Core Insights - The domestic beauty industry in China is entering a phase of deeper development, with market competition shifting from channel expansion to R&D innovation and precise positioning [1][3]. Company Performance - In the first half of 2025, domestic beauty companies showed significant performance differentiation. Shanghai Jahwa achieved revenue of 3.48 billion yuan, a year-on-year increase of 4.7%, and a net profit of 270 million yuan, up 11.7% [3]. - Marubi Biotech reported revenue of 1.769 billion yuan, a 30.83% increase, with a net profit of 186 million yuan, up 5.21%. The company focused on a big product strategy [3]. - Up Beauty Holdings projected revenue between 4.09 billion and 4.11 billion yuan, a year-on-year growth of 16.8% to 17.3%, with net profit expected to reach between 540 million and 560 million yuan, up 30.9% to 35.8% [3]. - Beitaini has not yet released its semi-annual report, but its Q1 revenue was 949 million yuan, down 13.51%, with a net profit of 28.34 million yuan, down 83.97% [4]. Market Trends - The market for functional skincare products in China is projected to reach approximately 48.743 billion yuan in 2024, with Beitaini holding an 11.71% market share [5]. - The sensitive skin market is becoming a hot sector, with consumer numbers expected to approach 100 million and a market size of around 45 billion yuan in 2024, reflecting a compound annual growth rate of 21.7% over the past three years [7]. - The demand for sensitive skin care is evolving, with consumers seeking products that offer multiple benefits beyond basic repair, such as whitening and anti-aging [7]. Technological Challenges - The sensitive skin market faces core technological bottlenecks, particularly in the area of whitening products, which often struggle to balance effectiveness and gentleness for sensitive skin [8]. - Companies like Ximu Yuan are focusing on R&D in sensitive skin whitening, with new ingredients aimed at addressing these challenges, although large-scale application remains difficult [8]. Competitive Landscape - The competition in the sensitive skin market has shifted from initial market entry to a deeper technological contest, where brands must address advanced needs like whitening and anti-aging while ensuring scientific validation [9].

Core Viewpoint - The domestic beauty industry in China is entering a phase of deeper development, with a shift in competition from channel expansion to R&D innovation and precise positioning [1] Group 1: Industry Performance - In the first half of 2025, domestic beauty companies showed significant performance differentiation, reflecting a competitive landscape that emphasizes R&D and innovation [2][3] - Shanghai Jahwa achieved revenue of 3.48 billion yuan, a year-on-year increase of 4.7%, and a net profit of 270 million yuan, up 11.7% [3] - Marubi Biological reported revenue of 1.769 billion yuan, a year-on-year increase of 30.83%, with a net profit of 186 million yuan, up 5.21% [3] - Up Beauty Holdings expects revenue between 4.09 billion and 4.11 billion yuan, a year-on-year increase of 16.8% to 17.3%, with net profit projected to be between 540 million and 560 million yuan, up 30.9% to 35.8% [3] Group 2: Market Trends - The sensitive skin market is becoming a hot sector, with the consumer base expected to approach 100 million by 2024, and the market size estimated at 45 billion yuan, with a compound annual growth rate of 21.7% over the past three years [6][7] - The sensitive skin market is projected to exceed 200 billion yuan, indicating a broad development prospect [6][7] - Consumers are increasingly seeking multi-functional products that combine repair with whitening, anti-aging, and sun protection [7] Group 3: Competitive Landscape - Brands are focusing on addressing the needs of sensitive skin, with companies like Giant Biological and Shanghai Jahwa targeting deeper skin barrier issues [7][8] - The market is witnessing a shift from generic solutions to more personalized care approaches, although the effectiveness and feasibility of these strategies still require market validation [8] - The sensitive skin whitening segment remains a core technical challenge, as traditional whitening ingredients often irritate sensitive skin, creating a dilemma for consumers [8]