Market Overview - The foundation makeup market is leading in growth within the cosmetics sector, with a market size of 52.6 billion yuan in 2023, projected to reach 61 billion yuan by 2025 [1][2] - Domestic brands such as Huaxizi and Perfect Diary are performing exceptionally well, targeting primarily young female consumers under 26.55 years old, with a significant proportion having oily skin [1][2] Consumer Trends - The demand for long-lasting makeup technology is a core selling point, with stable year-round demand for long-wear foundation products. Brands like Mary Dajia are leveraging innovative marketing strategies to boost sales [1][2] - The rise of functional foundations that integrate skincare and sun protection features is notable, with 51% of sun-protective foundations falling under the isolation/pre-makeup category [1][2] - There is a growing preference for simplified makeup routines, with products like tinted moisturizers gaining popularity among consumers seeking efficiency and natural finishes [1][2] Regulatory Environment - The National Medical Products Administration is enhancing ingredient safety and regulation of children's cosmetics, promoting standardized development within the industry [1][2] Product Category Dynamics - Traditional categories such as foundation and cushion still dominate, but pre-makeup, concealers, and setting sprays are experiencing rapid growth, with increases of 13%, 16%, and 5% respectively [2] - The price range for foundation products is concentrated between 0-300 yuan, with 61% of sales in the 0-100 yuan segment, indicating a strong preference for economical options [2][27] Brand Performance - International brands lead the foundation market, with top rankings for brands like CPB, YSL, and NARS, while domestic brands like Huaxizi are also gaining traction [32][31] - The market is characterized by a high demand for products that offer durability, adherence, and a natural finish, prompting brands to enhance their product performance to meet consumer expectations [29]

Core Viewpoint - Yatsen Holding Ltd. is experiencing a turnaround, driven primarily by a significant increase in skincare product revenue, marking a shift from its previous focus on color cosmetics [2][3][4]. Financial Performance - Yatsen reported a 7.8% year-on-year increase in first-quarter revenue, reaching 833.5 million yuan ($114.9 million), compared to 773.4 million yuan in the same quarter of 2024 [3][4]. - The company's net loss narrowed by 95.5% to 5.6 million yuan from 124.9 million yuan year-on-year, indicating improved financial health [3][4]. - Skincare revenue surged 47.4% year-on-year to 362.4 million yuan, increasing its share of total revenue to 43.5% from 31.7% a year earlier [4][8]. Market Position and Strategy - Yatsen's skincare segment is positioned as the fastest-growing area within China's 400 billion yuan beauty market, with skincare projected to reach over 700 billion yuan by 2028 [10]. - The company has invested heavily in R&D, filing 240 patents, primarily for skincare products, which has contributed to its recent success [3][4]. - Yatsen's market share in China's cosmetics market is currently only 1%, indicating significant room for growth [13]. Competitive Landscape - Yatsen's price-to-sales ratio (P/S) of 0.99 is significantly lower than that of profitable competitors like Shanghai Chicmax (3.88) and Proya Cosmetics (3.11) [6]. - The company has added several skincare brands to its portfolio, including DR. WU and Eve Lom, to enhance its market presence [9]. Consumer Trends - Chinese consumers are increasingly focused on skincare, particularly anti-aging and skin whitening products, which are perceived as essential rather than luxury items [11][14]. - The demand for innovative products is high among Chinese consumers, who are looking for value rather than just low prices [14].

Core Viewpoint - The upcoming IPO of Gu Yu, a domestic beauty brand, highlights the changing dynamics in the Chinese beauty industry, shifting from a focus on GMV growth to customer lifetime value as investors become more discerning [1][16]. Industry Overview - The domestic beauty industry has experienced significant fluctuations over the past decade, transitioning from a period of rapid growth to a more rational market environment [1][5]. - The rise of brands like Perfect Diary and Huaxizi was fueled by social media, reaching a peak between 2020 and 2021, but the market soon recognized the unsustainability of the "traffic equals brand" model, leading to a decline starting in 2022 [2][5]. Financial Performance - In 2022, the beauty and personal care industry saw a dramatic drop in financing, with 74 investment events totaling approximately 7.949 billion yuan, a year-on-year decrease of 72.88% [5]. - Recent financial reports indicate that companies like Beitaini and Huaxi Biological have faced declining revenues and profits, with Beitaini's net profit dropping by 33.53% year-on-year [5][6]. Gu Yu's Growth Strategy - Gu Yu has achieved explosive growth in GMV, surpassing 5 billion yuan in 2024, with a year-on-year growth rate exceeding 40% [10]. - The brand has effectively utilized major social media platforms for marketing, starting with Taobao Live in 2016 and expanding to platforms like Xiaohongshu, Kuaishou, and Douyin [7][9]. Challenges and Risks - Gu Yu's reliance on a marketing-driven growth strategy mirrors that of earlier successful brands, raising concerns about profitability as marketing costs rise and consumer loyalty wanes [11][12]. - The brand faces significant challenges in product differentiation and market competition, particularly in the essence category where it primarily generates revenue [11][12]. Market Dynamics - The beauty industry is witnessing a shift in focus from traffic-driven growth to sustainable business models, emphasizing profitability and customer retention [16][18]. - The competitive landscape is intensifying, with new customer acquisition costs rising and customer lifetime value decreasing, leading to lower repurchase rates [18][20]. Regulatory Environment - Stricter regulations in the beauty industry, particularly regarding marketing claims, are expected to impact smaller brands that rely heavily on concept marketing [22]. - The evolving consumer preferences among younger generations indicate a shift towards valuing product efficacy over brand popularity, challenging traditional marketing strategies [22]. Conclusion - Gu Yu's IPO represents a critical moment for the domestic beauty industry, as it must navigate the transition from a focus on rapid growth to establishing a sustainable business model that can withstand market pressures and changing consumer expectations [23].

