Summary of the Medical Aesthetic Industry Conference Call Industry Overview - The medical aesthetic industry is experiencing intensified competition, with upstream companies facing profit erosion on single products and downstream chain medical aesthetic institutions accelerating mergers and acquisitions. Leading brands like Meili Tianyuan are emerging, indicating a shift from product-driven growth to user demand-driven growth, resulting in a transfer of power within the industry towards downstream players [1][2][16]. Key Points on Companies Juzhi Biotechnology - In the first half of 2025, Juzhi Biotechnology's sales were impacted by a public relations incident, with its brand Kefu Mei not recovering sales during the Double Eleven shopping festival. Contributing factors include underwhelming influencer marketing recovery and a 20% reduction in advertising budget. The GMV from Douyin channel dropped over 60% year-on-year, reflecting challenges in brand marketing strategies [1][4][3]. Jinbo Biotechnology - Jinbo Biotechnology's revenue and profit growth slowed in Q3 2025, primarily due to price erosion of its core product, the 4mg ultra-pure product, which saw its terminal price drop from a suggested retail price of 6,800 yuan to just over 1,000 yuan. The company is expanding its distribution channels to 4,000, which is lower than competitors like facial fillers. New product launches are facing high sales expense ratios, putting pressure on profits [1][5][8]. Meili Tianyuan - Meili Tianyuan has distinguished itself through excellent user operations, digital membership management, and effective acquisition strategies. The brand has maintained same-store growth of 5% to 6% over the past two years, with a 10% increase in user numbers offsetting a 5% decline in average transaction value. The company has expanded its scale through acquisitions, increasing its store count to around 700-800 [1][11][10]. Industry Dynamics - Downstream chain medical aesthetic institutions are enhancing their operational capabilities through mergers and acquisitions, which is increasing their bargaining power. Leading brands like Meili Tianyuan are establishing close ties with upstream companies through customized collaborations, achieving mutual growth [1][6][12]. Challenges and Opportunities - Upstream companies are facing increased competition and declining profits on single products, necessitating strategic adjustments to attract users. Downstream institutions are experiencing high customer acquisition costs and insufficient standardization of products, leading to increased survival pressure. However, those companies that can effectively manage user needs and supply chain advantages are likely to emerge successfully from the current challenges [1][9][16]. Conclusion - The medical aesthetic industry is transitioning from a phase of rapid growth to one characterized by demand stabilization and intensified competition. Downstream companies must adapt quickly to market changes, while upstream companies need to enhance their channel management capabilities. Despite the challenges, companies that excel in user demand understanding and membership operations are positioned to achieve new growth [1][16][15].

Group 1 - The "Bohai Beautiful Bay" Industrial Innovation Development Conference was successfully held in Tianjin Economic Development Zone, marking the establishment of the Bohai Beautiful Bay Industrial Development Promotion Center, which aims to enhance the beauty industry and support high-quality development [1] - Key projects were signed during the conference, including a collaboration between JianKai Technology and Tianjin Economic Development Zone to build a medical beauty industrialization base, indicating a strategic expansion in the medical beauty sector [1][2] - JianKai Technology has been focusing on the PEG and its derivatives industry since its establishment, and is one of the few companies in China capable of producing high-purity and low-dispersity pharmaceutical-grade PEG [2] Group 2 - JianKai Technology's first medical beauty product, JK-2122H (PEG cross-linked hyaluronic acid), is expected to contribute to sales revenue in 2025, being the first domestic filler using PEG as a cross-linking agent, which offers better biocompatibility and safety [2] - The second medical beauty product, JK-1136H (water needle), has also received acceptance for its market application, which will further enrich the company's product matrix and provide new growth opportunities [2] - The collaboration within the "Bohai Beautiful Bay" initiative is expected to create a cluster of beauty and medical beauty industries, enhancing the competitive edge of JianKai Technology and driving significant growth in the high-end medical beauty market [3]

