Summary of the Conference Call for Furuida Company Overview - **Company**: Furuida - **Year**: 2025 - **Industry**: Cosmetics, Pharmaceuticals, and Raw Materials Key Points Overall Performance Expectations - Furuida's overall performance in 2025 is expected to be flat, with a slight decline in cosmetics business, stable growth in raw materials, and pressure in the pharmaceutical sector [2][29][30] Brand Performance - **Yilian Brand**: Despite a decline during the Double Eleven sales event, the annual growth expectation remains at 15%-20%, with the cooking series products performing well and improving overall gross margin [2][5] - **Doctor Brand**: The probiotic series adjustment is nearing completion, with some face masks resuming shipment. Positive growth is anticipated for next year [2][11] - **Kemi Brand**: Expected to achieve triple-digit growth, with sales projected to reach around 100 million due to the success of the Chuangmo peptide technology and collaboration with Xinhua Net [2][21] Raw Materials Business - Significant growth in the raw materials business in Q3, driven by high demand for food-grade and cosmetic-grade hyaluronic acid, as well as rapid expansion in the overseas market for pharmaceutical-grade hyaluronic acid [2][25][27] Sales Channels - Douyin has become the largest sales channel, accounting for approximately 60% of online sales, while Tmall accounts for about 40% [8][6] - The self-broadcasting and other channels have maintained rapid growth despite the absence of top-tier influencer collaborations [6][8] Product Structure and Innovations - The proportion of spray products in the Yilian brand has risen to over 70% due to successful sales of the spray kit endorsed by Zhang Linghe [9] - The 287 series is positioned to replace the original probiotic series, focusing on specific skin issues and improving product quality [16] Future Plans and Strategies - Plans to advance equity incentives and acquisition strategies in 2026, with preparations already underway [12][34] - The company is exploring new directions in the pharmaceutical sector, including online pharmacies and health food products, although these require time and investment for scaling [28] Market Outlook - The company remains optimistic about 2026, expecting positive effects from current adjustments and a favorable market environment [29][33] - The pharmaceutical business is under pressure, but the company is actively seeking new growth avenues [28] Financial Performance - The company aims to improve profitability through enhanced gross margins and various measures despite a flat overall performance in 2025 [30] Regulatory and Certification Updates - Anticipation of receiving three types of certifications for pharmaceutical-grade hyaluronic acid by late 2026 or early 2027, which could significantly boost sales [23][24] Competitive Landscape - The competition between Tmall and Douyin is seen as beneficial, providing more promotional opportunities for the company [19] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Furuida's current performance, brand dynamics, market strategies, and future outlook.

Core Viewpoint - The article discusses the rapid rise of FineNutri, a new player in the health supplement market, which achieved over 517 million RMB in retail sales within its first year, making it the fastest beauty dietary supplement brand to reach this milestone in China [6][11]. Group 1: Brand Overview - FineNutri, registered in Hong Kong, is a cross-border brand under Ruoyuchen, known as the "first stock of agency operation" in the Shenzhen Stock Exchange [7]. - The brand focuses on oral beauty supplements, targeting female consumers with products designed for anti-aging and beauty needs [7][8]. Group 2: Product Offerings - FineNutri offers 10 types of oral capsule products, with the main ingredient being ergothioneine, known for its antioxidant properties [7][8]. - The pricing strategy positions FineNutri in the mid-to-high-end market, with single product prices ranging from 398 to 1999 RMB [8][9]. Group 3: Sales Performance - In September, FineNutri's monthly sales reached over 100 million RMB, making it the second-best-selling health supplement brand on Douyin [6]. - The brand's flagship product, the ergothioneine anti-aging capsule, sold over 7000 units in a single link, generating sales exceeding 3.49 million RMB [9]. Group 4: Target Demographics - Over 95% of FineNutri's customers are women, primarily aged 31-50, with a significant concentration in economically developed regions like Beijing, Shanghai, and Jiangsu [9][11]. - The brand's marketing strategy effectively targets affluent female consumers, often referred to as "贵妇" (noblewomen) [9]. Group 5: Marketing Strategy - FineNutri differentiates itself by creating memorable branding around ergothioneine, focusing on female user needs and leveraging visual appeal through colorful packaging [13][15]. - The brand employs a refined content strategy on Douyin, collaborating with mid-tier influencers to create relatable content that resonates with its target audience [18][19]. Group 6: Sales Channels - FineNutri's self-operated channels on Douyin account for 83.55% of its GMV, with a focus on live streaming as a primary sales method [26][29]. - The brand utilizes a dual strategy of paid and organic recommendations to drive traffic, with approximately 33% of traffic coming from organic recommendations [29]. Group 7: Market Outlook - The health supplement market in China is projected to reach 624.01 billion USD by 2025, with a shift towards more targeted and functional products [34]. - Brands that can accurately identify and address specific consumer needs are likely to capture significant market share in this growing sector [34].

