Core Viewpoint - The article discusses the establishment of Shangcheng (Shanghai) Enterprise Development Co., Ltd., which aims to create a "smart manufacturing ecosystem" for daily chemical products, aligning with the theme of the 2025 Oriental Beauty Valley International Cosmetics Conference, "Moving Towards New, Beauty Coexists" [2][6][20]. Company Overview - Shangcheng was founded in 2024, with Shanghai Chengxing Machinery Electronics Co., Ltd. holding 60% and Guangzhou Tashan Zhiyu Industrial Holdings Co., Ltd. holding 40% [6]. - The company focuses on four core areas: research and development of daily chemical equipment, cosmetics production and sales, brand operation management, and software services, aiming to create an integrated ecosystem [6][11]. Industry Context - The 2025 Oriental Beauty Valley International Cosmetics Conference highlighted the importance of industry collaboration for high-quality development in the cosmetics sector [6]. - The establishment of Shangcheng reflects a response to unmet needs in the industry, particularly in addressing the challenges brands face when considering self-built factories [4][11]. Business Model - Shangcheng's business model is centered on building a "smart manufacturing ecosystem" that provides comprehensive solutions, including brand incubation, production, team training, warehousing, logistics, and information support [11][12]. - The company offers three differentiated service models: 1. "Shared Production Base" allows brands to operate in Shangcheng's facilities before investing in their own factories [11]. 2. "Capacity Elastic Support" provides temporary production resources to brands facing short-term order peaks [12]. 3. Comprehensive support services reduce coordination costs for clients [12]. Project Development - The "Smart Manufacturing Base for Daily Chemical Equipment" project was launched in November 2025, with a total investment of 240 million yuan and covering an area of 35 acres [12][14]. - The base will include five core areas: smart manufacturing center, R&D innovation platform, information service platform, brand operation and marketing center, and talent training center [14]. Growth Expectations - Shangcheng anticipates an average annual growth rate of around 15% over the next three years, leveraging the existing customer base and reputation of its parent company, Chengxing [19]. - The company aims to convert traditional equipment clients into users of its comprehensive service ecosystem while expanding into new OEM and brand operation businesses [19]. Challenges and Market Dynamics - The company faces significant competition in the market, with a need for differentiation due to the high level of service homogeneity and oversupply [19]. - The success of Shangcheng's ecosystem model will depend on its ability to integrate into the broader regional industrial ecosystem and collaborate with various stakeholders in the Oriental Beauty Valley [20].