Core Points - The company has ensured the authenticity, accuracy, and completeness of the quarterly report, taking legal responsibility for any misleading statements or omissions [2][7][34] - The company held its fifth board meeting on October 29, 2025, where the third-quarter report was approved unanimously [8][9] - The company received an administrative regulatory decision from the Guangdong Securities Regulatory Bureau regarding financial accounting irregularities and improper use of raised funds [34][35][36] Financial Data - The third-quarter financial statements were not audited [3] - The company reported significant changes in financial data and indicators, which are detailed in the quarterly report [5][9] Shareholder Information - The company disclosed information regarding the total number of shareholders and the situation of the top ten shareholders [5] Meeting Resolutions - The board approved the third-quarter report, the cancellation of the supervisory board, and the correction of prior accounting errors [12][21] - A second extraordinary general meeting for 2025 was also approved [15][16] Regulatory Compliance - The company is committed to rectifying the issues identified by the regulatory authority and enhancing compliance awareness [36][37] - The company will continue to fulfill its information disclosure obligations as per legal requirements [37] Product and Pricing Information - The average selling prices of eye care and beauty products increased due to changes in sales mix and marketing strategies [24][25] - The company reported price fluctuations in key raw materials, with some prices decreasing significantly [27][28][30][32]

Core Viewpoint - The company has corrected prior accounting errors in accordance with relevant accounting standards and regulations, ensuring that the financial statements more accurately reflect its financial position and operating results [1][3][4]. Summary by Sections 1. Reasons for Correction - The company received an administrative regulatory decision from the China Securities Regulatory Commission, which identified non-compliance in financial accounting practices, prompting a thorough self-examination and subsequent adjustments to the financial reports [1][2]. 2. Impact on Financial Statements - The adjustments resulted in a reduction of operating revenue by 4.5468 million RMB, operating costs by 1.1034 million RMB, and sales expenses by 0.3512 million RMB. Additionally, other current assets increased by 1.1034 million RMB, while other current liabilities rose by 4.1955 million RMB. The adjustments also included transferring 382.1245 million RMB to fixed assets and 185.8157 million RMB to investment properties, along with an increase in accumulated depreciation by 9.5472 million RMB [2]. 3. Review Procedures - The Audit Committee and Board of Directors reviewed the correction process, agreeing that it complied with relevant accounting standards and regulations, and concluded that the revised financial data provides a more objective and fair representation of the company's financial status [3][4]. 4. Other Remarks - The company expressed sincere apologies for any inconvenience caused to investors due to the corrections and emphasized its commitment to improving financial oversight, training for financial personnel, and enhancing internal controls to prevent future issues [5].

Industry Overview - In 2025, social consumption and retail enterprises are slowly recovering, with segments like gold jewelry benefiting from high gold prices, while cosmetics and medical aesthetics face intense competition and the rise of domestic brands. Notably, "emotional consumption" remains a key indicator of market vitality [2][8]. Segment Analysis Gold Jewelry - The industry has undergone significant changes, with high gold prices and declining wedding demand affecting traditional brand competitiveness. The rise of emotional consumption and social media marketing has led to the emergence of new brands with differentiated products and consumer insights. Opportunities are seen in high-end Chinese gold and trendy gold segments [3][25]. Retail E-commerce - Offline retailers are transforming from selling "goods" to offering "services and experiences," leveraging their advantages to attract traffic back. Online cross-border e-commerce is expected to enter a demand improvement phase with the easing of interest rates, further enhanced by AI integration [3][19]. Cosmetics - Domestic brands are capitalizing on cultural roots and emotional value to increase market share. Innovations in product safety and emotional value are key, with opportunities in regional and technological narratives, sensitive skin anti-aging, and domestic color cosmetics [3][85]. Medical Aesthetics - High-end consumers show resilience, with a focus on differentiated products from upstream manufacturers and mergers and acquisitions among downstream medical institutions to drive growth [3][5]. Investment Recommendations - Gold Jewelry: Favor brands with differentiated product strength and consumer insights, recommending Chao Hong Ji, Lao Pu Gold, and Chow Tai Fook, with beneficiaries including Chow Sang Sang [3][52]. - Retail E-commerce: Support offline retailers adapting to trends and AI-enabled cross-border e-commerce leaders, recommending Yonghui Supermarket, Ai Ying Shi, Ji Hong Co., and Sai Wei Times [3][82]. - Cosmetics: Highlight domestic brands that meet emotional value and safety innovation, recommending Mao Ge Ping, Pechoin, Shangmei Co., Juzi Biological, Wanmei Biological, and Runben Co. [3][52]. - Medical Aesthetics: Focus on differentiated medical aesthetic product manufacturers and expanding chain medical institutions, recommending Ai Mei Ke and Ke Di-B, with beneficiaries including Mei Li Tian Yuan Medical Health [3][52].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is experiencing short-term performance pressure due to adjustments, but the expansion of new products is expected to drive growth [1] - The company reported a revenue of 2.45 billion yuan for the first three quarters of 2025, a year-on-year increase of 25.5%, and a net profit attributable to shareholders of 240 million yuan, up 2.1% year-on-year [7] - The gross margin remains high, but the increase in sales expenses has pressured the net profit margin [7] - The company is focusing on a big product strategy to enhance user loyalty, with strong performance from flagship products [7] - The company has adjusted its profit forecasts for 2025-2027, with net profit estimates revised down to 380 million, 500 million, and 620 million yuan respectively, reflecting a year-on-year growth of 10%, 32%, and 23% [7] Financial Summary - Total revenue forecast for 2023A is 2.226 billion yuan, with a projected growth of 28.52% [1] - The net profit attributable to shareholders for 2023A is forecasted at 259.42 million yuan, with a year-on-year increase of 48.93% [1] - The latest diluted EPS for 2023A is estimated at 0.65 yuan per share [1] - The company’s P/E ratio is projected to decrease from 53.38 in 2023A to 22.51 in 2027E [1] - The gross margin for 2025 is expected to be 74.9%, with a slight increase in subsequent years [8]

Core Insights - Marubi Biotechnology (603983) has successfully obtained a patent for a cosmetic product with whitening and sunscreen functions, utilizing a unique preparation method [1] Group 1: Patent and Innovation - The patent combines chemical and physical sunscreen agents through a novel compounding technology, proposing a cosmetic product that offers both whitening and sun protection [1] - Marubi's R&D team has developed the Namoletar porous encapsulation technology, which uses nanoscale porous silica to effectively encapsulate active sunscreen ingredients, enhancing sun protection while reducing skin penetration of the sunscreen agents [1] - This technology allows for the development of a dual-function product that integrates sun protection and skin care, marking a significant innovation in the industry [1] Group 2: Recent Developments - In the third quarter of this year, Marubi added 10 new national invention patents, focusing on core functions such as whitening sunscreen, eye health, and anti-inflammatory skincare [1] - The continuous acquisition of patents strengthens Marubi's technological barriers and empowers high-quality development in the industry through robust innovation [1]

