Core Insights - The company reported a revenue of 1.3 billion yuan for Q1-Q3 2025, a year-on-year decline of 11.5%, and a net profit attributable to shareholders of 330 million yuan, down 36.7% year-on-year [1] - In Q3 alone, the company achieved a revenue of 430 million yuan, a decrease of 17.6% year-on-year, with a net profit of 95.39 million yuan, down 45% year-on-year [2] Financial Performance - The gross profit margin decreased by 1.7 percentage points to 80.4% year-on-year [2] - The sales expense ratio increased by 10 percentage points to 46.3% year-on-year [2] - The management expense ratio rose by 2 percentage points to 5.4% year-on-year [2] - Financial surplus narrowed by 2.4 percentage points due to reduced interest income during the reporting period [2] Product and Channel Strategy - The company focuses on balanced development in medical devices and functional skincare products, launching various new products such as whitening masks and anti-wrinkle masks [2] - The company emphasizes coordinated development of online and offline channels, actively exploring new online platforms and optimizing offline distribution models [2] - Continuous investment in research and development is being made to lay a foundation for long-term growth [2] Investment Outlook - The company is undergoing business adjustments and increasing R&D investments, particularly in Class II and III medical devices [3] - The focus is on expanding the product line and advancing the development of skin improvement and injection filling medical devices [3] - Future revenue and profitability stabilization is anticipated with the formation of core product repurchase and the gradual establishment of e-commerce channel methodologies [3] - Expected EPS for 2025-2027 is projected to be 0.83, 0.89, and 0.94 yuan per share, maintaining a "buy" rating [3]

Investment Rating - The investment rating for the company is "Accumulate" and is maintained [6]. Core Views - The company reported a revenue of 1.3 billion yuan for Q1-Q3 2025, a year-on-year decline of 11.5%, and a net profit attributable to shareholders of 330 million yuan, down 36.7% year-on-year. In Q3 alone, revenue was 430 million yuan, a decrease of 17.6%, with a net profit of 95.39 million yuan, down 45% year-on-year [2][4][10]. - The decline in performance is attributed to several factors, including a drop in gross margin by 1.7 percentage points to 80.4%, an increase in sales expense ratio by 10 percentage points to 46.3%, and a rise in management expense ratio by 2 percentage points to 5.4% [10]. - The company is focusing on balanced development between medical devices and functional skincare products, launching various new products to meet consumer demand. It is also enhancing its channel management and support systems to improve operational efficiency and profitability [10]. Financial Performance - For the fiscal year 2025, the company expects earnings per share (EPS) to be 0.83 yuan, 0.89 yuan, and 0.94 yuan for the years 2025, 2026, and 2027 respectively [10]. - The projected total revenue for 2025 is estimated at 2.017 billion yuan, with a net profit of 429 million yuan [15]. - The company’s net profit margin is projected to stabilize, supported by core product repurchase and the gradual establishment of e-commerce channel methodologies [10].

Core Insights - The company, Fulejia, reported strong sales performance for its lactose acid masks in the first half of the year, aligning with its expectations [2] Company Summary - Fulejia announced on September 23 that the sales data for its lactose acid masks was very positive, meeting the company's forecasts [2]

Group 1: Sales Performance - The company's sales channel optimization has shown significant progress, with a 86.68% increase in revenue from Q1 to Q2 2025, indicating a recovery trend that aligns with company expectations [1] - The lactose acid mask launched in August last year has performed very well in sales during the first half of 2025, meeting company expectations [2] Group 2: Product Structure and Development - The company's product range includes medical devices and functional skincare products, featuring various forms such as masks, essences, lotions, and sprays [1] - The company has a robust pipeline of research projects, with ongoing efforts to enhance R&D capabilities following the establishment of a new R&D center in Shanghai [2] Group 3: Online Sales Channels - JD.com has emerged as a strong online sales channel, with the company enhancing its collaboration with JD to diversify product offerings and implement new promotional strategies, resulting in notable growth on the platform [2] Group 4: Future Plans - The company plans to continue launching new products in the upcoming quarters, with specific details to be announced in future communications [2] - Dividend arrangements for the third quarter are still under consideration, with updates to be provided through official announcements [2]