Investment Rating - The industry investment rating is "Positive" (maintained) [4] Core Viewpoints - The report highlights the encouragement from four departments to conduct up to four spring and autumn tours annually, supporting the issuance of cultural and tourism consumption vouchers and movie vouchers. This initiative aims to enhance cultural consumption among workers and stimulate the tourism and hospitality sectors [3][6]. - The strategic partnership between Mao Geping and L Catterton Asia Advisors is expected to facilitate global market expansion and optimize capital structure, indicating a strong growth potential for high-end retail channels [3][6]. - The report emphasizes the importance of understanding new consumer narratives shaped by younger generations, suggesting that companies with strong brand value and innovative capabilities, such as Mao Geping and others, are likely to experience significant growth [21]. Summary by Relevant Sections Industry Performance - The new consumption sector showed positive performance with the beauty care index increasing by 2.55%, the retail index by 4.23%, and the social services index by 4.71% during the week of January 5 to January 9, 2026 [9]. Key Industry Data - In November, retail sales for clothing and textiles increased by 3.5% year-on-year, cosmetics by 6.1%, gold and silver jewelry by 8.5%, and beverages by 2.9% [12][16]. Investment Analysis Opinions - The report recommends focusing on high-quality domestic brands in beauty care, such as Mao Geping and Shangmei, head brands in traditional gold jewelry like Laopu Gold and Chaohongji, companies with successful IP operations like Pop Mart in the trendy toy sector, and strong tea brands like Mixue Group and Guming in the ready-to-drink tea market [21].

Group 1 - The top three companies with the highest short positions are Vanke Enterprises (02202), Dongfang Electric (01072), and COSCO Shipping Holdings (01919), with short ratios of 18.81%, 18.09%, and 16.45% respectively [1][2] - The companies with the largest increase in short positions are Lens Technology (06613), Shangmei Co., Ltd. (02145), and Youran Dairy (09858), with increases of 2.38%, 0.97%, and 0.64% respectively [1][2] - The companies with the largest decrease in short positions are Sanhua Intelligent Control (02050), SenseTime-W (00020), and Ganfeng Lithium (01772), with decreases of -1.93%, -1.22%, and -1.06% respectively [1][2] Group 2 - The top ten companies with the highest short ratios include Hengrui Medicine (01276) at 15.21%, ZTE Corporation (00763) at 14.26%, and Ping An Insurance (02318) at 14.10% [2] - The companies with the most significant increase in short ratios also include China Merchants Bank (03968) at 7.77% and Laopu Gold (06181) at 4.27% [2] - The companies with the most significant decrease in short ratios also include Zhongchuang Zhiling (00564) at 4.15% and Weichai Power (02338) at 4.93% [2]

Group 1 - The Hong Kong stock consumer sector experienced a slight decline, with the Hong Kong Consumer ETF (513230) dropping over 0.5% [1] - Major stocks such as Upstream Holdings, Master Kong Holdings, and Uni-President China saw significant declines, while stocks like Weidong Gourmet and Mixue Group showed notable gains [1] - The launch of the "old-for-new" subsidy program by various platforms, including JD.com and Suning, aims to stimulate consumer spending, supported by a 625 billion yuan special government bond plan for 2026 [1] Group 2 - The tourism sector saw record high activity during the New Year holiday, with significant growth in outbound travel, surrounding tours, and duty-free shopping [1] - Huachuang Securities maintains a positive outlook on the performance of service consumption-related sectors in 2026 [1] - The Hong Kong Consumer ETF (513230) tracks the CSI Hong Kong Stock Connect Consumer Theme Index, encompassing leading consumer stocks across various sectors, including Pop Mart, Yum China, and Anta Sports [1]

