Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report highlights a moderate recovery in the beauty and cosmetics sector, with a notable performance in hair care and color cosmetics, indicating a stable growth trajectory [7][35] - The medical aesthetics sector is expected to gain momentum from the introduction of innovative products, particularly in the field of collagen and hair loss treatments [30][46] Summary by Sections Market Review - In June, the beauty and personal care index fell by 3.61%, ranking 31st among all primary industries, underperforming the market [14] - The medical aesthetics sector saw significant stock price increases for companies like Meili Tianyuan Medical Health (+64.4%), Yonghe Medical (+50.0%), and Sihuan Pharmaceutical (+13.3%) [20][26] - For the first half of 2025, the medical aesthetics sector recorded substantial gains, with Jinbo Biological (+124.6%), Yonghe Medical (+83.3%), and Meili Tianyuan Medical Health (+69.9%) leading the way [20][26] Medical Aesthetics - Jinbo Biological launched the world's first recombinant type III humanized collagen gel, HiveCOL, which is expected to revolutionize tissue regeneration [30] - Sihuan Pharmaceutical introduced new products targeting skin quality improvement and contour shaping, while Kedi's external finasteride spray received approval, marking a significant advancement in hair loss treatment [31][32] Cosmetics - The retail sales of cosmetics in the first half of 2025 reached 229.1 billion yuan, reflecting a year-on-year growth of 2.9% [35] - Online sales of cosmetics amounted to 267.83 billion yuan, growing by 11.1%, while offline sales decreased by 4.1% to 228.44 billion yuan [36] - The report emphasizes the strong performance of domestic brands in the online market, particularly on platforms like Douyin and Tmall [40][43] Investment Recommendations - The report recommends focusing on leading domestic beauty brands that are expected to gain market share, particularly in high-growth segments [46][47] - Key recommendations include companies like Shangmei Co., Ltd., Maogeping, and Pulaia, which are well-positioned to benefit from the ongoing trends in the beauty market [50]

Summary of Conference Call Company and Industry - The conference call primarily discusses a company involved in the healthcare and pharmaceutical industry, focusing on products related to weight loss and hair restoration. Key Points and Arguments Compliance and Market Challenges - The compliance products have seen a slight increase in market share, now accounting for approximately 20-30% of the total market, indicating a shift towards more regulated products [1] - Institutions using non-compliant products face significant penalties if caught, creating a dilemma between using compliant products with potential negative feedback and non-compliant products with regulatory risks [2] Product Launch and Market Positioning - The company is preparing to launch its first compliant product in the weight loss sector, aiming to capture market share quickly due to the first-mover advantage [3] - The company has identified a gap in the market for localized fat reduction products, differentiating itself from competitors focused on overall weight loss solutions [4] Product Efficacy and Safety - The new product, a recombinant collagenase, is designed to minimize pain during use, with reported pain duration significantly lower than competitors, lasting only 2,000-3,000 units compared to over 7,000 for others [5][6] - Clinical trials show over 50% fat reduction in participants after one month and over 80% after three months, with a single injection providing lasting effects [7] Development Strategy - The company has a clear three-tier development strategy, focusing first on generating revenue from existing products, followed by the introduction of new drugs in the coming years [8][9] - The company aims to achieve over 100 million RMB in revenue from its flagship product within the first year of commercialization, which is considered a conservative estimate [31] Market Trends and Consumer Behavior - The hair restoration market is experiencing rapid growth, with a projected increase to over 50 billion RMB by 2025, driven by rising consumer anxiety and stress-related hair loss [18] - Oral finasteride currently holds a significant market share but has side effects that the company's topical product aims to mitigate, offering similar efficacy without systemic side effects [19][20] Pricing Strategy - The pricing for the new products is expected to be competitive with international standards, with the topical finasteride priced around 1,400 RMB per bottle, which is lower than its overseas counterparts [24] - The company plans to maintain a balance between affordability and quality, ensuring that the products are accessible to a broad consumer base [25] Distribution and Marketing - The company has made significant progress in establishing distribution channels, with hundreds of medical institutions and pharmacies already onboarded prior to product launch [29] - Marketing efforts are being ramped up, with a focus on online promotions and influencer partnerships to maximize product visibility [15][28] Financial Performance - The company reported strong internal sales growth, with expectations for continued performance improvement as new products are launched [13] - Cost management strategies have been implemented, resulting in a decrease in absolute expenses while maintaining revenue growth [16] Future Outlook - The company is optimistic about its growth trajectory, with plans to expand its product line and enhance its market presence in the coming years [40] - There is a strong belief in the long-term potential of the brand, aiming for it to reach a scale of 1 billion RMB in revenue [40] Other Important Content - The company emphasizes the importance of safety and efficacy in its product offerings, particularly in the context of increasing consumer awareness and regulatory scrutiny [27] - The management team has a history of adapting quickly to market changes, which is seen as a critical factor in their ongoing success [36]

