Group 1 - The core viewpoint of the report is that the acquisition of Siyuanli will directly enhance the company's performance, leading to an upward revision of the net profit forecasts for 2025-2027 to 320 million, 440 million, and 490 million RMB, representing increases of 5%, 26%, and 21% respectively, with corresponding EPS of 1.36, 1.86, and 2.09 RMB, and current PE ratios of 20, 14, and 13 times [1] - The company announced a long-term shareholder return plan, expecting to utilize up to 1.2 billion HKD over the next three years to provide returns to shareholders [1] Group 2 - The shareholder return plan will be implemented through two main methods: first, an annual dividend of no less than 50% of the company's net profit attributable to shareholders; second, a continuous share buyback program [2] - This substantial shareholder return plan reflects the company's strong confidence in future development and highlights its solid cash flow foundation and overall strength [2] Group 3 - The company announced a strategic acquisition of 100% equity in Siyuanli for 1.25 billion RMB, which is the third-largest beauty service brand in China, with a significant presence in major cities [3] - Following the acquisition, approximately 60,000 active members from Siyuanli will be integrated into the company's membership system, leading to a more than 44% increase in active membership [3] - The company's market share in high-tier cities will significantly increase, further solidifying its position as an industry leader [3] Group 4 - The company's growth is driven by both internal and external factors, with a dual business model of "dual beauty + dual healthcare" effectively building a high-quality membership system [4] - The successful acquisition of the second-largest brand, Nairui, has demonstrated the company's integration and synergy capabilities, with Nairui's adjusted net profit margin increasing from 6.5% to 10.4% in the first half of 2025 [4] - The company is expected to leverage its extensive acquisition experience to enhance Siyuanli's operational efficiency and achieve mutual empowerment between the Siyuanli and Meili Tianyuan brands, thereby continuously improving its industry influence and competitiveness [4]

Core Viewpoint - The company announced a long-term shareholder return plan, expecting to utilize up to HKD 1.2 billion over the next three years to provide returns to shareholders [4]. Group 1: Shareholder Return Plan - The shareholder return plan will be implemented through two main methods: an annual dividend of no less than 50% of the company's net profit attributable to shareholders and ongoing share buybacks [5]. - This substantial shareholder return plan reflects the company's strong confidence in its future development and indicates a solid cash flow foundation and comprehensive strength [5]. Group 2: Acquisition of Si Yan Li - In October, the company announced a strategic acquisition of 100% equity in Si Yan Li for RMB 1.25 billion, which is the third-largest beauty service brand in China [6]. - Following the acquisition, approximately 60,000 active members from Si Yan Li will be integrated into the company's membership system, leading to a more than 44% increase in active membership [6]. - The company's market share in high-tier cities will significantly increase, further solidifying its position as an industry leader [6]. Group 3: Growth Strategy - The company employs a "dual-driven" growth strategy, combining internal growth with external acquisitions [7]. - Internally, the company has established a high-quality membership system through its "Double Beauty + Double Health" business model [7]. - Externally, the successful acquisition of the second-largest brand, Nai Rui Er, has improved its net profit margin from 6.5% to 10.4% in the first half of 2025, showcasing the company's integration capabilities [7]. - The company is expected to leverage its extensive acquisition experience to enhance the operational efficiency of Si Yan Li, thereby increasing its industry influence and competitiveness [7].