Core Viewpoint - The recent departure of key personnel and the suspension of live broadcasts for the brand Han Shu under the company Shangmei Co., Ltd. have raised concerns about the future development of its makeup brand NAN beauty, particularly in light of previous controversies regarding illegal ingredient additions [1][2][3]. Group 1: Personnel Changes - The partner of NAN beauty, Gu Mai, has announced his departure, which creates uncertainty regarding the brand's future development [1]. - Gu Mai was a core figure in the development of Shangmei's makeup business, having joined the company in May 2025 [1]. - Industry experts have differing opinions on the impact of Gu Mai's departure, with some suggesting it may not significantly affect NAN beauty's trajectory due to its early-stage development [1][2]. Group 2: Brand Performance and Issues - The official live broadcast for Han Shu on Douyin has been suspended since January 5, 2025, after maintaining a daily broadcast record for nearly a year [2]. - The suspension is speculated to be linked to a controversy involving illegal ingredient additions in Han Shu's face masks, specifically the detection of EGF [2]. - Despite official clarifications stating that no EGF was added to their products, consumer sentiment remains affected, impacting brand perception and sales [3]. Group 3: Financial Performance - In the first half of 2025, Shangmei Co., Ltd. reported a revenue of 4.108 billion yuan, a year-on-year increase of 17.3%, with Han Shu contributing 3.344 billion yuan, accounting for 81.4% of total revenue [3]. - The company's founder has outlined a ten-year strategic plan aiming for a revenue target of 30 billion yuan by 2030, focusing on a multi-brand strategy within the cosmetics sector [3][4]. Group 4: Strategic Challenges - The company faces strategic challenges in overcoming the current "stalemate" following the EGF incident, which has already led to stock price declines and product withdrawals [4]. - Experts suggest that effective measures are needed to restore brand image and performance, such as enhancing user engagement and communication [4].

Core Insights - The departure of Gu Mai, a key figure in the makeup business of Shangmei Co., raises concerns about the future development of the NAN beauty brand, despite the company's assurance that operations remain stable [1][2][3] - The NAN beauty brand represents Shangmei's strategic expansion from skincare to makeup, and Gu Mai's management experience was seen as crucial for its growth [2][4] - Concurrently, the main brand, Han Shu, is facing issues related to product safety, which may impact overall brand reputation and financial performance [5][6][7] Group 1: Departure of Gu Mai - Gu Mai's departure is attributed to personal career development, and he will continue to collaborate with the company in other forms [1] - Gu Mai has extensive experience in the beauty industry, having held significant positions at major companies like LVMH and Alibaba [1] - The impact of Gu Mai's exit on NAN beauty's future remains uncertain, although the company claims that the brand's operations are normal and stable [2][3] Group 2: Challenges Facing Han Shu - Han Shu's official live streaming channel on Douyin has been inactive since January 5, raising concerns about the brand's market presence [5][6] - The brand is under scrutiny due to allegations of illegal ingredient additions in its products, which could damage consumer trust and sales [6][7] - Han Shu contributes significantly to Shangmei's revenue, accounting for 81.4% of total revenue in the first half of 2025, with reported earnings of 33.44 billion yuan [6][9] Group 3: Strategic Implications - The recent challenges, including Gu Mai's departure and Han Shu's product issues, pose risks to Shangmei's ten-year strategic plan aimed at achieving 30 billion yuan in revenue by 2030 [8][10] - The company has shown strong financial growth in recent years, but the current situation may hinder its transition from a single-brand reliance to a multi-brand strategy [10][11] - Analysts suggest that acquiring a well-established makeup brand could better align with Shangmei's current development model [11]

Core Viewpoint - The recent departure of Gu Mai from Shangmei Co., Ltd. (02145.HK) raises questions about the company's future strategies in the cosmetics sector, particularly regarding the NAN beauty brand, which is still in its early stages of development [1][11][13]. Group 1: Departure of Gu Mai - Gu Mai, who joined Shangmei Co. in the first half of 2025 as a brand partner for NAN beauty, has left the company less than a year after his appointment, citing personal career development as the reason [1][2]. - Prior to joining Shangmei, Gu Mai held significant positions in major companies such as Mars, Unilever, Estée Lauder, and LVMH, and was known for his role in bringing international high-end beauty brands to Tmall [2][10]. Group 2: NAN Beauty Brand Development - NAN beauty, positioned as a mid-to-high-end cosmetics brand, was first mentioned in Shangmei's 2024 annual report, indicating the company's strategic expansion into the cosmetics sector [4][10]. - The brand aims to leverage the unique combination of a professional makeup artist's IP and the growing demand in the cosmetics market, which is currently seen as a blue ocean with limited competition [5][11]. Group 3: Market Context and Comparisons - The market for cosmetics in China is competitive, with brands like Mao Geping and Proya's Caitang already establishing a presence. Mao Geping's cosmetic products generated revenue of 1.422 billion RMB in the first half of 2025, accounting for 55% of the company's total revenue [5][6]. - Proya's Caitang brand, which also focuses on professional makeup artistry, contributed 705 million RMB in revenue during the same period, increasing its share of Proya's total revenue from 8.99% to 13.17% [6][9]. Group 4: Current Status of NAN Beauty - As of January 7, 2026, NAN beauty's initial product line, launched in August 2025, includes five foundation products, but the brand is still in the incubation phase with limited market penetration [12]. - The brand's Tmall flagship store has garnered a modest following, with 2,484 fans, and its top-selling products include sample sets priced at 49.9 RMB and 59.9 RMB, with sales exceeding 10,000 and 6,000 units respectively [12].

