Core Viewpoint - The stock price of Harbin Fulejia Technology Co., Ltd. has significantly declined since its IPO, reflecting poor financial performance and a challenging market environment [2][4][26]. Financial Performance - Since its listing on August 1, 2023, at an initial price of 55.68 yuan per share, the stock reached a peak of 80.04 yuan but has since fallen sharply, with a current price of 23.88 yuan, representing a near 50% decline from the IPO price [4][25]. - In 2023, the company reported a revenue increase of 9.29% to 1.934 billion yuan, but net profit fell by 11.56% to 749 million yuan [6][27]. - The downward trend continued in 2024, with revenue of 2.017 billion yuan (up 4.32%) and net profit dropping 11.77% to 661 million yuan [6][27]. - For the first nine months of 2025, revenue was 1.297 billion yuan, down 11.54%, and net profit was 325 million yuan, a significant drop of 36.73% [8][29]. Business Segments - The medical device segment, once a key revenue driver, saw a dramatic decline in revenue, dropping 48.1% to 238 million yuan in the first half of 2025, reducing its contribution to total revenue from 48.8% to 27.6% [8][30]. - Conversely, the cosmetics segment reported a revenue of 625 million yuan, a 30% increase, but this growth was accompanied by soaring marketing expenses [31][32]. Marketing and R&D Strategy - The company has adopted a "heavy marketing, light R&D" approach, with sales expenses reaching 420 million yuan, a 39.56% increase, resulting in a sales expense ratio of 48.7% [11][32]. - This strategy has led to diminishing returns, as marketing costs have outpaced revenue growth, eroding profit margins [33][34]. - The reliance on high-risk online marketing channels, particularly on platforms like Douyin, poses additional risks if costs increase or platform rules change [33][34]. Competitive Position - Fulejia's patent portfolio is limited, with only 31 patents, of which only 9 are invention patents, significantly lower than competitors like Huaxi Biological and Beitaini [37]. - The company faces challenges in the face of regulatory changes that restrict the marketing of its medical device products, leading to a sharp decline in sales [37][39]. Strategic Responses - In response to declining sales, the company has implemented a price reduction strategy, with significant discrepancies between official and online prices for its products [39]. - The company is also exploring ways to reposition its products and enhance its marketing strategies to adapt to regulatory changes and market demands [39][40].

Core Viewpoint - The performance of Fulejia (301371.SZ), known as the "first stock of facial masks," continues to deteriorate, with Q3 net profit declining nearly 45% year-on-year, indicating a worsening trend compared to the previous two quarters [1] Financial Performance - In the first three quarters, the company achieved operating revenue of 1.297 billion yuan, a year-on-year decline of 11.54% - The net profit attributable to shareholders was 325 million yuan, down 36.73% year-on-year - The first quarter started poorly, but revenue saw slight growth in the second quarter due to promotional events like "618," only to decline again in the third quarter, with both revenue and net profit showing increased declines [1] Cash Flow and Expenses - The operating cash flow also showed negative trends, with net cash flow from operating activities decreasing by 48.52% year-on-year due to reduced cash receipts from sales and increased marketing expenses - Sales expenses for the first three quarters amounted to 621 million yuan, an increase of 26.19% year-on-year, highlighting the ongoing issue of marketing dependency [1] Industry Context - Analysts suggest that the company's brand and product line are relatively singular, making it overly reliant on the "Fulejia" brand and facial mask category during a downturn in the beauty industry - The facial mask category is reportedly trapped in a "low-price spiral," with over half of the top 10 brands on Douyin seeing single-piece prices drop to single digits in the first half of 2025 - The decline in facial mask prices has led to a noticeable decrease in the enthusiasm of beauty companies to launch new products, with a significant drop in new product registrations expected in 2024 [2] Market Expectations - The cooling of the facial mask segment reflects a broader downturn in the beauty industry, prompting many listed beauty companies to pursue external mergers and acquisitions to enhance competitiveness - There are market expectations for Fulejia to demonstrate progress in brand or product line expansion amidst these industry challenges [2]