On June 27, according to the official website of the Shenzhen Stock Exchange, Beijing Dr. Plant Cosmetics Co., Ltd. (hereinafter referred to as “Dr. Plant”) has had its main board IPO application accepted. The sponsoring institution is CITIC Securities Co., Ltd. Dr. Plant plans to raise approximately RMB 998 million through this listing attempt.
According to the prospectus, Dr. Plant recorded operating revenue of RMB 2.156 billion in 2024, with a net profit of RMB 242 million. As of the end of 2024, the Dr. Plant brand had a total of 4,328 offline chain stores. Additionally, according to a research report issued by the China Association of Fragrance, Flavor and Cosmetic Industries, Dr. Plant ranked first among single-brand cosmetics stores in China based on total retail sales across all channels in 2024.
This also means that, if the IPO is successful, Dr. Plant is expected to become the first A-share listed company representing a single-brand cosmetics store.
In 2024, Dr. Plant reported revenue of RMB 2.156 billion and a net profit of RMB 224 million.
Public information shows that Dr. Plant, a brand focused on alpine plant-based skincare, was founded in 1994 by Xie Yong. In 2004, Xie opened the first skincare specialty store, officially entering the skincare sector. In 2007, the brand transformed into a plant-based skincare specialty chain. In 2014, the Dr. Plant brand was officially launched, establishing the brand positioning of “Alpine Plants, Pure Beauty.” In 2017, Dr. Plant introduced its alpine plant series — the Dendrobium Orchid line — which remains one of its most iconic product lines.
According to the prospectus disclosed by Dr. Plant, the company began planning for an IPO as early as 2017. In December 2022, it completed its shareholding reform. In July 2023, Dr. Plant officially launched its A-share IPO counseling. After going through seven phases of guidance over nearly two years, the company has now formally submitted its prospectus in an effort to list on the A-share market.
From a financial perspective, Dr. Plant has maintained steady performance growth over the past three years. Specifically, from 2022 to 2024, its operating revenue steadily increased, reaching RMB 2.117 billion, RMB 2.151 billion, and RMB 2.156 billion, respectively. In terms of profitability, Dr. Plant achieved notable net profit growth during the reporting period, recording RMB 168 million, RMB 229 million, and RMB 242 million, demonstrating strong growth momentum.
CHAILEEDO notes that among currently listed beauty companies on the A-share market, none fall into the single-brand store category. This means that, if Dr. Plant successfully passes its IPO review, it is poised to become the first “single-brand beauty store stock” on the A-share market.
Notably, according to the prospectus, Xie Yong directly holds an 8.33% stake in Dr. Plant and owns 99.90% of Benda Investment. Through Benda Investment, he indirectly controls voting rights corresponding to 70.81% of the company’s shares, effectively controlling 79.14% of the voting rights. He also serves as the company’s chairman and general manager, holding substantial influence over resolutions passed by the shareholders’ and board meetings, and is considered the company’s actual controller.
In addition, the prospectus reveals that Dr. Plant aims to raise approximately RMB 998 million in this IPO. The raised funds are expected to be invested in marketing and brand-building projects, headquarters and R&D center construction, production base technology upgrades, and information system upgrades. Before this issuance, Dr. Plant had a total share capital of 80 million shares. The company plans to issue no more than 26.6667 million new shares in this offering, accounting for no less than 25% of the total share capital after the IPO.
Dr. Plant Operates 4,328 Offline Stores, Direct-Sales Model Gross Margin Exceeds 70%
As a beauty company poised to become the first single-brand cosmetics store listed on the A-share market, Dr. Plant’s offline retail presence is highly significant.
According to the prospectus, as of the end of 2024, the Dr. Plant brand operated a total of 4,328 offline chain stores, including 3,830 franchised specialty stores and 498 directly operated terminal stores. By comparison, peer companies such as L’Occitane and Forest Cabin operate 3,040 and 506 offline stores, respectively, giving Dr. Plant a clear scale advantage.
Notably, a research report issued by the China Association of Fragrance, Flavor and Cosmetic Industries ranks Dr. Plant as the number one single-brand cosmetics store in China in terms of total retail sales across all channels in 2024. Additionally, Euromonitor data shows that Dr. Plant ranked 8th among domestic brands in the Chinese cosmetics market and 7th among domestic brands in the skincare segment for 2024.
Moreover, Dr. Plant received the “Global Leading Single-Brand Skincare Store” certification from Euromonitor in 2023. In both 2022 and 2023, the company ranked second in the China Chain Store & Franchise Association’s “Top 100 Beauty and Body Care Industry” list, just behind Chlitina, which primarily operates beauty salons.
Dr. Plant’s offline scale advantage is also reflected in its revenue performance from physical stores. In terms of sales channels, the company has developed a hybrid model centered on distribution, supplemented by direct sales, with full coverage both online and offline. During the reporting period, the revenue structure remained relatively stable: distribution accounted for around 64% of main business income, while direct sales accounted for approximately 36%.
In the past three years, Dr. Plant’s offline store revenue significantly outperformed its online channel revenue under both distribution and direct-sales models. For example, in 2024, revenue from offline stores under the distribution model reached approximately RMB 1.11 billion, far exceeding the combined revenue of RMB 256 million from authorized franchised stores and distribution e-commerce platforms. Furthermore, in 2024, combined offline store revenue from distribution and marketing channels totaled around RMB 1.636 billion, accounting for 75.94% of the company’s total revenue.
