Core Viewpoint - The company is undergoing a significant transformation from an online medical beauty intermediary to a physical entity, which has led to a sharp decline in profitability and a conflict with supply chain partners due to aggressive pricing strategies [2][3][14]. Financial Performance - In Q3, the company's total revenue increased by 4% year-on-year to 386.7 million yuan, with offline medical beauty service revenue surging by 304.6% to 183.6 million yuan, surpassing online business for the first time [2]. - The overall net profit shifted from a profit of 22.2 million yuan in the same period last year to a loss of 61.6 million yuan, marking a significant financial downturn [2]. Business Model Shift - The company is transitioning to a "virtual chain" model, with the first physical "New Oxygen Youth Clinic" launched in May 2023, now covering 10 cities with a total of 39 clinics by Q3 2024 [3]. - The aggressive pricing strategy, exemplified by the drastic price cut of the "童颜针" to 5,999 yuan, aims to penetrate the market but has resulted in immediate financial losses and potential long-term impacts on existing business relationships [3][10]. Market Dynamics - The company’s previous role as a neutral platform connecting users and medical institutions is being challenged as it enters direct competition with its partners, raising concerns about trust and neutrality in the marketplace [7][11]. - The aggressive pricing strategy disrupts the established value network in the medical beauty industry, which relies on stable pricing and brand integrity [9][10]. Strategic Challenges - The company faces a "nested dilemma," where efforts to stimulate online growth through offline expansion have led to conflicts with partners and a weakening of its platform's foundational trust [8][14]. - There is a tension between the fast-paced culture of the internet team and the cautious, safety-oriented approach of the medical team, complicating internal operations and decision-making [7][8]. Future Outlook - The company is betting on a vision of "smart clinics" and an "industry operating system," aiming to standardize and digitize medical services, but faces challenges in balancing efficiency with the human aspects of healthcare [13][15]. - The ongoing transformation reflects broader industry challenges, questioning whether a purely intermediary model can sustain itself in a complex and trust-deficient medical service environment [15][16].