Summary of the Medical Aesthetics Industry Conference Call Industry Overview - The medical aesthetics market is experiencing overall poor performance in August 2025, with surgical procedures declining significantly and non-surgical projects showing slowed growth. Revenue growth is expected to remain flat compared to the same period last year, making it difficult to achieve over 5% growth [1][6][41]. - A large promotional campaign is planned from late August to mid-September to counteract the seasonal downturn, with expectations for growth in September and October, projecting a 25% growth in September 2023 and 14% in 2024 [1][7]. Financial Performance - Current profit margins have decreased to around 7-8%, prompting institutions to negotiate with suppliers, eliminate unprofitable product lines, and introduce high-margin products to mitigate the impact of declining profit margins [1][8]. - Sales of specific products like "少女针" (Youth Needle) and "乳白天使" (Milky Angel) have slowed, with sales volume for the Youth Needle down 16% year-on-year from January to July 2025, and Milky Angel down 2% [1][11][12]. Product Performance - The "苏颜萃" (Sculpture) product line was launched in July 2025, showing strong brand power and a significant profit margin, priced at 21,800 yuan with a procurement cost of over 4,000 yuan [1][13]. - The "HITTY" product line has seen a decline in sales, particularly HITTY 1.0 and HITTY 1.5, which dropped 23% and 13% year-on-year, respectively, due to competition and limited profit margins [1][19][20]. Market Dynamics - The overall market performance in August 2025 is disappointing, with revenue growth slowing across both national chains and light medical aesthetics institutions. Non-surgical project clinics have been less affected but still show minimal growth [1][5][6]. - The 4 mg purified collagen remains the most widely used category, but its growth rate is expected to slow to about 15% in 2025, down from 61% last year [2][28]. Competitive Landscape - The market for collagen products is shifting, with 10 mg and 17-type collagen showing faster growth rates compared to the 4 mg variant [2][29]. - The introduction of new products like "真爱苏菲" (True Love Sophie) is anticipated to replace the usage of "艾舒菲" (Ai Shufei) with a more favorable procurement price [1][23]. Strategic Considerations - The group plans to expand its store network by opening 5 to 6 new locations in 2025, while also focusing on eliminating outdated product lines and introducing new ones to stabilize profit margins [1][41]. - The competitive landscape indicates that small to medium-sized companies need to adapt, with a focus on light medical aesthetics brands showing promising growth [1][42]. Regulatory and Quality Control - The industry is under strict regulation, and the introduction of compliant new products is seen as beneficial for overall growth. Ensuring medical quality is a priority for leading institutions, which have built strong brand recognition and accumulated professional expertise over the years [1][41][44]. Conclusion - The medical aesthetics industry is facing significant challenges in growth and profitability, with a need for strategic adjustments and a focus on high-margin products to navigate the current market conditions.