Core Insights - The report maintains a neutral rating for the pharmaceutical and biotechnology industry, indicating that while there are pressures on performance, there are also opportunities in specific segments that are experiencing growth [5][30]. Market Performance Review - In the first ten months of 2025, the SW pharmaceutical and biotechnology index increased by 21.10%, outperforming the CSI 300 index by approximately 2.26 percentage points, ranking 12th among all Shenwan primary industries [14][19]. - Most sub-sectors within the industry recorded positive returns, with the medical research outsourcing and chemical preparation sectors leading with increases of 60.54% and 40.80%, respectively. Conversely, the blood products and vaccine sectors saw declines of 7.89% and 1.60% [15][19]. - As of October 31, 2025, the overall price-to-earnings (PE) ratio for the SW pharmaceutical and biotechnology industry was approximately 53.97 times, which is 4.06 times higher than the CSI 300 index, indicating an increase in industry valuation [19][20]. Policy Outlook for H1 2026 - The 11th batch of national drug centralized procurement is expected to be fully implemented in the first half of 2026, involving 55 varieties and 272 companies, with a selection rate of 57% [30][31]. - The procurement results show a high match between selected brands and clinical needs, with strong supply capabilities from mainstream companies [30]. Sub-sector Highlights Innovative Drugs - Continuous policy optimization supports the development of innovative drugs, with a comprehensive approach to enhance pricing management, insurance coverage, and investment [38]. - The industry is gradually moving away from homogeneous competition, with a significant increase in the proportion of First-in-Class new drug development, which rose by 23 percentage points to 35% since 2020 [38][39]. - Domestic innovative drugs are gaining international recognition, with outbound licensing transactions reaching $66 billion in the first half of 2025, reflecting a growing global presence [41][44]. Medical Devices - The aging population in China is projected to exceed 400 million by 2035, driving demand for medical services and supporting stable growth in the medical device market [50]. - The global medical device market is expected to grow at a compound annual growth rate (CAGR) of 5.7%, reaching $869.7 billion by 2030 [52]. - China's medical device market is rapidly expanding, with projected revenues of 187.5 billion yuan by 2025, indicating significant growth potential [53]. Aesthetic Medicine - The domestic aesthetic medicine market is expected to steadily increase, supported by various policies aimed at promoting healthy industry development and improving market concentration [39]. Synthetic Biology - The market size for synthetic biology is anticipated to approach $40 billion by 2027, driven by multiple factors including technological advancements and increased investment [39].

Core Insights - The 2025 China International Import Expo (CIIE) concluded with significant transaction data, marking the beginning of a new investment round focused on promoting consumption and expanding investment [2] - The expo featured 290 Fortune 500 and industry-leading companies, with 461 new products, technologies, and services launched, including 201 global debuts [2] - The intended transaction amount reached $83.49 billion, a 4.4% increase from the previous year, with total attendance of 922,000, up 8.2% year-on-year [2][7] Group 1: Participation and Transactions - Over 80 New Zealand companies participated, making it the largest delegation from New Zealand to date, highlighting the expo as a prime platform for business opportunities [4] - China Petroleum & Chemical Corporation (Sinopec) signed contracts with 34 partners from 17 countries, with a procurement amount exceeding $40.9 billion, accumulating over $325 billion in contracts since the expo's inception [4] - The Shanghai trading group achieved an intended transaction amount of $10.62 billion, a 5.14% increase, with a 34% rise in transactions with Belt and Road countries [5] Group 2: E-commerce and Innovation - The expo established a "cross-border e-commerce preferred platform," facilitating international brands' entry into the Chinese market, with over 10 global groups signing agreements to open online stores [6] - The medical aesthetics industry is highlighted as a key growth area, with a market size expected to reach trillions by 2030, driven by diverse consumer demands and technological advancements [9][10] Group 3: Future Events and Initiatives - A new Import Expo Quality Goods Trading Fair will be held from December 19 to 21, 2025, aimed at further promoting imports and consumer engagement [8] - The ninth CIIE is set to have an exhibition area exceeding 80,000 square meters, indicating continued growth and expansion of the event [10]

Core Viewpoint - The company, Aimeike, confirmed on November 11 that it is proceeding with sales according to its established plan, and that relevant operational data such as product sales will be disclosed in periodic reports [2] Group 1 - The company is actively engaging with investors through an interactive platform [2] - Aimeike emphasizes that operational data should be referenced from its regular financial disclosures [2]

Group 1 - The technology sector is experiencing a downturn, with high-priced tech stocks showing little movement and declining trends, leading to emotional reactions among investors [1] - Market sentiment has cooled significantly, and without a boost from the securities and technology sectors, any pullback could result in a substantial decrease in trading volume [1] - Consumer spending appears to be recovering slightly, but overall consumption has not met expectations, particularly in sectors like liquor, beauty, and hospitality [3] Group 2 - The A-share market is likely to continue its upward trend, with a significant chance of returning to the 4000-point level, and there is no need for pessimism regarding the index [5] - The performance of the securities and technology sectors is crucial, as they will determine whether the market can return to 4000 points and if the current market cycle is nearing its end [5] - The real estate sector has shown positive trends, while the automotive sector is struggling, indicating mixed performance across key industries [3][5] Group 3 - The market is currently fluctuating around the 4000-point mark, and a significant rally is needed to move decisively away from this level [7] - Without major positive news to stimulate the market, there is little interest in aggressive buying, and any rapid increases will require compelling reasons to entice investors [7]