Core Viewpoint - Guangdong Marubi Biotechnology Co., Ltd. has been issued an administrative regulatory decision by the Guangdong Securities Regulatory Commission due to irregularities in financial accounting, fundraising management, and disclosure practices [2][4][6]. Financial Accounting Irregularities - The company has been found to have inaccurate revenue accounting, failing to estimate return rates based on actual sales returns and including non-actual sales orders in revenue [4]. - There were inaccuracies in the accounting of construction in progress, with the company not timely estimating unbilled construction payments and failing to transfer assets to fixed assets upon completion [4]. - Errors in accounting classifications were noted, such as misreporting funds held in third-party payment platforms as accounts receivable and misclassifying unrelated consulting fees as research and development expenses [4]. Fundraising Management and Disclosure Issues - The company improperly used fundraising and self-owned funds for the construction of its headquarters without separating the accounting for fundraising projects from non-fundraising projects [5]. - Adjustments to fundraising projects were not timely reviewed and disclosed, leading to discrepancies between reported project progress and actual status [5]. - The company failed to disclose relevant information regarding cash management of fundraising, including returns on financial products and investment details [5]. Regulatory Actions - The chairman, board secretary, and financial director of the company have been held primarily responsible for the violations and have received warning letters from the regulatory authority [6]. Financial Statement Corrections - The company announced corrections to its financial statements for the first half of 2025, revealing inflated figures in various financial metrics, including an increase in operating income by 4.5468 million and net profit by 11.3297 million [7][10]. - The corrected balance sheet showed an overstatement of construction in progress by 568 million and underreported fixed assets and investment properties by 375 million and 183 million, respectively [10]. Recent Financial Performance - For the third quarter of 2025, the company reported operating revenue of 2.45 billion, a year-on-year increase of 25.5%, while net profit attributable to shareholders was 244 million, up 2.1% year-on-year [10].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported strong performance in Q3 2025, with a year-on-year revenue increase of 25.5% to 2.45 billion yuan and a net profit increase of 2.1% to 240 million yuan. Q3 revenue reached 690 million yuan, up 14.3%, and net profit was 70 million yuan, up 11.6% [3][4] - The company maintains its profit forecast, expecting net profits of 400 million yuan, 523 million yuan, and 667 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.00, 1.30, and 1.66 yuan [3][4] Financial Performance Summary - For Q3 2025, the company achieved revenue of 690 million yuan, with a gross margin of 75.7% (up 1.2 percentage points) and a net margin of 10.5% (up 0.03 percentage points) [4] - The revenue breakdown for Q3 2025 shows eye care products generating 150 million yuan (up 20.1%), skincare products 310 million yuan (up 42.0%), cleansing products 70 million yuan (up 23.1%), and beauty products 150 million yuan (down 26.7%) [4] - The average selling prices for Q3 2025 increased significantly, with eye care products up 52.8% and skincare products up 4.5% [4] Financial Projections - The company forecasts revenue growth from 2.226 billion yuan in 2023 to 5.906 billion yuan in 2027, with a compound annual growth rate (CAGR) of 28.5% to 21.7% [6][8] - The projected net profit is expected to grow from 259 million yuan in 2023 to 667 million yuan in 2027, reflecting a CAGR of 48.9% to 27.6% [6][8] - The gross margin is projected to improve from 70.7% in 2023 to 74.8% in 2027, while the net margin is expected to stabilize around 11.3% by 2027 [6][8] Market Positioning - The company continues to lead the domestic eye care market and has launched new products targeting the mid-to-high-end market, such as the "Perfect Collagen Eye Cream" [5] - The company is enhancing its online and offline presence, with significant sales during promotional events like Double 11, achieving over 4 million units sold in the first four hours of a live broadcast [5]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company reported a revenue of 2.45 billion yuan for Q1-Q3 2025, representing a year-on-year increase of 25.51%, with a net profit of 244 million yuan, up 2.13% year-on-year [2] - The company continues to optimize its product structure, with strong performance from key products, particularly in the eye care and skincare categories [3] - The gross profit margin for Q1-Q3 2025 was 74.91%, showing a slight increase, while the net profit margin was 9.95%, reflecting a