Core Viewpoint - Beijing Plant Doctor Cosmetics Co., Ltd. has officially entered the inquiry stage for its IPO, aiming to raise approximately 998 million yuan [1][2] Group 1: Company Overview - Plant Doctor operates as a representative enterprise in the domestic cosmetics industry, utilizing a single-brand chain operation model primarily through a distribution model [1][5] - As of the end of 2024, the company has a total of 4,328 offline chain stores, including 3,830 authorized specialty stores [1][5] - The company has faced increased management challenges due to the growing number of distributors and authorized stores, receiving 16 administrative penalties from market and health regulatory authorities over the past three years [1][6] Group 2: Financial Performance - The company plans to raise 998 million yuan through its IPO, despite having cash and trading financial assets totaling 1.062 billion yuan, which represents 58.2% of total assets [1][7] - Plant Doctor's revenue and net profit growth have shown signs of slowing down, with revenues of 2.117 billion yuan, 2.151 billion yuan, and 2.156 billion yuan from 2022 to 2024, and net profits of 158 million yuan, 230 million yuan, and 243 million yuan during the same period [5][6] - The company has implemented cash dividends totaling 1 billion yuan in 2024, marking its first cash dividend in three years, with the actual controller, Jie Yong, benefiting significantly from these distributions [4][6] Group 3: Management and Governance - The company's ownership is highly concentrated, with the controlling shareholder, Bendo Investment, holding 70.81% of the shares, and Jie Yong and Yu Li controlling 79.14% of the voting rights [3][6] - Jie Yong, as the chairman and general manager, received a pre-tax salary of 11.236 million yuan in 2024, accounting for nearly 50% of the total executive compensation [3][6] - The company has seen a significant increase in executive compensation, with total executive salaries rising from 3.7218 million yuan in 2022 to 21.1514 million yuan in 2023, representing a nearly 4.7-fold increase [3][6] Group 4: Operational Challenges - The company has faced operational challenges, including a significant reduction in authorized specialty stores, closing 294 stores in 2024 alone [5][6] - The increase in the number of distributors and authorized stores has raised demands on the company's production capacity, inventory management, and distributor management capabilities [6][7] - The company plans to invest the IPO proceeds into marketing, brand building, headquarters and R&D center construction, production base upgrades, and information system enhancements [7]