On April 2, Garnier Global Holdings Limited (referred to as "Garnier") updated its prospectus on the Hong Kong Stock Exchange, with Huatai International and UBS Group serving as joint sponsors.

Just days after its initial application lapsed on March 29 due to the six-month validity period, Garnier promptly refreshed its financial data and reactivated its listing process. The updated prospectus, viewed alongside broader industry trends, highlights that the core challenges for Garnier's successful listing and long-term development lie in maintaining its leading brand's strengths while incubating new growth drivers and aligning with the regulatory standards of capital markets.

Garnier's updated financial disclosures for 2025 demonstrate resilience, yet also reveal multidimensional challenges typical of established domestic brands in transition, particularly regarding revenue structure, channel evolution, and competitive positioning. Garnier Group delivered a commendable performance in 2025. Data shows the group's revenue reached approximately RMB 5.318 billion, with the overall gross profit margin increasing from 69.4% the previous year to 70.6%. Annual profit was about RMB 351 million. Based on 2024 retail sales, Garnier Group ranked tenth in China's overall cosmetics market with a 0.8% share, and was the third-largest domestic cosmetics group with a 1.7% market share. In terms of revenue scale alone, Garnier has crossed the RMB 5 billion threshold, ranking third among domestic beauty brands. However, within the broader competitive landscape, its position appears less secure. In 2024, industry leader Proya surpassed the RMB 10 billion revenue mark, while Shanghai Jiahua also overtook Garnier with revenue of approximately RMB 6.8 billion. Regarding revenue growth, from 2022 to 2024, Garnier's revenue increased from RMB 4.292 billion to RMB 4.601 billion, representing a compound annual growth rate of about 3.5%, significantly lagging behind the growth rates of Proya and Shanghai Jiahua during the same period. Net profit has shown considerable volatility. From 2022 to 2024, Garnier's net profits were RMB 139 million, RMB 302 million, and RMB 190 million respectively. Net profit surged 117% year-on-year in 2023 but fell 37.1% in 2024. Net profit for the first half of 2025 was RMB 191 million, already exceeding the full-year 2024 figure, with the annual profit recovering to RMB 351 million, indicating a restoration of profitability. The prospectus further underscores Garnier's heavy reliance on a single brand. In 2025, the main Garnier brand generated revenue of RMB 5.070 billion, accounting for a substantial 95.3% of the group's total revenue. Although the company has developed sub-brands like Meisu and Pufuyan targeting different segments, their combined contribution remains minimal. In the fast-evolving beauty market, mature companies typically rely on a multi-brand portfolio to diversify risk and cater to consumers across different life stages. Garnier urgently needs to demonstrate to capital markets its systematic capability to replicate the success of its flagship brand onto its sub-brands. Regarding sales channels, Garnier must also achieve a balance between its traditional offline strengths and online direct-to-consumer operations. As a brand with over two decades of history, an extensive offline distribution network was once its competitive moat. However, with the shift in consumer purchasing behavior, refined online channel operations have become critical for success. Garnier stated in its prospectus that it has been increasing investment in e-commerce direct sales and emerging social commerce in recent years. A significant internal challenge is managing the balance between online pricing strategies and the interests of offline distributors, ensuring a smooth transition from a primarily offline distribution model to an integrated omni-channel approach. Another financial characteristic drawing market attention is the significant disparity between Garnier's spending on marketing versus research and development. According to previous prospectus disclosures, Garnier's sales and marketing expenses consistently account for over 55% of revenue. In the first half of 2025, this expenditure reached RMB 1.347 billion, representing 55% of revenue. Compared to peers, Garnier's marketing expenditure ratio remains relatively high. In the same period, the sales expense ratios for Proya and Shanghai Jiahua were 49.59% and 43.8% respectively. Meanwhile, R&D investment has shown a trend of annual contraction. From 2022 to the first half of 2025, Garnier's cumulative R&D spending was RMB 348 million. Specifically, it was RMB 120 million in 2022, RMB 93.82 million in 2023, RMB 91.21 million in 2024, and RMB 42.38 million in the first half of this year. The R&D expense ratio relative to revenue was 2.8%, 2.1%, 2.0%, and 1.7% respectively, showing a year-on-year decline. For comparison, in the first half of 2025, Bloomage Biotech's R&D investment was RMB 231 million, accounting for 10.22% of revenue; Botanee's R&D expenses were RMB 116 million, representing 4.91% of revenue; while Shanghai Jiahua's ratio was lower, its R&D spending still exceeded RMB 100 million, with a ratio of 2.5%. This "heavy on marketing, light on R&D" model is facing increasing scrutiny as the competitive dynamics of the beauty industry evolve. As consumers become more demanding regarding product efficacy and ingredient science, R&D capabilities directly determine a brand's speed of innovation and pricing power. With the diminishing returns from platform marketing, the sustainability of growth driven by high marketing spending is becoming a universal question for the industry.

Garnier initially filed its prospectus on September 29, 2025. Under HKEX rules, if a listing applicant does not complete the hearing or listing process within six months of submitting the application, its status automatically lapses. March 29 marked the end of this six-month period. The lapse of the previous application prompted some external speculation. However, from a practical standpoint in Hong Kong IPOs, this is often a routine procedural step. Companies can re-enter the queue simply by submitting updated audit reports. Secondary filings due to audit cycles are common in recent Hong Kong consumer IPOs and do not necessarily indicate fundamental issues. Garnier promptly resubmitted its application. Nevertheless, Garnier's situation is not entirely straightforward. A deeper question market observers are asking is why Garnier failed to complete the hearing within the six-month window. Public information indicates that prior to the lapse, Garnier faced rigorous inquiries from the International Department of the China Securities Regulatory Commission. Regulatory focus areas included the compliance of the company's red-chip structure, historical equity changes, price discrepancies in Pre-IPO financing rounds involving different investors, and the structure of family trusts. For a long-established company with familial characteristics, comprehensively clarifying complex historical equity structures and financing details before listing is a standard regulatory procedure aimed at ensuring market transparency and protecting investor rights. Macroscopically, Garnier's Hong Kong listing attempt is not just an individual corporate endeavor but reflects the Chinese beauty industry's entry into a new development phase. The industry is undergoing a profound shift from marketing-driven growth to competition based on comprehensive capabilities. Over the past decade, the rise of domestic beauty brands heavily relied on traffic红利 from e-commerce and short-video platforms. However, with rising customer acquisition costs, pure marketing strategies are becoming unsustainable. Increasingly sophisticated consumer knowledge about ingredients and efficacy is pushing the industry into a stage where technological R&D is paramount. Going forward, how effectively Garnier optimizes its cost structure, shifting its financial惯性 from heavy marketing spending towards substantial R&D investment, will determine its chances of success in the premium segment. In terms of industry competition, the domestic beauty market has transitioned from a period of rapid growth to one of存量 competition. In this phase, international brands are accelerating their penetration into lower-tier markets and intensifying promotions, while price wars and brand positioning battles among domestic players are escalating. To stand out in this competitive environment, companies cannot rely on a single strength but must demonstrate excellence across R&D, brand portfolio management, omni-channel operations, and supply chain responsiveness. In summary, Garnier's updated prospectus arrives with the confidence of over RMB 5 billion in revenue, but also carries the challenges of over-reliance on a single brand and the need for governance structure upgrades. The Hong Kong listing seeks not only to broaden financing channels but also to secure the resources and platform necessary for the upcoming industry consolidation. As domestic beauty brands enter an era of all-around competition, capital markets are looking for a Garnier that can evolve beyond scale to sustainably generate new growth curves.