唇膏 can mean both 'lipstick' (with color) and 'lip balm' (moisturizing). For specifically colored lipstick, 口红 (kǒuhóng, literally 'mouth red') is more common in casual speech.
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唇 (lips) + 膏 (paste/cream) = cream for the lips. 膏 appears in many skincare words: 牙膏 (toothpaste), 药膏 (ointment), 面膏 (face cream).
