Core Viewpoint - The article discusses the upcoming IPO of the Chinese cosmetics brand, Chando Global Holdings, following the successful listing of another domestic brand, Mao Geping, which saw a significant increase in stock price. The market is optimistic about the potential of domestic cosmetics brands in the Hong Kong stock market [1][2]. Industry Overview - China is the second-largest cosmetics market globally, with a market share of approximately 11.4% of the global cosmetics industry retail sales in 2024. The market size of China's cosmetics industry is projected to grow from RMB 779.4 billion in 2019 to RMB 934.6 billion in 2024, representing a compound annual growth rate (CAGR) of 3.7% [5]. - The domestic cosmetics industry is expected to maintain a stable growth trajectory, with an anticipated CAGR of 6.6% from 2024 to 2029, which is about twice the growth rate of the global cosmetics market during the same period [5]. Company Profile - Chando Global Holdings, established in 2001, is one of the few domestic cosmetics companies with over 20 years of history. Its flagship brand, Chando, has ranked among the top two domestic cosmetics brands in retail sales for 12 consecutive years from 2013 to 2024, demonstrating strong resilience throughout industry cycles [2][8]. - The company has received over RMB 700 million in investments from global cosmetics giant L'Oréal and well-known institution, Cahua Capital, prior to its IPO [3]. Financial Performance - Chando's revenue has shown consistent growth, with figures of RMB 4.292 billion, RMB 4.442 billion, RMB 4.601 billion, and RMB 2.448 billion for the years 2022, 2023, 2024, and the first half of 2025, respectively. The net profits for the same periods were RMB 1.39 billion, RMB 3.02 billion, RMB 1.9 billion, and RMB 1.91 billion [13][14]. Product and R&D Strategy - Chando has developed a diversified brand portfolio that includes five main brands, offering a comprehensive range of products across skincare, makeup, personal care, and children's care. The company emphasizes a multi-brand strategy to cater to different consumer needs [10]. - The company is the first domestic cosmetics firm in China to possess proprietary rights to yeast ingredients and has initiated space skincare research projects. It has established three major research systems and four technical platforms to enhance its innovation and product development capabilities [12]. Sales Channels - Online sales have been a core channel for Chando, accounting for 68.8% of revenue in the first half of 2025. However, the company is increasingly focusing on offline channels as online traffic reaches saturation [15][16]. - Chando plans to strengthen its offline presence by opening flagship stores in major shopping centers, with the first store launched in Shenzhen in July 2025, followed by additional stores in Shanghai, Wuhan, and Chongqing [18]. Investment and Future Plans - The funds raised from the IPO will primarily be used to enhance the company's direct-to-consumer (DTC) capabilities, improve online and offline sales network synergy, invest in R&D and product development, and strengthen digital capabilities in membership management and supply chain management [20].

Core Viewpoint - The Chinese domestic cosmetics brand, Chando Global Holdings Limited, is set to list on the Hong Kong Stock Exchange, following the successful debut of another domestic brand, Mao Geping, which saw a first-day increase of over 70% and a subsequent fourfold rise from its issue price [1]. Industry Overview - China is the second-largest cosmetics market globally, with a market share of approximately 11.4% of the global cosmetics industry retail sales in 2024. The market size of China's cosmetics industry is projected to grow from RMB 779.4 billion in 2019 to RMB 934.6 billion in 2024, reflecting a compound annual growth rate (CAGR) of 3.7% [2]. - The domestic cosmetics industry is expected to maintain a stable growth trajectory, with an anticipated CAGR of 6.6% from 2024 to 2029, which is about twice the growth rate of the global cosmetics market during the same period [2]. - Factors driving the expansion of domestic cosmetics brands include a deep understanding of local culture, confidence in domestic brands due to the "Guochao" trend, increased investment in research and development, and the growth of online platforms enhancing brand exposure [2]. Company Overview - Chando, established in 2001, has become one of the most recognized brands in China's cosmetics industry, ranking as the second-largest domestic cosmetics brand by retail sales in 2024 [4]. - The company has a diversified brand portfolio that includes five main brands: Chando, Pofuyan, MAYSU, Spring Summer, and 1GB, covering skincare, makeup, personal care, and children's products [6]. - Chando is the first domestic cosmetics company in China to own proprietary rights to yeast ingredients and to conduct space skincare research projects [7]. Financial Performance - Chando's revenue has shown consistent growth, with figures of RMB 42.92 billion, RMB 44.42 billion, RMB 46.01 billion, and RMB 24.48 billion for the years 2022, 2023, 2024, and the first half of 2025, respectively. Net profits for the same periods were RMB 1.39 billion, RMB 3.02 billion, RMB 1.9 billion, and RMB 1.91 billion [8]. - The company has established three major research systems: skin science, raw material science, and product science, enhancing its innovation and product development capabilities [8]. Investment and Strategic Moves - Chando has received over RMB 700 million in investments from global cosmetics giant L'Oréal and well-known institution Cahua Capital prior to its listing [1][14]. - The company plans to strengthen its offline channel presence by opening flagship stores in major shopping centers, with the first store launched in Shenzhen in July 2025, followed by others in Shanghai, Wuhan, and Chongqing [10][12]. - The funds raised from the IPO will primarily be used to enhance direct-to-consumer (DTC) capabilities, improve online and offline sales network synergy, enrich the multi-brand matrix, invest in research and development, and strengthen digital capabilities in membership and supply chain management [14].