In-Depth Analysis of Investment Value and Competitive Landscape of China's New Consumer Beauty Track

Now, based on the collected information, I will provide you with a detailed industry investment analysis report.

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Shandong Huawutang Cosmetics Co., Ltd. (parent company of Half Acre Flower Field) officially submitted an application to the Hong Kong Stock Exchange on January 16, 2025, with CITIC Securities as the sole sponsor [1]. This marks another leading local beauty brand entering the capital market, and is also a typical case of the concentrated restart of IPOs for domestic beauty enterprises in 2025 [2].

According to the prospectus data, Half Acre Flower Field has shown strong growth momentum [1]:

Financial Indicator	2023	2024	YoY Growth	First Three Quarters of 2025	YoY Change
Operating Revenue	RMB 1.199 billion	RMB 1.499 billion	+25.0%	RMB 1.895 billion	+76.7%
Adjusted Net Profit	RMB 23.7 million	RMB 82.8 million	+249.4%	RMB 148 million	+197.2%

The company’s performance shows an explosive growth trend, with the growth rate of adjusted net profit significantly higher than that of operating revenue, indicating that the company’s profitability is improving rapidly.

Half Acre Flower Field was founded in 2010, starting from Jinan, Shandong, with flower and plant research as the core, building a full-category matrix covering body, hair and facial care [1]. The company’s channel structure is highly dependent on online:

• Online Channel Revenue Share
  : 85.7% in 2023, 75.9% in 2024, 76.3% in the first three quarters of 2025
• Main Sales Platforms
  : Xiaohongshu, Douyin and other emerging e-commerce platforms

This channel feature reflects the typical strategy of new consumer beauty brands—relying on social e-commerce to achieve rapid scaling, but also means high sensitivity to traffic costs [1].

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In 2025, the People’s Bank of China and five other ministries jointly issued the “Guiding Opinions on Financial Support for Boosting and Expanding Consumption”, which clearly supports consumer enterprises to go public and raise funds [2]. This policy orientation directly promoted the concentrated restart of IPOs for domestic beauty enterprises.

The Hong Kong Stock Exchange also launched optimization measures: enterprises with a market value of at least HK$10 billion and that have complied with relevant A-share regulations in the two complete fiscal years before submitting the application can be approved in accordance with the fast-track approval process [3]. This has built a smoother capital bridge for qualified leading enterprises.

According to public market information, more than 41 beauty-related enterprises have promoted IPO processes since 2025 [4], forming a complete “full-chain” listing echelon:

Enterprise	Positioning	Capital Market Progress
Mao Geping	First Domestic High-End Cosmetics Stock	Listed in December 2024, raised approximately HK$2.1 billion
Forest Cabin	First Domestic High-End Skincare Stock	Passed HKEX hearing in December 2025
Proya	Leading Domestic Beauty Enterprise	Promoting “A+H” dual-platform listing
Marubi Bio	First Eye Cream Stock	Promoting Hong Kong IPO
CHANDO Group	Established Domestic Beauty Brand	Submitted application in September 2025
Yingtong Holdings	First Chinese Perfume Stock	Listed in June 2025
Half Acre Flower Field	Leading Enterprise in Body Care Segment	Submitted application in January 2025

In the first 10 months of 2025, Hong Kong IPO financing reached HK$216 billion, more than tripling year-on-year [3]. The beauty sector has become one of the most dynamic segments in the Hong Kong stock market. When Mao Geping was listed, the subscription multiple reached 919 times, becoming the annual “freezing capital king”, and its stock price soared 76% on the first day [5].

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China’s cosmetics market has exceeded the trillion-yuan scale for two consecutive years, and is expected to reach 1.1 trillion yuan in 2025 [2]. According to Frost & Sullivan data, as the world’s second-largest cosmetics market, China’s market scale is expected to reach 1.0262 trillion yuan in 2026, officially exceeding the trillion-yuan mark [6].

