In 2025, Beauty Cards Hit a Roadblock at the Hong Kong Stock Exchange

In 2025, Consumer IPOs Opened the Gate—Except for Beauty Brands.In 2025, the gate that had long suppressed consumer-focused companies going public was finally pushed open again. Since 2021, amid the US-China trade frictions and regulatory focus shifting toward “hard tech,” the capitalization process of consumer enterprises had noticeably slowed.In August 2023, the China Securities Regulatory Commission (CSRC) proposed a “phase-wise tightening of IPO schedules,” emphasizing the need to “maintain dynamic balance between investment and financing.” As a result, fundraising enthusiasm in traditional consumer sectors cooled, and both primary market financing and exit channels came under pressure.The turning point came in mid-2024. On June 24, six government bodies—including the People’s Bank of China, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Commerce, the Financial Regulatory Authority, and the CSRC—jointly issued the “Guiding Opinions on Financial Support to Boost and Expand Consumption.” The policy explicitly proposed supporting “qualified high-quality enterprises in the consumer industry chain to raise funds through issuance and listing.”Soon after, policies such as appliance trade-ins, automotive and home “national subsidy programs,” and local consumption vouchers were rolled out intensively. According to the National Development and Reform Commission, since last year, the central government allocated more than CNY 450 billion in special funds to stimulate social consumption.With the policy tailwind and renewed market confidence, the capital markets began to heat up again. In 2025, Hong Kong IPO activity reached a multi-year high, with intensive listings in food & beverage, tea drinks, and home cleaning products.

The consumer sector once again became the focus of capital.Consumer enterprises poured into the Hong Kong market. According to PwC data, in the first half of 2025, newly listed Hong Kong companies in retail, consumer goods, and services accounted for 34% of all IPOs. Incomplete statistics from Yilan Business indicate that from the beginning of the year to the end of October, at least 15 consumer companies successfully listed on the HKEX, covering beverages, food, maternal & child care, condiments, and retail dining, among other sub-sectors.From a timeline perspective, the pace of consumer listings on HKEX accelerated significantly in 2025:January: Bruke Group, Newmans.March: Mixue Ice City, Jiangsu Hongxin, Shubao International.May: Hu Shang Auntie, Lucha Group.June (dense listing window): Yingtong Holdings, Saint Bella, Chow Tai Fook Jewelry, Haitan Seasoning.July: Anjoy Foods.October: Ba Ma Tea concluded the cycle, marking a concentrated annual boom in the consumer sector.From an industry perspective, food & beverage remained the hottest sector—Mixue Ice City, Gu Ming, and Hu Shang Auntie exemplified the capitalization of fresh-made drinks; Anjoy Foods, Haitan Seasoning, and IFBH Coconut Water covered frozen foods, beverages, and condiments; Bruke, Newmans, and Saint Bella reflected the heat of household consumption and the children’s economy. Lucha Group and Ba Ma Tea attracted capital due to their chain scale and clear profitability models.These companies’ market momentum continued into the secondary market. Mixue Ice City’s IPO price was HKD 202.5, and its first-day close nearly doubled to HKD 399.2.

Bruke and Ba Ma Tea also recorded significant gains. Overall, consumer stocks were priced high but widely accepted, with optimistic market sentiment.However, this round of consumer frenzy notably excluded beauty companies. Except for fragrance distributor Yingtong Holdings, which barely counts as a beauty stock, all others came from beverages, dining, food, maternal & child, or other traditional and emerging consumer sectors.Beauty Brands Stuck at HKEX’s DoorIn fact, beauty enterprises had long queued outside the HKEX. On October 30, domestic beauty leader Proya formally submitted its mainboard listing application to HKEX, planning for an “A+H” dual listing. If approved, Proya would become the first domestic beauty brand to list simultaneously in Shanghai and Hong Kong.According to Yilan Business statistics, 20 domestic beauty-related companies launched listing processes in 2025, including brand owners, raw material suppliers, and e-commerce operation agencies. About half chose HKEX as their primary listing venue, while others pursued A-shares or US markets.From a category perspective, brand owners remain dominant, with more than half of the companies focusing on independent brands—including Lynx, Chando, Guyu, Softer, and Herborist. Another group consists of raw material and supply chain companies, such as Huaheng Bio, Tianci Materials, and Green Biology, which control upstream technology and capacity, exhibiting certain “hard tech” traits that have drawn attention from A-share and HKEX markets in recent years.Additionally, beauty e-commerce operators have also shown rising IPO activity.

Companies like Kaijie E-commerce, Juwentan, Jiyi Technology, and Ruoyuchen have submitted HKEX applications, relying on brand operation, data-driven insights, and live-streaming channels for revenue.Limited Actual ListingsIn practice, few have successfully completed listings. As of now, only three beauty companies have gone public: raw material supplier Puhe Bio, fragrance brand manager Yingtong International, and e-commerce operator Juwentan.In contrast, by the end of October, nearly 20 beauty-related companies had submitted prospectuses or listing applications to HKEX, and seven remain in listing coaching, IPO acceptance, or auditing stages. Despite being ready and receiving policy support, only a handful will actually ring the Hong Kong bell.Why Are Beauty IPOs Lagging?Many companies want to list in Hong Kong, but competition is fierce. According to HKEX, 269 companies had submitted IPO applications by mid-October 2025—a historic high.East China Normal University professor and PhD supervisor Li Zhen told Yilan Business that the government’s policy encouraging qualified high-quality consumer enterprises to finance via IPOs is crucial for boosting consumption and supporting the real economy.However, the keywords are “qualified” and “high-quality.” Exchanges must still review applicants’ credentials, including future cash flow, market share, ROE, revenue growth, corporate governance, complex equity structures, related-party transactions, etc. Policy support does not reduce listing standards.Li Zhen pointed out that the domestic beauty sector faces a key challenge: strong FMCG traits, rapid demand iteration, and the fact that “viral products are easy, long-term success is hard”.

Many companies rely on one-hit products and cannot sustain long-term growth.Shen Meng, executive director of Xiangsong Capital, noted that HKEX has no formal “queue,” but is limited by the workload of its staff. Large, stable, and growing companies are perceived as lower investment risk and receive faster regulatory approval.Beauty companies face uncertainties in scale, brand, and performance. While the regulatory threshold is defined in listing rules, companies with higher risk will be treated cautiously to protect investors.Structural Weaknesses in Beauty Companies.Many companies in this IPO batch share common traits:Low R&D investment relative to industry average: Lynx’s 2024 revenue was CNY 1.21 billion, but sales expenses were CNY 688 million (~60%), and R&D only CNY 30 million (<2.5%). Chando’s parent, Jala Group, spends ~50% of revenue on advertising, but R&D <3%.Dependence on a single brand for revenue: Chando contributes ~95% of revenue; Herborist generates 100% from its namesake brand. Any shift in consumer preference or price wars could severely impact revenue.Li Zhen emphasized that future competition will hinge on product strength, not marketing spend. Success will depend on brands building:Single-brand product matrices + diversified brand portfolios.Consumer core value alignment.Global expansion and international brand recognition.Thus, the beauty sector’s “logjam” reflects both IPO congestion and heightened capital standards under the registration system.As HKEX shifts from “who tells a story” to “who explains clearly and grows steadily,” beauty companies must rebuild foundations:self-consistent profit models.diversified product structures.solid R&D capability.Brand storytelling alone is no longer enough; companies must demonstrate resilience across market cycles and barriers built with technology and organizational capabilities.