Core Insights - The Chinese oral beauty market is expanding and is expected to exceed 25 billion yuan, with plant extracts emerging as a significant component of this growth [1][4] - The plant extract industry in China is transitioning from traditional practices rooted in Chinese medicine to modern scientific approaches, driven by technological advancements and improved regulatory frameworks [1][4] - The market is experiencing a dual growth dynamic, with increasing export volumes and domestic consumer awareness of health and wellness [2][4] Market Overview - The plant extract market in China is projected to reach 60.2 billion yuan by 2028, reflecting a robust growth trajectory [16] - The global plant extract market is also on an upward trend, with a forecasted market size of 64 billion USD by 2028, indicating a compound annual growth rate (CAGR) of 11.36% [15][16] Regulatory Environment - China's regulatory approach is shifting from passive management to proactive standard-setting, aiming to clarify industry boundaries and enhance quality control [13][14] - Recent policies have mandated that plant extracts must be registered or filed as health food ingredients, promoting compliance and quality assurance [13][14] Export Trends - From 2016 to 2024, China's plant extract export volume and value have been increasing, although the average export price has shown signs of slowing growth [27][28] - Major export markets for Chinese plant extracts include Europe and North America, with the U.S. being a significant importer [30][31] Consumer Trends - The aging population in China is driving demand for health-related products, with the proportion of individuals aged 65 and above expected to reach 15.64% by 2024 [18][22] - Online sales channels are becoming increasingly influential, with younger consumers actively engaging in health-related discussions and purchases [23][24]

Core Insights - The establishment of the Oral Beauty Nutrition Branch of the Beijing Nutrition Society marks a new phase of standardization and professionalism in the industry [1] - The oral beauty market in China is projected to exceed 25.57 billion yuan by 2025, with an annual compound growth rate of over 3.8% [1] - The branch aims to create a comprehensive platform that integrates scientific research, standard development, public education, and industry growth [1] Industry Trends - There is a rising trend in health awareness and the "beauty economy," leading to the increasing popularity of oral beauty as a lifestyle choice [1] - The current market shows a diversification of ingredients in oral beauty products, which complicates consumers' ability to make informed choices [1] Expert Opinions - The chairman of the Beijing Nutrition Society emphasizes the importance of merging basic research with market practices to provide scientific guidance for product development and efficacy evaluation [1] - Industry leaders call for collaboration between academia and businesses to enhance consumer understanding of oral beauty ingredients [1]

Group 1 - The establishment of the Oral Beauty Nutrition Branch by the Beijing Nutrition Society aims to create a comprehensive platform that integrates scientific research, standard development, popular science education, and industry development [1] - The Oral Beauty Nutrition Branch elected 41 committee members, with Professor Luo Yongkang from China Agricultural University serving as the chairman [1] - The market for oral beauty products in China is projected to exceed 25.57 billion yuan by 2025, with a compound annual growth rate of over 3.8%, and it is expected to become the largest oral beauty market globally by 2030 [2] Group 2 - The launch of the "Oral Beauty Nutrition Ingredients Popular Science Manual" provides a scientific guide on popular ingredients and new technologies in oral beauty nutrition [2] - The manual covers nine popular ingredients and four new oral beauty nutrition technologies, offering insights into their discovery, safety, effectiveness, applicable populations, and cutting-edge research [2] - There is a call for collaboration between industry and academia to enhance consumer understanding of oral beauty ingredients [2]

