Summary of China Beauty Expert Call Post 11.11 Events Industry Overview - **Industry**: China Beauty Sector - **Event**: 11.11 Shopping Festival Performance Review - **Date of Call**: November 17, 2025 Key Takeaways 1. **GMV Growth Across Platforms**: - Tmall: Approximately +8% year-over-year (yoy) - Douyin: Approximately +20% yoy - JD: Approximately +15% yoy - PDD: Approximately +12% yoy - Overall GMV growth for the beauty sector: Approximately +14% yoy according to Syntun Data [1][1][1] 2. **Performance of Local Listed Companies**: - Mao Geping (MGP) achieved approximately +60% GMV growth, leading the local brands - Chicmax and Proya maintained strong positions on Douyin and Tmall, respectively - Other local companies faced growth pressures [1][1][1] 3. **International Brands Recovery**: - Most international brands reported over +20% GMV growth, particularly high-end brands like Estee Lauder, Lancome, SK-II, and Shiseido [1][1][1] 4. **Emergence of Local Non-Listed Companies**: - Notable growth from brands such as Chando, Pechoin, Forest Cabin, and Grainrain [1][1][1] 5. **Discount Levels**: - Overall discount levels deepened by 5-8 percentage points yoy compared to the June 18 events [1][1][1] 6. **Preliminary Outlook for 2026**: - US/EU high-end brands expected to maintain growth momentum - Mass brands and Japanese/Korean brands likely to face challenges - High discount levels anticipated to persist [1][1][1] Company-Specific Insights - **Mao Geping (MGP)**: - Enhanced brand equity and unique offline presence expected to drive revenue and earnings CAGR of 31% from 2025 to 2027, outpacing peers' growth of 19% and 16% [1][1][1] - **Chicmax**: - Expected to benefit from the fast growth and local pride trend in China's cosmetics industry, leveraging a successful multi-brand portfolio and strong R&D capabilities [1][1][1] Analyst Preferences in China Beauty Sector - Order of preference: - MGP = Chicmax > Proya > Botanee > Yatsen > Marubi > Jahwa [1][1][1] Additional Notes - Concerns were raised regarding MGP's skincare product pipeline visibility in the mid-term [3][3][3] - Chicmax's KANS brand achieved approximately +30% GMV growth and maintained its position as the No.1 beauty brand on Douyin during the 11.11 events, with self-livestreaming contributing over 70% to GMV [3][3][3] This summary encapsulates the critical insights from the expert call regarding the performance and outlook of the China beauty sector following the 11.11 shopping events.

Core Insights - Affirm Holdings reported strong growth in Gross Merchandise Volume (GMV) and revenue, marking the third consecutive quarter of acceleration in GMV growth [4] - The company achieved a GMV growth rate of 36% year-on-year, with revenue growth aligning with this performance [4] - Unit economics improved significantly, with a year-on-year growth of 53%, surpassing the previously discussed range of 3% to 4% [4] Financial Performance - The operating margin was consistent with the company's expectations, indicating effective cost management and operational efficiency [5] - Affirm reiterated its commitment to achieving profitability on a GAAP operating basis, signaling a focus on long-term financial health [5]