Investment Focus - Alphabet (GOOGL US) is expected to maintain good visibility in its advertising business due to the gradual release of its valuation under pressure from AI search, with a projected 30%+ growth in cloud business for the year and margin improvement driven by scale effects [1] - Alibaba (BABA US) is anticipated to see a cloud business growth rate of 28%-30%, benefiting from strong momentum in instant retail, with Taobao expected to achieve a 20-30% MAU growth driven by flash purchase [1] - NVIDIA (NVDA US) is projected to achieve strong revenue growth in FY2027, with GB300 series products expected to account for two-thirds of Blackwell series products, and a revenue target of $500 billion over the next five quarters [1] - Tencent (700 HK) is recommended as a top pick, with a target price of 700, driven by steady growth in core gaming and advertising businesses, and a projected near 20% growth rate in advertising [3] - New Oxygen (SY US) is focusing on the light medical beauty sector with a rapid expansion plan, aiming to open 50 self-operated stores by 2025, supported by a strong marketing capability and low customer acquisition costs [3] - Ctrip (TCOM US) is expected to benefit from steady growth in domestic leisure travel and the recovery of outbound travel, with a projected revenue growth of 14% to 71.1 billion yuan in 2026 [3] - Huazhu (HTHT US) is transitioning to a high-margin franchise model, with a target price of $52, supported by a strong recovery in industry RevPar [4] - Futu (FUTU US) is positioned for long-term growth in the virtual asset business, with a user base of 3.1 million and a current valuation offering a safety margin [4] - AIA (1299 HK) is expected to see steady growth in new business value and operational indicators, with a forward PEV of 1.46x [4] - Dongfang Electric (1072 HK) is actively involved in global power station project contracting, with significant opportunities in the U.S. market due to the demand for power supply capabilities [9]

Core Viewpoint - The ongoing conflict between upstream manufacturers and downstream medical beauty institutions highlights issues of product authorization and market competition in the rapidly expanding medical beauty industry in China [2][5][12]. Group 1: Conflict Overview - Puli Yan accused several medical institutions, including Anhui Hefei Hanmei Plastic Surgery Hospital and Xinyang Youth Clinic, of being "unauthorized cooperation institutions," warning of potential health risks for consumers due to unverified product sourcing [1][2]. - Xinyang responded by asserting that all Puli Yan products used are sourced from legally qualified suppliers and emphasized compliance with ISO 37301 management standards [1][2]. Group 2: Market Dynamics - The medical beauty market, particularly the "童颜针" (youthful needle) segment, has seen rapid growth, with market size increasing from over 1 billion yuan in 2021 to an estimated 30 billion yuan last year, projected to reach 100 billion yuan in five years [5][6]. - Xinyang's introduction of lower-priced products, such as the "奇迹童颜" series, has disrupted the pricing structure established by upstream manufacturers, leading to tensions and demands for product removal from the market [5][6]. Group 3: Compliance and Regulation - Concerns have been raised regarding Xinyang's compliance with regulations, as some manufacturers claim that Xinyang has used products without proper authorization, potentially jeopardizing consumer safety [8][9]. - Legal experts emphasize that medical institutions must procure products from authorized sources to ensure traceability and compliance with regulations, highlighting the risks associated with unauthorized procurement [9][12]. Group 4: Industry Challenges - The medical beauty industry faces significant challenges, including the prevalence of unauthorized sales and counterfeit products, which threaten consumer safety and complicate regulatory enforcement [12][13]. - The need for a collaborative approach among manufacturers, medical institutions, and regulatory bodies is critical to establish a sustainable and compliant industry ecosystem [14].

Core Viewpoint - The medical beauty industry is experiencing a tug-of-war between upstream manufacturers and terminal institutions regarding product authorization and pricing, highlighting the need for regulatory compliance and market order [1][2]. Group 1: Industry Dynamics - The conflict centers around product authorization and compliance channels, reflecting a struggle for pricing power between upstream manufacturers and terminal medical beauty institutions [2]. - The medical beauty market in China is expanding, with unauthorized sales of related products becoming increasingly common, indicating a shift from "wild growth" to "regulated development" in the industry [2]. Group 2: Pricing Strategies - The market for "童颜针" (youthful beauty injections) has seen rapid growth, with its market size exceeding 30 billion yuan last year and projected to reach 100 billion yuan in five years [4]. - New Oxygen's introduction of low-priced "童颜针" projects has disrupted the pricing structure of upstream manufacturers, with prices significantly lower than official guidance [5]. - New Oxygen's pricing strategy aims to make medical beauty services more affordable, addressing the issue of consumers turning to unregulated "black medical beauty" services due to high prices [6]. Group 3: Compliance and Regulation - Concerns have been raised regarding New Oxygen's compliance, as it has been accused of using products without proper authorization, which could jeopardize consumer safety [7][8]. - Legal experts emphasize that medical institutions must procure medical devices from authorized sources to ensure traceability and compliance with regulations [8]. - The ongoing issues of counterfeit products and unauthorized sales highlight the urgent need for effective governance in the medical beauty industry [10][11]. Group 4: Consumer Protection - Consumers are advised to verify product authenticity through official channels and request proper documentation from medical institutions to safeguard their rights [12]. - The responsibility for ensuring compliance should not solely rest on consumers; a collaborative effort among manufacturers, institutions, and regulatory bodies is essential for sustainable development in the medical beauty sector [13].

