Core Points - On November 5, 2025, Beitaini (300957) recorded a financing buy of 10.96 million yuan and a financing repayment of 10.70 million yuan, resulting in a net financing buy of 264,500 yuan, with a financing balance of 618 million yuan [1] - Over the past three trading days, the cumulative net financing buy reached 10.41 million yuan, and in the last 20 trading days, there were 12 days with net financing buys [1] Financing Summary - On November 5, 2025, the net financing buy was 264,500 yuan, with a financing balance of 618 million yuan, accounting for 3.29% of the circulating market value [2] - The net financing buys for the previous trading days were as follows: November 4: 3.85 million yuan, November 3: 6.30 million yuan, October 31: -5.18 million yuan, October 30: -3.22 million yuan [2] Margin Trading Summary - On November 5, 2025, there were 400 shares sold short, with a repayment of 1,800 shares, resulting in a net short buy of 1,400 shares, and a remaining short balance of 110,100 shares [3] - The short selling activity for the previous trading days included: November 4: 2,200 shares, November 3: -1,900 shares, October 31: 2,800 shares, October 30: 2,100 shares [3] Overall Margin Balance - The total margin trading balance on November 5, 2025, was 623 million yuan, reflecting an increase of 185,600 yuan or 0.03% from the previous day [4] - The margin balance changes for the previous trading days were: November 4: 3.89 million yuan increase, November 3: 6.22 million yuan increase, October 31: -5.01 million yuan decrease, October 30: -3.26 million yuan decrease [4]

Core Insights - The 2025 Tmall "Double 11" pre-sale commenced on October 15, achieving impressive results in the first hour, with 35 brands surpassing 100 million yuan in sales and 1802 brands doubling their sales compared to the previous year [1] - Taobao Live emerged as a significant highlight during this consumption surge, with the number of users paying deposits experiencing double-digit growth and the number of live streaming rooms exceeding last year's levels [1] Group 1 - Li Jiaqi's live streaming room and other top Taobao live streaming rooms showed remarkable performance, with visitor numbers increasing by over 45% in the first hour and GMV for add-to-cart items showing positive year-on-year growth [3] - Key categories such as beauty, maternal and infant products, fashion, and food saw sales growth of nearly 80%, with over twenty popular items quickly selling out on the first day of the "Double 11" pre-sale [3] - The "Li Jiaqi Live Streaming Room Super Beauty Festival" became a focal point, with 39 products exceeding sales of 100,000 units on the first day [3] Group 2 - Domestic brands have significantly increased their participation on mainstream e-commerce platforms, with their market share rising from 40% to 66%, and live streaming rooms like Li Jiaqi's becoming crucial for showcasing these brands [4] - Domestic brands are establishing deep connections with young consumers through variety shows and top live streaming rooms, exemplified by Li Jiaqi leading 12 domestic beauty brands to open a pop-up store in Paris [4] - Brands such as Proya, Winona, and Naturie quickly entered the top twenty in Tmall's beauty sales within just four hours of the pre-sale, with Proya achieving the top position, highlighting the synergy between quality domestic products and live streaming marketing [4]

Group 1 - The event held in Kunming focused on the theme of "integration towards a new spring city," attracting nearly a hundred media leaders from across the country [1] - The research team explored the industrial development dynamics and cultural roots of Kunming, emphasizing the significance of flowers in driving the local economy and enhancing its global presence [1][4] - The logistics system for flower transportation in Yunnan has been developed to accommodate the delicate nature of flowers, with a cold chain distribution center capable of processing 12.5 million flower packages daily [3] Group 2 - Yunnan's flower shipment volume has increased significantly, from 2 tons to 260 tons daily, with a total annual shipment of 155,000 tons in 2024, supported by a collaborative cold chain, air, and rail transport system [4] - The skincare brand "Winona," under Yunnan Betaini Biotechnology Group, has achieved a top ten position in Tmall's beauty pre-sale rankings, showcasing the company's strong production capabilities and automated processes [6] - Betaini's R&D investment reached 337 million yuan in 2024, maintaining an annual growth rate of over 5% for three consecutive years, leading the industry in innovation [6] Group 3 - The historical significance of Kunming is highlighted by the establishment of the National Southwest Associated University during the war, which contributed to cultural and educational advancements in the region [8] - The current media landscape faces challenges similar to those encountered by the university during its time, emphasizing the need for adaptation and innovation in content production and dissemination [8][10] - The president of the Chinese Evening Association stressed the importance of integrating advanced technology with cultural and educational values to revitalize the spirit of the university [10]