[7]:

• Market Size: US$38.9 billion
• Expected 2032: US$68 billion
• CAGR during forecast period: 7.38%

In 2025, China’s cosmetics channel pattern is dominated by online [6]:

• Online Channel
  : Retail sales increased by 9.36% year-on-year, accounting for 56.06%
• Offline Channel
  : Retail sales increased by 2.38% year-on-year, accounting for 43.94%

Online channels have become the main battlefield for beauty brands, but the intensity of competition is also intensifying.

In the first three quarters of 2025, 8 major listed beauty enterprises achieved cumulative operating revenue of 27.707 billion yuan and net profit attributable to parent companies of 3.753 billion yuan [4]:

Enterprise	Operating Revenue	YoY Change	Industry Status
Proya	RMB 7.098 billion	+1.89%	Top Domestic Beauty Enterprise
Jahwa Group	RMB 4.961 billion	+10.83%	Second Place
Botanee	-13.78% YoY	In Adjustment Period	Leading Efficacy Skincare Enterprise Under Pressure
Bloomage Biotech	-19.57% YoY	Worst in Six Years	Functional Skincare Under Pressure

It is worth noting that Proya has become the first domestic beauty group with annual operating revenue exceeding 10 billion yuan, and has built a multi-brand matrix through new brands such as Caitang and Off&Relax [6].

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:

1. Continuous Market Expansion
   : Trillion-level market with CAGR of over 7%
2. Rise of National Trend Consumption
   : Gen Z shows significant preference for domestic brands
3. High-Endization Trend
   : Consumers are willing to pay a premium for efficacy and quality
4. Policy Support
   : Consumer enterprises receive regulatory support for IPO and financing
5. Overseas Opportunities
   : Accelerated globalization of C-beauty brands

In 2025, the beauty industry shows an obvious pattern of “the strong get stronger, the weak restructure” [6]:

:

• Proya
  : Successful big-single product strategy, multi-brand matrix formed
• Mao Geping
  : High-end positioning + founder IP, high recognition in capital market
• Forest Cabin
  : Leading enterprise in niche track, camellia essential oil has ranked first in national sales for 11 consecutive years [8]

:

• Botanee
  : Intensified competition in efficacy skincare track, performance under pressure
• Bloomage Biotech
  : Traffic dividend fading, skincare business declined significantly

:

• The valuation of Hong Kong consumer sector has rebounded overall, and the beauty sector has obtained a premium
• R&D investment, channel barriers, and brand premium capabilities have become the key to valuation differentiation

:

1. High Marketing Expenses
   : The industry average marketing expense ratio is 45%-55%, which seriously erodes profits [6]
2. Insufficient R&D Investment
   : Most domestic beauty enterprises have R&D expense ratios of less than 2%, far lower than international giants [4]
3. Rising Traffic Costs
   : Douyin CPM increased by 35% year-on-year, and customer acquisition costs continue to rise [6]
4. Intensified Competition
   : At least 15 domestic beauty brands exited the market in 2025, with a survival rate of less than 12% [6]
5. Over-Reliance on Single Product
   : Some enterprises over-rely on a single product line, with weak risk resistance [4]

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The industry is currently undergoing profound changes, and consumer decision-making factors have shifted from brand worship to ingredient research [6]. According to KPMG data, 58.8% of consumers take product ingredients as the primary factor in purchase decisions.

:

• Proya
  : R&D expenditure of RMB 210 million, established core technological barriers
• CHANDO
  : 546 patents + self-built bio-fermentation raw material factory
• Bloomage Biotech
  : R&D expense ratio of 10.22%, leading in synthetic biology technology

In May 2025, the China Association of Fragrance, Flavor and Cosmetics Industries released the first “China Fragrance and Cosmetics Industry Brand Value Evaluation System” [2], marking that the industry has bid farewell to barbaric growth and entered a stage of scientific development.

