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Shanghai Skincare Brand Forest Cabin Files for Hong Kong IPO With 82.5% Gross Margins

MarketDash Editorial Team
14 hours ago
Forest Cabin, a 22-year-old Chinese skincare company, has filed for a Hong Kong listing with gross margins exceeding 82%, outpacing even international giant L'Occitane. The brand's revenue and profit both doubled in the first half of 2025, fueled by aggressive marketing and celebrity endorsements.

Here's a fun fact about the beauty industry: if you nail the premium positioning, you can charge almost whatever you want. Shanghai Forest Cabin Cosmetics Group Co. Ltd. seems to understand this lesson perfectly. The Chinese skincare brand just filed its preliminary prospectus for a Hong Kong IPO, and the numbers are eye-catching. We're talking gross margins that consistently top 80%, which is the kind of figure that makes investors sit up and pay attention.

The Premium Skincare Playbook

Forest Cabin's product lineup covers the usual skincare bases: facial oils, creams, toners, lotions, serums, masks, and sunscreens. But the star of the show is clearly the Camellia Essence Oil, which has moved more than 45 million bottles since its 2014 launch. That's a lot of camellia.

The company's journey started in 2003 when founder Sun Laichun launched the brand with a skincare focus. The first physical store opened in 2008, followed by the company's own manufacturing facility in 2011. The flagship Camellia Essence Oil arrived shortly after, and things really started moving.

The growth trajectory tells a compelling story. Revenue climbed from 690 million yuan ($98 million) in 2022 to 1.21 billion yuan in 2024. Even more impressive, the bottom line swung from a 5.87 million yuan loss in 2022 to a 187 million yuan profit last year. The momentum accelerated in 2025, with first-half revenue jumping 98% to 1.05 billion yuan and profit soaring 110% to 182 million yuan.

Margins That Rival Global Giants

Now let's talk about those gross margins, because they're genuinely remarkable. Forest Cabin posted 81.2% in 2023, rising to 82.5% in 2024, and hitting 82.4% in the first half of 2025. For context, international skincare heavyweight L'Occitane reported 78.3% before going private last year. So a 22-year-old Chinese brand is outperforming a global legacy player on gross margins. That's noteworthy.

The catch? Those fat gross margins haven't fully translated to the bottom line yet. Net profit margins came in at 15% last year and 17% in the first half of 2025. The culprit is massive spending on marketing and promotions, which we'll get to in a moment.

Building a Brand, Not Just a Product

Sun Laichun clearly grasps the power of premium positioning in skincare. If you can establish your brand as high-end, you unlock serious pricing power. Product efficacy matters too, though opinions vary on what exactly Camellia Essence Oil delivers beyond the marketing promises.

Interestingly, Forest Cabin doesn't spend much on R&D. We're talking 20 million to 30 million yuan annually over the past three years, which is basically pocket change relative to revenue. Instead, the company pours money into sales and distribution: 689 million yuan last year, and 580 million yuan in just the first half of 2025.

The strategy is less about scientific innovation and more about crafting a lifestyle narrative. Forest Cabin wants customers to see Camellia Essence Oil as an experience, not just a product. Think tea ceremonies or flower arranging, but for your face. It's about ritual and transformation.

Celebrity endorsements are central to this approach. Big names like Ma Yili, Yang Caiyu, Zeng Shunxi, and Angela Zhang all serve as brand ambassadors. But Sun Laichun doesn't just hire celebrities and call it a day. He personally jumps into livestreams alongside his brother, Sun Fuchun, selling directly to consumers.

The family goes all-in on promotion. Sun Fuchun's son, going by "Little Boss Sun," pushes products on Douyin, China's version of TikTok. Their niece, Sun Ning, targets working mothers on RedNote, another popular platform among young women. It's a family affair, with multiple generations working different channels and demographics.

Taking On Chanel

Forest Cabin grabbed headlines in 2022 when Sun Laichun publicly accused Chanel of copying his company's products. He claimed Chanel poached key employees to compete in the "red camellia" segment, and criticized Chanel's offering as a third-party manufactured product made in China that couldn't match Forest Cabin's raw material advantages.

