Core Viewpoint - The upstream brand manufacturers capture most of the industry's profits but fail to assume the "chain master" responsibility, leading to safety risks that ultimately burden consumers [1][39]. Group 1: Industry Issues - The medical beauty industry is facing severe issues, with the police announcing strong measures to combat serious crimes in the sector [4]. - Recent investigations have exposed the chaotic practices behind "medical beauty crash courses," raising widespread concern [5]. - "Black medical beauty" institutions are rapidly training unqualified individuals as "professional beauty practitioners" and providing illegal channels for purchasing medical beauty products [6][7]. Group 2: Profit Distribution and Pricing Power - The industry is characterized by "excessive profits," primarily captured by upstream brand manufacturers [8]. - A public dispute between SoYoung (NASDAQ: SY) and Saint Bo Ma highlights the pricing power dynamics in the medical beauty industry [10]. - SoYoung's pricing for a product was significantly lower than the official price set by Saint Bo Ma, leading to accusations of product legitimacy and safety concerns [12][14]. Group 3: Financial Performance and Market Dynamics - SoYoung's revenue is projected to decline from 1.151 billion yuan in 2023 to 929 million yuan in 2024, with a net loss of nearly 590 million yuan [31]. - The average customer acquisition cost for medical beauty institutions has risen significantly, with some reporting costs as high as 3,000 to 5,000 yuan per person [33]. - The profit distribution in the medical beauty industry resembles a "reverse pyramid," with upstream manufacturers holding most of the profits while downstream institutions struggle [35]. Group 4: Regulatory and Ethical Concerns - Upstream manufacturers have neglected their supervisory responsibilities, leading to industry chaos and unsustainable development [40]. - Many manufacturers only provide basic operational training without ensuring compliance and safety standards, contributing to a lack of oversight [41]. - The prevalence of "off-label use" in medical beauty procedures raises ethical concerns, with a significant portion of disputes arising from such practices [53][56]. Group 5: Future Outlook - The recent release of guidelines by the Medical Insurance Bureau aims to improve the pricing structure in the medical beauty sector, promoting transparency and clarity [60][61]. - The industry is expected to shift towards a model that emphasizes technology at the upstream level and service quality at the downstream level [62].