Core Viewpoint - Chando Group has officially initiated its IPO process in Hong Kong, attracting significant industry attention as it aims to become one of the top players in the Chinese beauty market [1][2][10]. Financial Performance - Chando Group's revenue for the first half of 2025 is projected to be 2.448 billion RMB, with a year-on-year growth of 6.43%, and an adjusted net profit of 219 million RMB, reflecting a 17.74% increase [5][7]. - The company's revenue from 2022 to 2024 is reported as 4.292 billion RMB, 4.442 billion RMB, and 4.601 billion RMB, with adjusted net profits of 139 million RMB, 313 million RMB, and 203 million RMB respectively [5][7]. Market Position - Chando Group is positioned as the third-largest domestic cosmetics group in China, holding a market share of approximately 10.1% among the top five domestic brands [4][11]. - The company is expected to rank among the top six publicly listed beauty companies in China, with its revenue closely trailing behind the fifth-ranked brand, Maogeping, which reported 2.588 billion RMB in the same period [3][8]. Product Portfolio - Chando Group operates five main brands, including its flagship brand Chando, and offers a comprehensive range of products across skincare, makeup, personal care, and children's care [4][11]. - The skincare category generates the highest revenue, accounting for 87.3% of the total revenue in the first half of 2025, with skincare revenue reported at 2.138 billion RMB [8][12]. Sales Channels - The company has established a robust online and offline sales network, with online sales accounting for 68.8% of total revenue in the first half of 2025, while offline sales contributed 30.9% [13][14]. - Chando Group has over 62,700 retail points, indicating a strong market presence [12][15]. Research and Development - Chando Group has invested significantly in R&D, with expenditures of 120 million RMB, 94 million RMB, 91 million RMB, and 42 million RMB from 2022 to the first half of 2025, representing 2.8%, 2.1%, 2%, and 1.7% of revenue respectively [18][20]. - The company holds 229 patents and has participated in the formulation of 154 national and industry standards, showcasing its commitment to innovation [18][20]. Strategic Initiatives - The IPO proceeds are intended to enhance DTC capabilities, improve online and offline sales synergy, invest in R&D, and expand international market presence [23]. - Chando Group has received investments from major players like L'Oréal, which holds a 6.67% stake, further strengthening its market position [20][22].

Core Viewpoint - Chando, a well-known Chinese beauty brand, is facing significant challenges as it prepares for its IPO on the Hong Kong Stock Exchange, including sluggish revenue growth, high marketing costs, and a heavy reliance on a single brand for revenue generation [1][2][4]. Group 1: Financial Performance - Chando's revenue growth is weak, with projected revenues of 4.292 billion, 4.442 billion, and 4.601 billion yuan from 2022 to 2024, reflecting growth rates of less than 4%, which is significantly lower than the average growth rate of the domestic beauty industry during the same period [2][4]. - The adjusted net profit for Chando is expected to drop by 34.92% to 203 million yuan in 2024, indicating a substantial decline in profitability [2][4]. - Compared to leading domestic competitors, Chando's performance is notably poor, with its revenue growth of only 3.48% and 3.58% in 2023 and 2024, while competitors like Proya and Shiseido show much higher growth rates [4]. Group 2: Brand Dependency - Chando heavily relies on its main brand, which accounted for 94.6%, 95.9%, and 95.4% of its revenue from 2022 to 2024, with a continued high dependency of 94.9% in the first half of 2025 [6][7]. - This over-reliance on a single brand poses risks, as any market fatigue or negative publicity could severely impact revenue [7]. Group 3: Marketing and R&D Expenditure - Chando's marketing expenses are substantial, consuming around 57% to 59% of its annual revenue from 2022 to 2025, with total marketing costs of 2.445 billion, 2.406 billion, and 2.716 billion yuan in the respective years [10]. - Despite high marketing costs, the effectiveness is questionable, as the company has seen a decline in R&D investment, with expenditures dropping from 120 million yuan in 2022 to 40 million yuan in the first half of 2025, representing a decreasing percentage of revenue from 2.8% to 1.7% [12][14]. - The company's strategy of relying heavily on marketing without sufficient product innovation or brand diversification has led to a "high marketing, low growth" dilemma [14].