Core Viewpoint - The company is currently in the process of developing a sales plan for its minoxidil product, which is not yet on the market [2] Group 1: Product Information - The minoxidil product is intended for hair growth and is currently under development [2] - The company has not disclosed any specific advantages of the minoxidil product in terms of efficacy [2] Group 2: Sales and Production - The sales model for the minoxidil product has not been detailed by the company [2] - The current status of production and sales for the minoxidil product is still in the planning phase [2]

Group 1 - The company, Aimeike (300896), reported that as of November 10, 2025, the number of shareholders is 62,228 [1]

Core Viewpoint - The consumer sector is showing signs of recovery, driven by favorable policies, rising CPI, and the imminent closure of Hainan Free Trade Port, leading to increased investment enthusiasm in the sector [2][4]. Group 1: Consumer Sector Analysis - The consumer sector is believed to be at the bottom, with fundamentals gradually improving, as indicated by the third-quarter reports [4]. - The "14th Five-Year Plan" emphasizes the importance of consumption, suggesting a positive outlook for the sector [4]. - Key investment opportunities include the restaurant chain sector, which is nearing the end of price wars, and companies like Anjiexin Foods and Lihai Foods are seeing improved net profit margins [4]. Group 2: Duty-Free Industry Insights - Hainan's duty-free sales data shows a significant recovery in Q3 2025, with a notable increase in average transaction value, and a stable outlook for Q4 [5]. - Continuous policy support, including a clear timeline for the island's closure and an expanded range of duty-free products, is expected to enhance the operational conditions for companies like China Duty Free Group and Hainan Development [5]. Group 3: Structural Upgrades in Consumption - The toy industry is evolving with IP incubation and category innovation, favoring leading companies with strong design and supply chain capabilities [6]. - The beauty industry is integrating medical, beauty, and health services, which is expected to enhance customer spending and repeat purchases [6]. - The consumer industry is transitioning from "functional supply" to "scenario value supply," indicating a structural upgrade in brand consumer goods [6]. Group 4: New Consumption Trends - Four new consumption themes are emerging: 1. Brand globalization 2.0, focusing on pricing power and emerging markets [7]. 2. Emotional value sectors like trendy toys and pet products are expected to benefit from rising GDP per capita [7]. 3. AI-driven consumption in service sectors is showing potential for profitability [7]. 4. Channel transformation emphasizing user experience and operational efficiency, particularly in instant retail and cost-effective dining [7]. Group 5: High-Growth Opportunities in Emotional Consumption - The gold and jewelry sector is undergoing significant changes, with rising gold prices and a shift towards emotional consumption, suggesting opportunities in high-end and trendy gold segments [8]. - Retail e-commerce is focusing on offline retail transformation and AI-enabled cross-border e-commerce leaders [8]. - The cosmetics sector is seeing growth in domestic brands that meet emotional value and safety ingredient innovation [8]. - The medical beauty sector remains resilient, with opportunities in differentiated products and mergers in downstream medical beauty institutions [8].

Core Viewpoint - Shanghai Haohai Biological Technology Co., Ltd. (Haohai) has announced the acquisition of the remaining 20% stake in Shenzhen New Industry Ophthalmology Technology Co., Ltd. for 74 million yuan, aiming to enhance its market competitiveness in ophthalmic products amid declining performance in its core business [1][3]. Group 1: Acquisition Details - Haohai's wholly-owned subsidiary, Shanghai Haohai Pharmaceutical Technology, will acquire the remaining 20% stake in New Industry Ophthalmology, completing a nine-year strategic layout that began with a 60% stake acquisition in November 2016 [1][2]. - New Industry Ophthalmology specializes in manufacturing and selling orthokeratology lenses and intraocular lenses, as well as distributing various imported ophthalmic products in mainland China [1]. Group 2: Financial Performance - As of December 31, 2024, New Industry Ophthalmology's total assets were valued at 250 million yuan, with projected after-tax profits of 32.735 million yuan for 2023, 22.0062 million yuan for 2024, and 16.1877 million yuan for the first half of 2025 [2]. - The acquisition is expected to improve management and operational efficiency, thereby enhancing the competitiveness of Haohai's ophthalmic products [2]. Group 3: Business Challenges - Haohai's overall performance has been under pressure, with a significant slowdown in revenue growth. In 2024, the company reported revenue of 2.698 billion yuan, reflecting a mere 1.64% year-on-year increase, a stark contrast to the double-digit growth seen from 2021 to 2023 [3]. - The company's three main business segments, including ophthalmology, experienced revenue declines in the first half of 2025, with ophthalmic products down by 18.61% [4]. Group 4: Strategic Response - The acquisition of New Industry Ophthalmology is viewed as a strategic move to address declining performance, with Haohai planning to enhance its product offerings and market presence in the ophthalmic sector [6]. - The company aims to promote its self-developed orthokeratology lenses and expand its product line to improve market share, despite ongoing challenges from price reductions due to national and provincial procurement policies [5][6].