Core Viewpoint - CHANDO has submitted its IPO application to the Hong Kong Stock Exchange, facing multiple challenges including high revenue dependence on its main brand and fluctuating net profits [1][5][6]. Company Overview - CHANDO is the third-largest domestic cosmetics group in China based on retail revenue projections for 2024, with a valuation exceeding 7.1 billion RMB after a recent investment from L'Oréal [5][6]. - The company has five major brands, with CHANDO accounting for over 94% of its revenue, peaking at 95.9% in 2023 [11][12]. Financial Performance - In the first half of 2025, CHANDO reported revenue of 2.448 billion RMB, with a total revenue growth from 42.92 billion RMB in 2022 to 46.01 billion RMB in 2024, reflecting a compound annual growth rate of only 3.5% [8][9]. - The net profit fluctuated significantly, reaching 3.02 billion RMB in 2023 but dropping by 37.1% to 1.9 billion RMB in 2024, before recovering to 1.91 billion RMB in the first half of 2025 [8][9]. Market Position - CHANDO ranks sixth among domestic beauty companies, with competitors like Pechoin and Shanghai Jahwa achieving significantly higher revenues [6][7]. - The company's gross margin has improved from 66.5% in 2022 to 70.1% in the first half of 2025, but it still lags behind industry leaders [9]. Marketing and Sales Strategy - CHANDO's sales and marketing expenses reached 27.17 billion RMB in 2024, accounting for 59% of its revenue, which is 14.3 times its net profit for the year [15]. - The company has a high reliance on online sales, with online revenue constituting 68.8% of total revenue in the first half of 2025, primarily from direct online sales [16]. Challenges - The heavy reliance on the CHANDO brand and skincare products limits the company's ability to adapt to market risks and explore new growth opportunities [13]. - The increasing competition in the e-commerce space and rising customer acquisition costs may further pressure the company's profit margins [16].

Core Viewpoint - CHANDO has submitted its IPO application to the Hong Kong Stock Exchange, facing multiple challenges including high reliance on its main brand and fluctuating net profits [2][5]. Group 1: Company Overview - CHANDO is the third largest domestic cosmetics group in China based on retail sales projected for 2024, with a valuation exceeding 7.1 billion RMB after a recent investment from L'Oréal [5]. - The company has five major brands covering skincare, makeup, and personal care, with the main brand CHANDO contributing over 94% of total revenue [11][12]. Group 2: Financial Performance - CHANDO's revenue growth has been stable but slow, with a compound annual growth rate of only 3.5% from 2022 to 2024, lagging behind industry leaders [8][9]. - In 2023, the company's net profit peaked at 302 million RMB but dropped by 37.1% to 190 million RMB in 2024, with a slight recovery to 191 million RMB in the first half of 2025 [9]. Group 3: Market Position and Competition - In the first half of 2025, CHANDO's revenue was 2.448 billion RMB, significantly lower than competitors like Pechoin, which achieved 5.362 billion RMB [8][9]. - The company's reliance on a single brand and product category may weaken its ability to adapt to market fluctuations, especially in a diversifying beauty market [13]. Group 4: Marketing and R&D Expenditure - CHANDO's sales and marketing expenses reached 2.717 billion RMB in 2024, accounting for 59% of total revenue, which is 14.3 times its net profit for the year [14]. - The company's R&D investment has been relatively low, totaling only 348 million RMB from 2022 to the first half of 2025, with a decreasing R&D expense ratio compared to industry peers [14]. Group 5: Online Sales Strategy - The company has a high dependency on online sales, with online revenue accounting for 68.8% of total income in the first half of 2025, primarily from direct online sales [14][15]. - The increasing competition in e-commerce and rising customer acquisition costs may further pressure the company's profit margins [15].

Core Viewpoint - The Chinese beauty brand Natureround is set to go public on the Hong Kong Stock Exchange, following the trend of domestic beauty brands seeking IPOs, despite facing challenges such as reliance on its main brand and decreasing R&D expenditure rates [1][5]. Group 1: IPO Details - Natureround Global Holdings Limited submitted its prospectus to the Hong Kong Stock Exchange on September 29, aiming for a main board listing, with Huatai International and UBS Group as joint sponsors [1]. - The company has attracted significant strategic and financial investors, including L'Oréal, which invested 442 million yuan for a 6.67% stake, and Hua Capital, which invested 300 million yuan for a 4.20% stake [1]. Group 2: Market Position and Performance - Natureround claims to be the third-largest domestic cosmetics group in China by retail sales for 2024, although its actual ranking is sixth when compared to other listed domestic brands [5][6]. - The flagship brand, Natureround, has maintained a top-two position in retail sales among domestic brands for 12 consecutive years, but has missed the rapid growth opportunities since 2017 [6][7]. Group 3: Financial Performance - Natureround's revenue has shown stable growth over the past three years, with figures of 4.292 billion yuan in 2022, 4.442 billion yuan in 2023, and projected 4.601 billion yuan in 2024, reflecting growth rates of 3.49% and 3.58% for 2023 and 2024 respectively [6][10]. - The company reported a revenue of 2.448 billion yuan in the first half of 2025, marking a year-on-year increase of 6.43% [6][10]. Group 4: Brand Dependency and R&D - Natureround heavily relies on its main brand, which contributed 94.6% to 95.9% of total revenue from 2022 to 2024, indicating a lack of diversification [8]. - The R&D expenditure rate has been declining, from 2.8% in 2022 to 1.7% in the first half of 2025, raising concerns about the company's innovation capabilities [10]. Group 5: Profitability Challenges - Despite a rising gross profit margin from 66.5% in 2022 to 70.1% in the first half of 2025, the net profit margin remains low, with figures around 7.80% for the first half of 2025 and 4.13% for 2024, primarily due to high sales and marketing costs [10].

