Core Viewpoint - The medical beauty market in China is experiencing a "price war," initiated by the internet medical beauty platform New Oxygen, which has significantly reduced the price of its "Miracle Youth 3.0" product to 2999 yuan, aiming to disrupt the high-price cycle in the industry [1][3]. Group 1: Market Dynamics - New Oxygen's price reduction strategy is intended to shift the medical beauty industry from a "seller's market" to a "mass consumer" market, making compliant medical beauty services more accessible to consumers [1][5]. - The market for "Youthful Needle" treatments is rapidly expanding, with projections indicating that the B-end market size will reach 4.2 billion yuan by 2025, up from 500 million yuan in 2021 [3][4]. - The medical beauty consumer demographic is evolving, with 90% of sales now coming from working and middle-class women, indicating a shift towards a broader consumer base [7]. Group 2: Company Strategy - New Oxygen's CEO, Jin Xing, emphasizes that the low-price strategy is crucial for eliminating "black medical beauty" practices by making compliant services affordable [1][6]. - The company has faced challenges with suppliers due to its aggressive pricing, leading to supply disruptions and demands from manufacturers to withdraw products from the market [4][5]. - New Oxygen's offline chain business has become a significant revenue driver, with a 426.1% year-on-year increase in revenue from this segment, surpassing online business for the first time [8]. Group 3: Financial Performance - In Q2, New Oxygen reported a 7% year-on-year decline in overall revenue to 379 million yuan, with a net loss of 36 million yuan, attributed to a decrease in the number of medical service providers on its subscription platform [1][8]. - The company's gross margin for its chain clinics was 24.3%, significantly lower than the industry average of over 50%, reflecting its low-margin strategy aimed at fostering a healthier operational model [5][6]. Group 4: Future Outlook - New Oxygen is actively working on supply chain integration by acquiring and representing key equipment and products, indicating a strategic move to gain control over its supply chain [9]. - The company plans to develop its own brand of medical beauty products, which will be used internally and sold to other institutions, further expanding its market presence [9].

Core Viewpoint - The internet medical beauty platform, New Oxygen, has launched its new "Miracle Youth 3.0" at a price of 2999 yuan, significantly lower than the previous market average of over 10,000 yuan, aiming to disrupt the high-price cycle in the medical beauty industry [1][4]. Group 1: Pricing Strategy and Market Position - New Oxygen's price reduction strategy is intended to shift the medical beauty industry from a "seller's market" to a "mass consumer" market, making compliant medical beauty services more accessible [1][5]. - The CEO of New Oxygen, Jin Xing, believes that lowering prices is crucial to eliminate "black medical beauty" practices in China, as high prices drive consumers to seek unregulated services [6][7]. - The company aims to achieve a healthy operational model in the medical beauty industry by demonstrating that high profits are not necessary for sustainability [5][6]. Group 2: Market Growth and Potential - The market for "youthful needles" is rapidly expanding, with projections indicating that the B-end market size will reach 4.2 billion yuan by 2025, up from 500 million yuan in 2021 [4]. - New Oxygen's focus on "youthful needles" is based on their clear treatment principles and effective results, positioning it as a long-term growth area in the medical beauty sector [4][5]. Group 3: Business Transformation and Challenges - New Oxygen's offline chain business has become a significant revenue source, with a 426.1% year-on-year increase in revenue from this segment, surpassing online business for the first time [8]. - Despite the growth in offline business, the company faced a 7% decline in overall revenue in Q2, resulting in a net loss of 36 million yuan, attributed to a decrease in the number of medical service providers on its subscription platform [1][8]. - The company is actively working to reduce its reliance on suppliers by customizing products and exploring the development of its own medical beauty brand [9].

