Core Viewpoint - Mannings, a well-known beauty and personal care chain from Hong Kong, announced a significant strategic adjustment by closing all its stores and online operations in mainland China, marking a complete withdrawal from the market [2][3][4] Group 1: Store Closures - Mannings will cease operations in mainland China, with the last physical store closing on January 15, 2026, and its online platforms shutting down by December 28, 2025 [2][3] - The company has been gradually reducing its presence in major cities since 2020, with notable closures in Beijing and Wuhan, where several stores have already shut down [3][4] - In Shenzhen, only two stores remain operational, and similar sentiments of regret have been expressed by consumers in Dongguan regarding the brand's exit [3][4] Group 2: Market Challenges - The decision to exit the mainland market is attributed to intensified competition, the rise of domestic beauty brands, and the influx of international brands, which have diversified consumer choices [3][4] - The rapid growth of e-commerce has significantly impacted traditional brick-and-mortar stores, leading to decreased foot traffic and sales for Mannings [3][4] - Rising rental and labor costs have further pressured Mannings' operations, prompting a reevaluation of its market strategy [4] Group 3: Strategic Adjustments - Despite efforts to optimize its store layout and product offerings, including a focus on health and beauty products, Mannings has struggled to compete with emerging beauty retailers that attract younger consumers [4][5] - The company plans to continue offering its products through cross-border e-commerce channels, allowing consumers to purchase items from Hong Kong stores [4] - The exit of Mannings is part of a broader trend, as other Hong Kong beauty retailers like Sa Sa International have also announced their withdrawal from the mainland market due to similar challenges [5]

Company Overview - Long Fung Group Holdings Limited is a leading retail pharmacy and cosmetics operator based in Hong Kong, with a market share of 5.2% in retail sales as of 2024, making it the largest pharmacy retailer in Hong Kong [3] - The company operates 29 retail stores and various online sales platforms, offering a wide range of products across 11 categories, including traditional Chinese medicine, Western medicine, health supplements, skincare, cosmetics, and household goods [3][4] - The flagship store located in Mong Kok has a total floor area of approximately 17,500 square feet, making it the largest cosmetics retail store in Hong Kong by total floor area in 2024 [3] Product Offering - The company has sold over 46,000 product SKUs during the historical record period and plans to offer approximately 28,800 SKUs in the fiscal year 2025, including over 3,000 pharmaceutical products, more than 4,200 health products, and over 6,800 beauty products [5][6] - The company has established over 40 private label brands, with more than 700 SKUs available for sale in the first quarter of the fiscal year 2026 [6] Financial Performance - The company's revenue for the fiscal years 2023, 2024, 2025, and the first quarter of 2026 is approximately HKD 1.094 billion, HKD 2.021 billion, HKD 2.460 billion, and HKD 697 million respectively [7] - The profit figures for the same periods are approximately HKD -27.14 million, HKD 145 million, HKD 170 million, and HKD 47.76 million [8] - The gross profit margins for the fiscal years 2023, 2024, 2025, and the first quarter of 2026 are 24.9%, 29.3%, 31.6%, and 31.9% respectively [9] Industry Overview - The total retail sales of consumer goods in Hong Kong are projected to grow from HKD 326.5 billion in 2020 to HKD 376.8 billion in 2024, with a compound annual growth rate (CAGR) of 3.6% [11] - The retail sales of consumer goods are expected to reach HKD 457.5 billion by 2029, with a CAGR of 4.8% from 2025 to 2029 [11] - The pharmaceutical market in Hong Kong is expected to grow from approximately HKD 5.8 billion in 2020 to HKD 8.5 billion in 2024, driven by an aging population and increased healthcare spending, with a CAGR of 10.1% [15]

Company Overview - Long Fung Group Holdings Limited is a leading retail pharmacy operator based in Hong Kong, with a market share of 5.2% in retail sales of pharmaceuticals, making it the largest in the sector according to Frost & Sullivan [3] - The company operates 29 retail stores and various online sales platforms, offering a wide range of products across 11 categories, including traditional Chinese medicine, Western medicine, health supplements, skincare, cosmetics, and household goods [3][4] - The flagship store located in Mong Kok is the largest pharmacy retail store in Hong Kong by total floor area, measuring approximately 17,500 square feet [3] Product Offering - The company has sold over 46,000 product SKUs during the historical period, with an average of 8,000 SKUs stocked per store, and larger stores offering up to 13,000 SKUs [5][6] - The product range includes over 3,000 pharmaceutical items, more than 4,200 health products, over 6,800 beauty products, and over 14,000 other consumer products [5] Supplier Network - The company sources products from over 600 suppliers globally, including local distributors in Hong Kong and major suppliers from Japan, South Korea, Southeast Asia, Europe, and the United States [4] - It has established a supply chain office in Fukuoka, Japan, to procure local products that appeal to its target customers [4] Financial Performance - The company's revenue for the fiscal years 2023, 2024, 2025, and the first quarter of 2026 is approximately HKD 1.094 billion, HKD 2.021 billion, HKD 2.460 billion, and HKD 697 million respectively [7] - The profit figures for the same periods are approximately HKD -27.14 million, HKD 145.36 million, HKD 170.43 million, and HKD 47.76 million [8] - The gross profit margins for these fiscal years are 24.9%, 29.3%, 31.6%, and 31.9% respectively [9] Industry Overview - The total retail sales of consumer goods in Hong Kong are projected to grow from HKD 326.5 billion in 2020 to HKD 376.8 billion in 2024, with a compound annual growth rate (CAGR) of 3.6% [11] - The pharmaceutical market in Hong Kong is expected to grow from approximately HKD 5.8 billion in 2020 to HKD 8.5 billion in 2024, driven by an aging population and increased healthcare spending, with a CAGR of 10.1% [15]

Core Insights - The event showcased the active participation of young entrepreneurs as exhibitors, buyers, and partners, highlighting a vibrant entrepreneurial spirit at the expo [1] - The innovation incubation area exceeded 5,000 square meters for the first time, providing more opportunities for young entrepreneurs to showcase their products [2] - The expo serves as a platform for young entrepreneurs to gain industry insights and find collaboration opportunities through procurement meetings, investment negotiations, and industry forums [1][3] Group 1 - Danish entrepreneur Beike shared his experience of starting a high-speed 3D printing company that can produce a cochlear implant in 30 seconds, aiming to sell products to hearing aid stores and dental clinics [1] - Sun Meng, founder of Amac Technology, introduced a new generation of industrial robots, indicating that the team quickly upgraded their model based on specific production requests from companies after last year's expo [1] - Indian entrepreneur Tajire expressed his admiration for the innovative energy of the Chinese market and aims to explore more import-export opportunities [1] Group 2 - Young entrepreneur Xiao Sirui presented a cosmetic product ready for market launch, representing a startup incubator that brought multiple new products to the expo, attracting attention from several buyers [3] - Singaporean entrepreneur Yang Zuyi, a frequent attendee, established a pet rehabilitation hospital after learning about international medical device developments at the expo three years ago, emphasizing the value of the open and shared atmosphere [3] - The founder of Yufeng Future, Xie Ling, showcased a new generation of manned flying vehicles, receiving investment opportunities and global collaboration intentions at the expo [3] Group 3 - Suggestions were made to host international innovation competitions at the expo to provide better development opportunities for young entrepreneurs [4] - The Danish Consulate in Shanghai highlighted the acceleration of innovation in China, with new technologies and ideas converging in Shanghai, creating growth space for global entrepreneurial youth [4]