Chanel's response was diplomatic but firm: camellia has been used in beauty products for centuries by countless brands worldwide. Translation: Forest Cabin doesn't own camellia, and this claim of exclusivity is absurd.

Most observers saw the move as calculated brand-building by Forest Cabin. By picking a fight with Chanel, the company positioned itself as a peer to one of the world's most prestigious luxury brands. Whether you win or lose the argument matters less than getting people to think you belong in the same conversation.

Forest Cabin didn't stop at rhetoric. In 2023, the company launched a perfume priced at 1,702 yuan (about $240), making it more expensive than fragrances from Jo Malone, Chanel, and even Guerlain's exclusive lines. Some consumers criticized the audacious pricing, but the message was clear: Forest Cabin sees itself playing in the luxury tier alongside international giants.

Controversy as Marketing

Sun Laichun's marketing tactics frequently test boundaries. During one livestream, to prove a product contained only natural ingredients, he opened a bottle on camera and drank the entire thing. It's the kind of stunt that generates buzz, even if dermatologists everywhere collectively winced.

The aggressive approach has occasionally landed the company in regulatory trouble. Earlier in 2025, Beijing's Chaoyang District market regulator fined Forest Cabin 21,000 yuan for using terms like "anti-aging" in promotions. Back in 2021, Shanghai's Pudong authorities hit the company with a 50,000 yuan fine for claiming its products had skin-repairing functions.

But here's the thing: despite the controversies, criticisms, and regulatory fines, Forest Cabin's recent performance validates the strategy. Revenue doubled, profit more than doubled, and gross margins remain sky-high. The approach is working, at least for now.

What's Next?

The Hong Kong IPO filing marks Forest Cabin's next chapter. The company has proven it can generate impressive margins and rapid growth in a competitive market. Whether capital markets embrace the story and how far this aggressive strategy can take the brand remain open questions. But if nothing else, Sun Laichun has shown he knows how to get attention and move product in China's crowded beauty market.

Back to News

Shanghai Skincare Brand Forest Cabin Files for Hong Kong IPO With 82.5% Gross Margins

MarketDash Editorial Team
14 hours ago
Forest Cabin, a 22-year-old Chinese skincare company, has filed for a Hong Kong listing with gross margins exceeding 82%, outpacing even international giant L'Occitane. The brand's revenue and profit both doubled in the first half of 2025, fueled by aggressive marketing and celebrity endorsements.

Here's a fun fact about the beauty industry: if you nail the premium positioning, you can charge almost whatever you want. Shanghai Forest Cabin Cosmetics Group Co. Ltd. seems to understand this lesson perfectly. The Chinese skincare brand just filed its preliminary prospectus for a Hong Kong IPO, and the numbers are eye-catching. We're talking gross margins that consistently top 80%, which is the kind of figure that makes investors sit up and pay attention.

The Premium Skincare Playbook

Forest Cabin's product lineup covers the usual skincare bases: facial oils, creams, toners, lotions, serums, masks, and sunscreens. But the star of the show is clearly the Camellia Essence Oil, which has moved more than 45 million bottles since its 2014 launch. That's a lot of camellia.

The company's journey started in 2003 when founder Sun Laichun launched the brand with a skincare focus. The first physical store opened in 2008, followed by the company's own manufacturing facility in 2011. The flagship Camellia Essence Oil arrived shortly after, and things really started moving.

The growth trajectory tells a compelling story. Revenue climbed from 690 million yuan ($98 million) in 2022 to 1.21 billion yuan in 2024. Even more impressive, the bottom line swung from a 5.87 million yuan loss in 2022 to a 187 million yuan profit last year. The momentum accelerated in 2025, with first-half revenue jumping 98% to 1.05 billion yuan and profit soaring 110% to 182 million yuan.

Margins That Rival Global Giants

Now let's talk about those gross margins, because they're genuinely remarkable. Forest Cabin posted 81.2% in 2023, rising to 82.5% in 2024, and hitting 82.4% in the first half of 2025. For context, international skincare heavyweight L'Occitane reported 78.3% before going private last year. So a 22-year-old Chinese brand is outperforming a global legacy player on gross margins. That's noteworthy.