Group 1: New Technologies and Innovations - New Stone Technology announced the delivery of its 10,000th unmanned delivery vehicle, marking the world's first fleet of this scale and indicating a significant shift from technology validation to large-scale commercialization in the unmanned delivery industry [1] - New Stone's achievement demonstrates the reliability of technology and commercial viability, significantly reducing costs through scale, providing a model for industry profitability [1] - The industry competition is currently focused on road rights and cost, with New Stone leading due to its advantages in road rights across hundreds of cities and a cost of approximately 70,000 yuan, although competitors like Momo and Jiushi have achieved lower pricing [1] Group 2: Consumer Goods and Market Trends - Luo Yonghao announced plans to evaluate pre-packaged meals available on the market, emphasizing a neutral stance by not engaging in live commerce, which could enhance consumer trust in the industry [2] - This initiative comes at a critical time for the industry, potentially pushing companies to strengthen quality control and shifting competition from price wars to brand trust [2] Group 3: Pricing Strategies in the Beauty Industry - New Oxygen launched its new product "Miracle Youth 3.0" at a price of 2,999 yuan, aiming to address high prices and rampant black market practices in the medical beauty industry [3] - The introduction of this competitively priced product targets the issue of inflated prices in the market, potentially leading to a more rational pricing system [3] - However, the low pricing strategy may trigger a price war in the industry, necessitating New Oxygen to ensure service quality while exploring sustainable business models [3] Group 4: E-commerce and Brand Expansion - Alibaba's AliExpress launched the "Super Brand Going Global Plan," aiming to achieve higher sales at half the cost of Amazon, directly challenging Amazon's dominance in the mid-to-high-end brand market [4] - In the first half of the year, AliExpress saw a 70% year-on-year increase in new brands, with over 500 brands doubling their sales and more than 2,000 brands expanding into new overseas markets [4] - This initiative signifies a shift from a focus on cost-effectiveness to targeting the mid-to-high-end market, reshaping the landscape of cross-border e-commerce and prompting a shift towards refined operations and cost control [4]

Core Viewpoint - New Oxygen has launched a new product, Miracle Youth 3.0 - Su Tian Yan, priced at 2999 yuan, which is the lowest price in the history of youth injections, significantly lower than competitors priced between 13,000 yuan and 24,000 yuan [1] Product Details - The new product is based on polylactic acid microspheres that stimulate collagen regeneration for skin anti-aging [1] - The product is custom-produced by Xihong Pharmaceutical, featuring microsphere diameters of 25-35 micrometers with a smooth surface, produced using microfluidic technology in a sterile environment [1] Market Context - New Oxygen's CEO, Jin Xing, stated that Su Tian Yan is a product customized with Xihong Bio, and it is similar to the youth injection from LZ, although the models differ slightly [1] - Previously, New Oxygen faced pressure from upstream manufacturers due to significantly reducing the prices of the youth injections they were distributing, leading to supply issues [1]

Core Viewpoint - New Oxygen Technology has launched the Miracle Youth Needle 3.0 at a price of 2999 yuan, marking the lowest price in the history of youth needles, aiming to make aesthetic medical treatments more affordable for consumers [1] Group 1: Product Launch and Pricing Strategy - The price of youth needles in the market typically ranges from 13,000 to 24,000 yuan, while New Oxygen's previous versions were priced at 4999 yuan and 5999 yuan, significantly lower than competitors [1] - The CEO of New Oxygen stated that high prices in the mainland market are due to high procurement costs and upstream manufacturers controlling retail prices, and the company aims to challenge the notion that the aesthetic medical industry must rely on high profits [1] Group 2: Supplier Relations and Challenges - New Oxygen faced pressure from upstream manufacturers, including legal threats, when it attempted to lower prices with its earlier versions, which led to conflicts over pricing and product authenticity [1] - The company has now partnered with Xihong Bio, which does not impose price controls, to ensure a stable supply chain and maintain quality service for consumers [2] Group 3: Business Expansion and Operational Insights - New Oxygen has opened 37 clinics since May 2023, with plans to exceed 50 by the end of 2025 and aims for a long-term goal of establishing a presence in 100 cities [2] - Currently, the clinic operations are not profitable due to the costs associated with establishing a central support system, but the individual clinics have achieved monthly profitability, indicating potential for future overall profitability [2]