Investment Rating - The investment rating for the company is "Accumulate" (Maintain) [5] Core Views - The company reported a year-on-year increase of 137% in net profit attributable to shareholders for Q3 2025 [5] - The main brand, Winona, continues to lead the domestic dermatological skincare market, with significant competitive advantages [7] - The company has improved its gross margin to 74.3% in Q1-Q3 2025, focusing on brand building and core product optimization [7] - The forecasted net profit for 2025-2027 is expected to be 449 million, 557 million, and 673 million RMB respectively, with corresponding year-on-year changes of -10.84%, +24%, and +20.97% [6][7] Financial Summary - The company's total revenue for 2023 is projected at 5,522 million RMB, with a year-on-year growth rate of 10.14% [6] - The net profit for 2023 is estimated at 757 million RMB, reflecting a year-on-year decrease of 28.01% [6] - The earnings per share (EPS) for 2025 is projected to be 1.06 RMB, with a price-to-earnings (P/E) ratio of 42.07 [6][9] - The company’s total market capitalization is approximately 18,867.14 million RMB [3]

Investment Rating - The report maintains an "Overweight" rating for the industry, with a focus on new consumption sectors such as beauty care, IP derivatives, and gold jewelry [5][32]. Core Insights - The report highlights the recent tax policy changes regarding gold, which exempts value-added tax for standard gold transactions, potentially boosting market activity [3][22]. - The beauty care sector shows mixed performance, with some companies reporting significant revenue growth while others face declines [4][25]. - The report emphasizes the importance of domestic brands in the beauty market, with notable rankings in the Douyin beauty list indicating a shift towards local products [22][23]. Market Performance - During the week of October 27 to October 31, 2025, the retail trade, social services, and beauty care sectors experienced changes of +1.63%, +0.45%, and -2.21% respectively, ranking 8th, 17th, and 30th among 31 primary industries [13][15]. - The cosmetics sector faced a decline of -2.57%, while segments like trade and e-commerce performed well with increases of +3.44% and +2.97% [15][18]. Key Company Announcements - Shanghai Jahwa reported a revenue of 4.961 billion yuan for the first three quarters of 2025, a year-on-year increase of 10.8%, with a net profit growth of 149.1% [25]. - Proya Cosmetics achieved a revenue of 7.098 billion yuan, reflecting a modest growth of 1.89% [25]. - The opening of Pop Mart's first store in the Middle East marks a significant expansion for the brand [29]. Investment Recommendations - The report suggests focusing on companies such as Shiseido, Giant Bio, Marubi, Runben, Proya, Chaohongji, and Furuida as potential investment targets within the recommended sectors [5][32].

Group 1: Industry Overview - The cosmetics retail sales in China grew by 3.9% year-on-year from January to September 2025, slightly underperforming the overall retail market by 0.6 percentage points, indicating a stable demand environment [4][14]. - Online platforms like Tmall and Douyin are experiencing a shift, with Tmall showing signs of recovery due to flash sales and member subsidies, while Douyin's growth has slightly slowed down [17][20]. - The demand for high-end and cost-effective products is increasing, while the mid-range segment is facing pressure due to a more conservative consumer environment [5][41]. Group 2: Competitive Landscape - The trend of domestic brands replacing foreign ones is slowing down, with leading foreign brands like L'Oréal and Estée Lauder showing signs of recovery in the Chinese market [23][24]. - The growth of domestic brands is becoming more differentiated, with some brands like Proya and Shiseido experiencing declines, while others like Youngor and Shanghai Jahwa continue to grow [23][24]. - The industry is witnessing an acceleration in the multi-brand matrix among leading companies, which is expected to increase market concentration [27][28]. Group 3: Key Companies - The report highlights several companies with strong growth potential, including Ruya Chen, Shumei Co., and Maogeping, which are expected to benefit from their brand strength and market positioning [3][54]. - Companies like Dekang Oral Care and Shanghai Jahwa are noted for their stable fundamentals and potential for marginal improvement, while others like Jinbo Biological and Huaxi Biological are anticipated to reach turning points [54]. - Ruya Chen's self-owned brand, Zhenjia, has shown significant growth, with a revenue increase of 345% year-on-year in Q3 2025, indicating strong brand development capabilities [60].

Core Viewpoint - The cosmetics sector experienced a decline of 1.75% on November 4, with Marubi Biotechnology leading the drop [1][2] Group 1: Market Performance - The Shanghai Composite Index closed at 3960.19, down 0.41%, while the Shenzhen Component Index closed at 13175.22, down 1.71% [1] - Major stocks in the cosmetics sector showed varied performance, with Qing Song Co. slightly up by 0.28% and Marubi Biotechnology down by 3.92% [1][2] Group 2: Trading Volume and Value - The trading volume and value for key stocks in the cosmetics sector were significant, with Qingdao Kingway recording a trading volume of 576,600 shares and a transaction value of 470 million yuan [2] - The total net outflow of main funds in the cosmetics sector was 208 million yuan, while retail investors saw a net inflow of 155 million yuan [2] Group 3: Fund Flow Analysis - The main funds showed a net outflow in several companies, including Marubi Biotechnology with a net outflow of 7.54 million yuan, while retail investors had a net inflow of 17.24 million yuan [3] - LaFang Co. had a net inflow of 8.17 million yuan from retail investors, despite a net outflow from main funds [3]

