Core Viewpoint - New Oxygen Technology is undergoing a strategic transformation amid a slowdown in online traffic and increasing regulation in the medical beauty industry, resulting in a decline in overall revenue and a shift towards offline business growth [1][2]. Financial Performance - In Q2, New Oxygen's total revenue decreased by 7.0% year-on-year to 379 million yuan, with a net loss of 36 million yuan compared to a profit of 18.9 million yuan in the same period last year [3][4]. - Revenue from information and appointment services, a core business, fell by 35.6% to 135 million yuan, indicating intensified competition and regulatory pressures in the online medical beauty service market [3][4]. - Revenue from medical product sales and maintenance services dropped by 28.1% to 76 million yuan, attributed to reduced order volumes and market demand changes [3][4]. Business Transformation - New Oxygen's offline light medical beauty chain business has seen explosive growth, with revenue from medical treatment services soaring by 426.1% year-on-year to 144 million yuan, becoming the largest revenue source for the company [1][4]. - The CEO expressed optimism about the offline business, indicating a significant structural breakthrough in the company's strategic transformation [1][6]. Expansion Plans - As of June 30, 2025, New Oxygen operates 29 light medical beauty chain stores in nine major cities, with plans to expand to 50 stores by the end of 2025 [6][7]. - The company aims to achieve a scale of 1,000 stores within 8 to 10 years, reflecting confidence in the long-term potential of the light medical beauty chain business [5][7]. - The management plans to pilot 2 to 3 franchise stores in Q4 2025, indicating a potential shift towards a franchise model in the future [8]. Market Challenges - Despite the growth in offline business, New Oxygen faces challenges from increasing competition in the light medical beauty market, with more participants entering the field [8][9].

Core Viewpoint - New Oxygen Technology is undergoing a significant strategic transformation amid a slowdown in online traffic and increasing regulation in the medical beauty industry, with a notable shift from online services to offline light medical beauty chain operations [1][2]. Financial Performance - In Q2, New Oxygen reported total revenue of 379 million yuan, a year-on-year decline of 7.0% [3]. - The company experienced a net loss of 36 million yuan in Q2, compared to a profit of 18.9 million yuan in the same period last year [4]. - Revenue from information and appointment services, a core business, fell by 35.6% to 135 million yuan, indicating intensified competition and regulatory pressures [3][4]. Business Transition - New Oxygen's offline light medical beauty chain business saw a remarkable growth of 426.1% in revenue, reaching 144 million yuan, becoming the largest revenue source for the company [1][6]. - The company plans to expand its "New Oxygen Youth Clinic" brand across China, aiming for a thousand-store scale in 8 to 10 years [6][7]. Operational Strategy - The management emphasizes a self-operated model for new stores, which allows for controlled capital expenditure and shorter payback periods, supported by a cash reserve of 999 million yuan [8]. - A franchise model is also being considered, with plans to pilot 2 to 3 franchise stores later this year [9]. Market Outlook - The rapid growth of the light medical beauty market is attracting more participants, leading to increased competition, which poses ongoing challenges for New Oxygen [9].

Core Viewpoint - New Oxygen Technology is undergoing a significant strategic transformation amid a slowdown in online traffic and increasing regulation in the medical beauty industry, with a notable shift from online services to offline light medical beauty chain operations [1][2]. Financial Performance - In Q2, New Oxygen reported total revenue of 379 million yuan, a year-on-year decline of 7.0% [3]. - The company experienced a net loss of 36 million yuan in Q2, compared to a profit of 18.9 million yuan in the same period last year [4]. - Revenue from information and appointment services, a core business, fell by 35.6% to 135 million yuan, indicating intensified competition and regulatory pressures [3][4]. Business Transformation - New Oxygen's offline light medical beauty chain business saw a dramatic increase, with revenue soaring by 426.1% to 144 million yuan, becoming the largest revenue source for the company [1][5]. - The company aims to expand its "New Oxygen Youth Clinic" brand across major cities, with plans to increase the number of medical centers to 50 by the end of 2025 [6][7]. Market Position and Strategy - The management emphasizes the importance of standardization and product innovation to maintain market leadership in the light medical beauty sector [5]. - New Oxygen plans to adopt a mixed model of self-operated and franchised stores, with pilot franchise stores expected to launch in Q4 [7]. Future Outlook - The company has set a long-term goal of achieving a thousand-store scale within 8 to 10 years, reflecting confidence in the growth potential of the light medical beauty market [6][7]. - Despite the positive developments, New Oxygen faces challenges from increasing competition as more players enter the light medical beauty market [8].