Core Insights - The data indicates significant trading volume increases for various companies, suggesting heightened investor interest and potential market movements [1][2][3][4][5] Group 1: Companies with Notable Volume Increases - 阳光能源 (00757) reported a volume ratio of 2.35, indicating strong trading activity [2] - 长城汽车 (02333) had a volume ratio of 2.21, reflecting increased investor engagement [2] - 郑煤机 (00564) showed a volume ratio of 1.92, suggesting a notable rise in trading [2] Group 2: Additional Companies with Increased Trading Activity - 万国数据-SW (09698) recorded a volume ratio of 1.83, indicating significant market interest [2] - 映恩生物-B (09606) had a volume ratio of 1.78, reflecting heightened trading activity [2] - 超盈国际控股 (02111) reported a volume ratio of 1.71, suggesting increased investor focus [2] Group 3: Companies with Moderate Volume Ratios - 中国能源建设 (03996) had a volume ratio of 1.70, indicating a solid level of trading activity [2] - 亚信科技 (01675) reported a volume ratio of 1.60, reflecting moderate investor interest [2] - 金宝通 (00320) showed a volume ratio of 1.53, suggesting a rise in trading volume [2] Group 4: Companies with Lower Volume Ratios - 中国水务 (00855) had a volume ratio of 1.52, indicating stable trading activity [2] - 广汽集团 (02238) reported a volume ratio of 1.52, reflecting consistent investor engagement [2] - 凯莱英 (06821) showed a volume ratio of 1.52, suggesting steady trading interest [2]

Core Insights - Codex Group announced that CU-40102 (topical finasteride spray) has received approval from the National Medical Products Administration for the treatment of androgenetic alopecia, marking it as the first and only approved topical finasteride for this condition globally and in China [1] Company Summary - CU-40102 is based on results from a Phase III confirmatory clinical trial, demonstrating its effectiveness in treating androgenetic alopecia, with good local tolerability reported by participants [1] - This approval will enhance Codex Group's commercialization strategy in the dermatology treatment and care sector [1]

Core Viewpoint - The clinical trial results for CU-30101, a topical anesthetic cream, have been accepted for presentation at the 30th CSD Annual Meeting, highlighting the company's influence and cutting-edge research in the dermatology field [1] Group 1: Clinical Trial Overview - The Phase III clinical trial was a multi-center, randomized, double-blind, positive drug-controlled study designed to evaluate the safety and efficacy of CU-30101 for local anesthesia in dermatological procedures [1] - The trial used Pliaglis® as a comparator, with the primary efficacy endpoint being the visual analog scale (VAS) for pain immediately after fractional laser surgery [1] Group 2: Efficacy Results - The results showed that the VAS difference between the two sides of the face (CU-30101 side vs. Pliaglis® side) fell within the predefined equivalence range, indicating comparable analgesic efficacy [2] - No statistically significant differences were found in patient evaluations regarding pain relief, likelihood of reusing the drug, and researchers' satisfaction with the efficacy of both drugs (P > 0.05) [2] Group 3: Safety Profile - CU-30101 demonstrated good overall safety with no severe adverse events reported [2] - The local tolerability assessment of CU-30101 was similar to that of Pliaglis®, consistent with known safety characteristics, and no new safety signals were identified [2] Group 4: Regulatory Progress - Based on the Phase III trial results, the company has submitted a drug marketing application for CU-30101 to the National Medical Products Administration, which is expected to be accepted by July 2024 [2]