According to the prospectus, Dr. Plant’s gross profit margins during the reporting period from 2022 to 2024 were 55.22%, 60.34%, and 58.90%, respectively. These figures are lower than those of peers such as Botanee, Proya, and Marubi. Dr. Plant explained that this is mainly due to differences in sales models. As the company primarily operates on a distribution model, it must leave room for distributor profits, resulting in a lower overall gross margin compared to companies that primarily use direct sales.
However, when looking solely at the direct-sales model, Dr. Plant’s gross profit margins were 70.02%, 73.62%, and 71.16% during the reporting period, levels that are comparable to those of Proya, Botanee, and Marubi.
In terms of product structure, Dr. Plant’s business composition has remained relatively stable. Its core product category — lotions, creams, and ointments — accounted for 53.96%, 54.33%, and 56.52% of revenue from 2022 to 2024, respectively.
“World’s No.1 in Dendrobium Skincare Retail Sales”
Sales Expense Ratio Lower Than Industry Average
Meanwhile, Dr. Plant also mentioned in the prospectus that its sales expense ratio is overall lower than the average level of comparable companies in the industry. Specifically, over the past three years, Dr. Plant’s sales expense ratios were 33.21%, 34.37%, and 34.47%, while the ratios for comparable listed companies were all above 40%.
According to Dr. Plant, the company mainly relies on offline sales, with offline sales accounting for 70% to 80% during each period, while comparable listed companies in the industry mainly focus on online sales. This means those companies must pay significant fees to e-commerce platforms like Tmall, Douyin, and JD.com for brand promotion and targeted traffic, whereas Dr. Plant’s offline-focused approach results in lower reliance on online traffic acquisition, thus lowering its overall sales expense ratio compared to industry peers.
As a beauty company with the unique advantages of being a “Chinese brand with Chinese ingredients,” Dr. Plant has also demonstrated strong momentum in scientific research. According to the prospectus, Dr. Plant adopts a dual approach of in-house and collaborative R&D and has built a research structure of “one center and five bases.”
Specifically, the “one center” refers to the Dr. Plant R&D Center jointly established with the Kunming Institute of Botany under the Chinese Academy of Sciences, mainly responsible for basic product research and new product development; the “five bases” include the Kunming Botanical Skincare R&D Laboratory, the Beijing Asia-Pacific Skin Science Research Institute, the Guangzhou Shunde Botanical Skincare Formulation and Clinical Research Base, the Tokyo Kampo Skincare Science Research Center, and the Dr. Plant–Jiangnan University China Cosmetic Ingredient R&D Base, which focus on active ingredients, product formulation, production processes, quality assurance, and more.
According to the prospectus, during the reporting period, Dr. Plant’s R&D expenditures were RMB 73.77 million, RMB 75.88 million, and RMB 66.33 million, accounting for 3.48%, 3.53%, and 3.08% of operating revenue, respectively. These ratios are higher than some comparable listed companies, but lower than Botanee. Dr. Plant explained that Botanee engages in R&D beyond skincare and makeup, including some medical device-related research, which involves foundational research and process technology development, leading to relatively higher R&D expenses.
In addition, during the reporting period, Dr. Plant had 166, 149, and 130 R&D personnel, accounting for 5.07%, 4.17%, and 3.68% of total staff, respectively. As of May 31, 2025, Dr. Plant had obtained 212 patents, including 59 invention patents.
Dr. Plant also stated in the prospectus that its depth of research and commercialization achievements in the Dendrobium orchid field are particularly notable. In its long-term collaborative research with the Kunming Institute of Botany, the company innovatively developed a patented process to convert large-molecule Dendrobium polysaccharides into smaller-molecule Dendrobium oligosaccharides, which promote the skin’s natural production of collagen — a key breakthrough for improving product efficacy.
According to the prospectus, thanks to its sustained focus and market performance in this category, Dr. Plant received Euromonitor’s certification in November 2023 as “World’s No.1 in Dendrobium Skincare Retail Sales.” Moreover, Dr. Plant’s project “Key Technology Research and Industrial Application of Dendrobium Active Extract” — featuring Dendrobium oligosaccharides as a core ingredient — won First Prize in the National Commercial Science and Technology Progress Awards issued by the China General Chamber of Commerce. In addition, in 2024, Dr. Plant was also recognized by Euromonitor as a “Global Leading Botanical Skincare Brand.”
Currently, supported by continuous in-depth research on various alpine plants, Dr. Plant has launched multiple product lines including “Dendrobium Orchid Firming & Wrinkle Reduction,” “Centella Soothing Intensive Care,” “Reishi Multi-Effect Anti-Aging,” “Cordyceps Revitalizing Luxury Care,” “Xanthoceras Sorbifolia Sensitive Moisture Repair,” “Alpine Matsutake Radiance Boost,” and “Black Truffle Renewal.” These collections cover lotions and creams, serums and oils, face masks, makeup, and body care products — forming a comprehensive product matrix.
After about two years and seven rounds of IPO guidance, Dr. Plant has officially submitted its application for an A-share listing. Whether it can ultimately earn the title of A-share’s “first single-brand beauty store stock” remains to be seen.