Core Points - United-Guardian, Inc. has appointed Donna Vigilante as a new director on its Board of Directors, highlighting her extensive experience with the company over the past 20 years [1] - Ms. Vigilante holds a Bachelor of Science degree in biochemistry and has previously served as Vice President and Manager of R&D and microbiology departments, overseeing the development of new products [1] - The company is implementing new initiatives focused on global marketing and distribution of cosmetic ingredients, as well as increasing sales of medical and pharmaceutical products [2] Company Overview - United-Guardian, Inc. is a manufacturer of cosmetic ingredients, pharmaceuticals, medical lubricants, and sexual wellness ingredients [1] - The company is emphasizing a renewed focus on its product lines, particularly in the areas of medical and pharmaceutical products [2] Leadership Insights - Donna Vigilante expressed her excitement about her appointment and the confidence shown by the Board, indicating a positive outlook for the company's future [2] - The management team is enthusiastic about the significant changes being made in the company's marketing and distribution strategies [2]

2 0 2 5年5月1 0日，哈尔滨的大街上铺满春末夏初的阳光，气温攀升至2 0℃，这座曾被冰雪定义 的北方城市，此刻正因一场"会议"而沸腾。 由北京茉颜定制生物科技有限公司（以下简称：茉颜）携手北京工商大学和哈尔滨举人商贸举 行的"向未来・赋新生"AI美妆定制北区品牌发布会，吸引了黑龙江省近百名店主出席。当场 有数十名店主签约，其中包括媗扬化妆品、橡果国际、小小样、华洋化妆品、大猫妈妈等区域 知名连锁系统。 这一天，恰逢第九个中国品牌日，却可能因这场"企业+高校+代理商"的跨界融合而被历史标 注为AI私人定制化妆品在线下渠道落地生根，开启新时代的特殊日子。 在个性化需求愈加显现的当下，定制化妆品正在全球市场显现出巨大的发展潜力。 据欧睿国际（Eu r omo n it o r）数据，2 0 1 5年以来全球个性化/定制化美容产品销售额年均增速 达6%，远超整体美妆市场3%的增速。 相关数据显示，2 0 2 2年全球定制化妆品的市场规模就已经达到2 7 3 4亿元，预计2 0 2 8年将突破 5 0 0 0亿元。 小红书上和"量肤定制一肤一方"相关的话题也在持续飙升，截止2 0 2 5年5月初，相关笔记总数 ...

Core Insights - The phenomenon of low pricing and diversion in channels is a common issue in brand development, which can be transformed into an opportunity for optimizing channel management [1] - Low pricing is not entirely negative; a reasonable low pricing strategy can quickly attract traffic and open new markets, serving as a leverage to attract quality distributors [1][3] - Brands need to establish a systematic governance framework to turn crises into opportunities for enhancing channel resilience [1][7] Pricing Dynamics - Low pricing reflects the direct relationship between market supply and demand, requiring brands to analyze its dual attributes [3] - Controlled low pricing strategies, such as limited-time promotions, can help brands penetrate lower-tier markets effectively [3] - Uncontrolled low pricing can create a "price black hole," eroding brand premium capabilities, as evidenced by a high-end cosmetics brand experiencing a 22% year-on-year decline in sales due to unmanaged low-priced goods [3] Governance Framework - The core of low pricing governance lies in establishing a comprehensive management framework that includes monitoring, analysis, intervention, and review [3][5] - An example is the AI monitoring system developed by Liwei Network, which scans over 5 million product links daily to identify abnormal low prices across various platforms [3][5] - The analysis phase involves grading low pricing incidents based on severity, duration, and sales scale, allowing for tailored responses to different types of violations [5] Legal and Technical Integration - Effective low pricing governance requires a combination of legal, technical, and commercial strategies [5] - Utilizing blockchain technology for product traceability and enhancing contract terms to link price control with distributor incentives are key strategies [5] - A white liquor brand successfully tracked diversion paths using RFID chips, imposing penalties on violators to curb diversion [5] Incentive Mechanisms - Brands should establish positive incentive mechanisms, such as a "price maintenance reward fund," to encourage compliance among distributors [5][7] - Successful low pricing promotional activities should be standardized and promoted across all channels to enhance market order [5][7] Sustainable Channel Ecosystem - The ultimate goal of low pricing governance is to build a sustainable channel ecosystem, integrating price control into strategic management [7] - Regular channel management review meetings should be held to analyze the root causes of low pricing, such as inventory issues or competitive pressures [7] - Collaborating with third-party agencies can provide technical support and trend forecasting based on industry data, helping brands to preemptively address pricing war risks [7]