Core Viewpoint - The recent adjustment of the Hong Kong Stock Connect list has led to a significant impact on the stock price of Kedi-B (02487), which experienced a notable decline followed by a recovery, supported by strong financial performance and market sentiment towards its new product developments [1][3][6]. Stock Performance - Kedi-B's stock price fell by 20.60% over six trading days after being removed from the Hong Kong Stock Connect [1]. - Following a brief recovery, the stock saw a dramatic drop of 26.88% on April 7 due to market volatility, creating a potential buying opportunity [1]. - The stock hit a low of 3.64 HKD on April 9 but rebounded significantly, reaching a peak of 7.62 HKD by May 20, surpassing pre-removal levels [1][3]. Financial Performance - Kedi-B reported total revenue of approximately 280 million RMB for 2024, a year-on-year increase of about 103% [6][7]. - Gross profit for the same period was around 144 million RMB, reflecting a 102% increase year-on-year, while net loss narrowed by 77.91% to approximately 434 million RMB [6][7]. - The company achieved a gross margin of 51.3%, up from 50.6% in the previous year, driven by improved product lines and cost management [8]. Product Line and Market Strategy - The revenue growth was primarily attributed to increased sales of hair care and skincare products, with hair care revenue exceeding 160 million RMB and skincare revenue surpassing 110 million RMB [8]. - Kedi-B plans to enter a second growth phase in 2025 with three significant prescription drugs, including treatments for acne and hair loss, which are expected to drive future revenue growth [9]. - The company is also involved in the development of a botulinum toxin product, CU-20101, which has received approval in South Korea, showcasing its technical capabilities [10][12]. Market Context - The domestic medical aesthetics market is under pressure, with many companies reporting declines in Q1 2025, yet Kedi-B's stock performance indicates positive market sentiment towards its product developments [11]. - The botulinum toxin market in China is projected to reach 11.4 billion RMB by 2025, with a compound annual growth rate of 23.9% from 2020 to 2025, indicating strong growth potential [12][14]. - Kedi-B's entry into the botulinum toxin market, particularly with innovative product forms, positions it well against established competitors [14].

Financial Performance - The company's revenue for the year ended December 31, 2024, reached approximately RMB 280 million, representing a year-on-year increase of about 103%[9]. - Revenue increased approximately 103% from about RMB 138 million for the year ended December 31, 2023, to about RMB 280 million for the year ended December 31, 2024[21]. - The group reported a revenue of RMB 279.6 million for the year ended December 31, 2024, compared to RMB 137.6 million in 2023, representing a year-over-year increase of 102.5%[78]. - Gross profit increased by approximately 102.0% to about RMB 143.5 million for the year ended December 31, 2024, compared to approximately RMB 71.0 million for the year ended December 31, 2023, with a stable gross margin of around 51%[45]. - The net loss for the year narrowed to RMB 433.8 million from RMB 1,963.8 million in 2023, reflecting a significant reduction in losses[78]. - The adjusted net loss for the year ended December 31, 2024, was approximately RMB 365.2 million, a decrease from RMB 1,963.8 million in 2023, indicating improved operational performance[60]. Product Development and Approvals - The CU-10201 (4% minocycline foam) received approval from the National Medical Products Administration in November 2024, marking it as the first and only approved topical minocycline for acne treatment globally[11]. - The CU-40102 (topical finasteride spray) NDA was accepted in January 2024, with submission to the Hong Kong government in April 2024, being the first approved topical finasteride product for androgenetic alopecia[11]. - CU-20401 (recombinant mutated collagenase) completed its Phase II clinical trial in December 2024, demonstrating significant efficacy and safety[12]. - CU-40102, the first and only approved topical finasteride product for androgenetic alopecia, had its NDA accepted by the National Medical Products Administration in January 2024[18]. - CU-10201, the first and only approved topical minocycline foam for the treatment of acne, received market approval from the National Medical Products Administration in November 2024[27]. - CU-10101, a non-hormonal small molecule drug for treating mild to moderate atopic dermatitis, received IND approval in May 2024 and completed its first subject enrollment in a Phase I clinical trial in China in September 2024[31]. - CU-30101, a local anesthetic cream, completed its Phase III clinical trial in China in January 2024, with its drug registration application accepted by the National Medical Products Administration in July 2024[31]. - CU-20401, a recombinant mutated collagenase for managing local fat accumulation, completed a Phase II clinical trial in China in December 2024, showing significant efficacy and safety, with a projected commercialization approval in 2028[31]. Marketing and Sales Strategy - The company aims to enhance the commercialization of CU-10201 in China, leveraging both online and offline channels for rapid product rollout[15]. - The company aims to expand its product matrix through continuous new product launches and diversified e-commerce channels, maintaining high repurchase rates above industry averages[9]. - The company’s marketing strategy includes a strong online presence across various e-commerce and social media platforms, enhancing customer experience and brand loyalty[33]. - The company aims to enhance sales capabilities through online marketing activities and collaborations with renowned doctors to drive overall sales growth[41]. Production and Capacity - The company has established a GMP production facility in Jiangsu with an annual capacity of 5 million doses, supporting commercialization and candidate drug production needs[13]. - The company’s production facility received a drug production license from the Jiangsu Provincial Drug Administration in April 2024, expected to positively impact capacity expansion and market growth[13]. - The company has established a GMP production facility in Jiangsu with three production lines, which began operations in 2023, ensuring compliance with regulatory requirements for clinical and market approvals[36]. Financial Position and Cash Flow - The company’s cash and cash equivalents totaled approximately RMB 876 million as of December 31, 2024[21]. - As of December 31, 2024, the total cash and cash equivalents amounted to approximately RMB 385.7 million, a decrease of about 18.5% from RMB 473.1 million as of December 31, 2023, primarily due to expenditures in R&D and operations[63]. - The company's current assets were approximately RMB 1,087.1 million, with current liabilities of about RMB 323.3 million, including interest-bearing bank borrowings of RMB 213.3 million[64]. - The debt-to-asset ratio increased to 30.0% as of December 31, 2024, compared to 21.0% in 2023, mainly due to an increase in interest-bearing bank borrowings[68]. Governance and Board Structure - The board of directors held a total of 4 meetings in the fiscal year ending December 31, 2024, with all directors attending all meetings[90]. - The independent non-executive directors accounted for one-third of the board, ensuring compliance with listing rules[96]. - The company established a board independence assessment mechanism to enhance board efficiency and independent judgment[97]. - The company’s board is collectively responsible for guiding and supervising the company’s affairs, ensuring sound internal controls and risk management[92]. - The chairman and CEO roles are held by different individuals, complying with corporate governance codes[95]. Risk Management - The company has established multiple risk management procedures and guidelines to define implementation authority across key business processes and functions[130]. - The risk management committee assesses risks across various departments and subsidiaries, identifying strategic, financial, market, operational, and legal risks[130]. - The internal control system is evaluated annually, with the audit department preparing a report on the previous year's internal control management level[131]. - The company has confirmed the effectiveness of its risk management and internal control systems as of December 31, 2024[136]. Shareholder Communication - The company has established multiple communication channels with shareholders, including annual general meetings and investor relations activities[157]. - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance and strategy[151]. - The company has a comprehensive shareholder communication policy to encourage active participation and effective exercise of shareholder rights[152]. Employee and Diversity Initiatives - The total number of employees as of December 31, 2024, was 333, with 54.4% in sales, marketing, and management roles[75]. - The company has implemented two equity incentive plans to align employee interests with company goals[75]. - The board currently consists of 6 male directors and 3 female directors, achieving a gender diversity ratio of 33.3% female representation[112]. - The company aims to maintain at least 33.3% female directors, 42.9% female senior management, and 60.7% female employees, which have all been met[115].

