Core Viewpoint - New Oxygen Technology is undergoing a significant strategic transformation amid a slowdown in online traffic and increasing regulation in the medical beauty industry, with a notable shift from online services to offline light medical beauty chain operations [1][2]. Financial Performance - In Q2, New Oxygen reported total revenue of 379 million yuan, a year-on-year decline of 7.0% [3]. - The company experienced a net loss of 36 million yuan in Q2, compared to a profit of 18.9 million yuan in the same period last year [4]. - Revenue from information and appointment services, a core business, fell by 35.6% to 135 million yuan, indicating intensified competition and regulatory pressures [3][4]. Business Transition - New Oxygen's offline light medical beauty chain business saw a remarkable growth of 426.1% in revenue, reaching 144 million yuan, becoming the largest revenue source for the company [1][6]. - The company plans to expand its "New Oxygen Youth Clinic" brand across China, aiming for a thousand-store scale in 8 to 10 years [6][7]. Operational Strategy - The management emphasizes a self-operated model for new stores, which allows for controlled capital expenditure and shorter payback periods, supported by a cash reserve of 999 million yuan [8]. - A franchise model is also being considered, with plans to pilot 2 to 3 franchise stores later this year [9]. Market Outlook - The rapid growth of the light medical beauty market is attracting more participants, leading to increased competition, which poses ongoing challenges for New Oxygen [9].

Core Insights - The company is undergoing a significant transformation, facing structural challenges in the traditional internet medical beauty platform, as evidenced by a 7% year-over-year decline in total revenue to 379 million yuan and a net loss of 36 million yuan compared to a profit of 18.9 million yuan in the same period last year [1][3]. Revenue Performance - Total revenue for the first half of the year was 676 million yuan, down 6.9% year-over-year, with net losses widening to 67.95 million yuan from just 60,000 yuan in the same period last year [3]. - Revenue from information and appointment services, the company's core business, fell by 35.6% to 135 million yuan from 210 million yuan year-over-year, highlighting intense competition in the online medical beauty information service market [4]. - Revenue from medical product sales and maintenance services decreased by 28.1% to 76 million yuan from 106 million yuan year-over-year, reflecting a significant drop in order volume for medical beauty products [4]. Business Segment Analysis - The total transaction volume facilitated by the platform was 304 million yuan, down from 428 million yuan in the same period last year, indicating challenges in the traditional business sector [4]. - The offline chain business has seen explosive growth, with medical treatment service revenue increasing by 426.1% to 144 million yuan, becoming the largest revenue source for the company [5]. - As of June 30, the company operated 29 light medical beauty chain stores in major cities, with 25 stores achieving positive monthly operational cash flow, indicating a promising profitability outlook [5]. Strategic Initiatives - The company plans to expand the number of medical beauty centers to 50 by the end of 2025, with a long-term goal of reaching 1,000 stores within 8 to 10 years, reflecting management's confidence in the offline business strategy [5]. - The company is innovating its operational model by reducing drug and device distribution costs through centralized procurement and self-built product lines, achieving store efficiency rates 3 to 5 times higher than similar institutions [6].

