Core Viewpoint - The traditional skill of "shearing sheep wool" has led to the emergence of a new industry in Lu Yi County, Henan, with an annual output value exceeding 10 billion yuan, establishing it as the "City of Makeup Brushes in China" [1][2] Industry Overview - The local economy has shifted from viewing sheep tail hair as waste to recognizing it as a valuable raw material for makeup brushes, leading to the establishment of a thriving industry [2] - Lu Yi County produces 150 million sets of various makeup brushes annually, accounting for over 90% of the national export volume and 95% of global animal hair used in makeup brushes [2] Company Development - In 2019, local entrepreneurs identified the need to pivot from traditional foreign trade to building their own brands, leading to the establishment of a makeup brush factory in Lu Yi [3] - The company initially struggled with market acceptance and product positioning, realizing the necessity for localization in product design and pricing strategies [4] Market Strategy - The company adopted a new sales strategy by entering the Pinduoduo platform, focusing on product differentiation and rapid new product launches to enhance market presence [5] - A combination product featuring 13 makeup brushes became a bestseller, achieving daily sales of 2,000 units and total sales exceeding 800,000 sets [6] Employment and Community Impact - The company has created numerous job opportunities, particularly for local mothers, allowing them to balance work and family responsibilities [7] - Collaboration with over 100 local farmers has enabled home-based production, providing stable income for those unable to work outside [8] Future Aspirations - The company aims to further develop its production capabilities and establish a benchmark brand representing the quality of Lu Yi [8]

Core Viewpoint - Shangyang Technology plans to delist from the New Third Board to focus on production operations, improve efficiency, and reduce operational costs, despite facing a decline in revenue and net profit in the first half of the year [1][2][3]. Company Overview - Shangyang Technology, established in July 2005, specializes in the design, production, and sales of cosmetic tools, and has developed a competitive advantage in the makeup brush segment [2]. - The company has established long-term partnerships with major cosmetic brands such as L'Oréal and Sephora [2]. Financial Performance - In the first half of the year, Shangyang Technology reported a 19.28% decrease in revenue to approximately 107 million yuan, and a 29.07% decline in net profit to about 14.59 million yuan [3]. - The main revenue source, cosmetic tools, generated 102.49 million yuan, down 20.96% year-on-year, accounting for over 95% of total revenue [5]. - The gross margin for cosmetic tools decreased by 1.29% to 32% [5]. Product Segmentation - Revenue from other products increased by 89.64%, but the cost surged by 287.15%, leading to a gross margin drop to -31.12% [5]. - Revenue from blister packaging grew by 30.9% to approximately 3.46 million yuan, with a gross margin of about 13.73% [5]. Customer Concentration - The top five customers accounted for approximately 84.9% of revenue, with Sephora being the largest customer, contributing about 56.47% of total sales [6]. - The revenue concentration among the top five customers increased to 85.22% in the first half of the year [6]. International Expansion - Shangyang Technology is focusing on expanding its own brand internationally, with plans to establish a manufacturing facility in Indonesia and a subsidiary in New York for promoting its own brand products [11]. - The company aims to tap into the Asia-Pacific market and enhance its e-commerce sales in the U.S. [11].