THE WHAT? Shanghai Forest Cabin Cosmetics Group, known as Lin Qingxuan, has filed for an initial public offering in Hong Kong as competition intensifies in China’s premium skincare market.
THE DETAILS The company’s growth is anchored by its Camellia Essential Oil, which contributes nearly 40% of annual revenue and more than 45% in its most recent reporting period. Revenue has risen sharply in recent years, reaching RMB 1.21 billion, with profitability supported by gross margins above 80%.
The filing highlights a highly concentrated product portfolio and rising marketing spend. An investment fund linked to L’Oréal holds a minority stake, while the group has also backed rival oil-based skincare brand Lan.
THE WHY? The IPO filing underscores growing investor interest in domestic Chinese premium skincare brands, while also exposing risks tied to hero-product dependence, high customer acquisition costs and intensifying category competition.
Source: China Daily
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