Core Viewpoint - The ongoing conflict between upstream manufacturers and downstream medical beauty institutions highlights the challenges in product authorization and market pricing within the medical aesthetics industry, indicating a shift from "wild growth" to "regulated development" in China’s medical beauty market [4][5]. Group 1: Industry Dynamics - The medical beauty industry is experiencing a tug-of-war over product pricing and authorization, with companies like Purity and New Oxygen at the forefront of this conflict [4][5]. - New Oxygen's low pricing strategies for products like "Miracle Youth 3.0" have disrupted traditional pricing structures, leading to tensions with upstream manufacturers [8][9]. - The market for youth-enhancing products, such as the "童颜针" (youth needle), has seen rapid growth, with estimates suggesting it will reach a scale of 100 billion in five years, up from over 30 billion last year [7]. Group 2: Compliance and Regulation - There are significant compliance concerns regarding the sourcing of medical products, with allegations that New Oxygen has used products without proper authorization, raising questions about product safety and traceability [11][12]. - Legal experts emphasize the importance of purchasing medical devices from authorized sources to ensure compliance with regulations, highlighting the potential penalties for non-compliance [12]. - The medical beauty industry faces challenges with counterfeit products and unauthorized sales, necessitating stronger regulatory measures and consumer awareness [15][16]. Group 3: Consumer Safety and Market Integrity - The prevalence of unauthorized medical beauty institutions and counterfeit products poses a significant risk to consumer safety, with only 35% of products in circulation being genuine [9][15]. - Industry leaders argue that lowering prices for legitimate medical beauty services is essential to combat the prevalence of "black medical beauty" practices, which thrive on high prices in the legitimate market [9][10]. - There is a call for a collaborative approach among manufacturers, medical institutions, and regulatory bodies to ensure consumer rights and product quality are prioritized in the evolving medical beauty landscape [17].

Core Viewpoint - The recent statements from Purity and New Oxygen highlight a significant dispute regarding the use and distribution of Purity's products, with both companies asserting their positions on product safety and legitimacy [1][2][3] Group 1: Purity's Statement - Purity has released a formal statement identifying several unauthorized medical institutions, including over 40 New Oxygen stores, which are now on a "never cooperate" blacklist [1] - The company emphasizes that the listed institutions did not procure products through official channels, thus denying any responsibility for the authenticity of the products used by these institutions [1] - Purity asserts that its products should only be used in officially approved medical institutions by qualified professionals who have received proper training [1] Group 2: New Oxygen's Response - New Oxygen has issued a statement refuting Purity's claims, asserting that all products used in their clinics are sourced from legally qualified suppliers with complete procurement documentation [2] - The company highlights that its clinics are legally approved medical institutions, and the doctors operate in compliance with medical laws and regulations [2] - New Oxygen condemns the dissemination of misleading information that could harm its reputation and consumer trust, stating that such actions disrupt fair market competition [3] Group 3: Legal Actions and Consumer Rights - New Oxygen has taken legal steps by commissioning a law firm to demand the removal of Purity's statements, seeking to protect its reputation and consumer rights [3] - The company emphasizes the importance of professional support from upstream manufacturers, arguing that it should not be manipulated for market control or to impose barriers on medical institutions [3]

Core Viewpoint - The National Cybersecurity Notification Center reported that 40 mobile applications were found to illegally collect and use personal information, highlighting concerns over data privacy and compliance in the tech industry [1] Company Summary - The application "e看牙" (version 4.37.2) was identified as one of the violators, collecting personal information without user consent [1] - The operator of "e看牙" is Shanghai Lingjian Information Technology Co., Ltd., established in 2015 and primarily engaged in software and information technology services [1] - The registered capital of Shanghai Lingjian Information Technology Co., Ltd. is 25.032413 million RMB, with a paid-in capital of 21.8034712 million RMB [1] - The largest shareholder of Shanghai Lingjian Information Technology Co., Ltd. is Beijing Xinyang Souyang Investment Management Co., Ltd., holding an 11.107% stake [1] - Beijing Xinyang Souyang Investment Management Co., Ltd. is a wholly-owned subsidiary of Beijing Xinyang Technology Co., Ltd. [1]