decrease [4] Revenue Summary - For Q3 2025, the company achieved a revenue of 686 million yuan, a year-on-year increase of 14.28% [2] - Breakdown of revenue by product category for Q3 2025: - Eye care: 149 million yuan (+20.10%) - Skincare: 306 million yuan (+42.05%) - Cleansing: 67 million yuan (+23.06%) - Beauty: 148 million yuan (-26.71%) - Other: 16 million yuan (+285.46%) [3] Profitability Summary - The company’s gross profit margin for Q3 2025 was 75.72%, an increase of 1.20 percentage points year-on-year [4] - The net profit margin for Q3 2025 was 10.13%, a slight decrease of 0.24 percentage points year-on-year [4] - The company plans to enhance cost control and stabilize expenses to improve profitability [5] Expense Summary - The operating expense ratio for Q1-Q3 2025 was 63.77%, an increase of 3.12 percentage points year-on-year [5] - For Q3 2025, the operating expense ratio rose to 69.04%, with increases in sales and management expenses attributed to heightened competition and increased team size [5] Investment Recommendations - The company is expected to achieve synchronized growth in revenue and profit due to brand strengthening and operational efficiency improvements [6] - Revised revenue forecasts for 2025-2027 are 3.68 billion, 4.48 billion, and 5.42 billion yuan respectively, with net profits of 397 million, 493 million, and 631 million yuan [6] - The estimated EPS for 2025-2027 is projected to be 0.99, 1.23, and 1.57 yuan, with corresponding PE ratios of 35, 28, and 22 times [6]

Market Overview - The cosmetics sector experienced a decline of 0.58% on October 31, with Jiaheng Jiahua leading the drop [1] - The Shanghai Composite Index closed at 3954.79, down 0.81%, while the Shenzhen Component Index closed at 13378.21, down 1.14% [1] Individual Stock Performance - Notable gainers included: - Qingsong Co., Ltd. (300132) with a closing price of 7.23, up 5.39% [1] - Lafang Jiahua (603630) at 22.74, up 3.04% [1] - Shuiyang Co., Ltd. (300740) at 20.43, up 2.82% [1] - Jiaheng Jiahua (300955) saw a significant decline, closing at 35.66, down 5.01% [2] - Marubi Biotechnology (603983) also fell, closing at 34.53, down 4.16% [2] Trading Volume and Capital Flow - The cosmetics sector had a net outflow of 131 million yuan from main funds, while retail investors saw a net inflow of 214 million yuan [2] - The trading volume for Qingsong Co., Ltd. was 329,200 shares, with a transaction value of 23.5 million yuan [1] - Jiaheng Jiahua had a trading volume of 50,300 shares, with a transaction value of 183 million yuan [2] Capital Flow Analysis - Shanghai Jahwa (600315) had a net inflow of 11.76 million yuan from main funds, but a net outflow of 23.52 million yuan from retail investors [3] - Other companies like Lafang Jiahua and Qingsong Co., Ltd. also experienced mixed capital flows, with retail investors showing some interest despite overall outflows from main and speculative funds [3]

Core Insights - Marubi Biotechnology (603983.SH) reported its Q3 2025 results, revealing that 12 institutional investors hold a total of 28.2179 million A-shares, accounting for 7.04% of the company's total share capital [1] - The top ten institutional investors collectively hold 6.95% of the shares, with a decrease of 0.69 percentage points compared to the previous quarter [1] Institutional Holdings - The number of institutional investors holding Marubi's A-shares is 12, with a total holding of 28.2179 million shares [1] - The top ten institutional investors include various funds and banks, with the largest being Kaishi Fund and several others from major banks [1] - The proportion of shares held by the top ten institutional investors has decreased by 0.69 percentage points from the last quarter [1] Public Fund Activity - Two public funds increased their holdings, namely ICBC New Generation Consumption Mixed and ICBC Consumption Service Mixed A, with an increase ratio of 0.14% [2] - Four public funds reduced their holdings, including Fuquan Value Creation Mixed A and Fuquan Quality Life Mixed A, with a decrease ratio of 0.42% [2] - One new public fund was disclosed, Green Hongjing Bond A, while 143 public funds were not disclosed this quarter [2] Social Security and Pension Funds - One social security fund, the National Social Security Fund 111 Combination, reduced its holdings slightly [2] - One pension fund, the Basic Pension Insurance Fund 16032 Combination, increased its holdings by 0.5% [2]