Core Insights - The medical beauty industry experienced a significant conflict triggered by New Oxygen's aggressive pricing strategy, which saw the price of a popular product drop from 18,800 yuan to 5,999 yuan, sparking strong reactions within the industry [1] - Despite the controversy, New Oxygen's stock surged by 223% in just half a month, pushing its market capitalization beyond 2.2 billion yuan [1] - New Oxygen is undergoing a transformation from an information service platform to a physical service provider, driven by declining revenues in its traditional business model [1][2] Company Summary - New Oxygen's revenue for 2024 was 1.47 billion yuan, a slight decline of 2.1% year-on-year, with a significant drop of 19.3% in information and appointment service revenue [1] - The company has shifted focus to its chain business, which generated 170 million yuan in revenue, marking a year-on-year growth of over 1,200% [1] - The establishment of "Youth Clinics" has positioned New Oxygen as the largest light medical beauty chain in China, with 32 locations across nine cities [2] Industry Summary - The Chinese medical beauty market reached a size of 312 billion yuan in 2024, growing by 14.8% year-on-year, with non-surgical procedures accounting for 65% of the market [2] - The average consumer spending on medical beauty services decreased by 30.9% in the second half of 2024, indicating a shift in consumer behavior towards more cost-effective options [2] - The ongoing price war highlights long-standing issues of excessive profits in the medical beauty industry and suggests a restructuring of the industry's value chain [5]