Core Viewpoint - CHANDO, a leading Chinese beauty brand, has submitted its IPO application to the Hong Kong Stock Exchange, marking a significant step in its 24-year journey since its establishment in 2001 [1][4]. Company Development - CHANDO was founded in 2001 by Zheng Chunying with the vision of creating a world-class brand for Chinese consumers, initially targeting lower-tier cities where international brands had less penetration [2][3]. - Over the past two decades, CHANDO has become one of the most recognized brands in China's cosmetics industry, consistently ranking among the top two domestic brands by retail sales from 2013 to 2024 [4]. Financial Performance - The revenue of CHANDO Group for 2022, 2023, and 2024 was RMB 4.29 billion, RMB 4.44 billion, and RMB 4.60 billion, respectively, with growth rates of 3.5% and 3.6% projected for 2023 and 2024 [6]. - The net profit for the same years was RMB 139 million, RMB 302 million, and RMB 190 million, with a significant increase of 117% in 2023 compared to 2022, followed by a decrease of 37.1% in 2024 [6]. - The gross profit margin has shown a steady increase, reaching 70.1% in the first half of 2025 [6]. Brand Strategy - CHANDO's main brand contributes significantly to its revenue, accounting for 94.6% to 95.9% of total income from 2022 to 2025 [8]. - The company has adopted a "fast fashion" development model, focusing on rapid product iteration and marketing, with successful products like the "Little Purple Bottle" and "Polar Water" essence [11]. - CHANDO has expanded its distribution channels, including partnerships with platforms like Pinduoduo and Taobao, aiming to enhance its presence in major cities and diversify its product lines [11][17]. Challenges and Future Outlook - Despite its growth, CHANDO faces challenges such as a lack of proprietary patented ingredients and a heavy reliance on marketing over R&D, with R&D expenditures constituting only 2.0% to 2.8% of total revenue from 2022 to 2024 [10][19]. - The brand's high-end product lines have not achieved significant sales compared to other domestic brands, indicating a gap in perceived brand value [12][17]. - The recent investments from L'Oréal and other capital firms are seen as a boost for CHANDO, but the company must address its reliance on a single brand and improve its R&D efforts to transition from a domestic giant to a recognized high-end player in the global market [18][19].

Core Insights - The skincare market in China is experiencing rapid growth driven by young consumers, particularly in the anti-aging segment, which has surpassed 200 billion yuan in scale [1][4] - Major beauty brands like Naturer and Dabao are actively targeting this demographic by launching products specifically designed for young consumers [1][2] Group 1: Market Trends - The anti-aging market in China is growing at a double-digit rate, with over 70% of buyers for certain products being aged 18 to 30 [1] - A significant portion of consumers starting to pay attention to anti-aging products are aged 26 to 35 (53.2%) and 18 to 25 (23.2%) [4] Group 2: Brand Strategies - Dabao has achieved recognition as the top skincare brand in terms of consumer numbers in China, leveraging its classic products like SOD cream to attract younger audiences [1] - Naturer has successfully expanded its product offerings on platforms like Pinduoduo, focusing on men's skincare and anti-aging products, resulting in a sales increase of three to four times in 2023 [7][10] Group 3: Product Innovations - Dabao's A Retinol Nourishing Lotion has quickly gained popularity among young consumers, with sales exceeding tens of thousands shortly after its launch on Pinduoduo [4][6] - Naturer's ice muscle polypeptide product achieved sales of 60 million yuan within eight months of its launch on Pinduoduo, indicating strong market demand [10] Group 4: Marketing and Consumer Engagement - Naturer has effectively utilized digital marketing strategies, including video content that highlights product efficacy, leading to a significant increase in brand recognition and consumer engagement [9][10] - The brand's dedicated content team has been instrumental in driving sales through targeted marketing campaigns, resulting in a 20% annual growth in followers on Pinduoduo [9]