Core Viewpoint - Natural堂, a Chinese beauty brand, has submitted its listing application to the Hong Kong Stock Exchange, aiming to rank seventh in revenue among domestic beauty companies if successful [1] Group 1: Financial Performance - In 2024, Natural堂 recorded revenue of 4.601 billion yuan, surpassing Shuiyang Co.'s 4.24 billion yuan, with a net profit of 203 million yuan, ranking sixth among peers [1] - Revenue from 2022 to 2024 was 4.292 billion yuan, 4.442 billion yuan, and 4.601 billion yuan respectively, with the "Natural堂" brand contributing approximately 95% to total revenue [1] - Net profit figures for the same period were 139 million yuan, 312 million yuan, and 203 million yuan, indicating a decline of over 30% in 2024 [2] Group 2: Cost Structure - Sales and marketing costs in 2024 reached 2.717 billion yuan, a 12% increase year-on-year, accounting for 59% of total revenue [2] - In comparison, Shuiyang Co.'s sales expenses were 2.079 billion yuan, approximately 49% of its revenue, while the leading company, Proya, had sales expenses of 5.161 billion yuan, about 47.9% of its revenue [3] Group 3: Channel Strategy - Online channel revenue increased from 2.56 billion yuan in 2022 to 3.162 billion yuan in 2024, with its share of total revenue rising from 59.7% to 68.8% [3] - The "One Inventory System" launched in July 2021 has improved supply chain efficiency, allowing for synchronized tracking of inventory across online and offline channels [3] - Direct-to-consumer (DTC) sales from online stores rose from 1.82 billion yuan in 2022 to 2.44 billion yuan in 2024, increasing its contribution to total revenue from 42% to 53% [3] Group 4: Future Plans - The listing application indicates plans to enhance DTC capabilities, expand the brand matrix, and invest in research and product development, although specific fundraising amounts and allocations were not disclosed [4]

Core Viewpoint - CHANDO Global Holdings Limited is preparing for an IPO on the Hong Kong Stock Exchange, with a pre-IPO valuation exceeding 7.1 billion RMB, aiming to enhance its market presence and operational capabilities [3][7]. Company Overview - Founded in 2001, CHANDO has become the third-largest domestic cosmetics group in China, offering a comprehensive range of products across five main brands, including its flagship brand CHANDO [3][4]. - As of June 30, 2025, CHANDO's main brands provide a total of 522 SKUs, with the flagship brand accounting for a significant portion of the group's revenue [4][5]. Financial Performance - Revenue figures for CHANDO from 2022 to 2024 are 4.292 billion RMB, 4.442 billion RMB, and 4.601 billion RMB, respectively. In the first half of 2025, revenue increased from 2.301 billion RMB in 2024 to 2.448 billion RMB [7]. - Adjusted net profits for the same period were 139 million RMB, 313 million RMB, and 203 million RMB, with the first half of 2025 showing an increase from 186 million RMB in 2024 to 219 million RMB [7]. Market Position and Brand Recognition - CHANDO is recognized as the second-largest domestic cosmetics brand in China based on retail sales for 2024 and has maintained a top-two position for 12 consecutive years [4][5]. - The brand leads in consumer recognition, purchase frequency, and repurchase intention among surveyed domestic cosmetics brands [4]. Digital and Operational Strategy - CHANDO has established a comprehensive digital operation model, leveraging a unique inventory system to enhance supply chain, inventory, production, sales, and consumer data analysis [5]. - As of June 30, 2025, CHANDO has over 3.77 million registered members, with a repurchase rate of approximately 32.4%, surpassing the industry average [5]. Sales Channels and Expansion - The company has a robust presence across major e-commerce platforms in China and has established over 62,700 retail points nationwide, including various retail formats [6]. - CHANDO is also expanding its international market presence, with products now available in North America and Southeast Asia [6][7]. IPO Fund Utilization - The net proceeds from the IPO will be primarily used to enhance direct-to-consumer (DTC) capabilities, improve online and offline sales network synergy, invest in R&D, and expand overseas market operations [8].