Core Viewpoint - The conflict between medical beauty institutions and the upstream company Puli Yan is fundamentally rooted in pricing discrepancies, with institutions selling Puli Yan's products at significantly lower prices than the official guidance, disrupting the pricing structure [1][2][6]. Pricing Dispute - The dispute escalated as Puli Yan announced a blacklist of 79 non-official cooperating medical institutions, including 46 clinics under Xinyang, labeling them as non-cooperative [2]. - Xinyang's pricing strategy exemplifies the issue, with its clinics selling Puli Yan's products at 5999 yuan per unit, approximately 60% lower than the official guidance price [3][6]. Market Dynamics - The conflict highlights a broader challenge in the medical beauty industry regarding the redistribution of interests between upstream manufacturers and downstream institutions [3]. - Puli Yan's concerns include the lack of formal cooperation and training for medical staff at these institutions, which it claims undermines product integrity [5]. New Pricing Strategies - Xinyang has introduced products like "Miracle Youth 3.0" at 2999 yuan per unit, significantly undercutting market prices, which typically exceed 10,000 yuan [8]. - The high profit margins in the medical beauty industry, with some products having gross margins as high as 90%, provide room for Xinyang to implement its low-price strategy [8][9]. Industry Challenges - The prevalence of counterfeit and substandard products in the market, with nearly two-thirds being non-compliant, has created a demand for more affordable options [9]. - Xinyang aims to democratize medical beauty consumption by reducing costs through direct partnerships with manufacturers and streamlining operations [9]. Competitive Landscape - Xinyang's approach has faced criticism from other manufacturers, who argue that its pricing undermines the market and raises concerns about product authenticity and safety [11][12]. - Despite the challenges, Xinyang continues to assert its right to set prices independently, likening its product usage to a restaurant's choice of ingredients [12]. Financial Performance - Xinyang has reported ongoing financial losses, particularly in its brand medical center expansion, indicating the difficulties of transitioning to a self-operated model while maintaining profitability [12].