Core Viewpoint - The recent detection of Sudan Red in various skincare products has raised significant consumer concerns, leading to responses from multiple brands and potential implications for the beauty industry [2][4]. Group 1: Detection and Response - A video by "Dad Evaluation" revealed the presence of Sudan Red in several skincare products, with one sample showing a concentration of 1170 ppm [2]. - Following the video, multiple brands, including Huaxizi and Yuru, have acknowledged the issue, with some initiating product testing and temporarily removing affected items from sale [4][7]. - The National Medical Products Administration has classified Sudan Red as a banned ingredient in cosmetics since 2021, highlighting the regulatory implications for brands involved [2]. Group 2: Brand Impact and Financials - Yuru, a brand under the publicly listed company Liren Lizhuang, has experienced declining revenues from 32.42 billion in 2022 to an expected 17.28 billion in 2024, indicating financial pressure [8]. - The brand's performance is critical as it has been positioned as a key growth area for the company, particularly with its saffron-based product line [8]. - Huaxizi has faced previous controversies, including a legal case related to public relations, which may affect its reputation and consumer trust in light of the current Sudan Red issue [9].