Summary of Medical Aesthetics Industry Conference Call Industry Overview - The medical aesthetics industry is experiencing a slowdown in overall revenue growth, with August showing a 4% increase, influenced by a rise in non-surgical procedures and price transparency leading to a significant drop in average transaction value [1][3] - The average transaction value in July decreased by 5% year-on-year to approximately 3,300 RMB, marking the lowest in recent years. Although it slightly rebounded to around 3,600 RMB in August, it remains below last year's levels [1][4] Key Insights - Major industry players such as Langzi, Yixin, and Liga are facing disappointing revenue growth, with Yixin's retail sales remaining flat in July and August, and some months even showing declines [1][6] - The decline in average transaction value is attributed to increased price transparency, a higher proportion of non-surgical light medical aesthetics projects, and price wars initiated by platforms like Xinyang, which offer low-priced services [1][7] - Medical aesthetics institutions are actively expanding their light medical aesthetics sub-brands, focusing on skin light therapy, injections, and minimally invasive procedures. These smaller stores (500-1,000 square meters) are expanding slowly (3-5 new stores per year) but are expected to be a key growth area due to lower investment and easier scalability [1][9] Operational Differences - Traditional large medical aesthetics institutions and light medical aesthetics stores differ significantly in terms of investment, size, location, revenue, and return cycles. Light medical aesthetics stores require lower initial investments (5-6 million RMB) and have shorter return periods (6 months to break even, 8-10 months to profitability) but operate at lower profit margins [1][10][11] Market Trends - The high-end imported hyaluronic acid products like Juvederm and Restylane are seeing declining sales, with institutions opting for OEM products to reduce procurement costs. Newer domestic products like Gege Needle and Bobo Needle are performing well, compensating for the price drops of traditional brands [1][4][16][17] - The overall market for regenerative collagen products is growing, with Shuyancui emerging as a new growth point, driving market development despite some traditional products experiencing declines [1][19][20] Future Outlook - The industry anticipates continued declines in average transaction value and sluggish revenue growth. However, positive customer traffic growth is expected, prompting institutions to implement more promotional activities and focus on high-margin product lines [1][8] - The medical aesthetics sector typically sees a peak in September and October, with a projected 15% year-on-year growth target for September 2025. Operators plan to boost revenue through repeat purchases and promotional activities [1][15] Product Performance - The sales performance of core products in July and August indicates a decline in high-end imported hyaluronic acid sales, while new injection products are gaining traction. For instance, the sales of the HiTi series from Aimeike dropped significantly, while new products like Gege Needle and Bobo Needle are seeing increased usage [1][18][21] - The overall growth rate for injection collagen products is around 17%, with specific products like Wei Yimei showing a remarkable 45% increase compared to the previous year [1][21] Pricing and Cost Dynamics - Upstream manufacturers have reduced ex-factory prices by approximately 20%-30%, impacting the competitive landscape and prompting institutions to adapt by switching brands to maintain competitiveness [1][26]

Summary of the Conference Call for Xinyang Industry Overview - The medical aesthetics industry is characterized by a single-store profit margin of approximately 10% for mature institutions. Xinyang focuses on the anti-aging sector, reducing service product units (SPU), and targeting middle-class consumers with an average spending of over 2,000 yuan to meet annual anti-aging needs [2][4]. Key Points and Arguments - **Profitability Enhancement**: Xinyang aims to improve profitability through economies of scale and reduced customer acquisition costs. The user referral rate is increasing, which helps maintain low acquisition costs. Mature stores in first-tier cities have profit margins of about 10% to 15%, while stores in the ramp-up phase achieve around 10% net profit margin [2][6]. - **Supply Chain Strategy**: The company plans to increase its self-supply ratio from the current 15% to 30%-40% within the next three to four years, significantly lowering material costs. This is part of a broader strategy to enhance profit margins by controlling supply chain costs [7][8]. - **Store Expansion Plans**: Xinyang plans to open 50 stores by the end of 2025, primarily in first- and second-tier cities, with a focus on direct management and exploring a fully managed franchise model. By 2026, the company expects to open at least 30 more stores, bringing the total to over 80 [4][19]. - **Cost Structure**: In mature medical aesthetic institutions in first-tier cities, material costs account for about 45% of revenue, while labor costs (including doctors, nurses, and managers) range from 25% to 27%. Marketing costs stabilize around 10% after a year of operation [3][10]. - **Market Positioning**: Xinyang targets middle-class consumers with annual spending on aesthetic treatments between 10,000 to 20,000 yuan. The company aims to encourage 4 to 6 treatments per year to cover annual anti-aging needs [5][24]. - **Customer Retention and Product Strategy**: The company focuses on educating users about domestic products that offer similar quality at lower prices. This strategy is expected to help retain existing customers and attract new ones [12][24]. - **Profit Margin Goals**: Xinyang is confident in achieving a net profit margin of 20% in the long term, especially after increasing the self-supply ratio [24]. Additional Important Insights - **Challenges in Expansion**: The medical aesthetics industry faces challenges such as regional differences and reliance on high-quality store managers. Xinyang is addressing this through digital management to reduce dependence on high-salary managers [16][17]. - **Competitive Landscape**: The company believes its model is difficult to replicate due to its comprehensive system and established brand presence, which creates a flywheel effect for customer acquisition [18]. - **Performance in Second-Tier Cities**: Xinyang is testing its operational model in second-tier cities, with plans to open new stores and validate its approach based on experiences from first-tier cities [15][22]. - **Customer Spending Trends**: There has been a 20% increase in average spending per visit from existing customers in 2025, indicating a positive trend in customer engagement [23]. - **Future Strategic Focus**: The company will continue to prioritize offline chain operations, recognizing that the medical aesthetics sector requires a slower expansion pace compared to other industries like fast food [26]. This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Xinyang's focus on profitability, supply chain management, and market positioning within the medical aesthetics industry.