Core Viewpoint - The well-known domestic beauty brand, Naturando, has submitted its IPO application to the Hong Kong Stock Exchange, citing the current capital market environment, industry competition, and its strategic development stage as key considerations for the listing [2][3] Financial Performance - Naturando's revenue for 2022, 2023, and 2024 is projected to be 4.292 billion, 4.442 billion, and 4.601 billion respectively, with net profits of 139 million, 302 million, and 190 million [3] - The revenue growth rates for 2023 and 2024 are expected to be 3.5% and 3.6%, while net profit growth rates are projected at 117% and -37% respectively [3] - In the first half of 2025, Naturando's revenue reached 2.448 billion, showing a year-on-year growth of 6.4%, with net profit at 191 million, a 7.1% increase [3] Brand Dependency - Naturando's product line includes skincare, makeup, and personal care, with skincare accounting for 87.3% of its revenue in the first half of 2025 [5] - The company heavily relies on its main brand, Naturando, which contributes approximately 95% of its revenue [5] - Despite efforts to diversify its brand portfolio, the new brands launched have not significantly impacted overall revenue, with the best-performing new brand, Peifuyan, contributing only 3.8% of total revenue in the first half of 2025 [5] Marketing and R&D Expenditure - Naturando's sales and marketing expenses have consistently accounted for a significant portion of its revenue, with figures of 24.45 billion, 24.06 billion, and 27.17 billion for 2022 to 2024, representing 57%, 54.2%, and 59% of revenue respectively [6][7] - In contrast, R&D spending has been relatively low, with expenditures of 1.2 billion, 0.94 billion, and 0.91 billion for the same period, accounting for only 2.8%, 2.1%, and 2% of revenue [7] - The company has acknowledged the need to enhance its R&D capabilities, stating that it has established six major R&D platforms to improve innovation and product development [7] Channel Strategy - Naturando's online revenue has been increasing, rising from 59.7% of total revenue in 2022 to 68.8% in the first half of 2025, while offline revenue has been declining [7] - To counteract the decline in offline sales, Naturando has opened four flagship stores in major cities since July 2025, aiming to enhance brand experience and customer engagement [8]

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 - Chando Global Holdings Limited has submitted its IPO application to the Hong Kong Stock Exchange, marking its entry into the capital market as China's third-largest domestic cosmetics group, aiming to raise funds for brand upgrading, technology research, and channel expansion [2] Company Structure - The company is characterized by a family-controlled governance model, with the founder Zheng Chunying and his siblings holding 87.82% of the voting rights, raising concerns about minority shareholder rights [2][6] - The board consists of nine members, with four executive directors from the Zheng family, indicating a high degree of control and decision-making concentration [6][8] Financial Performance - The company reported annual revenue exceeding 4.6 billion RMB, with a significant reliance on its main brand "Chando," which contributed approximately 95% of total revenue in recent years [8][10] - The gross profit margin for the first half of 2025 was 70.1%, lower than industry leaders, and the net profit margin stood at 7.8%, highlighting profitability challenges [12][13] Market Position and Challenges - The company faces structural risks, including an over-reliance on a single brand and insufficient development of its sub-brands, which collectively contribute less than 5% of total revenue [7][8] - The beauty industry is becoming increasingly competitive, with a shift towards technology-driven products, posing a challenge for Chando due to its lack of proprietary raw materials [10][12] Investment and Future Outlook - The company has attracted strategic investors, including a 300 million RMB investment from CVC Capital, but family control remains strong [6][13] - The ability to balance family governance with market-oriented management will be crucial for Chando's long-term competitiveness and investor appeal [6][13]

