Core Viewpoint - Beijing Plant Doctor Cosmetics Co., Ltd. (referred to as "Plant Doctor") is facing significant challenges in its IPO process, including prolonged guidance periods, management issues, and controversies surrounding its marketing practices, which have raised concerns about its future competitiveness and growth prospects [4][5][9]. Group 1: IPO Process and Market Concerns - The IPO guidance period for Plant Doctor has been extended by 19 months, with the company expected to be accepted by the Shenzhen Stock Exchange by the end of June 2025 [5]. - Issues such as "franchisee violations, false advertising, and supply chain management loopholes" have been cited as primary reasons for the delayed IPO process [5][6]. - The founder's involvement in Shanghai Jahwa's top shareholders list has sparked speculation about potential competition within the industry [4]. Group 2: Marketing and Brand Image Issues - Plant Doctor has faced backlash due to its "pseudo-national gift" controversy, where it falsely claimed its products were given to foreign dignitaries without official authorization [5][6]. - The brand has been penalized for false advertising, including a fine of 5,000 yuan for misleading claims about its products [6]. - Quality control issues have also emerged, with products like the "Purple Ganoderma Multi-Effect Cleansing Milk" found to have bacterial counts exceeding standards by 21 times [6]. Group 3: Franchise Management Challenges - Over 70% of Plant Doctor's stores are franchises, but management issues have led to a significant trust crisis and market challenges [7]. - The company has received 16 administrative penalties related to various compliance issues, including false advertising and lack of health permits [7][8]. - Inconsistent service quality across franchise stores has negatively impacted consumer experience and brand perception [7][8]. Group 4: Financial Performance and Dividend Concerns - Despite stagnant revenue growth, Plant Doctor distributed a total of 180 million yuan in dividends in 2024, raising questions about the rationality of its capital allocation [9][10]. - The company's revenue figures from 2022 to 2024 show minimal growth, with 21.17 billion yuan, 21.50 billion yuan, and 21.55 billion yuan, reflecting growth rates of 1.6% and 0.22% [9]. - The high dividend payout ratio of 41.5% of net profit in 2024 is significantly higher than industry peers, leading to skepticism about the company's focus on long-term development [10]. Group 5: Strategic Recommendations - To address market concerns, Plant Doctor needs to balance shareholder interests with long-term development, ensuring rational capital use and enhancing R&D capabilities [11]. - Improving product quality and brand image is essential for regaining consumer trust and competitiveness in the market [11].

Core Viewpoint - The company, Plant Doctor, is pursuing an A-share listing while expanding its offline store presence, contrasting with competitors focusing on direct sales and online channels [2][3]. Group 1: Business Strategy - Plant Doctor has nearly 5,000 stores in less than 10 years since its establishment in 2016, with a strategy focused on offline expansion, adding over 500 stores annually [2][3]. - The company operates 4,328 stores as of the end of 2024, with 3,830 being authorized franchise stores and only 498 being directly operated [5][9]. - The franchise model allows Plant Doctor to provide comprehensive support to franchisees, including site selection and training, without taking a cut from their sales [7][10]. Group 2: Financial Performance - From 2022 to 2024, Plant Doctor's revenue was 21.17 billion, 21.51 billion, and 21.56 billion respectively, with net profits of 1.58 billion, 2.3 billion, and 2.43 billion [18]. - The company's gross margin from 2022 to 2024 was 55.23%, 60.35%, and 58.90%, which is lower than industry averages of 66.69%, 68.28%, and 70.47% [19][20]. - The company plans to raise 998 million for marketing and brand building, with 526 million allocated for marketing channels and brand construction [14][15]. Group 3: Market Positioning - Plant Doctor emphasizes emotional value in its customer service, offering free skincare services to customers who purchase products, which enhances customer loyalty [10][11]. - The company has engaged in significant brand-building efforts, including celebrity endorsements and media appearances, to enhance its market presence [16]. Group 4: Challenges - The franchise model has led to management challenges, with several franchise stores facing penalties for regulatory violations and product quality issues [16]. - Customer complaints regarding product safety and service quality have been noted, indicating potential risks to brand reputation [16].

Core Viewpoint - The company, Plant Doctor, is facing significant challenges in its IPO process due to multiple internal control deficiencies, which have led to regulatory scrutiny and consumer complaints [1][7][9]. Group 1: Internal Control Issues - Plant Doctor's rapid expansion strategy has resulted in a high proportion of franchise stores, leading to management disconnect and consumer complaints about aggressive sales tactics [3][4]. - The company has faced multiple regulatory penalties for selling products with quality issues, including a case where a product exceeded the allowable bacterial count by 21 times [4][10]. - Internal control failures have been highlighted, including missing purchase verification records and inadequate inventory management, which are critical under the tightened IPO regulations by the China Securities Regulatory Commission [9][10]. Group 2: Regulatory and Legal Risks - The company has been involved in controversies regarding false advertising, particularly related to claims of its products being "national gifts," which lack proper government authorization [5][6]. - The IPO application has raised concerns about compliance with the Securities Law, particularly regarding the accuracy and completeness of disclosed information, which could lead to termination of the review process [9][10]. Group 3: Financial Implications - If the company recalls problematic products, the direct costs could exceed 50 million yuan, with potential liabilities from collective lawsuits reaching up to 280 million yuan, significantly impacting net profits [10][11]. - Analysts estimate that internal control issues could reduce the company's valuation from 60 billion yuan to between 30-35 billion yuan, with a potential further decline in price-to-earnings ratio if legal issues remain unresolved [11][12]. Group 4: Governance and Management Concerns - The compensation structure for senior management, particularly the vice president, has raised eyebrows, with a significant portion tied to stock options linked to the IPO timeline, potentially prioritizing short-term gains over compliance [13]. - The disparity between high executive compensation and consumer complaints highlights governance issues within the company, suggesting a misalignment of interests between management and stakeholders [13].