On March 12, Dr. Plant made new progress in its IPO process. According to the official website of the Shenzhen Stock Exchange, the company has disclosed its response report to the second round of review inquiries, covering topics such as its core business, historical development, information system reliability, and operating costs.
Specifically, in this round of responses, Dr. Plant elaborated on its differentiated competitive advantages. These are mainly reflected in the following aspects: leveraging the “Dr. Plant” brand, the company balances customer coverage and brand focus through refined pricing strategies and a multi-category, multi-function product matrix. It targets middle-class consumers in second- and third-tier cities and below, building an integrated “product + service” model in which offline stores provide professional consultation and free skincare treatments to enhance customer loyalty. In addition, the company has not invested in the production capacity of functional active ingredients. Instead, it focuses on product R&D, manufacturing, and sales, continuously strengthening its core competitiveness.
In response to inquiries regarding its certification as “China’s No.1 single-brand cosmetics store”, Dr. Plant stated that the certification was issued by the China Flavor and Fragrance Cosmetic Industry Association after conducting diversified research and evaluating the market position of single-brand cosmetics stores in mainland China (excluding Hong Kong, Macau, and Taiwan) in 2024. The research was commissioned by the company in June 2025, and the certification was released after the research was completed. Therefore, it was first published in 2025. The company emphasized that the certification was not customized or paid for, and maintains objectivity and independence.
The company also addressed questions regarding the difference between the growth rates of net profit (excluding non-recurring items) attributable to the parent company and revenue growth during the reporting period. Previously disclosed data shows that from 2022 to the first half of 2025, the company recorded revenues of RMB 2.117 billion, RMB 2.151 billion, RMB 2.156 billion, and RMB 960 million, respectively. Net profit attributable to the parent company after deducting non-recurring gains and losses was RMB 146 million, RMB 214 million, RMB 225 million, and RMB 71.4 million, respectively, with net profit growing faster than revenue.
Dr. Plant provided a year-by-year quantitative explanation for this difference. In 2023, revenue grew slightly while net profit rose significantly due to product premiumization and improved supply chain management, which boosted gross margins, combined with a decline in profit attributable to minority shareholders. In 2024, revenue remained largely stable while net profit continued to grow steadily, mainly due to refined cost management, which effectively reduced administrative and R&D expenses. In the first half of 2025, revenue declined slightly, but net profit still increased because the company heavily promoted high-margin essence and facial oil products, whose higher revenue share enhanced overall profitability. The company stated that these differences were driven by changes in its actual business operations and are consistent with the operating logic of the cosmetics industry.
Public information shows that Dr. Plant was founded in 1994, focusing on the research, production, and sales of alpine botanical skincare products. The company officially entered the skincare market in 2004, and in 2014 established its positioning of “Alpine Plants, Pure Beauty.” As of the end of June 2025, Dr. Plant had 4,269 offline chain stores.
