Forest Cabin’s HK IPO: Deep Dive on Financials, Growth, Key Investors, and Listing Prospects

IPO Snapshot

Forest Cabin (IPO Symbol: Not Disclosed) is offering H Shares at an offer price of HK\$77.77 per share in its Hong Kong Main Board IPO. The total offering size is 13,966,450 H Shares (including both public and international tranches), with an expected post-IPO outstanding share count of 139,664,285 Shares (assuming no exercise of the over-allotment option). The offer price reflects a growth-driven strategy.

Dividend Policy: In August 2025, the company declared a 2024 final dividend of approximately RMB95,028,000 to existing shareholders prior to listing.
Application Window: Opens 9:00 a.m., December 18, 2025; closes 12:00 noon, December 23, 2025. Listing results announced December 29, 2025.
Minimum Application: 50 H Shares per lot.
Application Channels: Fully electronic via HK eIPO White Form or HKSCC EIPO channel.

Use of Proceeds: Growth-Driven Focus

Forest Cabin intends to deploy the HK\$997.1 million estimated net proceeds as follows:

• Branding Activities: HK\$199.4 million (20%)
• Enhancing Sales Network (Online & Offline): HK\$199.4 million (20%)
• Production & Supply Chain Capabilities: HK\$149.6 million (15%)
• R&D and Product Portfolio Expansion: HK\$149.6 million (15%)
• Incubation/Acquisition of New Brands: HK\$149.6 million (15%)
• Digitalization & Information Infrastructure: HK\$49.8 million (5%)
• Working Capital/General Purposes: HK\$99.7 million (10%)

This capex-heavy allocation signals an aggressive growth and market expansion strategy.

Placement, Cornerstone, and Share Issuance Breakdown

The IPO consists of two main tranches:

• Hong Kong Public Offering: 1,396,650 H Shares (10%)
• International Offering: 12,569,800 H Shares (90%)

Cornerstone Investors are subscribing to 6,204,700 H Shares (44.43% of the offer shares), representing 4.44% of issued share capital (assuming no greenshoe exercise). No shares are allocated to employees or through shareholder offer.

No pre-listing disposals or sales by investors or early shareholders are permitted within 12 months after listing, as per PRC law lock-up requirements.

Investor Participation and Book Quality

Cornerstone investors are all prominent institutions, such as FIL Investment, Mega Prime, LVC, Duckling Fund, SS Capital, Dajia Life, and Yield Royal Investment, collectively subscribing 44.43% of the offering. No board representation or preferential rights are granted to these investors beyond guaranteed allocations. There are no pre-listing sales by existing shareholders, supporting a stable ownership structure and potentially strong aftermarket performance.

The substantial cornerstone support indicates a high-quality order book and suggests robust listing-day performance.

Deal Parties and Structure

Joint Sponsors: CITIC Securities (Hong Kong) Limited, Huatai Financial Holdings (Hong Kong) Limited
Underwriters: Hong Kong Underwriters (for the public tranche), International Underwriters (for international tranche)
Global Coordinators, Bookrunners, Lead Managers: Roles are filled by the above sponsors/underwriters as disclosed.
Compliance Advisor: Maxa Capital Limited
Legal Advisor: Jingtian & Gongcheng

Stabilization/Over-allotment Option: Up to 2,094,950 additional H Shares (15%) may be issued to cover over-allocation in the International Offering, exercisable within 30 days of the close of applications.

Listing-day performance is likely to be supported by the involvement of major international investment banks, a diverse syndicate, and strong cornerstone demand.

Company Overview

Forest Cabin is positioned as a premium domestic skincare brand in China, focused on anti-wrinkle products. The company’s revenue streams are derived from the sale of branded skincare products, with an emphasis on direct-to-consumer channels and a mix of online and offline sales. Forest Cabin targets beauty-conscious consumers in China’s urban centers and is expanding its reach through digitalization and new channel development.

Industry Definition & Size: The company operates in the Chinese skincare sector, a segment with strong consumer demand and robust growth, as noted by industry consultant CIC.

Key Products/Services: High-margin anti-wrinkle and anti-aging skincare products.

Revenue Streams: Sales of in-house developed skincare products, primarily through e-commerce and retail partnerships.

Financial Health and Key Metrics

Forest Cabin demonstrates strong revenue growth, increasing profitability, and a healthy balance sheet. Below is a summary of multi-period financials:

Forest Cabin has delivered a 32.3% CAGR in revenue from 2022 to 2024, with net profit margins improving from negative to 15.4% in 2024 and 17.3% in 1H 2025. The company’s balance sheet is robust, with low leverage and strong liquidity metrics.

