Core Viewpoint - The leadership changes at Yanli Cosmetics mark a significant shift towards a more investment-driven management style, with key positions now held by individuals from Warburg Pincus, indicating a potential new strategic direction for the company [1][8]. Management Changes - The CEO of Yanli has changed from Wu Tao to Xu Jun, who previously served as a director at Warburg Pincus [1][6]. - The chairman position has also shifted from Zhang Qiong to Fang Min, who is the managing director and co-president of private equity at Warburg Pincus [1][8]. - These changes suggest a move towards a more hands-on approach from the investment firm, potentially leading to a new operational strategy for Yanli [1][8]. Historical Context - Yanli was founded in 1995 and gained significant investment from Today Capital in 2016 due to its unique positioning in the imported beauty market [2]. - Warburg Pincus became the controlling shareholder of Yanli in 2020, marking the beginning of the "Warburg Era" for the company [2]. - The company has undergone multiple leadership changes since then, with a notable shift in 2022 when Wu Tao was appointed CEO [2][4]. Performance and Strategy - Under Wu Tao's leadership, Yanli opened 56 new stores in 2022, bringing the total to over 200, but the pace of expansion has slowed significantly in recent years [10][11]. - The company reported a 146% year-on-year increase in service revenue for the first four months of 2024, but has not disclosed specific revenue figures [11]. - The beauty retail sector is facing challenges, with competitors like Sephora and Watsons also experiencing declines in revenue and store counts [11][12]. Future Plans - Xu Jun has indicated that Yanli will increase investment, accelerate store openings, and enhance product differentiation as part of its future strategy [12]. - The company plans to open over 20 new stores in 2025 and aims for 40 in 2026, with a potential shift towards a franchise model to drive growth [12].