Core Viewpoint - The article discusses the journey of the Chinese cosmetics brand, Chando, founded by Zheng Chunying and his siblings, highlighting its growth, IPO preparations, and strategic investments from major players like L'Oréal and Himalaya International. Group 1: Company Background and Ownership - Chando was established in 2001 and has grown to become the second-largest domestic cosmetics brand in China, following Proya [1][12] - The Zheng siblings collectively control 87.82% of the voting rights in Chando, with Zheng Chunying holding 55% of the shares [2][12] - Zheng Chunying is recognized as the wealthiest individual in Liaoyang, with a net worth of 11 billion RMB, ranking 2448th on the 2025 Hurun Global Rich List [2] Group 2: IPO and Strategic Investments - Prior to its IPO filing, Chando raised over 700 million RMB by bringing in strategic investors, including L'Oréal and Himalaya International, which provided both capital and technical support [4][5] - The post-investment valuation of Chando is approximately 6.826 billion RMB [4] Group 3: Financial Performance - Chando's revenue has shown consistent growth, with total revenues of 42.92 billion RMB in 2022, 44.42 billion RMB in 2023, and 46.01 billion RMB in 2024 [16] - The skincare segment contributes approximately 90% of Chando's total revenue, with the main brand Chando generating 94.6% to 95.9% of total income during the reporting periods [12][14] - Despite revenue growth, net profit has fluctuated, with a significant drop of 37.09% in 2024 to 1.9 billion RMB [16] Group 4: Marketing and Sales Strategy - Chando has invested heavily in marketing, with total marketing expenses reaching 6.534 billion RMB over three and a half years, accounting for over 50% of total revenue during the reporting periods [17][18] - The company has shifted its sales strategy towards online channels, increasing online revenue from 59.7% in 2022 to 68.8% in 2025 [20][21] Group 5: Operational Insights - Chando operates three factories in China, maintaining a high capacity utilization rate of 95.7% and 82.5% for its Shanghai and Linzhi factories, respectively [23] - The company has not declared any dividends since its inception and has a cash-to-short-debt ratio of 10.53, indicating a strong liquidity position [25][26]

Core Viewpoint - The well-known domestic beauty brand, Chando, has initiated its IPO process, marking a significant step towards its market expansion despite recent underwhelming performance in revenue growth and profitability [1][4]. Group 1: Financial Performance - In 2024, Chando reported a revenue of 4.601 billion yuan, reflecting a year-on-year growth of 3.58%, while its net profit decreased by nearly 40% to 190 million yuan [2][5]. - Chando's revenue is significantly lower compared to its competitors, with Proya and Shiseido achieving revenues of 10.778 billion yuan and 6.793 billion yuan respectively in 2024 [2][5]. - Chando's revenue in 2024 was approximately 80% of Beitaini's revenue, which reached 5.7 billion yuan [6]. Group 2: Online Channel Transformation - Chando's slow transition to online sales channels is a critical factor in its performance, with online sales accounting for less than 70% of its revenue, compared to over 80% for Proya [3][10]. - The online channel's contribution to Chando's revenue increased from 59.7% in 2022 to 68.8% in 2024, indicating a gradual but insufficient shift [10]. - In contrast, Proya's online revenue share surged from 70.01% in 2020 to 93.07% in 2023, showcasing a successful adaptation to market changes [8]. Group 3: Marketing and Brand Strategy - Chando has invested heavily in marketing, with total expenditures reaching 7.568 billion yuan from 2022 to 2024, which is significantly higher than the industry average [3][21]. - The marketing expense ratio for Chando was 59% in 2024, compared to an average of 47.78% for its peers, indicating a higher cost burden [21][23]. - Chando is focusing on launching new brands to drive growth, with the brand "Pofenyan" showing promising results, generating 121 million yuan in revenue in 2024, a growth of over 90% [20]. Group 4: Future Outlook - Chando plans to enhance its marketing efforts through collaborations with KOLs and increased advertising on major e-commerce and social media platforms [23]. - The company aims to open more offline flagship stores to strengthen its market presence, with new stores planned in major cities [13][16]. - The effectiveness of Chando's marketing investments and its ability to adapt to changing consumer preferences will be crucial for its future growth [23].