Group 1: Strategic Adjustments - The company has introduced new talent in key online and mid-platform positions, focusing on core products and optimizing business structure to enhance product competitiveness and channel penetration [1] - Systematic improvements in profitability, technological accumulation, and brand layout have been achieved through ongoing strategic adjustments [1] Group 2: Research and Development - R&D expenses decreased by 14.17% year-on-year, attributed to normal fluctuations in project progress, with a commitment to maintaining high levels of R&D investment [1] - The company is leveraging its Yunnan Province plant extraction laboratory and global R&D centers to conduct comprehensive research projects from basic research to product development [2] Group 3: Financial Performance - Operating cash flow reached 442 million yuan in the first three quarters, a remarkable increase of 6772.14%, indicating strong cash generation capability and operational efficiency [2] - The company has implemented proactive inventory and channel management strategies, laying a solid foundation for long-term value growth [2] Group 4: Intangible Assets - Intangible assets increased significantly by 116%, primarily due to the acquisition of trademarks, patents, and non-patent technologies related to the TriPollar brand [2] - The acquisition strengthens the company's R&D and technological moat, marking its entry into the billion-level beauty instrument market and opening a second growth line [2]

Core Insights - The performance of the new consumption sector shows significant divergence, with companies like Pop Mart achieving impressive growth, while the capital market reacts with valuation adjustments [1] - The pet economy continues to attract capital attention, with companies like Zhongchong and Guai Bao Pet reporting steady growth, yet facing valuation declines [1] - The beauty economy, represented by companies like Aimeike and Huaxi Biological, is experiencing notable declines in performance [1] IP Economy Performance - Pop Mart reported a substantial revenue increase of 245%-250% year-on-year for Q3 2025, continuing its high growth trend from the first half of the year [2] - In the Chinese market, revenue grew by 185%-190%, with online channels surging by 300%-305% and offline channels by 130%-135% [2] - Overseas revenue skyrocketed by 365%-370%, with the Americas showing an extraordinary growth of 1265%-1270% [2] - Light Media also saw significant growth, with Q3 revenue reaching 3.616 billion yuan, a 150.81% increase, and net profit soaring by 406.78% [2][3] Pet Economy Trends - Zhongchong reported Q3 revenue of 3.860 billion yuan, up 21.05%, and net profit of 333 million yuan, up 18.21% [4] - Guai Bao Pet achieved Q3 revenue of 4.737 billion yuan, a 29.03% increase, with net profit growing by 9.05% [4] - Despite high market demand, the pet economy faces challenges from homogenization and increased competition [5] Beauty Economy Challenges - Aimeike's Q3 revenue fell by 21.49% to 1.865 billion yuan, with net profit down 31.05% [6] - Huaxi Biological reported a revenue decline of 18.36% to 3.163 billion yuan, with net profit decreasing by 30.29% [6] - Beitaini's revenue dropped by 13.78% to 3.464 billion yuan, with net profit down 34.45% [6] - The medical beauty industry is undergoing a strategic transformation, with a focus on high-end markets and new materials gaining attention [6][7]

Core Viewpoint - Beitaini is experiencing significant operational challenges, reflected in its declining revenue and net profit for the first three quarters, despite a slight recovery in the third quarter [1][4][10] Financial Performance - For the first three quarters, Beitaini reported revenue of 3.464 billion yuan, a year-on-year decrease of 13.78%, and a net profit of 272 million yuan, down 34.45% year-on-year [1][4] - In the third quarter alone, the company achieved a net profit of 25.22 million yuan, marking a return to profitability, but this does not offset the overall performance decline [1][4] Market Position and Valuation - Beitaini's market capitalization has dropped significantly from over 120 billion yuan at its peak to approximately 19 billion yuan, indicating a loss of over 100 billion yuan in market value since its IPO [2][4] - The stock price has fallen below its initial offering price, reflecting investor concerns about the company's growth prospects [2] Revenue Channels - All three major revenue channels (online, OMO, and offline) have shown declines, with offline sales plummeting by 41.6% [6] - Specific declines in major e-commerce platforms include a 10.5% drop in Alibaba, 22.1% in JD.com, and 18.9% in Vipshop, while Douyin was the only platform to show a 7.4% increase [6] Product Performance - The core product categories, skincare and cosmetics, saw revenue declines of 12.0% and 7.1%, respectively, with skincare accounting for 85% of total revenue [6][7] - The primary brand, Winona, generated 1.95 billion yuan in revenue for the first half of 2025, representing 82.17% of total revenue, but its growth has slowed significantly [7] Strategic Initiatives - To mitigate reliance on its main brand, Beitaini is diversifying its product offerings, including launching new brands and acquiring existing ones [7] - However, the development of new brands requires substantial investment and may take time to yield results, leading to revised profit forecasts for 2025-2027 [7][9] Profitability Challenges - Despite a slight increase in gross margin to 74.3%, the company's expense ratio has risen to 67.7%, with sales expenses reaching a record high of 53.1%, squeezing profit margins [10][12] - The sales expense ratio has increased significantly over the years, indicating that a large portion of revenue is being consumed by marketing without driving growth [12]