Core Insights - The article discusses the IPO of Chando, a leading Chinese beauty brand, which marks a significant step in its capital journey after over 20 years in the market [1] - Chando has evolved from a channel-focused brand to one that aims for digital and refined management, seeking to establish a strong foothold in the competitive beauty market [6][12] Group 1: Company History and Development - Chando was founded in 2001, capitalizing on the gap in the Chinese cosmetics market, particularly in the CS channel [2] - The brand quickly became a leader in the CS channel, achieving significant growth and establishing itself as a benchmark for domestic products [2][3] - By 2010, Chando had successfully entered over 2,600 supermarkets, solidifying its position as a "national brand benchmark" [3] Group 2: Financial Performance - Chando's revenue has shown steady growth, with projected revenues of 42.92 billion, 44.42 billion, and 46.01 billion CNY from 2022 to 2024, and 24.48 billion CNY in the first half of 2025, reflecting a 6.4% year-on-year increase [6][7] - Despite a gross margin increase from 66.5% in 2022 to 70.1% in the first half of 2025, its net profit has fluctuated, with figures of 1.39 billion, 3.02 billion, and 1.90 billion CNY from 2022 to 2024 [7] - Chando's compound annual growth rate from 2022 to 2025 is only 3.5%, which is below the industry average, indicating challenges in maintaining competitive growth [7][10] Group 3: Market Position and Challenges - Chando's reliance on a single brand for over 94% of its revenue poses risks, especially as competitors leverage multi-brand strategies to capture diverse consumer segments [10] - The company has faced challenges in balancing marketing and R&D investments, with marketing expenses significantly outpacing R&D spending [10][11] - The competitive landscape is intensifying, with other brands achieving higher growth rates, highlighting Chando's need for strategic adjustments [7][10] Group 4: Future Prospects and Strategic Moves - The recent IPO and investment from L'Oréal are seen as pivotal for Chando, providing opportunities to enhance DTC capabilities, expand brand offerings, and increase R&D investments [11][12] - L'Oréal's involvement is expected to bolster Chando's product development and international expansion efforts, potentially leading to a more resilient brand ecosystem [11][12] - The company aims to address its growth uncertainties by diversifying its brand portfolio and improving its R&D focus, which are critical for long-term competitiveness [12]