Core Viewpoint - The 29th CBE China Beauty Expo showcases over 3,200 cosmetic companies from more than 40 countries, featuring over 10,000 beauty brands and 80,000 new products, highlighting innovation and trends in the beauty industry [1]. Group 1: New Product Launches and Innovations - Majili presents a skincare gift set suitable for all skin types, including a hydrating essence and a whitening serum with patented ingredients aimed at enhancing skin brightness and combating melanin production [3][5]. - Natural Hall Group emphasizes the importance of domestic raw material innovation, showcasing over 20 self-developed cosmetic ingredients inspired by Himalayan resources, aiming to enhance product quality and sustainability [6][8]. - YOSEIDO introduces a proprietary ingredient, FerSivi®, derived from high-level fungi, which is used in their new winter essence, replacing water in formulations with fermented birch juice to enhance efficacy [10][12]. Group 2: Technological Advancements in Skincare - Zhenyan Biotech showcases its patented recombinant mussel adhesive protein, which forms a protective film on the skin, aiding in recovery from damage [16][18]. - Quadha, a brand under Huaxi Biotech, presents its CT50 anti-aging technology, which operates at the cellular level to enhance skin rejuvenation, supported by significant clinical data [20][22]. Group 3: Sunscreen and Skin Protection Innovations - MISTINE highlights its new sunscreen products, including a research-based whitening essence and a cushion foundation, focusing on advanced protective technologies [26][29]. - The brand also introduces a unique light biology-based protective system, validated by multiple scientific publications and patents, enhancing its competitive edge in the market [28][29].

Core Insights - The Southeast Asian beauty market is seen as a promising opportunity for growth, especially for Chinese brands like Colorkey, which has established a strong presence in Vietnam [2][5][8] - Colorkey's success in Vietnam is attributed to its understanding of local consumer preferences and effective use of social media platforms like TikTok for marketing [5][13][18] - The competitive landscape in Southeast Asia is characterized by a mix of local players and international brands, making brand recognition and consumer loyalty crucial for sustained growth [4][16][19] Market Dynamics - The beauty market in Southeast Asia is less saturated compared to China, allowing for easier entry and growth for brands [2][4] - Local consumer preferences differ significantly from those in China, with a preference for lighter, more vibrant makeup products [3][4] - The average purchase price for beauty products in Southeast Asia is lower, which aligns well with the cost advantages of Chinese manufacturers [10] Business Strategies - Colorkey initially entered the Southeast Asian market through cross-border e-commerce, which allowed for low investment and rapid testing of products [3][4] - To scale operations, Colorkey is shifting towards local warehousing and distribution to improve logistics and reduce costs [4][5] - The company plans to establish a comprehensive sales network, including both online and offline channels, to enhance market penetration [15][19] Competitive Landscape - Chinese beauty brands are gaining market share in Southeast Asia, with significant growth rates reported [8][10] - International brands like L'Oréal and Maybelline still dominate the market, but local Chinese brands are increasingly recognized for their value [7][10] - The competition is intensifying, with established international brands having a strong foothold and local adaptation strategies [19] Future Outlook - The Southeast Asian beauty market is expected to continue growing, driven by a young population and increasing beauty product usage [16] - However, brands must focus on building long-term relationships with consumers rather than seeking quick profits to succeed in this market [16][19] - The importance of localizing products and marketing strategies to align with consumer preferences is emphasized for sustained success [19]