Core Insights - The company reported a revenue of 676 million yuan (approximately 94.37 million USD) for the first half of 2025, a decrease of 6.9% compared to the same period last year [2] - The net loss for the first half of 2025 was 67.95 million yuan, compared to a net loss of 60,000 yuan in the same period last year [2] Q2 Financial Performance - The revenue for Q2 2025 was 379 million yuan (approximately 52.90 million USD), down 7% from 407 million yuan in the same quarter last year [5] - Medical aesthetic treatment service revenue in Q2 2025 was 144.4 million yuan (approximately 20.20 million USD), an increase of 426% from 27.4 million yuan year-over-year, driven by the expansion of brand medical aesthetic centers [5] - Information and appointment service revenue for Q2 2025 was 135.2 million yuan (approximately 18.90 million USD), a decrease of 35.6% from 209.7 million yuan year-over-year, primarily due to a reduction in the number of medical service providers subscribing to information services on the platform [5] - Sales of medical products and maintenance services in Q2 2025 were 76 million yuan (approximately 10.60 million USD), down 28.1% from 105.8 million yuan year-over-year, mainly due to a decline in medical product order volume [5] - Other service revenue in Q2 2025 was 23.2 million yuan (approximately 3.20 million USD), a decrease of 64.0% from 64.4 million yuan year-over-year, attributed to a reduction in premium service revenue [5] Profitability and Costs - Gross profit for Q2 2025 was 194 million yuan, with a gross margin of 51% [8] - Total expenses for Q2 2025 were 241.3 million yuan (approximately 33.70 million USD), a decrease of 1.8% from 245.6 million yuan year-over-year [11] - Sales and marketing expenses in Q2 2025 were 131.3 million yuan (approximately 18.30 million USD), down 0.7% from 132.3 million yuan year-over-year, mainly due to a reduction in wage costs [11] - General and administrative expenses were 78.8 million yuan, an increase of 11.3% from 70.8 million yuan year-over-year, driven by an increase in administrative staff to support business upgrades and new strategic initiatives [11] - R&D expenses were 31.2 million yuan, down 26.6% from 42.5 million yuan year-over-year, attributed to improved employee efficiency [11] Losses and Cash Position - Operating loss for Q2 2025 was 47.11 million yuan, compared to an operating profit of 6.72 million yuan in the same quarter last year, resulting in an operating margin of -12% [13] - The net loss for Q2 2025 was 34.80 million yuan, compared to a net profit of 20.12 million yuan in the same period last year [16] - As of June 30, 2025, the company held cash and cash equivalents, restricted cash, and short-term investments totaling 998.6 million yuan (approximately 139.4 million USD), down from 1.2532 billion yuan at the end of 2024 [17] Future Outlook - The company expects Q3 2025 revenue from beauty treatment services to be between 150 million yuan (approximately 20.90 million USD) and 170 million yuan (approximately 23.70 million USD), representing a year-over-year growth of 230.5% to 274.6% [17] - The company's stock price closed at 3.74 USD, down 22.73% from the previous day, with a market capitalization of 375 million USD [17]

Core Viewpoint - New Oxygen Technology is undergoing a significant strategic transformation amid a slowdown in online traffic and increasing regulation in the medical beauty industry, with a notable shift from online services to offline light medical beauty chain operations [1][2]. Financial Performance - In Q2, New Oxygen reported total revenue of 379 million yuan, a year-on-year decline of 7.0% [3]. - The company experienced a net loss of 36 million yuan in Q2, compared to a profit of 18.9 million yuan in the same period last year [4]. - Revenue from information and appointment services, a core business, fell by 35.6% to 135 million yuan, indicating intensified competition and regulatory pressures [3][4]. Business Transformation - New Oxygen's offline light medical beauty chain business saw a dramatic increase, with revenue soaring by 426.1% to 144 million yuan, becoming the largest revenue source for the company [1][5]. - The company aims to expand its "New Oxygen Youth Clinic" brand across major cities, with plans to increase the number of medical centers to 50 by the end of 2025 [6][7]. Market Position and Strategy - The management emphasizes the importance of standardization and product innovation to maintain market leadership in the light medical beauty sector [5]. - New Oxygen plans to adopt a mixed model of self-operated and franchised stores, with pilot franchise stores expected to launch in Q4 [7]. Future Outlook - The company has set a long-term goal of achieving a thousand-store scale within 8 to 10 years, reflecting confidence in the growth potential of the light medical beauty market [6][7]. - Despite the positive developments, New Oxygen faces challenges from increasing competition as more players enter the light medical beauty market [8].

Market Overview - US stock index futures showed mixed performance with Dow futures up by 0.59% and S&P 500 futures up by 0.12%, while Nasdaq futures declined by 0.05% [1] - European indices had varied results, with Germany's DAX up by 0.09%, UK's FTSE 100 down by 0.11%, France's CAC40 up by 0.58%, and the Euro Stoxx 50 up by 0.27% [2][3] - WTI crude oil prices fell by 0.53% to $63.62 per barrel, and Brent crude oil prices decreased by 0.39% to $66.58 per barrel [3][4] Geopolitical Events - A significant meeting is scheduled between US President Trump and Russian President Putin in Alaska, focusing on the Russia-Ukraine conflict and peace prospects, marking their first in-person meeting in four years [5] Federal Reserve Insights - Federal Reserve Chairman Powell is set to speak at the Jackson Hole conference on August 22, with market expectations leaning towards a potential 25 basis point rate cut due to inflation impacts and a slowing job market [6] - Bank of America strategist Hartnett warns that if the Fed signals a dovish stance at Jackson Hole, US stocks may face a "buy the rumor, sell the news" scenario [7] Hedge Fund Activity - Hedge funds have significantly increased their holdings in technology stocks during Q2, with notable purchases in Microsoft and Netflix, amidst a backdrop of market volatility due to trade policies [8] Economic Concerns - Bank of America raises alarms about the potential for the Fed to lower rates in a rising inflation environment, a scenario not seen in nearly two decades [9] Company Performance - Tuniu (TOUR.US) reported a 15.3% year-over-year revenue increase in Q2, with a new $10 million stock buyback plan announced [10] - New Oxygen (SY.US) experienced a 7.0% decline in Q2 revenue, attributed to a decrease in the number of medical service providers subscribing to its platform [11] - Applied Materials (AMAT.US) provided disappointing Q4 guidance, raising concerns about demand suppression due to US-China trade tensions [12] - Viomi Technology (VIOT.US) anticipates over 70% year-over-year revenue growth for the first half of 2025, driven by strong sales of home water purification devices [12]