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [2]. Core Insights - In Q2 2025, the company's beauty treatment revenue exceeded guidance, with over 70% of new customers acquired through private channels and referrals [5]. - The company reported total revenue of 378.7 million yuan, a year-on-year decrease of 7.0%, and a net loss of 36 million yuan compared to a net profit of 18.9 million yuan in the same period last year [5]. - The beauty treatment service revenue reached 144.4 million yuan, surpassing the previous guidance of 120-140 million yuan, with a year-on-year growth of 426.1% driven by the expansion of beauty centers [5]. - The company anticipates Q3 2025 beauty treatment service revenue to be between 150-170 million yuan, representing a year-on-year growth of 230.5% to 274.6% [5]. - The company plans to expand its beauty center network to 50 locations by the end of the year, with over 70% of new customers coming from private channels and referrals, resulting in a low customer acquisition cost [5]. Financial Summary - The company forecasts revenues of 1.567 billion yuan, 2.751 billion yuan, and 4.366 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 7%, 76%, and 59% [7]. - The projected net profit for 2025 is a loss of 148 million yuan, followed by profits of 36 million yuan and 134 million yuan in 2026 and 2027, reflecting year-on-year growth rates of 75% and 124% [7]. - The report indicates a significant improvement in gross margin for the beauty treatment business, reaching 24.25% in Q2 2025, an increase of 5.5 percentage points quarter-on-quarter [5].

Core Viewpoint - The company is optimistic about the growth potential of the Chinese medical beauty market, which currently has a penetration rate of less than 5%, compared to over 20% in mature markets like South Korea [1][2] Group 1: Business Transition - The company has shifted its business model from being a transaction intermediary to directly opening offline medical beauty stores, which may lead to competition with its existing clients [1][2] - The opening of offline stores has resulted in a significant conflict between new and old business lines, leading to a decline in the number of service providers subscribing to the platform [2] Group 2: Financial Performance - In the first half of 2025, the company's revenue was 676 million yuan, a decrease of 6.9% from 726 million yuan in the same period last year, with a net loss of 67.95 million yuan compared to a net loss of 600,000 yuan in the previous year [2] - The company's offline business has now surpassed its online business, becoming the largest source of revenue, with revenue from beauty treatment services reaching 144.4 million yuan, a year-on-year increase of 426.1% [3] Group 3: Future Plans - The company plans to open 50 offline stores nationwide this year, with a goal of achieving a thousand-store scale within 8 to 10 years [3] - Despite the challenges, the company believes that the growth of its chain business will offset the decline in traditional business in the long term [3]

Core Viewpoint - New Oxygen (SY) experienced a 5.19% increase in stock price, reaching $4.26 per share, with a total market capitalization of $423 million as of August 25 [1] Financial Performance - As of June 30, 2025, New Oxygen reported total revenue of 676 million RMB, reflecting a year-on-year decrease of 6.84% [1] - The company's net profit attributable to shareholders was -69.18 million RMB, showing a significant year-on-year decline of 2909% [1] Major Events - On August 19, New Oxygen received a maintained "Buy" rating from Haitong International, with the target price raised to $10.30 [1] Company Overview - New Oxygen International is focused on leveraging technology to assist women in enhancing their beauty and health [1] - The founder established New Oxygen to provide transparent information, aiming to transform the rapidly growing yet opaque medical aesthetics market in China [1] - The company seeks to create a one-stop platform for users to easily find quality services [1]