Core Points - The company reported a net loss of approximately 434 million yuan for 2024, a year-on-year reduction of 77.91% [1] - Revenue reached approximately 280 million yuan, representing a year-on-year increase of about 103% [1] - Gross profit was around 143.5 million yuan, with a year-on-year increase of approximately 102% [1] Revenue Growth - The revenue growth was primarily driven by increased sales of hair disease and care products as well as daily skincare products [1] - The company achieved a GMV of over 56 million yuan during the "618 event," marking a year-on-year growth of 500% [2] - During the "Double 11 event," the GMV exceeded 110 million yuan, doubling the total achieved during the "618 event" [2] Product Performance - The company continued to launch new products and enhance the product matrix of "Qing Si Ji He®" [2] - The CUP-MNDE ("Bailleul®" Minoxidil Spray) ranked first in sales within the cross-border Minoxidil category on Tmall [2] - The revenue contribution from other hair disease and care products has been steadily increasing [2] Consumer Engagement - The company is focused on building and strengthening long-term consumer trust, with repurchase rates and customer inquiry conversion rates consistently above industry averages [2] - The "Ouma" olive oil series accounted for over 70% of sales in the skincare product category [2] - The share of revenue from other interest e-commerce channels (including Douyin and Xiaohongshu) has been expanding rapidly, significantly boosting the revenue contribution for 2024 [2]