Group 1 - The report highlights that Xingfa Group's Q3 net profit attributable to shareholders increased by 16.17% year-on-year, driven by rising prices of glyphosate and other products, with a total revenue of 91.61 billion yuan in Q3 2025, reflecting a 5.96% year-on-year growth [3][4][9] - The report indicates that the average price of glyphosate reached 26,530 yuan per ton in Q3 2025, up 5% year-on-year, while the average price of phosphate rock remained high at 1,020 yuan per ton [4][6] - The acquisition of a 50% stake in Qiaogou Mining is expected to enhance the company's phosphate resource advantages, increasing its phosphate resource reserves from 3.95 billion tons to 5.80 billion tons [7][8] Group 2 - The report notes that Leap Motor's Q3 revenue surged by 97.3% year-on-year to 194.5 billion yuan, with a gross margin of 14.5%, marking a significant improvement [11][12] - The company is expanding its product lineup with the introduction of the D19 flagship model and the upcoming A10 model, which is expected to enhance its market position [13] - Leap Motor's export volume reached 17,000 units in Q3 2025, leading among new car manufacturers, and the company plans to accelerate its global localization strategy [14] Group 3 - Geely Automobile reported a Q3 revenue of 891.9 billion yuan, a 27% year-on-year increase, with a net profit of 38.2 billion yuan, reflecting a 59% year-on-year growth [16][17] - The company has adjusted its annual sales target to 3 million units, with significant contributions from its Galaxy series of vehicles [18] - Geely's export volume reached 112,000 units in Q3 2025, indicating strong overseas demand and competitive positioning [19] Group 4 - The report on Lianqi Technology emphasizes its leadership in memory interconnect chips, with a revenue of 6.33 billion yuan in the first three quarters of 2025, a 57.83% year-on-year increase [21][22] - The global AI server shipment is projected to grow significantly, with Lianqi expected to capture a 36.8% market share in the memory interconnect chip market by 2024 [22][23] - The company has launched new products based on CXL technology, which are anticipated to drive future growth [23] Group 5 - The report indicates that Xinyang's Q3 revenue reached 387 million yuan, with a significant increase in beauty treatment service revenue, which grew by 304.6% year-on-year [25][26] - The company plans to expand its offline medical beauty stores to 50 by the end of the year, enhancing its market presence [25] - Despite a net loss in Q3, the company expects profitability improvements in Q4 due to seasonal demand recovery [26] Group 6 - Trip.com Group reported a Q3 net operating revenue of 18.3 billion yuan, a 16% year-on-year increase, with a net profit of 19.9 billion yuan, reflecting a 194% year-on-year growth [29][30] - The company is benefiting from resilient domestic travel demand and strong growth in international business, particularly in cross-border travel [30][31] - The report anticipates continued growth in the global OTA business, with significant contributions from the Asia-Pacific region [31][32] Group 7 - Pinduoduo's Q3 revenue reached 108.3 billion yuan, a 9% year-on-year increase, with a Non-GAAP net profit of 31.4 billion yuan, up 14% year-on-year [39][40] - The report highlights a slowdown in advertising revenue growth, while transaction commission revenue continues to show steady performance [41] - The company is focusing on long-term value creation through increased investments in merchant support and platform development [42]

Investment Rating - The report maintains an "Outperform" rating for the company, indicating an expectation of relative performance exceeding the benchmark index by over 10% in the next 12-18 months [1]. Core Insights - The medical aesthetics industry is experiencing a continuous expansion of its consumer base, currently undergoing a reshuffling phase where a few chain brands are expected to capture a larger market share [4]. - The company has a clear development plan for its light medical aesthetics chain, with specific strategies being formulated to establish itself as an industry leader in the foreseeable future [1]. - The stock price of the company is currently undervalued at $3.16, corresponding to a price-to-earnings ratio of only 12 times for its 50 mature stores, with expectations of significant revenue growth [2]. Summary by Sections Industry Trends - The consumer base for medical aesthetics continues to grow, and the industry is in a reshuffling phase, with larger chain brands likely to dominate the market [4]. Company Expansion Plans - The company plans to open over 35 new stores in the upcoming year, primarily focusing on direct-operated stores in major cities like Beijing, Shanghai, Guangzhou, and Shenzhen [4]. - There are already several stores in the opening process, indicating that the company is on track to meet its expansion goals without significant pressure [4]. Store Performance - The average store size is 400 square meters, with mature stores showing excellent profit margins and net profit rates, suggesting strong long-term performance [4]. Competitive Landscape - The current competition is intense, with many standalone institutions lacking advantages in branding, medical teams, supply chains, and location, making it difficult for them to compete with established chains [4]. Product Pipeline - The company is set to launch multiple products next year, including water light injections, youth needles, silk collagen, and extracellular matrix gels, which are expected to enhance its market position [4].