8月15日，医美与消费医疗服务平台新氧科技公布第二季度财报。财报显示，第二季度，新氧总营收为3.787亿元，2024年同期为4.074亿元，同比下滑7%； 净亏损为3600万元，2024年同期为净利润1890万元；在非美国通用会计准则（Non-GAAP）下，新氧经调整后净亏损为3050万元，2024年同期为净利润2220 万元。 | | For the Inree M | | | --- | --- | --- | | | June 30, | June | | | 2024 | 207 | | | RMB | RM | | Revenues: | | | | Aesthetic treatment services | 27,444 | 144 | | Information and reservation services | 209,734 | 135 | | Sales of medical products and maintenance services | 105,808 | 76 | | Other services | 64,394 | 23 | | Total revenues | 407 ...

Financial Data and Key Metrics Changes - Total revenue for Q2 was RMB 379 million, a decrease of 7% year over year, primarily due to a decline in medical service providers subscribing to information services [15] - Aesthetic treatment service revenues reached RMB 144 million, an increase of 426% year over year, exceeding guidance [15] - Net loss attributable to the company was RMB 36 million, compared to a net income of RMB 18.9 million in the same period last year [19] - Non-GAAP net loss was RMB 30.5 million, compared to a non-GAAP net income of RMB 22.2 million in the same period of 2024 [19] - Basic and diluted losses per ADS were RMB 0.35, compared to earnings of RMB 0.18 in the same period last year [19] Business Line Data and Key Metrics Changes - Revenue from aesthetics center business reached RMB 144 million, marking it as the largest revenue segment for the first time [4] - Aesthetic treatment services revenue increased by 46% quarter over quarter and 426% year over year [5] - Total number of verified treatment visits surpassed 67,400 in Q2, up 24% quarter over quarter and 381% year over year [7] - The overall repeat purchase rate for the aesthetic center business exceeded 60% [7] Market Data and Key Metrics Changes - The light medical aesthetic market in China is expected to reach around RMB 26 billion by 2030, with a penetration rate forecasted to reach 30% [30] - The company aims to achieve a market share of roughly 25% in the light medical aesthetic sector [30] Company Strategy and Development Direction - The company plans to open around 10 aesthetic centers in the third quarter, targeting a total of 50 centers by year-end [11] - The focus is on expanding in both first-tier and core second-tier cities, enhancing accessibility to medical aesthetic services [11] - The company is committed to optimizing user experience and operational efficiency to strengthen its competitive edge [13] Management Comments on Operating Environment and Future Outlook - Management remains optimistic about the growth potential of China's medical aesthetic market, citing a current penetration rate below 5% [30] - The company expects aesthetic treatment service revenues to be between RMB 150 million and RMB 170 million in the upcoming quarter, representing a significant increase from the same period in 2024 [20] - The company emphasizes the importance of sustainable low-cost customer acquisition and a diversified upstream supply chain [31] Other Important Information - The company has maintained a robust cash position with cash and cash equivalents totaling RMB 98.6 million as of June 30, 2025 [20] - The gross profit margin for aesthetic treatment services expanded by around five percentage points sequentially [8] Q&A Session Summary Question: Expansion plan for C and I payment and franchise model - The company aims to grow the number of centers to 50 by the end of this year, with plans for more than 10 openings in the second half [24] - Long-term, the target is to achieve 1,000 centers within eight to ten years, with franchising being a future focus [25][26] Question: Growth potential of the Chinese medical aesthetics market - Management is optimistic about the market, with substantial growth potential indicated by a low current penetration rate [30] - The company plans to focus on three core capabilities to maintain its competitive edge [31] Question: Outlook for customer acquisition cost and marketing expenses - The average customer acquisition cost remains low, with over 70% of new customers coming from referrals [34] - The company plans to enhance brand visibility through localized marketing initiatives [34] Question: Recruitment of doctors and reliance on center managers - There is a solid base for recruiting doctors, with many moving from public hospitals to the medical aesthetic sector [40] - The company operates on a model that reduces reliance on center managers, improving operational efficiency [42] Question: Differentiation in product strategy - The product strategy focuses on anti-aging treatments, ensuring consistency and overall cost-effectiveness across the portfolio [46] - The company aims to optimize its product portfolio based on market demand and competitive trends [48] Question: Updates on the POP business - The POP business remains a key pillar of profitability, with plans to promote synergies between POP and aesthetic center businesses [50]

