Core Insights - The demand for agarwood and sandalwood is experiencing a structural shift, with experiential value becoming a key factor in purchasing decisions [1][3] Market Growth - The domestic agarwood market has grown over 35% compared to five years ago, significantly outpacing the growth rate of the sandalwood market [3] - Agarwood is favored by high-end consumers and seasoned collectors due to its rich natural fragrance and rarity, while sandalwood appeals more to entry-level users and beginners [3] Consumer Behavior - Over 70% of surveyed users indicate that the unique fragrance variations and aftertaste of agarwood are primary reasons for their choice, rather than appearance or origin [3] - The increase in agarwood experience zones and tasting events in physical stores has notably improved purchase conversion rates and repurchase intentions [3][4] Experience Economy - Offline experiences are becoming a new trend in the agarwood market, with companies like Xiangzhizun hosting tasting events in major cities to engage consumers [4] - The consumption of agarwood is shifting from simple product purchases to a holistic cultural experience, with a growing trend towards offline tasting and community appreciation [4] Market Segmentation - The high-end trend in the agarwood market is evident, with high-quality wild agarwood prices rising due to its scarcity and unique fragrance, attracting high-net-worth individuals and collectors [6] - In contrast, sandalwood maintains a stable price range and is perceived as suitable for daily use or entry-level collections [6] Future Outlook - The essence of incense consumption is seen as a means of social interaction and personal cultivation, with the real experience of agarwood being irreplaceable [6] - As consumers place greater emphasis on product experience and cultural recognition, offline experience spaces and tasting events will become crucial drivers for industry development [6] - The differentiation and upgrading trends in the agarwood and sandalwood markets will become increasingly pronounced, with brand innovation and experiential services being key competitive factors [6]

Core Viewpoint - Green Biological, a well-known company in the spice industry, has submitted its third IPO application to the Shenzhen Stock Exchange, which was accepted on November 21. The company has faced challenges in its previous attempts due to issues related to environmental compliance and profit warnings [1]. Group 1: IPO Journey - Green Biological's IPO journey has been tumultuous, with the first application in December 2020 being withdrawn due to failure to disclose environmental penalties and profit warnings. The second attempt in 2023 was also withdrawn after two rounds of inquiries, with the Shenzhen Stock Exchange focusing on environmental compliance and the company's positioning on the Growth Enterprise Market [1]. - The current IPO aims to raise 690 million yuan, with 420 million yuan allocated to a project for producing 6,300 tons of high-end spices, 120 million yuan for factory facility upgrades, 70 million yuan for R&D enhancements, and 80 million yuan for working capital [1]. Group 2: Company Overview - Established in December 1999, Green Biological is recognized as a "specialized, refined, distinctive, and innovative" enterprise in Zhejiang Province and ranks among the top ten companies in China's light industry spice sector. The company has undertaken four national torch plan projects and has been involved in drafting five national standards and 15 industry standards [1]. - The company specializes in the research and production of nearly 40 types of spice products, including turpentine, cedar oil, and fully synthetic series. Its core products are widely used in daily chemical fragrance formulations, covering household cleaning and personal care products [2]. Group 3: Financial Performance - From 2022 to 2024, the company's revenue is projected to grow from 631 million yuan to 961 million yuan, while net profit is expected to rise from 68.14 million yuan to 150 million yuan. The compound annual growth rates for revenue and net profit over the last three years are 23.35% and 48.59%, respectively. In the first half of 2025, revenue and net profit were reported at 548 million yuan and 94.58 million yuan, respectively [2]. - The company maintains a high export ratio, with over 85% of sales coming from international markets, primarily in Europe and North America. The top five customers account for more than 40% of total revenue [2]. Group 4: Shareholding Structure - The shareholding structure of Green Biological is notable, with the 83-year-old founder and chairman, Lu Wencong, holding 27.11% of the shares. His daughter, Lu Wei, who is also a director and deputy general manager, holds 9%, and together they control 36.11% of the shares. Lu Wei's shares were transferred to her from Lu Wencong in June 2025 [3]. - Prior to the IPO, the top ten individual shareholders are all company executives or former employees, with the core management team holding over 57% of the shares. This governance structure raises questions about the independence and decision-making mechanisms within the company [3].