Market Position and Competitive Advantages

Forest Cabin is positioned as a high-margin, innovation-driven player in the Chinese skincare sector, focusing on anti-aging solutions. The company benefits from:

• Strong brand recognition among premium Chinese skincare consumers
• Rising market share in high-value segments
• Extensive digital and physical channel expansion

Specific market share or ranking figures are not disclosed, but the company is described as a leader in its niche.

Management Team

The prospectus discloses the names and roles of directors and senior management. Notably, Mr. Sun is identified as a key founder and promoter. Additional details on management experience are referenced in the Directors and Senior Management section.

Trends, Timing, and Sector Environment

Sector and Macro Trends: The Chinese skincare market is expanding due to consumer upgrading, urbanization, and increased focus on wellness and appearance. The company and sector are described as benefiting from robust underlying demand and favorable demographics.

IPO Timing and Key Dates:

• Application Opens: December 18, 2025, 9:00 a.m.
• Application Closes: December 23, 2025, 12:00 noon
• Results Announced: December 29, 2025
• CSRC Filing Completed: November 27, 2025

The macroeconomic environment is described as supportive, with continued consumer spending in skincare and beauty segments.

Recent Developments: The company completed all regulatory filings and terminated redemption rights for pre-IPO investors prior to listing, ensuring a clean capital structure.

Overall, market conditions are favorable for Forest Cabin’s IPO based on the prospectus.

Prospectus Deep Dive: Risks and Opportunities

Key Risk Factors:

• Lock-up restrictions may limit short-term liquidity for H Shares post-listing (12-month lock for pre-IPO investors)
• Future share sales (or perception thereof) could pressure the H Share price
• Market risks: Trading performance may be volatile and subject to global capital flows
• Legal/Regulatory: All relevant PRC and Hong Kong permits obtained; ongoing compliance required
• Pre-IPO investor rights: All special rights (including redemption) are void ab initio as of listing, reducing potential conflicts
• Industry risks: Competition, changing consumer preferences, and regulatory changes are ongoing concerns

Growth Strategy

Forest Cabin’s use of IPO proceeds clearly details an aggressive, multi-pronged growth strategy:

• Branding and Marketing: 20% of funds to solidify premium positioning and drive consumer awareness
• Sales Network Expansion: 20% to enhance digital and offline coverage
• Production and Supply Chain Investments: 15% to support volume growth and quality
• R&D and Product Pipeline: 15% to launch new products and expand the anti-aging portfolio
• Incubation and Acquisitions: 15% to build a multi-brand matrix and capture new market segments
• Digital Transformation: 5% to improve efficiency and data-driven marketing
• Working Capital: 10% for operational flexibility

Concrete timelines are provided, with major investment occurring from 2026–2028.

Ownership, Pre-IPO Investors & Lock-Ups

• Pre-IPO investors include Youngor Fashion, private equity funds, and strategic investors, all subject to a 12-month lock-up post-listing.
• All special rights (redemption, price adjustment, board seats) of pre-IPO investors are terminated at listing, ensuring a level playing field for new investors.
• No employee share plans or ESOPs are disclosed at IPO.

Valuation and Peer Comparison

No peer symbols or financial ratios (P/E, P/B, etc.) are disclosed for comparison. The prospectus does not provide comparable sector IPOs or 10-day sector performance data.

Research and Analyst Opinions

No analyst recommendations, price targets, or opinions are disclosed.

IPO Allotment Result

Final subscription outcomes by tranche will be announced on December 29, 2025.

Listing Outlook

Based strictly on disclosed facts, the Forest Cabin IPO demonstrates:

• Strong cornerstone and institutional backing
• High revenue and profit growth with expanding margins
• Clear, growth-driven use of proceeds and robust balance sheet
• Favorable sector trends and clean ownership structure
• Comprehensive risk disclosures with mitigants in place

These factors suggest the IPO is likely to be well received and could trade strongly relative to the offer price on listing day. The exact trading range will depend on final demand and market sentiment at listing but is expected to open at a premium given the strong book quality, cornerstone demand, and sector tailwinds.

How to Access the Prospectus

The official prospectus and related documents are available at:
www.forest-cabin.com
www.hkexnews.hk

How to Apply

Applications for H Shares can be made electronically via:

• HK eIPO White Form service (www.hkeipo.hk)
• HKSCC EIPO channel (via brokers/custodians)

Application opens at 9:00 a.m., December 18, 2025, and closes at 12:00 noon, December 23, 2025. Minimum lot size is 50 H Shares. Eligibility: 18 years or older, outside the U.S., Hong Kong address (for White Form applications); not an existing shareholder or close associate, nor a director/supervisor or their close associate.