Group 1 - The core viewpoint of the articles highlights the significant growth in user engagement and transaction volume during the 2025 Tmall 618 shopping festival, with 453 brands achieving over 100 million in sales, a 24% increase year-on-year [1] - High-net-worth individuals, specifically the 88VIP members, surpassed 50 million, marking a new high in user scale [1] - The home appliance and 3C digital sectors experienced a substantial boost due to government subsidies, with total sales in these categories increasing by 116% compared to last year's Double 11 [1] Group 2 - Quality live streaming has emerged as a new industry standard, with 81 live streaming sessions achieving over 100 million in sales, and a 21% increase in the number of sessions exceeding 10 million [2] - The beauty sector saw explosive growth, with nearly 100 products surpassing 10 million in sales, while over 50 apparel brands exceeded 100 million, indicating strong consumer demand [2] - New product sales grew by 153%, with 12 new products achieving over 100 million in sales, reflecting a significant increase in consumer interest in new offerings [2] Group 3 - Tmall is heavily investing in supporting quality and original brands through various strategic resources aimed at fostering high-quality growth by 2025 [3]

Core Viewpoint - The company aims to achieve its "Double Ten" strategy, targeting to enter the top ten global cosmetics industry within the next decade, under the leadership of new general manager Hou Yameng [2][4][7]. Talent Acquisition - The appointment of Wang Yifeng as the head of product development and brand incubation is a strategic move to shift from a marketing-driven approach to a brand-driven one [2][3]. - Hou Yameng has been actively building a management team with international beauty industry experience, indicating a focus on enhancing brand strength and innovation capabilities [3][4]. Financial Performance - In 2024, the company reported a revenue of 10.78 billion yuan, a year-on-year increase of 21.04%, and a net profit of 1.552 billion yuan, up 30% [5]. - Despite maintaining growth, the revenue and net profit growth rates have been slowing down, with 2025 Q1 showing an 8.13% revenue increase and a 28.87% net profit increase [5][6]. Market Strategy - The company plans to expand into international markets and new product categories, including medical beauty and men's skincare, to support its growth ambitions [7][8]. - The company has made several acquisitions but has seen limited success in scaling these brands, with only one brand, Caitang, exceeding 1 billion yuan in revenue [6][8]. Competitive Landscape - To achieve its ambitious goals, the company must enhance its brand positioning and matrix compared to established international brands, which poses significant challenges [8][9]. - The current competitive environment in the medical beauty and men's skincare sectors is intense, requiring the company to strengthen its capabilities to compete effectively [7][9].

Core Viewpoint - A wave of brand sell-offs is sweeping through the beauty industry, driven by major companies facing performance pressures and a need to restructure their brand portfolios [2][3][6]. Group 1: Brand Sell-Offs - Coty is reportedly exploring the sale of several brands, including Gucci and Burberry, amidst market speculation [2]. - Kenvue, a spinoff from Johnson & Johnson, is also rumored to be considering the sale of its skin health and beauty division, with an estimated transaction value exceeding $500 million (approximately 3.59 billion RMB) [2]. - Natura & Co has been linked to ongoing rumors about selling Avon since last year, highlighting a broader trend of divestitures among beauty giants [2][3]. Group 2: Market Reactions - Despite the sell-off rumors, Coty's stock surged by 13% in a single day, reaching a three-month high, indicating a positive market reaction to the restructuring news [3]. - The performance pressures faced by these companies are evident, with Coty's mass beauty segment reporting a 9% decline in net revenue to $470 million (approximately 3.4 billion RMB) in Q3 of fiscal 2025 [8]. Group 3: Industry Trends - The beauty industry is experiencing a significant contraction, with Kenvue's skin health and beauty division reporting a 7.3% year-over-year sales decline in Q1 2025, the largest drop among its business segments [6]. - The Chinese market is reshaping the competitive landscape, with domestic brands capturing a growing market share, accounting for 55.2% of total sales in 2024, up 2.9 percentage points year-over-year [11][24]. Group 4: Strategic Shifts - Major beauty companies are shifting from aggressive acquisition strategies to a focus on efficiency and value, as evidenced by their divestiture of underperforming brands [19][21]. - The trend reflects a broader industry consensus that emphasizes streamlining brand portfolios and concentrating on core assets to enhance competitiveness [19][26]. Group 5: Future Outlook - The ongoing sell-off trend is expected to continue as companies adapt to the compressed industry cycle and intensifying competition [26]. - The future of the beauty industry will likely revolve around establishing competitive advantages in areas such as cutting-edge biotechnology, unique ingredients, and robust consumer data operations [26].