Revenue Growth - Revenue increased approximately 103% from about RMB 138 million for the year ended December 31, 2023, to about RMB 280 million for the year ended December 31, 2024[5]. - Revenue increased approximately 103.2% from about RMB 137.6 million for the year ended December 31, 2023, to about RMB 279.6 million for the year ended December 31, 2024, primarily due to increased sales of hair disease and care products and daily skincare products[27]. - The company reported total revenue of RMB 279.6 million for the year ending December 31, 2024, compared to RMB 137.6 million in 2023, representing a growth of 102.6%[67]. Profitability and Loss - Gross profit increased approximately 102.0% to about RMB 143.5 million for the year ended December 31, 2024, with a stable gross margin of approximately 51%[29]. - The total loss for the year was RMB 433.8 million, a reduction from RMB 1,963.8 million in 2023, showing an improvement in financial performance[67]. - The company reported a net loss of RMB 433.8 million for 2024, a significant improvement from a loss of RMB 1,963.8 million in 2023[45]. - Non-IFRS adjusted net loss for 2024 was RMB 365.2 million, compared to RMB 351.9 million in 2023, representing a loss margin of 1.31% of revenue[45]. - The basic and diluted loss per share for 2024 was RMB 1.41, compared to RMB 9.60 in 2023, reflecting a reduction in losses[90]. Expenses and Costs - Sales and distribution expenses as a percentage of revenue significantly decreased compared to the previous year, while R&D costs decreased by approximately RMB 17 million or 8%, and administrative expenses decreased by approximately RMB 44 million or 24%[5]. - Cost of sales rose by approximately RMB 69.6 million to about RMB 136.2 million for the year ended December 31, 2024, compared to about RMB 66.6 million for the year ended December 31, 2023, consistent with business growth[28]. - Selling and distribution expenses increased approximately 26.6% to about RMB 263.7 million for the year ended December 31, 2024, compared to about RMB 208.3 million for the year ended December 31, 2023, driven by expanded online marketing activities[32]. - Research and development costs decreased approximately 7.7% to about RMB 199.0 million for the year ended December 31, 2024, from about RMB 215.7 million for the year ended December 31, 2023[33]. - Administrative expenses decreased approximately 23.7% to about RMB 141.9 million for the year ended December 31, 2024, compared to about RMB 185.9 million for the year ended December 31, 2023[35]. Cash and Financial Position - The total cash and cash equivalents, along with financial assets at fair value, amounted to approximately RMB 876 million as of December 31, 2024[5]. - Cash and cash equivalents decreased by approximately 18.5% to RMB 385.7 million as of December 31, 2024, down from RMB 473.1 million in 2023[46]. - The company's current assets totaled approximately RMB 1,087.1 million, with current liabilities of about RMB 323.3 million, including interest-bearing bank loans of RMB 213.3 million[46]. - The debt-to-asset ratio increased to 30.0% as of December 31, 2024, up from 21.0% in 2023, primarily due to increased interest-bearing bank loans[49]. - The company held financial assets at fair value of approximately RMB 480.0 million as of December 31, 2024, an increase of about 2.3% from RMB 469.3 million in 2023[46]. Product Development and Approvals - CU-10201, a topical 4% minocycline foam, received approval from the National Medical Products Administration in November 2024, marking it as the first and only approved topical minocycline for acne treatment globally[6]. - CU-40102, a topical finasteride spray, had its NDA accepted by the National Medical Products Administration in January 2024, and it is the first and only approved topical finasteride product for androgenetic alopecia[6]. - CU-30101, a topical lidocaine-prilocaine cream, had its drug registration application accepted in July 2024, demonstrating comparable analgesic efficacy to the reference product Pliaglis®[6]. - The company completed the Phase II clinical trial for CU-20401, a recombinant mutated collagenase for treating submental fat accumulation, showing significant efficacy and good safety profile[6]. - CU-20401 is expected to accelerate into Phase III clinical trials following positive Phase II results, showcasing good safety and efficacy[24]. Market Performance - During the "618 event," the company's products recorded GMV exceeding RMB 56 million, a year-on-year increase of 500%, and during the "Double 11 event," GMV exceeded RMB 110 million, doubling the performance from the "618 event"[6]. - The company has developed a tailored commercialization strategy to penetrate the extensive skin disease treatment market in China, leveraging online and offline marketing channels[18]. - The self-operated customer service team enhances customer experience, contributing to higher repurchase rates and brand loyalty[20]. Governance and Corporate Structure - The company has adhered to all applicable corporate governance codes throughout the year ending December 31, 2024[58]. - The board of directors includes both executive and independent non-executive members, ensuring diverse governance[109]. - The company has established independent investment funds, such as Oriental Kylin Fund SPC and Summit View Fund SPC, to enhance its investment strategies[110]. Shareholder Actions - The company did not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[64]. - The company has repurchased a total of 1,362,600 shares at a total cost of approximately HKD 15.1 million, representing about 0.44714% of the issued shares[60].

Group 1 - Some Hong Kong Stock Connect stocks experienced declines despite market trends, with Codi-B leading the drop at 5.43% [1] - Following Codi-B, Hai Feng International fell by 4.04%, China Traditional Chinese Medicine decreased by 3.90%, Zhixing Automotive Technology dropped by 3.74%, and Tehai International declined by 3.03% [1] - Other companies such as COSCO Shipping Energy, Quan Feng Holdings, Chunli Medical, Nongfu Spring, and Fuyao Glass also saw declines exceeding 2% [1]