Core Viewpoint - The beauty industry in China is experiencing a surge in IPO activity, driven by supportive policies, strong market demand, and the success of existing public companies [1][6]. Industry Overview - The beauty industry is valued in the hundreds of billions, with significant support from regions like Shanghai and Jiangsu [1]. - Over 30 beauty-related companies are preparing for IPOs this year, with three already listed and others in various stages of the IPO process [1]. - The types of companies preparing for IPOs include brand manufacturers, raw material suppliers, e-commerce service providers, and medical beauty enterprises, with brand manufacturers being the primary focus [1][2]. Company Highlights - Notable brands such as Plant Doctor, Gu Yu, and Lin Qingxuan are among those preparing for IPOs, with Plant Doctor aiming to raise 998 million yuan [2]. - Gu Yu Bio has initiated its A-share IPO process, targeting approximately 4 billion yuan in revenue for 2024 [2]. - Companies like He Yuan Bio, which focuses on biopharmaceuticals and beauty product raw materials, are also entering the IPO market, seeking to raise 2.4 billion yuan [3]. Market Trends - The Hong Kong Stock Exchange has become a preferred destination for beauty companies, with several firms transitioning from A-share listings to pursue opportunities in Hong Kong [4][5]. - The successful IPOs of companies like Mao Ge Ping and Ying Tong Holdings have inspired more beauty companies to consider listing in Hong Kong [4]. Driving Factors for IPO Surge - Three main factors are driving the IPO enthusiasm in the beauty industry: 1. **Industry Dynamics**: The domestic market is seeing a shift towards local brands, with increased consumer confidence and demand for high-quality, cost-effective products [6]. 2. **Company Performance**: Publicly listed beauty companies are demonstrating strong growth, with a reported revenue growth rate of 7.3% for key players in the first half of the year [6]. 3. **Policy Support**: Recent reforms by the Hong Kong Stock Exchange and favorable regulatory policies are creating a more conducive environment for new listings [6].

Core Viewpoint - He Yuan Bio has successfully passed the review for its initial public offering on the Sci-Tech Innovation Board, but it continues to face challenges such as ongoing losses and declining revenue [1][4]. Financial Performance - The company reported a significant decline in revenue, with a 37.88% drop in the first quarter of 2025, resulting in a net loss of approximately 48.2 million yuan, which is a 64.38% increase in losses compared to the same period last year [4]. - From 2022 to 2024, He Yuan Bio's revenue was 13.4 million yuan, 24.3 million yuan, and 25.2 million yuan, while the net losses were 144 million yuan, 187 million yuan, and 151 million yuan, totaling approximately 482 million yuan in cumulative losses over three years [3][4]. Capital Raising and Cash Flow - The company has relied on financing activities to maintain operations, with net cash flow from financing activities of 568 million yuan, 72.6 million yuan, and 104 million yuan from 2022 to 2024, while cash flow from operating activities remained negative [4]. Business Strategy and Product Development - He Yuan Bio attempted to diversify into the cosmetics sector with its brand "San de San Ci Fang," but all product registrations have been canceled, indicating a retreat from this market [5][6][7]. - The company is now focusing on the production of recombinant human fibronectin for beauty products, with revenue from other business segments showing a slight increase but still accounting for less than 5% of total revenue [7].