Core Viewpoint - Fulejia, once a leader in the beauty mask industry, is facing significant challenges including declining performance and intensified competition [1] Financial Performance - In 2024, Fulejia reported revenue of 2.017 billion yuan, a year-on-year increase of 4.32%, while net profit fell to 661 million yuan, a decrease of 11.77% [1] - For Q1 2025, both revenue and net profit declined, with revenue at 301 million yuan, down 26.39%, and net profit at 91.384 million yuan, down 39.77% [1] - In 2023, net profit was 749 million yuan, a decrease of 11.56%, with sales expenses reaching 532 million yuan, accounting for 27.51% of revenue [1] Marketing and Cost Structure - Fulejia has been heavily investing in marketing, with sales expenses projected to reach 748 million yuan in 2024, a 40.53% increase, representing 37.08% of revenue [1] - Research and development expenses remain low, at 34.82 million yuan in 2024, only 1.73% of revenue [1] - The company is experiencing high costs associated with influencer marketing, which has been identified as a burden [1] Competitive Landscape - Fulejia's former partner, Hasanlian, is entering the competitive space with similar products and has announced plans to sell up to 18 million shares of Fulejia stock [1] - Hasanlian's R&D investment is three times that of Fulejia, indicating a more robust approach to product development [1] - The beauty industry is becoming increasingly competitive, making it difficult for Fulejia to differentiate itself and regain its former market position [1]