Core Viewpoint - Jiaheng Jiahua's Q3 2025 financial report shows a significant revenue increase but a substantial net profit loss, indicating challenges in profitability despite higher sales [1][4]. Financial Performance - For the first three quarters of 2025, Jiaheng Jiahua reported revenue of 860 million yuan, a year-on-year increase of 24.42%, but a net profit loss of 29.5 million yuan, a decline of 1430.74% [1][4]. - In Q3 2025, the company achieved revenue of 346 million yuan, up 28.66% year-on-year, but net profit was only 2.63 million yuan, down 65.6% [4]. - The non-recurring net profit also worsened, from a loss of 0.92 million yuan in the same period last year to a loss of 30.68 million yuan this year [4]. Leadership Transition - The Q3 report is the first since the leadership transition to the second generation, with the founder's son, Zeng Huanbin, taking over key positions [2][3]. Historical Context - This year marks the highest revenue for Jiaheng Jiahua in the past five years, yet it is also the first year to report a net profit loss in the same period [10]. - The company has experienced a consistent decline in net profit over the years, with the current year's drop being the most severe [10]. Operational Challenges - The decline in net profit is attributed to changes in product sales structure, increased fixed costs, and rising management expenses due to business expansion efforts [10][11]. - The subsidiary, Huzhou Jiaheng, has been a recurring factor in the company's financial struggles, with cumulative losses reaching 139 million yuan since its inception [11][19]. Industry Comparison - The broader beauty OEM industry is facing challenges, with several companies reporting revenue declines and profit losses, indicating increased competition and cost pressures [20][25]. - Despite the difficulties, some leading companies like Qingsong Co. have managed to achieve revenue and profit growth through focused strategies [26][27].

Group 1: Company Overview and Strategic Initiatives - The company, Qingsong Co., Ltd., is involved in the cosmetics industry and has established a joint venture, Hongjia Technology, with a 20% stake held by Norsbel. The project has received necessary permits and is progressing well [2][3]. - In 2025, the company plans to focus on two main strategies: "customer focus" and "product focus," aiming to enhance market expansion and operational efficiency [4]. Group 2: Financial Performance and Projections - In 2024, the company's cosmetics business achieved a gross profit margin of 17.42%, an increase of 5.37 percentage points from the previous period, indicating significant improvement [3]. - The company reported a turnaround in 2024, achieving profitability primarily due to product innovation, cost control, and improved management practices [6]. Group 3: Market Position and Challenges - As of March 31, 2025, the total number of ordinary shareholders was 20,162 [5]. - The company's exports to the U.S. in 2024 were approximately RMB 20 million, accounting for about 1% of total annual revenue, suggesting minimal impact from U.S. tariff policies [6]. Group 4: Brand and Marketing Strategies - The management is considering a potential name change to "Norsbel" to better align with the company's positioning and enhance brand recognition [2][3]. - The company primarily operates on an order-based production model in the ODM cosmetics sector, focusing on direct sales according to customer demand [5].