Core Viewpoint - The IPO application of Beijing Plant Doctor Cosmetics Co., Ltd. has been suspended due to outdated financial data, which poses challenges for its ambition to become the first listed single-brand cosmetics store in China [4][3]. Company Overview - Beijing Plant Doctor was established in 1994 and has over 30 years of experience in the cosmetics industry, focusing on skincare products since 2004 [8]. - The company aims to raise approximately 998 million yuan through its IPO, with plans to invest in marketing, brand building, headquarters and R&D center construction, information system upgrades, and production base technology transformation [6]. Financial Performance - The company's revenue has shown steady growth, with projected revenues of 2.12 billion yuan, 2.15 billion yuan, and 2.16 billion yuan for 2022, 2023, and 2024 respectively, and net profits of 170 million yuan, 230 million yuan, and 240 million yuan for the same years [8]. - The revenue composition is primarily from core products such as lotions, creams, serums, and masks, which account for over 99% of total revenue [9]. Market Position - According to Euromonitor data, Plant Doctor ranks 8th among domestic brands in the Chinese cosmetics market and 7th in the skincare segment for 2024 [8]. - If the IPO is successful, the company will have over 4,000 offline stores, solidifying its position as the first single-brand cosmetics stock in China [7]. Competitive Landscape - The Chinese cosmetics market is characterized by a concentration of leading brands, with L'Oréal, Procter & Gamble, and Estée Lauder holding significant market shares of 14.4%, 7.9%, and 5.1% respectively [14]. - Plant Doctor's market share is relatively small at 0.8%, with local competitors like Proya, Naturals, and Pechoin holding a combined market share of 6.3% [14]. Sales Channel Strategy - The company has a significant number of offline stores, totaling 4,328 by the end of 2024, which is much higher than its competitors [15]. - The sales revenue from offline channels accounts for 70-80% of total sales, while online sales contribute around 20% [16]. Profitability Challenges - The reliance on offline sales has led to higher rental liabilities and financial expenses, resulting in a financial expense ratio that exceeds that of competitors [17]. - The company primarily uses a distribution model, with 64% of revenue coming from distributors, which has lower profit margins compared to direct sales [17][18]. R&D and Management - The company has invested in R&D, with expenses of 73.77 million yuan, 75.88 million yuan, and 66.33 million yuan from 2022 to 2024, representing 3.48%, 3.53%, and 3.08% of revenue respectively [25]. - Future plans include increasing R&D investment and optimizing management platforms, although the recent IPO suspension adds uncertainty to these goals [28].

Group 1 - The company has been deeply engaged in the plant-based skincare market for 30 years, focusing on the "Plant Doctor" brand, and is one of the largest single-brand beauty store chains in China [4][10] - The company achieved revenue of 2.12 billion, 2.15 billion, and 2.16 billion yuan from 2022 to 2024, with a compound annual growth rate (CAGR) of 24% for net profit, indicating strong profitability [4][21] - The company has a well-established sales model that includes a mix of distribution and direct sales, with a comprehensive online and offline presence [4][25] Group 2 - The cosmetics market is steadily growing, transitioning from quantity to quality, with domestic brands, online sales, and niche segments driving growth [4][32] - The skincare segment remains dominant, accounting for 50.5% of the overall cosmetics market in China, with a market size of 271.2 billion yuan in 2024 [36][39] - E-commerce has rapidly risen, with its share of cosmetics sales increasing from 22% in 2016 to 47% in 2024, showcasing the efficiency and flexibility of online platforms [42][43] Group 3 - The company has a strong brand presence, ranking 13th in market share, and has received recognition as a leading plant-based skincare brand [47][50] - The company operates over 4,300 offline stores, providing extensive market coverage, while also achieving significant growth in online sales through platforms like Douyin and Taobao [51][55] - The company has established partnerships with research institutions to develop innovative plant-based ingredients, enhancing its product offerings [60]

Core Viewpoint - Beijing Plant Doctor Cosmetics Co., Ltd. is preparing for an IPO, with plans to issue up to 26.67 million shares, accounting for at least 25% of the total share capital post-issue [2] Financial Performance - The company projects revenue of 2.116 billion yuan, 2.150 billion yuan, and 2.155 billion yuan for the years 2022, 2023, and 2024 respectively, with net profits of 168 million yuan, 229 million yuan, and 242 million yuan for the same years [2] - The gross profit margins for the years 2022, 2023, and 2024 are expected to be 55.22%, 60.34%, and 58.90% respectively [2] Product Segmentation - The main revenue driver is the water and lotion cream segment, projected to generate 1.218 billion yuan in 2024, accounting for 56.52% of total revenue [3] - The essence and essence oil segment is expected to contribute 465 million yuan, representing 21.59% of total revenue, while face masks account for 16.28% [4] Sales Channels - The company employs a mixed sales model, primarily through distribution (66.72%) and supplemented by direct sales (33.28%) [8] - As of the end of 2024, the company operates 4,328 offline chain stores, with 3,830 authorized specialty stores and 498 direct stores [4] Market Position - Plant Doctor holds a 0.8% market share in the Chinese cosmetics market, ranking 9th among domestic brands [8] - The company’s revenue from the distribution model in 2024 is projected to be 1.366 billion yuan, accounting for 63.37% of total revenue [8] R&D and Competitive Edge - The company maintains a stable R&D expense ratio of 3% to 3.5% over the past three years, which is higher than several listed competitors [9] - Collaboration with the Kunming Institute of Botany has led to the development of a star product featuring Dendrobium orchid [9] Challenges - The company faces inventory pressure, with stock increasing from 192 million yuan at the end of 2023 to 223 million yuan at the end of 2024 [9] - Regulatory penalties on some stores due to violations have raised concerns about potential impacts on sales and performance [9]