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年12月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 上海上美化妝品股份有限公司 (於中華人民共和國註冊成立的股份有限公司) 呈交日期: 2026年1月7日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02145 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 206,354,542 | RMB | | 1 | RMB | | 206,354,542 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 206,354,542 | RMB | | 1 | RMB | | 206, ...

Group 1 - The Hang Seng Tech Index experienced a decline of over 1%, while the CSI Hong Kong Stock Connect Consumer Theme Index saw a slight increase of 0.02% as of the report time [1] - Among the constituent stocks, companies such as Shangmei Co., Ltd. rose by over 2%, with other notable gainers including KANAT Optics, AUX Electric, Mao Ge Ping, Xiao Cai Yuan, and Master Kong Holdings [1] - The Hong Kong Consumer ETF (159735) tracked the CSI Hong Kong Stock Connect Consumer Theme Index, which consists of 50 large-cap consumer-related stocks with good liquidity, reflecting the overall performance of consumer stocks within the Hong Kong Stock Connect [1] Group 2 - The emotional consumption market in China is rapidly growing, projected to increase from 16.3 trillion yuan in 2022 to 27.2 trillion yuan by 2025, and expected to exceed 45 trillion yuan by 2029 [1] - Over 90% of young people recognize the concept of "emotional value," with nearly 60% willing to pay for it, indicating a strong market potential driven by the younger demographic [1] - Experts believe that Chinese products and services have unique advantages in the emotional consumption sector, which is becoming a significant growth area in the overall consumption market [1] Group 3 - According to Everbright Securities, the consumption sector is expected to stabilize due to policy support and a rebound in consumer confidence, potentially leading to performance recovery and growth opportunities [2] - Leading companies in specific sub-sectors are noted for their strong resilience and competitive market positions [2]

Group 1 - The core viewpoint of the articles highlights a significant recovery in the tourism and cultural market during the New Year holiday, with a notable increase in domestic travel and spending, indicating strong consumer demand and economic growth potential [2][1] - From January 1 to January 3, the total cross-regional movement of people reached 595 million, a year-on-year increase of 19.6%, averaging 198 million people per day [1] - During the three-day holiday, domestic travel reached 142 million trips, with total spending amounting to 84.789 billion yuan, averaging 597.11 yuan per person [1] Group 2 - Beijing and Shanghai emerged as popular tourist destinations, with Beijing receiving 8.808 million visitors and generating a total tourism expenditure of 10.97 billion yuan, while Shanghai welcomed 6.8203 million visitors with a total consumption of 12.271 billion yuan [1] - The strong performance of the tourism sector is seen as a crucial driver for domestic demand and economic growth, reflecting the robust recovery of the cultural and tourism market [2] - Related popular ETFs include the Tourism ETF (562510), Food and Beverage ETF (515170), and Hong Kong Consumption ETF (513230), which are positioned to benefit from the current market trends [3]

Core Viewpoint - The departure of Gu Mai, a key partner at NAN Beauty, raises concerns about the brand's future development and the overall performance of the company, especially in a competitive beauty market [1][5][10]. Company Developments - Gu Mai has left NAN Beauty after approximately 8 months, citing a shift in personal career focus while still planning to collaborate with the company in other forms [1][5]. - NAN Beauty, co-founded by Up Beauty and makeup artist Chun Nan, is the company's first makeup brand and is seen as a significant expansion in its multi-category strategy [5][10]. Industry Context - Gu Mai has a notable reputation in the cosmetics and e-commerce sectors, having held senior positions at major international companies such as LVMH and Alibaba, where he significantly expanded the beauty brand portfolio on Tmall [3][4]. - The beauty industry is currently experiencing intense competition, making it challenging for new brands like NAN Beauty to establish a strong market presence [10]. Sales Performance - NAN Beauty's initial product launch on Douyin saw some sales, with the best-selling product being a sample set priced between 49.9 to 59.9 yuan, selling 2,301 units [6][10]. - Despite the initial sales, NAN Beauty has not yet contributed to Up Beauty's financial reports, indicating that the brand is still in its early development stage [6][10]. Financial Implications - Up Beauty's main brand, Han Shu, contributed approximately 81.4% of the company's revenue in the first half of the year, amounting to 3.344 billion yuan, with a year-on-year growth of 14.3% [12]. - The company aims to significantly develop other brands by 2026, with a target pre-tax sales of 4.36 billion yuan for brands other than Han Shu, indicating a reliance on diversifying its brand portfolio for future growth [12].