Core Viewpoint - Four Seasons Pharmaceutical (00460) saw a nearly 9% increase in stock price, reaching HKD 1.75 with a trading volume of HKD 137 million, following the approval of its product "Frozen Beauty" by the National Medical Products Administration of China [1] Group 1: Product Approval - The company announced that its subsidiary, Meiyan Space Biotechnology (Jilin) Co., Ltd., received a Class III medical device registration certificate for its self-developed injectable transparent sodium hyaluronate composite solution, branded as "Frozen Beauty" [1] - "Frozen Beauty" is the first approved product in China that contains L-carnosine, designed for temporary improvement of skin dryness and dull complexion [1] Group 2: Strategic Development - The approval of "Frozen Beauty" marks another milestone for Meiyan Space, following the earlier launches of "Youthful Needle" and "Girl Needle" within the year [1] - The company is building a strategic product matrix focused on compliant regenerative materials (Youthful Needle, Girl Needle) and skin quality management (Water Light Needle), enhancing its position in the light medical beauty sector [1] Group 3: Product Portfolio - Meiyan Space has over 30 approved products, establishing a comprehensive product layout in the light medical beauty field [1] - The company aims to provide an integrated solution from skin quality improvement to contour modification, reinforcing its leading position in comprehensive anti-aging solutions [1]

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].

Core Insights - OPELESIS, a domestic skincare brand, completed its Pre-A round financing at the beginning of this year, with investment from Shunwei Capital, co-founded by Lei Jun and Xu Dalai [1][10] - The brand focuses on light medical beauty skincare, emphasizing technological innovation, and has a research center in Switzerland [1] Financing and Investment - The recent financing will primarily support biomedical research and innovation [3] - Shunwei Capital has invested in over 600 startups since its inception in 2011, with 38 of those companies successfully going public [9] Product Development and Technology - OPELESIS has developed NEUBLOX, a botulinum-like peptide that inhibits dynamic wrinkles with an immediate anti-wrinkle efficiency exceeding 300% compared to ordinary neuropeptides [3][4] - The company has registered 20 products, including skincare and oral health products, with a price range from 12.9 to 549 yuan [6] Market Performance - The projected GMV for OPELESIS on Douyin in 2024 is between 75 million and 100 million yuan, with current GMV ranging from 25 million to 50 million yuan [9] - The brand heavily relies on influencer live-streaming for sales, with over 80% of sales coming from this channel [9] Strategic Partnerships - Following the success of NEUBLOX, OPELESIS has formed a strategic partnership with i+Med to develop injectable biomaterials as a Class III medical device [9] Industry Trends - The light medical beauty market in China has seen a 55% increase in user scale compared to three years ago, with consumers increasingly interested in complex skincare principles [9]

Core Insights - The "light medical beauty" market in China is experiencing rapid growth, with user numbers expected to reach 31.05 million by 2025 and market size projected to exceed 300 billion yuan by 2026 [1] - "Light medical beauty" refers to non-surgical cosmetic procedures, which are marketed as low-risk and quick, but still involve medical practices [1] - There is a concerning trend of unregulated training programs that promise quick mastery of "light medical beauty" techniques, often without proper medical qualifications [2][3][7] Market Growth - The user base for "light medical beauty" is on the rise, with projections indicating significant market expansion in the coming years [1] - The market is characterized by a blend of medical and cosmetic services, leading to potential consumer confusion regarding the risks involved [1] Training and Qualifications - Numerous training institutions offer short courses that claim to teach "light medical beauty" techniques in just three days, often targeting individuals without medical backgrounds [3][5][6] - Many of these institutions provide certificates that lack official recognition, raising concerns about the legitimacy of the training [7][9] - Experts emphasize that practitioners in "light medical beauty" must possess medical qualifications, contrary to claims made by some training providers [9][13] Regulatory Concerns - The lack of stringent regulations and oversight in the "light medical beauty" sector has led to the proliferation of unlicensed practices and training programs [12][16] - Experts recommend enhancing regulatory frameworks and increasing penalties for violations to deter illegal activities in the industry [16][17] - There is a need for better consumer education to help individuals discern legitimate services from fraudulent ones [15][17] Consumer Awareness - Many consumers are misled by the marketing of "light medical beauty" services, often underestimating the associated risks due to aggressive promotional tactics [15] - The blurred lines between medical and cosmetic services complicate consumer understanding and decision-making [15] Recommendations for Improvement - Establishing a formal training system and regulatory oversight for "light medical beauty" practices is essential to ensure safety and efficacy [16][17] - Implementing stricter advertising regulations to prevent misleading claims and ensuring that promotional materials are scientifically accurate [16][17] - Creating a public platform for authentic case studies and outcomes in the "light medical beauty" sector to enhance transparency and accountability [17]

Core Insights - The "light medical beauty" market in China is experiencing rapid growth, with user numbers expected to reach 31.05 million by 2025 and the market size projected to exceed 300 billion yuan by 2026 [2] - "Light medical beauty" refers to non-surgical cosmetic procedures, which are characterized by flexibility, minimal trauma, short recovery times, and low risks, yet still fall under medical practices [2] - There is a concerning trend of unregulated training institutions offering quick courses that promise to teach "light medical beauty" techniques in just a few days, often without proper medical qualifications [3][4][7] Market Growth - The user base for "light medical beauty" is continuously expanding, contributing to the overall market growth [2] - The market is expected to surpass 300 billion yuan by 2026, indicating a significant opportunity for investment and development in this sector [2] Training Institutions - Numerous training institutions are advertising short courses that claim to enable individuals with no medical background to perform "light medical beauty" procedures [3][4] - These institutions often promote a "quick and easy" approach to learning, with some courses lasting only three days and covering various techniques [4][6] - Many of these institutions provide certificates that lack proper accreditation, raising concerns about the legitimacy of the training [7] Employment Opportunities - Graduates from these training programs are often encouraged to work as beauty consultants or to refer clients to medical institutions, creating a potential gray market for medical referrals [9] - The training institutions promote a model where individuals can earn significant income through client referrals, even if they do not perform the procedures themselves [9][10] Regulatory Concerns - There is a lack of regulatory oversight in the "light medical beauty" sector, with many practitioners operating without the necessary medical qualifications [8] - Experts emphasize that individuals performing "light medical beauty" procedures should possess medical licenses and be registered with health authorities [8]

