Core Insights - The skincare concept of "oil-based skincare" is gaining significant popularity, with 1.75 billion views on Xiaohongshu as of July 15, 2025, and the "essence oil" topic receiving 820 million views [1][2] - Lin Qingxuan, a brand leveraging this trend with its camellia oil essence, has recently submitted its IPO application to the Hong Kong Stock Exchange, boasting a valuation of 3.8 billion [2][6] Company Overview - Lin Qingxuan was founded in 2003 by Sun Laichun, who initially focused on selling aloe vera gel and handmade soap, targeting students without a core competitive advantage [3] - The brand's turning point came in 2012 when Sun discovered the benefits of camellia seed oil, leading to the launch of its first camellia oil essence in 2014, which opened a new market segment [4][5] Financial Performance - Since 2014, Lin Qingxuan's camellia oil essence has been the top-selling product in China for 11 consecutive years, with over 30 million bottles sold and generating 447 million yuan in revenue in 2024, accounting for 37% of total revenue [6] - The company's revenue grew from 691 million yuan in 2022 to 1.21 billion yuan in 2024, nearly doubling in three years, while profits shifted from a loss of 5.93 million yuan in 2022 to a profit of 187 million yuan in 2024, reflecting a compound annual growth rate of approximately 32% [7] Market Positioning - Lin Qingxuan positions itself as a high-end domestic skincare brand, with product prices ranging from 200 to 800 yuan, and has expanded its offline presence from 366 stores in 2022 to 506 stores in 2024, with 95% located in premium shopping centers [7][8] - The brand's pricing strategy has led to a gross margin of 82.5%, surpassing competitors like Up Beauty and Beitaini, as well as international brands such as L'Oréal and Estée Lauder [12] Controversies and Challenges - The brand has faced criticism regarding its high pricing, with social media discussions questioning why its products are so expensive [8][12] - Lin Qingxuan's marketing strategies have also drawn scrutiny, with significant spending on promotions (7.6 billion yuan over three years) compared to its R&D investment of less than 1 billion yuan, raising concerns about its long-term sustainability [15][16] R&D and Innovation - Lin Qingxuan claims to be a "brand grown in the laboratory," emphasizing its research capabilities, including partnerships with Shanghai Jiao Tong University and proprietary formulations [15] - However, its R&D spending as a percentage of revenue is relatively low compared to industry leaders, indicating a potential gap in innovation investment [16] Brand Image and Marketing - The brand has attempted to establish a high-end image, but its marketing claims have led to regulatory scrutiny and fines for misleading advertising [17][18] - Lin Qingxuan's founder has engaged in public disputes with competitors, notably with Chanel, which has increased brand visibility but also raised questions about its marketing tactics [14][18]