Group 1 - Tmall's 618 event saw a significant increase in user scale and activity, with 453 brands achieving over 100 million yuan in sales, a 24% year-on-year growth [1] - High-value consumer group 88VIP members exceeded 50 million, marking a new high, while brand membership increased by 15%, with member average spending 1.93 times the overall industry average [1] - The home appliance and 3C digital sectors experienced explosive growth, with total sales for participating categories up 116% compared to last year's Double 11, and over 9,200 brands doubling their sales [1] Group 2 - Quality live streaming has become a new industry standard, with 81 live streaming rooms achieving over 100 million yuan in sales, and the number of live streaming rooms exceeding 10 million yuan increased by 21% year-on-year [2] - Emerging sectors such as trendy toys, jewelry, pets, and beverages are identified as high-growth trends during this year's Tmall 618 [3] - The event focused on quality improvement and efficiency, simplifying the shopping experience while supporting quality and original brands through various resources [3]

Core Viewpoint - Procter & Gamble (P&G) is initiating a two-year restructuring plan starting July 1, focusing on core brands and divesting non-core businesses, including a global layoff of 7,000 employees, approximately 15% of non-manufacturing positions [1][3][4] Restructuring Plan - The restructuring plan is P&G's largest adjustment in nearly a decade, aimed at addressing uncertainties in consumer behavior, increased competition, geopolitical unpredictability, and rapid technological changes [1][3] - Specific actions include exiting certain markets, divesting specific product categories and brands, and enhancing operational efficiency through digitalization and automation [3][4] - The plan will be detailed in the fiscal year 2025 meeting scheduled for July 2025 [1] Financial Performance - P&G's sales for the third quarter of fiscal year 2025 were $19.776 billion, a 2% year-over-year decline, with net profit remaining stable at approximately $3.77 billion [3][4] - The fabric and home care segment contributes the most to overall sales at 36%, followed by the baby and family care segment at 24% [1][7] Brand Focus - SK-II, a key brand in P&G's beauty segment, has seen sales declines in recent fiscal years, but recent price increases have led to a return to growth in the second and third quarters of fiscal year 2025 [4][5] - The beauty segment has faced challenges, with skincare sales declining over 20% in the first quarter of fiscal year 2025 [4][5] Market Positioning - P&G's restructuring is seen as a response to the need for efficiency and focus on core brands amid unpredictable external conditions [2][3] - The company is also facing competition from private label products and must adapt to the evolving digital landscape in China, where e-commerce sales grew by 9% in fiscal year 2024 [10][12] Leadership Changes - Recent leadership changes include the resignation of Colin Walsh, CEO of P&G's professional beauty division, and the appointment of new executives to address challenges in the Asia-Pacific region [6][7] - The restructuring may lead to further adjustments in the organizational structure, although specific details have not been disclosed [7] E-commerce Strategy - P&G is enhancing its e-commerce capabilities, particularly in China, where it aims to leverage local market dynamics and improve its digital presence [10][13] - The company is investing in platforms like Douyin to adapt its marketing strategies to the changing e-commerce landscape [13]