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 - The Chinese domestic cosmetics brand, Chando Global Holdings Limited, is set to list on the Hong Kong Stock Exchange, following the successful debut of another domestic brand, Mao Geping, which saw a first-day increase of over 70% and a subsequent fourfold rise from its issue price [1]. Industry Overview - China is the second-largest cosmetics market globally, with a market share of approximately 11.4% of the global cosmetics industry retail sales in 2024. The market size of China's cosmetics industry is projected to grow from RMB 779.4 billion in 2019 to RMB 934.6 billion in 2024, reflecting a compound annual growth rate (CAGR) of 3.7% [2]. - The domestic cosmetics industry is expected to maintain a stable growth trajectory, with an anticipated CAGR of 6.6% from 2024 to 2029, which is about twice the growth rate of the global cosmetics market during the same period [2]. - Factors driving the expansion of domestic cosmetics brands include a deep understanding of local culture, confidence in domestic brands due to the "Guochao" trend, increased investment in research and development, and the growth of online platforms enhancing brand exposure [2]. Company Overview - Chando, established in 2001, has become one of the most recognized brands in China's cosmetics industry, ranking as the second-largest domestic cosmetics brand by retail sales in 2024 [4]. - The company has a diversified brand portfolio that includes five main brands: Chando, Pofuyan, MAYSU, Spring Summer, and 1GB, covering skincare, makeup, personal care, and children's products [6]. - Chando is the first domestic cosmetics company in China to own proprietary rights to yeast ingredients and to conduct space skincare research projects [7]. Financial Performance - Chando's revenue has shown consistent growth, with figures of RMB 42.92 billion, RMB 44.42 billion, RMB 46.01 billion, and RMB 24.48 billion for the years 2022, 2023, 2024, and the first half of 2025, respectively. Net profits for the same periods were RMB 1.39 billion, RMB 3.02 billion, RMB 1.9 billion, and RMB 1.91 billion [8]. - The company has established three major research systems: skin science, raw material science, and product science, enhancing its innovation and product development capabilities [8]. Investment and Strategic Moves - Chando has received over RMB 700 million in investments from global cosmetics giant L'Oréal and well-known institution Cahua Capital prior to its listing [1][14]. - The company plans to strengthen its offline channel presence by opening flagship stores in major shopping centers, with the first store launched in Shenzhen in July 2025, followed by others in Shanghai, Wuhan, and Chongqing [10][12]. - The funds raised from the IPO will primarily be used to enhance direct-to-consumer (DTC) capabilities, improve online and offline sales network synergy, enrich the multi-brand matrix, invest in research and development, and strengthen digital capabilities in membership and supply chain management [14].

Core Viewpoint - The long-anticipated IPO of Chando has finally materialized, with the company filing its prospectus with the Hong Kong Stock Exchange on September 29, 2023, after previous rumors in 2023 regarding its parent company, Jala Group, planning to raise up to $500 million [1]. Company Overview - Chando was founded in Shanghai by Zheng Chunying, who transitioned from a government job to entrepreneurship in the 1990s, establishing Jala Group and launching the Chando brand [4]. - The company has developed five major brands, including Chando, with a total of 522 SKUs priced between 49 yuan and 680 yuan [4]. Financial Performance - Revenue from Chando's brands for the years 2022 to 2024 is projected to be 4.292 billion yuan, 4.442 billion yuan, and 4.6 billion yuan, respectively [5]. - In 2024, Chando is expected to rank as the third-largest domestic cosmetics group in China, holding approximately 10.1% of the market share among the top five domestic brands [5]. Ownership Structure - The ownership of Chando is highly concentrated, with the founding family holding approximately 87.82% of the voting rights [6]. - Prior to the IPO, Chando secured investments from two investors, including 300 million yuan from JiaHua Capital for a 4.2% stake and approximately 443 million yuan from L'Oréal for a 6.67% stake, leading to a pre-IPO valuation of about 7.14 billion yuan [6]. Revenue Composition - Chando's revenue is heavily reliant on its flagship brand, with approximately 95% of total revenue coming from Chando itself during 2022 to 2024, indicating a significant imbalance in income sources [9]. - In the first half of 2025, Chando reported revenue of 2.448 billion yuan, with 94.9% derived from the Chando brand, while the other four brands contributed only 5% [9]. Marketing and Sales Costs - Chando's sales and marketing expenses have increased, reaching 2.717 billion yuan in 2024, which constitutes 59% of total revenue, marking a new high [9]. - In the first half of 2025, sales and marketing costs were 1.347 billion yuan, maintaining a similar proportion of 55% of total revenue [11]. Online Sales Dependency - Chando's online sales accounted for 68.8% of total revenue in the first half of 2025, with direct online sales exceeding 54.3%, indicating a strong reliance on online traffic [12]. - The company faces challenges in developing proprietary patented materials, which could hinder long-term growth and lead to a cycle of reliance on promotions and price reductions [12]. Inventory Management - As of the first half of 2025, Chando's inventory turnover days were 103.1, an improvement from 146.6 days in 2022 but still lagging behind competitors like Pechoin, which reported 81.35 days [12].

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]