The domestic skincare brand Lin Qingxuan, which is highly favored by consumers in the shopping mall, has embarked on the road to listing in Hong Kong. On May 29th, Shanghai Linqingxuan Biotechnology Co., LTD. (referred to as “Linqingxuan”) submitted an application for listing to the Hong Kong Stock Exchange, with CITIC Securities and Huatai International serving as joint sponsors.
The prospectus shows that Lin Qingxuan is dedicated to creating high-end skin care improvement solutions with natural camellia ingredients, pioneering the concept of “nourishing the skin with oil”, and being the first to create camellia facial essence oil. It is a leading brand in the field of camellia cell-level anti-wrinkle essence oil. According to data from CIC, in terms of retail sales in 2024, Linqingxuan ranked first among all high-end domestic skincare brands in China and was the only domestic brand among the top 15 high-end skincare brands in China (including both domestic and international brands).
Looking back on its development history, the first store of Lin Qingxuan was opened in 2008, and the company was officially established in 2011. After its establishment, it received investments from well-known companies and institutions such as Youngor Fashion and Toutou Shidao. In recent years, with its core camellia series of products, Lin Qingxuan’s performance has grown rapidly. From 2022 to 2024, the company’s revenue was 691 million yuan, 805 million yuan and 1.21 billion yuan respectively. The net profits attributable to the parent company were -5.871 million yuan, 84.518 million yuan and 187 million yuan respectively. Behind this outstanding performance lies the continuous investment in the research and development of molecular recombination bio-fermentation technology and other technologies. From 2022 to 2024, the research and development costs reached 21.12 million yuan, 19.745 million yuan, and 30.404 million yuan respectively. By the end of 2024, its R&D team had 64 members, with core members Gao Hongqi and Hu Xin having considerable influence in the industry.
However, Lin Qingxuan, which focuses on research and development, suffered a setback in promoting the efficacy of its products this year. In February, the Beijing Municipal Market Supervision and Administration Bureau disclosed that a branch of a company under Lin Qingxuan was fined approximately 21,200 yuan for advertisements that did not match the actual efficacy of the products. Many products claim to be “anti-aging” and “anti-senescence”, but in reality, they do not have such effects, which violates the Advertising Law. In response to this, Sun Laichun, the founder of Linqingxuan, posted on Weibo, admitting that the promotional language was incorrect, promising to rectify the situation, and emphasizing that the company adheres to the entire industrial chain and is willing to accept supervision.
From the perspective of market prospects, the market size of high-end skin care products in China has grown rapidly, increasing from 74.9 billion yuan in 2019 to 114.4 billion yuan in 2024, and is expected to reach 218.5 billion yuan in 2029. Among them, the demand for anti-wrinkle and firming products is strong. The market size is expected to increase from 59.4 billion yuan in 2024 to 155.5 billion yuan in 2029, with a compound annual growth rate of 21.2%. Lin Qingxuan’s facial essence oil, as an anti-wrinkle and firming skin care product, is expected to seize the opportunity. In fact, since its launch until the end of 2024, its camellia essence oil has sold over 30 million bottles. In terms of total retail sales across all channels, it has ranked first among facial essence oil products for 11 consecutive years and is the only product with retail sales exceeding 100 million yuan for eight consecutive years.
Xu Yuwei, a senior researcher at CRI, pointed out that consumers’ demand for high-quality skin care products has upgraded, and functional skin care products are more favored. For this listing in Hong Kong, Lin Qingxuan plans to use the net proceeds from the fundraising for brand building and promotion, building a full-channel sales network, strengthening production and supply chain capabilities, technological research and development, product line expansion, and digital construction, etc., to help the company further develop in the highly competitive skincare market.
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