Market Overview - US stock index futures showed mixed performance, with Dow futures up by 0.59% and S&P 500 futures up by 0.12%, while Nasdaq futures declined by 0.05% [1] - European indices had varied results, with Germany's DAX up by 0.09%, UK's FTSE 100 down by 0.11%, France's CAC40 up by 0.58%, and the Euro Stoxx 50 up by 0.27% [2][3] - WTI crude oil prices fell by 0.53% to $63.62 per barrel, while Brent crude oil prices decreased by 0.39% to $66.58 per barrel [3][4] Geopolitical Events - A significant meeting is scheduled between US President Trump and Russian President Putin in Alaska, focusing on the Russia-Ukraine conflict and peace prospects, marking their first in-person meeting in four years [5] Federal Reserve Insights - Federal Reserve Chairman Powell is set to speak at the Jackson Hole conference on August 22, with market expectations leaning towards a potential 25 basis point rate cut due to inflation and a slowing job market [6] - Bank of America warns that if the Fed signals a dovish stance at Jackson Hole, US stocks may face a "buy the rumor, sell the news" scenario, indicating potential market corrections [7] Hedge Fund Activity - Hedge funds have significantly increased their holdings in technology stocks during Q2, with notable purchases in Microsoft and Netflix, amidst a backdrop of market volatility due to trade policies [8] Economic Concerns - Bank of America raised concerns about the potential for the dollar to face challenges if the Fed lowers rates while inflation is rising, a scenario not seen in nearly 20 years [9] Company Performance - Tuniu (TOUR.US) reported a 15.3% year-over-year increase in Q2 revenue, with a new $10 million stock buyback plan announced [10] - New Oxygen (SY.US) experienced a 7.0% decline in Q2 revenue, attributed to a decrease in the number of medical service providers subscribing to its platform [11] - Applied Materials (AMAT.US) provided disappointing Q4 guidance, raising concerns about demand suppression due to US-China trade tensions [11] - Cloud Mi Technology (VIOT.US) expects over 1.4 billion RMB in revenue for the first half of 2025, a growth of over 70% year-over-year, driven by increased sales of home water purification devices [12]

Financial Performance - New Oxygen (SY.US) reported Q2 revenue of 378.7 million RMB, a year-on-year decrease of 7.0%, exceeding market expectations [1] - The company posted a net loss of 36 million RMB, compared to a net profit of 18.9 million RMB in the same period last year [1] - The loss per ADS was 0.35 RMB, down from a profit of 0.18 RMB per ADS in the previous year [1] Revenue Breakdown - Revenue from beauty treatment services was 144.4 million RMB, a significant year-on-year increase of 426.1% [1] - Revenue from information and booking services was 135.2 million RMB, a year-on-year decrease of 35.6% [1] - Sales from medical products and maintenance services were 76 million RMB, down 28.1% year-on-year [1] - Other service income decreased by 64.0% to 23.2 million RMB [1] User Engagement - The total transaction volume facilitated by New Oxygen's platform for medical beauty was 303.9 million RMB, compared to 427.8 million RMB in the same period of 2024 [1] - The number of active users exceeded 100,400, a significant increase from approximately 16,000 in the previous year [2] - The company operates 29 fully operational brand aesthetic centers across nine major cities, with 25 centers achieving positive monthly operating cash flow [2] Future Guidance - For Q3 2025, New Oxygen expects revenue from beauty treatment services to be between 150 million and 170 million RMB, representing a year-on-year growth of 230.5% to 274.6% [3]

1 Phase (The length of time since establishment) Number of Centers Revenue (RMB) Average Revenue per Center (RMB) Ramp-up (0-3 months) 9 23,554,000 2,617,000 Growth (4-12 months) 14 89,644,000 6,403,000 Maturity (over 12 months) 6 31,192,000 5,199,000 This press release contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) solely for the convenience of the reader. Unless otherwise specified, all translations of Renminbi amounts into U.S. dollar amounts in this press release are mad ...