Core Viewpoint - The company is facing a dual challenge of declining revenue and increasing losses, primarily due to the significant downturn in its traditional core business of "information and appointment services" [2][6][11]. Revenue and Profitability - In Q1 2025, the company's total revenue was 297 million RMB, a year-on-year decline of 6.6%, with net losses expanding to 33.1 million RMB, a 56.13% increase from the same period in 2024 [3]. - The company's revenue experienced significant fluctuations in recent years: 1) 2021 revenue reached 1.692 billion RMB, up 30.7% due to the recovery of the medical beauty industry and acquisitions; 2) 2022 saw a sharp decline of 25.7% to 1.258 billion RMB; 3) 2023 revenue rebounded to 1.498 billion RMB (+19.1%); 4) 2024 revenue slightly decreased to 1.467 billion RMB (-2.1%) [4][5]. - The net profit turned positive in 2023 at 21.28 million RMB but turned into a significant loss of 589 million RMB in 2024, primarily due to goodwill impairment related to a previous acquisition [5] [11]. Core Business Decline - The main reason for the negative revenue growth is the drastic decline in the traditional core business of "information and appointment services," which fell by 19.3% from 1.151 billion RMB in 2023 to 929 million RMB in 2024, now accounting for only 63.4% of total revenue [6][11]. - This core business, which previously constituted 100% of revenue in 2020, has been severely impacted by competition from emerging platforms like Douyin and Xiaohongshu, which have diverted advertising budgets from medical beauty institutions [6][11]. New Business Development - In response to the pressure on traditional business, the company launched the "Brand Aesthetic Center" in 2023, generating revenue of 13 million RMB, which grew to 169 million RMB in 2024 [7][11]. - Despite rapid revenue growth in the light medical beauty chain business, its profitability remains weak, with gross margins of only 22.26% in 2024 and further declining to 18.78% in Q1 2025 [8][11]. Cost and Operational Challenges - The operational costs of the light medical beauty chain business have surged, with costs rising from 9.6 million RMB in 2023 to 132 million RMB in 2024, representing 77.7% of revenue [8][10]. - The company faces challenges in managing the operational efficiency of its new business model, which differs significantly from its traditional medical beauty operations [11].