Financial Data and Key Metrics Changes - Total net revenues for Q1 2025 increased by 7.8% year over year to RMB 833.5 million from RMB 773.4 million in the prior year period [16] - Gross profit for Q1 2025 increased by 9.7% to RMB 659.1 million, with gross margin rising to 79.1% from 77.7% in the prior year [17][18] - Non-GAAP net income for Q1 2025 was RMB 7.1 million, a significant turnaround from a non-GAAP net loss of RMB 83.8 million in the prior year [22] - Net loss for Q1 2025 was RMB 5.6 million, compared to RMB 124.9 million in the prior year, with a net loss margin of 0.7% versus 16.1% [22] Business Line Data and Key Metrics Changes - Net revenues from skincare brands rose by 47.7% year over year, while net revenues from color cosmetics brands decreased by 9.9% [16][17] - Selling and marketing expenses as a percentage of total net revenues decreased to 66.4% from 69.7% in the prior year, reflecting more strategic marketing spending [19] - General and administrative expenses as a percentage of total net revenues decreased to 7.8% from 18.1% in the prior year, attributed to lower share-based compensation and payroll expenses [20] Market Data and Key Metrics Changes - The beauty market in China saw a modest growth of 3.2% year over year, slightly trailing the 4.6% growth in total retail sales of consumer goods [5] - Combined beauty sales on Q1 and Douyin recorded low double-digit year-over-year growth, with Douyin outperforming Tmall in both skincare and color cosmetics categories [6] Company Strategy and Development Direction - The company is focused on accelerating growth for skincare brands and optimizing cost structure to prepare for profitable growth [8] - A new share repurchase program was approved, allowing the company to repurchase up to RMB 30 million worth of ordinary shares over the next 24 months, demonstrating confidence in future potential [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed encouragement regarding the progress made in executing strategic transformation despite complex market conditions [15] - The company expects total net revenues for Q2 2025 to be between RMB 810.4 million and RMB 889.9 million, representing a year-over-year increase of approximately 2% to 12% [23] Other Important Information - The company launched the third Bocawu Acne Research Fund project, which has reached over 20,000 doctors and received more than 350 clinical research proposals [12] - The global R&D center in Shanghai was accredited by the China National Accreditation Service, reinforcing the company's commitment to excellence in beauty research [14] Q&A Session Summary Question: How does the company plan to promote new products of Perfect Diary and Ganik? - The company emphasized that product innovation and efficacy are crucial for driving repeat purchases, with strong initial consumer feedback on new products [27] Question: How is the performance of the June 18 shopping festival so far? - Management indicated that it is still early to predict overall performance, but sales are currently in line with expectations [29]

Financial Data and Key Metrics Changes - Total net revenues for Q1 2025 increased by 7.8% to RMB 833.5 million from RMB 773.4 million in the prior year period, primarily due to a 47.7% year-over-year increase in net revenues from skincare brands [15][21] - Gross profit for Q1 2025 increased by 9.7% to RMB 659.1 million from RMB 600.9 million, with gross margin rising to 79.1% from 77.7% [15][16] - The net loss for Q1 2025 was RMB 5.6 million, a significant improvement from RMB 124.9 million in the prior year, resulting in a net loss margin of 0.7% compared to 16.1% [21][22] Business Line Data and Key Metrics Changes - Skincare brands achieved a remarkable revenue growth of 47.7% year-over-year, while color cosmetics brands saw a decline of 9.9% [15][21] - Selling and marketing expenses as a percentage of total net revenues decreased to 66.4% from 69.7%, reflecting more strategic marketing spending [18][19] - General and administrative expenses as a percentage of total net revenues decreased to 7.8% from 18.1%, attributed to lower share-based compensation and reduced headcount [19] Market Data and Key Metrics Changes - The beauty market in China saw a modest growth of 3.2% year-over-year in retail sales, slightly trailing the 4.6% growth in total retail sales of consumer goods [5][6] - Online beauty sales mirrored this trend, with combined beauty sales on Q1 and Douyin recording low double-digit year-over-year growth [6] Company Strategy and Development Direction - The company is focused on accelerating growth for skincare brands and optimizing cost structures to prepare for profitable growth [7][14] - A new share repurchase program was approved, allowing the company to repurchase up to RMB 30 million worth of ordinary shares over the next 24 months, indicating confidence in future potential [13][14] - Continued investment in R&D is emphasized as a core competitive advantage, with a global R&D center in Shanghai receiving accreditation [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed encouragement regarding the progress made in executing strategic transformation despite complex market conditions [14] - For Q2 2025, the company expects total net revenues to be between RMB 810.4 million and RMB 889.9 million, representing a year-over-year increase of approximately 2% to 12% [22] Other Important Information - The company hosted an offline event to launch an upgraded product, enhancing brand awareness through targeted marketing efforts [9][10] - The company is committed to scientific research, having launched an acne research fund project that has reached over 20,000 doctors [11] Q&A Session Summary Question: How does the company plan to promote new products of Perfect Diary and Ganik? - The company emphasizes product innovation and efficacy as key drivers for consumer repeat purchases, with strong initial feedback on new products [25][26] Question: How is the performance of the June 18 shopping festival so far? - Management indicated that it is still early to predict overall performance, but initial sales are in line with expectations [28]