Core Viewpoint - The mother company of the skincare brand HBN, Shenzhen Hujia Technology (Group) Co., Ltd., has submitted an IPO application to the Hong Kong Stock Exchange, raising concerns about the significant disparity between profit and revenue growth, as well as the company's reliance on a single brand for income [1][2] Group 1: Financial Performance - In 2023, Hujia Technology turned a profit, with net profit expected to surge from approximately 39 million yuan in 2023 to 129 million yuan in 2024, representing a growth rate exceeding 200% [2] - The company has achieved a reduction in sales and distribution expenses as a percentage of revenue, from 65.1% in 2023 to 57.6% in the first three quarters of 2025, indicating improved operational efficiency [2][4] Group 2: Brand and Market Strategy - HBN's revenue is heavily dependent on its own brand, which raises concerns about structural risks for long-term growth [2] - The company has registered a new brand, "Luokexin," but clarified that it is still in the exploratory phase and not yet in substantive business operations [3] Group 3: Research and Development - HBN's products are primarily manufactured by third-party manufacturers, which raises questions about the company's research and quality control capabilities [3] - The company claims to have established a comprehensive verification system for product efficacy, supported by a 5,000 square meter integrated research and development center [4] Group 4: Channel Expansion - Hujia Technology's online sales accounted for over 90% of total revenue from 2023 to the first three quarters of 2025, highlighting its reliance on online channels [6] - The company plans to use IPO proceeds to expand offline channels, having already entered over 5,000 high-end beauty stores and aiming to develop core shopping area counters and direct stores [6]

Core Viewpoint - HBN, a rising skincare brand in China, is preparing for an IPO on the Hong Kong Stock Exchange, aiming to capitalize on the growing trend of domestic consumer brands going public [1][2]. Company Overview - HBN, founded in 2019, focuses on effective skincare products, particularly promoting the "Morning C, Evening A" concept, which emphasizes using vitamin C in the morning and retinol at night [2][4]. - The brand has quickly gained popularity, becoming one of the youngest brands in the top ten domestic skincare market, achieving significant sales growth within a short period [1][4]. Financial Performance - HBN's revenue reached approximately 19.48 billion RMB in 2023, with projections of 20.8 billion RMB in 2024 and 15.14 billion RMB for the first three quarters of 2025 [8]. - The net profit for the same periods was 38.8 million RMB, 129 million RMB, and 145 million RMB, indicating a substantial increase in net profit margin from 1.9% to 9.6% [8]. - The brand's average repurchase rates on platforms like Tmall and Douyin are around 35.4% and 44.0%, respectively, with over 4.6 million cumulative repurchase users [8]. Product and Market Position - HBN's product lines include anti-aging and daily skincare products, with prices ranging from 129 RMB to 689 RMB [6]. - The brand is ranked fourth among domestic mid-to-high-end skincare brands and is the largest domestic brand in the improvement skincare segment [8]. Business Structure and Risks - HBN's revenue is heavily reliant on a few key products, which accounted for nearly 40% of sales, raising concerns about business sustainability [9]. - The company has a high concentration of online sales, with online revenue accounting for over 95% in recent years, indicating limited diversification in sales channels [9][10]. Investment and Shareholding - Prior to the IPO, HBN's founders held a combined 76.19% voting power, with significant external investment from Meitu, which holds 23.81% of the shares [5]. - The company recently declared a cash dividend of 100 million RMB, with a portion already paid out, benefiting the founders significantly [5]. Industry Context - The trend of consumer brands going public in Hong Kong is accelerating, with numerous companies filing for IPOs, indicating a competitive environment for HBN [12][13]. - The Hong Kong Stock Exchange is experiencing a surge in IPO applications, with over 350 companies in the queue, highlighting the urgency for HBN to finalize its listing [16].

Core Viewpoint - HBN's parent company, Shenzhen Hujia Technology Co., Ltd., has officially submitted an application for a mainboard listing on the Hong Kong Stock Exchange, indicating a continued interest in the Chinese skincare market and the potential for growth in domestic brands [1]. Group 1: Company Overview - HBN is recognized as the youngest player among the top ten domestic skincare brands in China, rapidly rising due to its "early C, late A" product strategy and precise online marketing [5]. - The company was founded in 2019 and has quickly established itself with a focus on "true efficacy," achieving significant market presence in the skincare sector [7]. Group 2: Financial Performance - Hujia Technology's total revenue is projected to increase from 1.948 billion RMB in 2023 to 2.083 billion RMB in 2024, reflecting a growth rate of 6.9%. For the first three quarters of 2025, revenue reached 1.514 billion RMB, a year-on-year increase of 10.2% [9]. - The net profit for 2023, 2024, and the first three quarters of 2025 is reported as 39 million RMB, 129 million RMB, and 145 million RMB, respectively, with a remarkable increase of 232.5% in 2024 compared to 2023 [9]. Group 3: Product and Market Strategy - HBN's primary revenue source is from "improvement-type skincare products," contributing approximately 80% of total revenue in recent years, with a steady increase in the share of "maintenance-type skincare products" [10]. - The company has a high repurchase rate and has seen its net profit double over three years, indicating strong customer loyalty and product effectiveness [7]. Group 4: Sales Channels and Marketing - Hujia Technology's sales are heavily concentrated online, with online channel revenue accounting for 98.6%, 97.7%, and 95.1% of total revenue in 2023, 2024, and the first three quarters of 2025, respectively [12]. - The reliance on online sales has led to high sales expense ratios, with sales and distribution expenses reaching 1.268 billion RMB, 1.238 billion RMB, and 871 million RMB, representing 65.1%, 59.4%, and 57.6% of total revenue [14]. Group 5: Research and Development - Despite HBN's emphasis on "true efficacy," the company's R&D investment is relatively low, with expenditures of 66 million RMB, 58 million RMB, and 40 million RMB for 2023, 2024, and the first three quarters of 2025, respectively, resulting in a decreasing R&D expense ratio [18]. - The majority of Hujia Technology's products are produced through contract manufacturing, raising questions about the extent of its proprietary technology and innovation capabilities [18][24].