Core Insights - The skincare and daily chemical industry in A-shares has shown a high gross profit margin but low net profit margin, with over 80% of companies having a gross profit margin above 50% and more than half having a net profit margin below 10% [1][4] - The significant gap between gross and net profit margins is attributed to high sales expenses, which consume profits, with Marubi Biological's sales expense ratio reaching 56.5%, making it the highest in the industry [1][6] Financial Performance - The top three companies by gross profit margin in the first half of 2025 are Jinbo Biological (90.68%), Fulejia (81.47%), and Beitaini (76.01%) [2] - Only four companies reported a gross profit margin below 50%, namely Lafang, Kesi, Qingsong, and Jiaheng, with margins of 49.26%, 32.05%, 17.51%, and 14.98% respectively [2] Profitability Analysis - Despite high gross profit margins, over half of the selected companies have net profit margins below 10%, with Jinbo Biological, Fulejia, and Polaroid leading in net profit margins at 45.5%, 26.61%, and 15.41% respectively [4] - Jiaheng, Lafang, and Qingsong have low net profit margins of -6.26%, 1.58%, and 2.66% respectively [4] Marketing and R&D Expenditure - The high marketing expenses in the industry are closely linked to the high gross and low net profit margins, with many companies spending over 40% of their revenue on marketing [6][9] - Marubi Biological's sales expense ratio is 56.5%, while its R&D expense ratio is only 2.3%, indicating a heavy reliance on marketing over research and development [8] Industry Challenges - The focus on marketing over R&D has led to severe product homogeneity, limiting innovation and hindering brand development [8] - The industry faces ongoing price wars and promotional activities that further erode profitability, creating a vicious cycle [9] - Companies need to balance marketing and R&D expenditures to transition from a marketing-driven to a product-driven approach [9]

Core Insights - The skincare and daily chemical industry in A-shares has shown a high gross profit margin but low net profit margin, with over 80% of companies having a gross profit margin above 50% and more than half having a net profit margin below 10% [1][4] - The significant gap between gross and net profit margins is attributed to high sales expenses, which consume profits, with Marubi Biological's sales expense ratio reaching 56.5%, making it the highest in the industry [1][6] Group 1: Financial Performance - The top three companies by gross profit margin in the first half of 2025 are Jinbo Biological (90.68%), Fulejia (81.47%), and Beitaini (76.01%) [2] - Only four companies reported a gross profit margin below 50%, namely Lafang, Kesi, Qingsong, and Jiaheng, with margins of 49.26%, 32.05%, 17.51%, and 14.98% respectively [2] - The leading companies in net profit margin are Jinbo Biological (45.5%), Fulejia (26.61%), and Polaroid (15.41%), while Jiaheng, Lafang, and Qingsong have low margins of -6.26%, 1.58%, and 2.66% respectively [4] Group 2: Marketing and R&D Expenditure - The high marketing expenses in the industry are closely linked to the high gross profit but low net profit, with many companies spending over 40% of their revenue on marketing [6][9] - Marubi Biological's sales expense ratio is 56.5%, while its R&D expense ratio is only 2.3%, indicating a heavy reliance on marketing over research and development [8] - The focus on marketing over R&D has led to severe product homogenization, limiting innovation and hindering brand development [8][9] Group 3: Industry Challenges - The industry faces challenges in balancing marketing and R&D expenditures, with a need to shift from marketing-driven to product-driven strategies [9]

Core Insights - The skincare and daily chemical industry in A-shares has shown a high gross profit margin but low net profit margin, with over 80% of companies having a gross profit margin above 50% and more than half having a net profit margin below 10% [1][4] - The significant gap between gross and net profit margins is attributed to high sales expenses, which consume profits, with Marubi Biological's sales expense ratio reaching 56.5%, making it the highest in the industry [1][6] Financial Performance - The top three companies in terms of gross profit margin for the first half of 2025 are Jinbo Biological (90.68%), Fulejia (81.47%), and Beitaini (76.01%) [2] - Only four companies reported a gross profit margin below 50%, with figures of 49.26% for Lafang, 32.05% for Kesi, 17.51% for Qingsong, and 14.98% for Jiaheng [2] Marketing and R&D Expenditure - The industry is characterized by high marketing expenditures, with many companies spending over 40% of their revenue on marketing, leading to a focus on brand marketing over product development [6][9] - Marubi Biological's sales expense ratio is 56.5%, while its R&D expense ratio is only 2.3%, indicating a heavy reliance on marketing rather than innovation [8] Industry Challenges - The heavy emphasis on marketing has resulted in severe product homogeneity, limiting true innovation and hindering brand development [8] - The industry faces ongoing price wars and promotional activities that further erode profitability, creating a vicious cycle [9] - Companies must find a balance between marketing and R&D expenditures to transition from a marketing-driven approach to a product-driven strategy [9]

Group 1 - The core viewpoint is that the high sales expenses in the daily chemical skincare industry significantly erode profits, leading to high gross margins but low net margins [1][3] - In 2024, over half of the selected companies in the daily chemical skincare industry have a sales expense ratio exceeding 40%, indicating that they allocate more than 40% of their revenue to marketing [1] - Yatsen E-commerce has the highest sales expense ratio at 60.1%, followed by Shangmei Co. and Marubi Biotechnology with ratios of 58.11% and 55.04% respectively [1] Group 2 - Many listed companies in the daily chemical skincare industry invest heavily in marketing while underinvesting in research and development, leading to severe product homogeneity and insufficient innovation [3] - The heavy reliance on marketing has resulted in a price war within the industry, which diminishes profitability and creates a vicious cycle [3] - Companies like Betaini have become overly dependent on a single brand, with over 90% of their main business revenue coming from the "Winona" brand, which has seen a sales decline of 5.45% in 2024 [3] Group 3 - The challenge for many companies in the daily chemical skincare industry in 2025 will be to balance marketing and research and development expenditures, transitioning from a marketing-driven approach to a product-driven one [4]