Banmu Huatian spent ¥100M a month on ads while its products failed safety checks

Banmu Huatian — 半亩花田 — was a Chinese skincare brand built on a high-volume, high-spend marketing model. Founded in 2010 by Shandong entrepreneur Qi Yunji, who had started by making rose hydrosol for his son's sensitive skin, the brand grew through celebrity endorsements and heavy influencer seeding on Douyin and Xiaohongshu. By 2025 it was generating ¥1.9B in nine-month revenue, with Dilireba and Sun Yingsha as spokespeople and a flagship body scrub that held 8.5% of the Chinese online market.

The growth was fuelled by spending. Marketing and promotion consumed 47.3% of revenue — roughly ¥100M a month — while R&D received 1.5%. The model produced volume without margin: gross profit was above 60% but net profit was just 6%. Inventory ballooned from ¥61M to ¥186M and the debt ratio hit 67.6%.

In 2020 the Shandong FDA found Banmu Huatian's algin mask contained methylisothiazolinone at 0.018%, 1.8× the legal limit of 0.01%. The factory, Laiwu Yaocao Biotechnology, had been cited for production violations previously. By 2026 the brand had accumulated nearly 280 complaints on the Heima投诉 platform, many citing allergic reactions. In 2025 Xiaohongshu banned its account for orchestrating fake reviews at scale.

When Banmu Huatian filed for a Hong Kong IPO in January 2026, the CSRC issued six detailed questions on product safety and marketing dependency. The pre-IPO valuation of ¥4.2B was contingent on a listing within 24 months — if the IPO failed, founder Qi Yunji was personally liable to compensate investors who had bought in during a last-minute A and A+ round.