Core Viewpoint - The establishment of the Oral Beauty Nutrition Subcommittee and the release of the "Oral Beauty Nutrition Component Science Handbook" signify a growing trend in the oral beauty market, driven by increasing health awareness and the rise of the beauty economy in China [4][6]. Group 1: Establishment and Support - The Oral Beauty Nutrition Subcommittee was officially established with 41 members elected, including key positions held by prominent professors and doctors [6]. - The event was organized by the Beijing Nutrition Society, with support from various academic institutions, highlighting the collaboration between academia and industry [3][4]. Group 2: Market Potential - According to Euromonitor, the oral beauty market in China is projected to exceed 25.57 billion yuan by 2025, with a compound annual growth rate (CAGR) of over 3.8%, positioning China to become the largest oral beauty market globally by 2030 [4]. Group 3: Scientific Contributions - The "Oral Beauty Nutrition Component Science Handbook" includes nine popular ingredients and four new oral beauty nutrition technologies, providing a comprehensive guide for the public [8]. - The handbook emphasizes the importance of collagen peptides and other ingredients in enhancing skin vitality and combating aging [9]. Group 4: Product Development - The brand "Five Female Doctors" announced the launch of their self-developed collagen tripeptide ingredient "TriSignal," which will be used in all their tripeptide products by 2025 [12]. - The tripeptide ingredient is supported by patented technologies that enhance skin barrier function and promote cell vitality [12][15]. Group 5: Research and Innovation - The brand has established a research institute and a team of over 60 members, holding 53 patents and publishing 20 related papers, indicating a strong commitment to research and development [15]. - The focus on integrating scientific innovation with market needs is seen as essential for sustainable development in the industry [15].

Core Viewpoint - The establishment of the Oral Beauty Nutrition Branch of the Beijing Nutrition Society marks a new phase of standardization and professionalism in the oral beauty industry, aiming to integrate scientific research, standard construction, popular science education, and industrial development [4][6]. Group 1: Industry Development - The oral beauty market in China is projected to exceed 25.57 billion yuan by 2025, with a compound annual growth rate (CAGR) of over 3.8%, and it is expected to become the largest oral beauty market globally by 2030 [4]. - The market is witnessing a diversification of ingredients, with collagen products expected to hold a 42% market share in 2024, and oral hyaluronic acid showing the fastest growth with a year-on-year sales increase of 58% [6][4]. - New nutritional ingredients such as ergothioneine and PQQ are also showing significant growth potential, with ergothioneine expected to grow by 25% in the health food market in 2024 [6]. Group 2: Scientific Contributions - The Oral Beauty Nutrition Branch aims to provide a comprehensive platform for scientific research and market practice, offering scientific basis and normative guidance for product development and efficacy evaluation [4][6]. - The "Oral Beauty Nutrition Ingredient Popular Science Handbook" was released, featuring nine popular ingredients and four new oral beauty nutrition technologies, providing a systematic and authoritative guide for the public [9]. - Experts at the event discussed the benefits of key ingredients such as collagen peptides, EGCG, and astaxanthin, highlighting their roles in skin health and anti-aging [10][12]. Group 3: Organizational Structure - The first committee of the Oral Beauty Nutrition Branch consists of 41 members, with Professor Luo Yongkang elected as the chairman and several other experts appointed as vice-chairmen and secretary [6][4]. - The branch will collaborate with regulatory bodies, medical institutions, research institutes, and enterprises to establish a long-term cooperative mechanism to promote the development of the oral beauty nutrition industry [6].

Investment Rating - The report indicates a positive investment outlook for the Chinese oral beauty market, projecting a market size exceeding 25 billion yuan by 2025, despite a slowdown in growth rate compared to previous years [2][12]. Core Insights - The Chinese oral beauty market is experiencing a transformation from "marketing-driven" to "science-driven," influenced by policy, technology, and consumer demand, with second and third-tier cities and younger demographics identified as future growth engines [3][22]. - The market is characterized by high concentration, with major brands entering the space, and a significant increase in online sales channels, particularly through platforms like Douyin [8][24]. - The demand for anti-aging and whitening products continues to grow, establishing these as the two core segments within the oral beauty market [26][31]. Summary by Sections 1. Market & Industry Trends - China has become the second-largest consumer market for oral beauty products in East Asia, following Japan, with a market share of 30.7% in the Asia-Pacific region [12]. - The market is projected to grow, with a forecast of over 25 billion yuan by 2025, despite a slight decrease in growth rate [12][15]. - The industry is witnessing a surge in brand entries, with both domestic and international brands targeting the Chinese market [15][22]. 2. Consumer Analysis - The primary consumer demographic for oral beauty products on Douyin is women aged 31-40, with younger consumers (18-23) showing heightened interest [41][45]. - The interest in oral beauty topics is particularly strong in new first-tier, second-tier, and third-tier cities, with users most active on weekends [47][50]. 3. Product & Efficacy Trends - The report identifies a shift towards functional foods and traditional supplements, with a notable lack of products passing health food certifications [55][58]. - Popular efficacy ingredients include plant extracts, collagen, probiotics, and B vitamins, with a growing consumer preference for products that emphasize scientific validation of ingredients [72][83]. - The market is seeing a rise in innovative product forms, such as snack-like formats, driven by younger consumers seeking convenience [62][66].