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]

Core Viewpoint - The article explores the psychological and financial implications of cosmetic procedures, highlighting the shift from rational decision-making to compulsive behavior in the pursuit of beauty, and the resulting anxiety and dissatisfaction that can arise from such choices [1][19][32]. Group 1: Personal Experience with Cosmetic Procedures - The subject, Xiaoman, has been engaged in cosmetic procedures for six years, starting with a focus on her nose due to childhood trauma [3][4]. - Initially, Xiaoman was rational in her choices, carefully selecting materials and practitioners, and adhering to a budget [7][8]. - The rise of "light medical beauty" has made non-invasive procedures more popular, surpassing traditional surgical options in market value since 2022 [10]. Group 2: Psychological Impact and Behavioral Changes - Xiaoman's experience reflects a broader trend where cosmetic procedures become a coping mechanism for personal crises, leading to excessive spending and a loss of control [13][19]. - After a breakup and increased work stress, Xiaoman's rational approach deteriorated, resulting in impulsive decisions regarding cosmetic treatments, leading to significant financial expenditure [17][18]. - The article discusses the concept of "spiritual essence," suggesting that while individuals may enhance their appearance, they risk losing their unique qualities [21][23]. Group 3: Industry Dynamics and Consumer Behavior - The cosmetic industry has shifted from exploiting information asymmetry to creating a cycle of anxiety and dependency on procedures [27][34]. - Consumers are becoming more informed and discerning, often researching specific treatments and practitioners before making decisions, which has led to a decrease in prices for certain procedures [26]. - The industry's focus on enhancing beauty standards perpetuates a cycle of demand, where individuals feel compelled to continuously invest in their appearance to meet societal expectations [35][36].

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].

Summary of the Conference Call Industry Overview - The light medical beauty industry is transitioning from reliance on high-priced projects and well-known doctors to standardized, cost-effective services. New Oxygen focuses on dermatology and small store layouts to meet consumer demands for transparency in product ingredients and pricing [2][4][18]. - The competition in the upstream product market for medical beauty is intensifying, with a significant increase in the issuance of three types of certificates in China. It is expected that by 2026, more companies will launch alternative products, breaking the monopoly of a few high-priced products and leading to market scaling [2][6][7]. Company Strategy and Operations - Traditional medical beauty institutions face high marketing costs and limited profit margins. New Oxygen aims to improve profit margins by controlling marketing costs, optimizing the supply chain, and developing proprietary products. The company is also exploring a model of self-operated small clinics [2][8][9]. - The chain rate in the light medical beauty industry is expected to increase, but it requires the provision of standardized treatments and high cost-performance services. New Oxygen implements a hard discount model to maintain profit margins while offering cost-effective services [2][10]. - The operational efficiency of chain clinics is influenced by scale, density, and efficiency. New Oxygen adopts a strategy that balances breadth and depth, focusing on high-density layouts in key cities to highlight chain advantages and improve overall efficiency [2][11]. Market Dynamics - The Chinese medical beauty market has developed rapidly over the past few years, but the industry chain structure still leans towards a seller's market with low chain rates. New Oxygen recognizes the challenges and pain points in the development of medical beauty chains and plans to leverage its advantages to achieve growth [3][8]. - The rise of regenerative products like water light needles and botulinum toxin has increased the proportion of dermatology projects, which are characterized by high frequency, low risk, and suitability for small chain stores [4][5]. Financial Performance and Projections - Traditional medical beauty institutions have low profit margins, with some large institutions only achieving around 3% to 5%. Marketing costs account for 30% to 50%, along with 20% to 30% for product costs. New Oxygen aims to control marketing costs within 10% and reduce product costs through its supply chain [8][9][22]. - Currently, the net profit margin for New Oxygen's stores is approximately 10% to 15%. In the next two to three years, as the proportion of proprietary products increases, the company expects the net profit margin to rise to 15% or even 20% [22]. Customer Retention and Cost Management - New Oxygen's model leans towards benefiting consumers and achieving equity in medical beauty services. The company employs various strategies to enhance customer retention and meet the needs of price-sensitive consumers, including membership operations, promotional activities, and community engagement [18][19]. - The company maintains a cost advantage in customer acquisition primarily through user referrals and private domain operations, which account for nearly 70% of its customer acquisition strategy [21]. Future Outlook - The light medical beauty industry is naturally suited for chain penetration due to its high standardization. New Oxygen plans to expand its presence in key cities with high-density layouts to leverage chain advantages [10][11]. - The company is also testing different site selection strategies for new clinics, focusing on core business districts and popular shopping centers to optimize overall operational effectiveness [14][16]. Conclusion - New Oxygen is strategically positioned to capitalize on the evolving landscape of the light medical beauty industry by focusing on cost-effective services, optimizing supply chains, and enhancing customer engagement. The company's proactive approach to market dynamics and operational efficiency is expected to drive future growth and profitability [2][10][21].