Industry Trends - The medical beauty industry continues to expand, with a consolidation phase where a few chain brands will capture a larger market share[4] - The distribution of industry profits may change as upstream manufacturers undergo similar consolidation, enhancing the pricing power of large downstream institutions[4] Company Performance and Strategy - The current stock price of New Oxygen (SY US) is $3.16, which is considered undervalued, corresponding to a P/E ratio of only 12 times for its 50 mature stores[2] - Management is confident in opening at least 35 new stores in FY2026, primarily focusing on direct-operated stores in major cities like Beijing, Shanghai, Guangzhou, and Shenzhen[4] - In Q3, 20 stores achieved monthly profitability, with mature stores averaging monthly revenue exceeding RMB 3 million[2] Financial Projections - The target price for New Oxygen is set at $10.00 per ADR, based on a Sum-of-the-Parts (SoTP) valuation method, which includes various business segments with different P/E ratios[2] - The retail business is projected to have a steady operating profit margin of 20%, while the medical beauty chain is expected to achieve a 15% steady operating profit margin[2] Competitive Landscape - The competition is intensifying, with most standalone institutions lacking advantages in branding, medical teams, supply chains, and location, making it difficult to compete with chains[4] - New Oxygen is not overly concerned about traditional institutions due to the significant differences in cost structures and operational dimensions[4]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was RMB 387 million, up 305% year-over-year and approximately 8% above the high end of guidance [3][17] - Net loss attributable to So-Young increased to RMB 64.3 million compared to a net income of RMB 20.3 million in the same period last year [20] - Non-GAAP net loss was RMB 61.6 million compared to a non-GAAP net income of RMB 22.2 million during the same period of 2024 [20] Business Line Data and Key Metrics Changes - Revenue from the aesthetic center business reached RMB 184 million, up 305% year-over-year [3][17] - Information and reservation services revenues were RMB 117.2 million, down 34.5% year-over-year [17] - Revenues from sales of medical products and maintenance services were RMB 67 million, down 25% year-over-year [17] Market Data and Key Metrics Changes - Total number of active users of So-Young Clinic exceeded 130,000, with verified treatment visits surpassing 89,800, up 33% quarter-to-quarter [6] - The proportion of new customers acquired via referrals rose to 46% [7] - Cumulative service visits exceeded 600,000, ranking first among mass-market chain brands in China [4] Company Strategy and Development Direction - The company aims to expand its aesthetic center network to 1,000 centers, focusing on core cities and commercial hubs [15] - A disciplined approach to expansion will be maintained, emphasizing operational excellence and cost optimization [21] - The company is enhancing its membership system to increase user retention and customer lifetime value [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in stabilizing revenues from non-aesthetic center businesses in Q4 [3] - The company is focused on improving operational efficiency and service quality, with 20 centers achieving profitability in Q3 [6] - Future profitability is expected to improve as the operating model matures and customer acquisition costs are optimized [52][54] Other Important Information - The company upgraded its quality control framework, implementing a six-tier compliance system [11][44] - The launch of Miracle PLLA 3.0 was highlighted as a significant product upgrade, with strong pre-sale performance [9][36] - The company received recognition from mainstream media for its disciplined operations and compliance management [12] Q&A Session Summary Question: Plans for next year's clinic openings - Management plans to open no less than 35 new centers next year, focusing on first-tier cities and systematically establishing a presence in second-tier cities [25] Question: Membership system operations - The membership system is tiered, with core members contributing significantly to revenue and repeat purchase rates [30][32] Question: Performance of Miracle PLLA 3.0 - Miracle PLLA 3.0 has received high attention, with the first batch sold out quickly, and plans for further market penetration are in place [36][37] Question: Ensuring safety and compliance - A six-pillar compliance framework has been established to ensure safety and quality across all centers [43][46] Question: Improving profitability of the aesthetic center business - Management believes profitability will improve as the user base expands and operational efficiencies are realized [52][54]