Investment Rating - The investment rating for the social services industry is optimistic (maintained) [1] Core Insights - The report highlights the emergence of "spiritual sanctuaries" by trendy brands aimed at healing young people, with a focus on the scent economy and the rising trend of oral beauty products [1] - The domestic travel sector shows steady growth during the Dragon Boat Festival, with a significant increase in family and theme park visits [14][16] - The global trendy brand market has surpassed 1 trillion, with China's trendy clothing market expected to exceed 250 billion by 2025 [36][39] - The oral beauty market in China is projected to exceed 240 billion by 2024, with a compound annual growth rate of 3.8% from 2022 to 2025 [5][19] Summary by Sections 1. Travel and Tourism - Domestic travel during the Dragon Boat Festival saw approximately 444 million cross-regional movements, a year-on-year increase of 8.5% [14] - The travel and tourism sector is benefiting from policies like free or discounted entry to attractions, leading to significant increases in visitor numbers in provinces like Sichuan and Hunan [16] - Shaanxi Tourism has submitted an IPO application, showcasing strong profitability in its core performance arts business [18][21] 2. Trendy Brands - The global trendy brand apparel market reached 195.5 billion USD in 2023, with expectations to grow to 251.4 billion USD by 2030 [36][39] - The Chinese trendy clothing market is projected to exceed 220 billion RMB in 2024, with a growth rate of 13.64% [37][42] - Brands like Pop Mart are expanding their reach into the trendy brand sector, particularly targeting male consumers [40] 3. Tea and Beverage - Bawang Chaji reported a GMV of 82.3 billion RMB in Q1 2025, with a net income of 33.9 billion RMB, reflecting a growth of over 35% [44][46] - The company plans to open 1,000 new stores in mainland China in 2025, accelerating its overseas expansion [45] 4. Beauty and Wellness - The oral beauty market in China is expected to surpass 240 billion RMB by 2024, with key ingredients like collagen and ergothioneine leading the trend [5][19] - The scent economy is growing, with the fragrance market in China projected to reach around 300 billion RMB by 2027, reflecting a compound annual growth rate of approximately 38% [5][19] - Major beauty brands are increasingly entering the oral beauty segment, indicating a shift from niche to mainstream consumption [53]

Investment Rating - The investment rating for the social services industry is optimistic (maintained) [1] Core Insights - The report highlights the emergence of "spiritual sanctuaries" by trendy brands aimed at healing young people, with a focus on the scent economy and the rising trend of oral beauty products [1] - The domestic travel sector shows steady growth during the Dragon Boat Festival, with a significant increase in family and theme park visits [14][16] - The global trendy brand market has surpassed 1 trillion, with China's trendy clothing market expected to exceed 250 billion by 2025 [36][39] - The oral beauty market in China is projected to exceed 240 billion by 2024, with a compound annual growth rate of 3.8% from 2022 to 2025 [5][19] Summary by Sections 1. Travel and Tourism - Domestic travel during the Dragon Boat Festival saw approximately 444 million people traveling, a year-on-year increase of 8.5% [14] - The travel segment is bolstered by family-oriented activities, with theme parks experiencing a notable increase in visitor numbers [16] - Shaanxi Tourism has submitted an IPO application, showcasing strong profitability in its core performance arts business [18][21] 2. Trendy Brands - The global trendy brand apparel market reached 195.5 billion USD in 2023, with expectations to grow to 251.4 billion USD by 2030 [36][39] - The Chinese trendy apparel market is projected to exceed 250 billion RMB by 2025, with a year-on-year growth of 13.64% [37][42] - Brands like Pop Mart are expanding their reach into the trendy brand sector, particularly targeting male consumers [40] 3. Tea and Beverage - Bawang Chaji reported a GMV of 82.3 billion RMB in Q1 2025, with a net income of 33.9 billion RMB, reflecting a growth of over 35% [44][46] - The company plans to open 1,000 new stores in mainland China in 2025, accelerating its overseas expansion [45] 4. Beauty and Wellness - The oral beauty market is gaining traction, with a projected market size of over 240 billion RMB by 2024 [5][19] - The scent economy is also on the rise, with the fragrance market in China expected to grow from 50 billion RMB in 2018 to around 300 billion RMB by 2027 [5][19] - Major beauty brands are increasingly entering the oral beauty segment, indicating a shift from niche to mainstream consumption [53]