Core Viewpoint - Beauty service company Meili Tianyuan Medical Health Industry Co., Ltd. announced the acquisition of 100% of Shanghai Siyuanli Industrial Co., Ltd. for 1.25 billion yuan, aiming for rapid expansion and increased operational scale and membership base [3][4]. Company Overview - Meili Tianyuan operates high-end beauty service brands and has a current customer flow of 920,000 and 120,000 active members in its direct stores as of the first half of 2025 [3][4]. - Siyuanli is positioned as the third-largest beauty service brand in China, operating 163 beauty stores and 19 medical beauty clinics across 48 cities [4][5]. Financial Performance - Meili Tianyuan's revenue is projected to grow from 1.643 billion yuan in 2022 to 2.572 billion yuan in 2024, with net profits increasing from 103 million yuan to 228 million yuan [4]. - Siyuanli's revenue is expected to rise from 565 million yuan in 2022 to 849 million yuan in 2024, with net profits turning positive in 2024 [4][5]. Strategic Rationale for Acquisition - The acquisition aligns with Meili Tianyuan's strategy to enhance revenue scale, as Siyuanli generates annual revenues of 800-900 million yuan, contributing positively to overall profits [5][6]. - Both companies have a strong presence in high-tier cities, with over 60% of their revenues coming from these areas, allowing for resource integration and operational efficiency [5][6]. Industry Context - The beauty service industry in China is characterized by a high number of single-store brands, with 89% of the 1 million beauty shops having only one location [7][8]. - The industry is moving towards standardization and chain development, with a need for larger players to emerge as many smaller entities may lose competitiveness [8][9].