive landscape in the perfume market poses a significant challenge for Ying Tong Holdings as it seeks to reduce reliance on external brands and establish a stronger market presence [9].