Core Viewpoint - The established domestic cosmetics brand, Chando, is preparing for an IPO in Hong Kong amid the rising trend of "national beauty brands" in the consumer market, but faces challenges such as unstable profitability and declining R&D investment [1][12]. Financial Performance - Chando's revenue for the years 2022 to 2025 (first half) is reported as 4.292 billion, 4.442 billion, 4.601 billion, and 2.448 billion respectively, with 90% of its revenue dependent on the single brand "Chando" [2]. - The net profit figures for the same period are 139 million, 302 million, 190 million, and 191 million, with the first half of 2025 already exceeding the full-year profit of 2024 [2]. R&D Investment - R&D expenditures have decreased over the years, with amounts of 120 million, 93.82 million, 91.21 million, and 42.38 million reported, leading to a declining R&D expense ratio from 2.8% in 2022 to 1.7% in the first half of 2025, which is significantly lower than peers [3][4]. Employee Structure - As of June 30, 2025, Chando has a total of 2,102 employees, with only 154 in R&D, making up 7.3% of the workforce, while administrative staff constitute 8.8% [5]. Consumer Complaints - Chando has received 1,144 complaints on the Black Cat Complaints platform, primarily related to issues such as price discrepancies, allergic reactions, and poor customer service [6][7]. - Complaints include specific cases of unfulfilled promises regarding price guarantees and missing items in orders, indicating potential issues in customer service and fulfillment [6][7]. Market Position and Strategy - The Chinese cosmetics market is the second largest globally, with a projected growth from 779.4 billion in 2019 to 934.6 billion by 2024, reflecting a compound annual growth rate of 3.7% [9]. - Chando's strategy appears conservative, with indications that it may not pursue aggressive expansion or acquisitions due to the associated risks and challenges [10][11][12].