Core Viewpoint - The domestic beauty industry is expected to experience a new wave of mergers and acquisitions, highlighted by the acquisition of skincare brand Baizhicui by local beauty group Juyi Group, which aims to complement its existing beauty business [1][2]. Group 1: Acquisition Details - Juyi Group has signed an acquisition agreement with Baizhicui, although the specific price has not been disclosed [1]. - Baizhicui, founded in 2012 by dermatologist Li Yuanhong, has focused on product promotion through professional channels such as public hospitals [2]. - Post-acquisition, Li Yuanhong will continue as Chief Product Officer at Baizhicui, overseeing the entire product development process [2]. Group 2: Market Dynamics - The domestic beauty industry is experiencing "extreme polarization," with leading companies establishing competitive advantages while smaller brands face significant survival pressures [1][5]. - The acquisition strategy is seen as a viable path for leading companies, with a trend of "big fish eating small fish" expected to continue [5]. Group 3: Business Growth and Financials - Juyi Group's revenue reached 2.61 billion yuan in 2023, projected to grow to 3.5 billion yuan in 2024, marking a 36% year-on-year increase [6]. - The main brand, Judo, reportedly generated over 2 billion yuan in revenue, positioning it as a leading domestic color cosmetics brand [6]. - The acquisition of Baizhicui is anticipated to enhance Juyi's revenue, potentially exceeding 4 billion yuan this year [7]. Group 4: Strategic Implications - The acquisition aligns with Juyi Group's multi-brand strategy, expanding its presence in the color cosmetics, skincare, and hair care sectors [4]. - Industry experts suggest that the merger will provide Baizhicui with more resources and support to deepen its focus on sensitive skin products, while Juyi fills a gap in its skincare offerings [7]. - The ongoing trend of acquisitions and expansions is viewed as a strategic move to enhance market valuation and prepare for potential public listings in the future [7].

证券研究报告 点评报告 2025 年 6 月 19 日 晨会纪要 第一创业证券研究所 核[心Ta观bl点e_：Summary] 分析师：郭强 证书编号：S1080524120001 电话：0755-23838533 邮箱：guoqiang@fcsc.com 一、宏观经济组： 事件： 6 月 19 日（星期四）2 点，美联储公开市场委员会（FOMC）2025 年第四次议息会 议。 点评： 6 月 19 日凌晨 2 点，美联储公布了 2025 年的第四份利率决议。其中显示，有投 票权的 12 位 FOMC 委员全票通过，美联储决定将联邦基金利率区间维持在 4.25% —4.50%不变，这是美联储自去年 9 月开启降息周期以来再次暂停降息，符合市 场预期。 本次声明与 5 月相比，有两点不同：一是删掉了有关"经济前景的不确定性增加" 的说法，改成"不确定性已减弱但仍高"；二删掉了有关"失业和通胀均上升的 风险增加"的说法，重申"净出口波动影响数据但经济继续稳健扩张。" 请务必阅读正文后免责条款部分 第 1 页 共 5 页 晨会纪要 在点阵图中，以每次降息 25 个基点计算，与今年 3 月相比，19 位 FOMC 委 ...

Core Viewpoint - Coty Group is actively seeking buyers or considering a split sale of its high-end and mass beauty divisions, with negotiations still in early stages. The potential transaction may take the form of a split rather than a complete sale, with strategic partnerships or mergers being more likely than traditional acquisitions [4]. Financial Performance - For the third quarter of fiscal year 2025, Coty Group reported net revenue of $1.2991 billion, a year-on-year decline of 6.24%, and a loss of $402 million. For the first three quarters of fiscal year 2025, net revenue was $4.6405 billion, down 2.4%, with a loss of $280.9 million [5]. - The financial struggles indicate that the news of potential sales is not unfounded, as many international beauty brands are facing cash flow pressures, including Coty [5]. Brand Portfolio and Risks - Coty Group's high-end beauty division includes brands like Burberry, while its mass beauty division includes Covergirl, Max Factor, and Rimmel. The company faces risks of losing licensing rights for several brands, such as Miu Miu, which will end its contract with Coty in 2024 [4][6]. - The high-end beauty division generates over 60% of Coty's revenue, with Gucci being a significant contributor. However, the licensing agreement for Gucci is set to expire in 2028, and the parent company, Kering, has indicated intentions to reclaim the brand [6]. Strategic Adjustments - Experts suggest that losing Gucci will impact Coty's brand structure and performance in the high-end market. However, Coty is expected to make strategic adjustments to seek more competitive and promising brands to maintain its market position [7]. - Coty is also attempting to mitigate risks by launching its own fragrance brand, Infiniment Coty Paris, which is seen as a significant initiative to create a new era in fragrances and scents [7].