Chinese beauty brands are accelerating their overseas expansion [8]:

• Florasis
  : Entered Ulta Beauty, the largest beauty retail platform in the US, with products sold to more than 110 countries
• CHANDO
  : Layout in Southeast Asian market
• Mao Geping
  : Backed by LVMH, with rich international resources

With the support of capital, the expectation of industry M&A and restructuring has increased [2]:

• Leading enterprises improve their brand matrices through mergers and acquisitions
• Upstream raw material and technology enterprises have become M&A targets
• The trend of vertical integration of the industrial chain is obvious

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• Half Acre Flower Field: Leading in the body care segment, with outstanding performance growth
• Forest Cabin: Absolute leader in camellia essential oil category

• Proya: Mature multi-brand matrix, high performance certainty
• Mao Geping: Clear high-end positioning, high recognition in capital market

• Bloomage Biotech: Leading in synthetic biology technology, with long-term value potential
• Botanee: Deep technical accumulation in efficacy skincare, expected to resume growth after adjustment

Risk Type	Specific Performance	Response Suggestions
Regulatory Risk	Frequent compliance defects of listed enterprises	Pay attention to corporate governance quality
Performance Risk	Slowdown in growth, profit under pressure	Pay attention to signals of profitability improvement
Valuation Risk	Concentrated IPO supply leads to valuation pressure	Pay attention to reasonable valuation range
Competition Risk	Intensified involution, continuous exit wave	Prioritize leading targets

:

• Explosive performance growth, significant growth rate of adjusted net profit
• Outstanding online channel operation capabilities
• Stable leading position in the body care segment

:

• Highly dependent on online channels, sensitive to traffic costs
• Brand barriers and technological R&D capabilities need to be observed
• Fund-raising uses and subsequent capital operation strategies

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China’s new consumer beauty track is in a critical transition period from “barbaric growth” to “high-quality development”. The clustered IPOs of local brands such as Half Acre Flower Field are not only an inevitable outcome of the industry’s development to a certain stage, but also reflect the strategic intent of leading enterprises to achieve technological breakthroughs, channel expansion and global layout by leveraging the capital market.

From an investment perspective, with a trillion-level market scale coupled with the rise of national trend consumption, the beauty track still has medium- and long-term investment value. However, investors need to be alert to the risks brought by intensified industry differentiation, and prioritize leading enterprises with core technological barriers, mature multi-brand matrices and balanced channel capabilities. For new listed targets such as Half Acre Flower Field, it is recommended to closely follow the strategic implementation after fund-raising and the sustainability of profitability.

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[1] Parent Company of Half Acre Flower Field, Huawutang, Races for Hong Kong IPO, Nearly 80% of Revenue from Online - NetEase Finance (https://www.163.com/dy/article/KJG1HOGJ05569L3G.html)
[2] 2026 New Journey: Tempering and Advancement of China’s Cosmetics Industry - China Fragrance and Cosmetics Media (https://www.caffcimedia.com/feed/154934)
[3] HK$1.35 Billion! First Chinese Eye Cream Stock to Launch Another IPO - Hurun Report (https://www.163.com/dy/article/KIK2S5ER0519D5IA.html)
[4] Full-Chain Listing! Beauty Enterprises Compete to Be “First Stock” - Xinhua News (http://www.news.cn/fashion/20260116/9d6ff837fbaf4c8b8c9fde0282334dbc/c.html)
[5] Need HK$1.3 Billion to “Improve Life”? The Listing Wealth Feast of Mao Geping’s Family - Sina Finance (https://finance.sina.com.cn/roll/2026-01-12/doc-inhfzysp6780106.shtml)
[6] Prosperity and Collapse: Domestic Beauty Stands at the “Crossroads” in 2026 - 36Kr (http://www.36kr.com/p/3639239346261126)
[7] China Cosmetics Market Size, Share | Growth Report [2032] - Fortune Business Insights (https://www.fortunebusinessinsights.com/zh/china-cosmetics-market-114165)
[8] Week 53, 2025: Weekly Market Observation of Beauty Industry - iResearch Intelligence (https://caifuhao.eastmoney.com/news/20260110081119585266660)