Core Viewpoint - The Chinese beauty industry is experiencing a dual phenomenon of heightened IPO enthusiasm alongside an increasing wave of delistings, indicating a significant transformation in the capital market dynamics [1][10][15]. Group 1: IPO Activity - As of August 26, 2023, Proya Cosmetics Co., Ltd. announced plans to issue H-shares and list on the Hong Kong Stock Exchange, marking the fourth beauty-related company to initiate an "A+H" dual listing this year [1]. - This year, three beauty-related companies have successfully gone public, while at least 30 others are competing for capital market entry, covering various segments such as brands, raw materials, and agency operations [1][10]. - The Hong Kong Stock Exchange has become a preferred listing destination for beauty companies, driven by policy support and improved listing mechanisms, with 13 companies planning to list there [13][14]. Group 2: Delisting Trends - Since 2025, at least nine beauty-related companies have faced delisting or termination of listing risks, with five companies being forcibly delisted due to financial misconduct or information disclosure violations [2][4][5]. - Companies like Puli Pharmaceutical and Jiuyou Co. were delisted from A-shares due to financial fraud, while others like Xingmei Co. and Senyu Group faced delisting for failing to disclose required reports [2][4][5]. - The delisting trend reflects a tightening regulatory environment, where companies lacking sustainable operations and transparent governance face increased scrutiny and potential removal from the market [5][15]. Group 3: Strategic Adjustments - Four companies, including Linsen Biological and Yasha Co., have voluntarily chosen to delist, citing reasons such as focusing on core business management and reducing operational costs [6][7]. - The decision to voluntarily delist is often influenced by high listing costs and low valuations, prompting companies to seek greater operational flexibility [7][9]. - Among the voluntarily delisted companies, only Opei Co. maintained stable revenue and profit growth, while others experienced declines in net profit [8][9]. Group 4: Market Dynamics - The beauty industry is undergoing a significant shift from rapid growth driven by marketing and traffic to a focus on sustainable, high-quality development [15]. - The current market environment emphasizes the importance of companies with solid internal value, clear brand recognition, and sustainable profitability to attract capital [15].