The catch? Those fat gross margins haven't fully translated to the bottom line yet. Net profit margins came in at 15% last year and 17% in the first half of 2025. The culprit is massive spending on marketing and promotions, which we'll get to in a moment.

Building a Brand, Not Just a Product

Sun Laichun clearly grasps the power of premium positioning in skincare. If you can establish your brand as high-end, you unlock serious pricing power. Product efficacy matters too, though opinions vary on what exactly Camellia Essence Oil delivers beyond the marketing promises.

Interestingly, Forest Cabin doesn't spend much on R&D. We're talking 20 million to 30 million yuan annually over the past three years, which is basically pocket change relative to revenue. Instead, the company pours money into sales and distribution: 689 million yuan last year, and 580 million yuan in just the first half of 2025.

The strategy is less about scientific innovation and more about crafting a lifestyle narrative. Forest Cabin wants customers to see Camellia Essence Oil as an experience, not just a product. Think tea ceremonies or flower arranging, but for your face. It's about ritual and transformation.

Celebrity endorsements are central to this approach. Big names like Ma Yili, Yang Caiyu, Zeng Shunxi, and Angela Zhang all serve as brand ambassadors. But Sun Laichun doesn't just hire celebrities and call it a day. He personally jumps into livestreams alongside his brother, Sun Fuchun, selling directly to consumers.

The family goes all-in on promotion. Sun Fuchun's son, going by "Little Boss Sun," pushes products on Douyin, China's version of TikTok. Their niece, Sun Ning, targets working mothers on RedNote, another popular platform among young women. It's a family affair, with multiple generations working different channels and demographics.

Taking On Chanel

Forest Cabin grabbed headlines in 2022 when Sun Laichun publicly accused Chanel of copying his company's products. He claimed Chanel poached key employees to compete in the "red camellia" segment, and criticized Chanel's offering as a third-party manufactured product made in China that couldn't match Forest Cabin's raw material advantages.

Chanel's response was diplomatic but firm: camellia has been used in beauty products for centuries by countless brands worldwide. Translation: Forest Cabin doesn't own camellia, and this claim of exclusivity is absurd.

Most observers saw the move as calculated brand-building by Forest Cabin. By picking a fight with Chanel, the company positioned itself as a peer to one of the world's most prestigious luxury brands. Whether you win or lose the argument matters less than getting people to think you belong in the same conversation.

Forest Cabin didn't stop at rhetoric. In 2023, the company launched a perfume priced at 1,702 yuan (about $240), making it more expensive than fragrances from Jo Malone, Chanel, and even Guerlain's exclusive lines. Some consumers criticized the audacious pricing, but the message was clear: Forest Cabin sees itself playing in the luxury tier alongside international giants.

Controversy as Marketing

Sun Laichun's marketing tactics frequently test boundaries. During one livestream, to prove a product contained only natural ingredients, he opened a bottle on camera and drank the entire thing. It's the kind of stunt that generates buzz, even if dermatologists everywhere collectively winced.

The aggressive approach has occasionally landed the company in regulatory trouble. Earlier in 2025, Beijing's Chaoyang District market regulator fined Forest Cabin 21,000 yuan for using terms like "anti-aging" in promotions. Back in 2021, Shanghai's Pudong authorities hit the company with a 50,000 yuan fine for claiming its products had skin-repairing functions.

But here's the thing: despite the controversies, criticisms, and regulatory fines, Forest Cabin's recent performance validates the strategy. Revenue doubled, profit more than doubled, and gross margins remain sky-high. The approach is working, at least for now.

What's Next?

The Hong Kong IPO filing marks Forest Cabin's next chapter. The company has proven it can generate impressive margins and rapid growth in a competitive market. Whether capital markets embrace the story and how far this aggressive strategy can take the brand remain open questions. But if nothing else, Sun Laichun has shown he knows how to get attention and move product in China's crowded beauty market.

    Shanghai Skincare Brand Forest Cabin Files for Hong Kong IPO With 82.5% Gross Margins - MarketDash News