Core Viewpoint - The recent debate in the medical beauty industry regarding "recombinant collagen" has led to significant stock price fluctuations for leading companies, particularly Huaxi Biological and Juzhi Biological, with Huaxi denying any "business war" motives behind its actions [1][5]. Group 1: Market Reactions and Company Performance - From May 24 to June 18, Huaxi Biological's stock price increased by 23.65%, while Juzhi Biological's stock price fell by over 31% during the same period [1]. - As of June 18, Juzhi Biological's market capitalization was approximately 514 billion RMB, while Huaxi Biological's market capitalization was 245 billion RMB, less than half of Juzhi's [1]. Group 2: Opposition to "Name Games" - Huaxi Biological firmly opposes the "name game" in ingredient labeling, arguing that the capital market's concept switching has led to misunderstandings about hyaluronic acid and recombinant collagen, affecting the business environment and causing resource misallocation [2][3]. - The company emphasizes that recombinant collagen is only a small part of collagen research and that the leading edge of protein research remains with life science institutions and pharmaceutical companies [3]. Group 3: Industry Standards and Scientific Communication - Huaxi Biological highlights that no medical beauty Class III device certificates based on recombinant collagen have been approved internationally, indicating that this field requires more time for practical observation [3]. - The company plans to enhance professional communication with the capital market, noting that many analysts lack a biological background and often misinterpret the relationship between hyaluronic acid and collagen [4]. Group 4: Denial of Business War Claims - Huaxi Biological denies rumors that its recent actions are motivated by a "business war" due to pressure on its hyaluronic acid business and competition losses in recombinant collagen [5][6]. - The company asserts that its business has not been under pressure as claimed, with hyaluronic acid business growing over 10% annually and medical-grade hyaluronic acid growing over 20% [6]. Group 5: Consumer Trust and Market Integrity - Huaxi Biological argues that consumer trust in domestic brands should not be built on the misuse of academic concepts and misleading marketing practices, which could distort the business ecosystem and lead to resource misallocation [7]. - The company calls for industry-wide participation in product testing and standard discussions to enhance understanding and eliminate industry bubbles and misconceptions [7]. Group 6: Timeline of Events - The controversy began in mid-May when Huaxi Biological questioned several brokerage reports that promoted recombinant collagen and criticized hyaluronic acid [8]. - On May 24, beauty blogger "Big Mouth Doctor" Hao Yu publicly questioned the collagen content in Juzhi Biological's products, leading to further disputes [9][10].

Core Viewpoint - Coty is exploring the possibility of splitting and selling its high-end and mass beauty divisions, which could lead to a merger and acquisition scale of hundreds of billions to trillions of yuan, potentially reshaping the global beauty industry [1][4]. Company Overview - Founded in 1904 in Paris, Coty has developed a strong brand portfolio, including luxury brands like GUCCI and Burberry, and has grown to be one of the top ten beauty companies globally [2][4]. - Coty operates over 50 fragrance and beauty brands, divided into high-end and mass segments, with high-end beauty generating 277 billion yuan and mass beauty generating 162 billion yuan in revenue for the fiscal year 2024 [1][4]. Financial Performance - Coty's revenue for fiscal year 2024 was 439 billion yuan, reflecting a 10% increase from the previous year, but the company has faced significant fluctuations in performance [9]. - The company reported a net revenue decline of 2% to 333.3 billion yuan for the first three quarters of fiscal year 2025, with a net loss of 22.2 billion yuan [9][10]. Market Dynamics - The global beauty industry is undergoing significant challenges, including market growth slowdown and increased competition from emerging DTC brands, particularly affecting mass beauty brands [4][12]. - Coty is facing difficulties in finding suitable buyers for its mass beauty division, especially in Asia, due to economic slowdowns and trade tensions with the U.S. [5][4]. Strategic Moves - Coty is in discussions with Interparfums regarding the sale of its high-end beauty business, particularly brands like Burberry and Hugo Boss, which have shown strong growth [4][10]. - The company has initiated a transformation plan aimed at streamlining operations and focusing on key business innovations, with an expected savings of nearly 36 billion yuan between fiscal years 2025 and 2027 [12]. Industry Trends - The beauty industry is witnessing a shift towards high-end and luxury products, with major players like Shiseido and Unilever restructuring to enhance operational efficiency [12][14]. - Coty’s historical capital-driven development and frequent ownership changes have influenced its current strategy to seek a sale [11][12].