Xiaokuo Technology reports nearly 5 billion yuan in revenue over three years, having spent 3 billion yuan on marketing in its bid to become the “first oral care stock” on the Hong Kong Stock Exchange

ZC Asia has learnt that Shenzhen Xiaokuo Technology Co., Ltd. (hereinafter referred to as “Xiaokuo Technology”) has recently formally submitted an application for a Main Board listing on the Hong Kong Stock Exchange, with CMBI acting as the sole sponsor. Should the listing be successful, the company, which made its name with the oral care brand “Canban”, will become the “first oral care stock” on the Hong Kong stock market.

Revenue Doubles in Three Years, Profitability Shows Accounting Fluctuations

The prospectus reveals that Xiao Kuo Technology’s revenue has expanded rapidly over the past three years. From 2023 to 2025, the company’s revenue stood at 1.096 billion yuan, 1.369 billion yuan and 2.499 billion yuan respectively, with a year-on-year increase of 82.5% in 2025, bringing the cumulative revenue over the three-year period to nearly 5 billion yuan.

Profit performance, however, exhibits structural discrepancies. In 2025, the company’s adjusted net profit stood at 155 million yuan, yet its financial statements recorded a net loss of 18.251 million yuan. The prospectus explains that the loss primarily stems from an equity-settled share-based payment expense exceeding 110 million yuan, which constitutes a non-cash accounting treatment and does not directly impact operating cash flow.

In terms of market share, based on 2025 retail sales, Xiaokuo Technology has risen to become China’s third-largest oral care group, trailing only Yunnan Baiyao and Haolai (formerly Blackman Toothpaste). The company ranks first in the industry across two specific segments: online channels and the premium toothpaste market (priced above 30 yuan per 100 grams).

It is worth noting that Xiaokuo Technology is accelerating its offline expansion. In 2023, its offline revenue accounted for just 5.5% of the total; by 2025, this proportion had risen to 19.7%, with its offline retail network covering over 110,000 outlets. This indicates that the company is gradually shifting from its early purely online strategy towards a multi-channel penetration strategy.

Marketing accounts for over half of expenditure, whilst R&D investment remains below 1%

The prospectus reveals that from 2023 to 2025, Xiao Kuo Technology’s cumulative sales and distribution expenses reached 3.054 billion yuan, with 1.374 billion yuan spent in 2025 alone—accounting for over 55% of that year’s revenue.

This stands in stark contrast to the company’s R&D expenditure. In 2025, R&D expenditure stood at 19.39 million yuan, accounting for less than 1% of revenue. Whilst this structure is relatively common among consumer brands in the final stages of preparing for an IPO, it may become a key focus for investors in the future.

Beyond its core business in oral care, Xiaokuo Technology is seeking to broaden its product portfolio. In September 2025, the company launched the personal care brand ‘Little Arrow’, entering the hair and body care sector. In March 2026, the company partnered with singer Hua Chenyu to launch the household and personal care brand ‘Focus’, further extending its reach towards becoming a comprehensive personal care group.

This multi-brand, multi-category approach has been interpreted by observers as a strategic move to position the company as the ‘P&G of China’.

In terms of equity structure, Xiao Kuo Technology is backed by several prominent investment firms, including Meihua Ventures, ByteDance and Innovation Works. The founder, Yin Kuo, aged 37 and hailing from Anhui, began his career as a factory worker before transitioning into a serial entrepreneur. He established Xiao Kuo Technology in 2015 and launched the “Canban” brand in 2018.

This filing marks a crucial step for the company, which has been in operation for over a decade, as it formally moves towards listing on the capital markets. At a time when the market is paying close attention to the profitability and sustainability of consumer brands, Xiao Kuo Technology’s listing process will provide a case study of considerable interest.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.