Core Viewpoint - The company is undergoing a strategic transformation from a traditional internet medical beauty platform to a more controllable and growth-oriented offline light medical beauty chain model, which has become its primary revenue source despite facing challenges in its traditional business [1][4][7]. Financial Performance - In Q2, the company reported total revenue of 379 million RMB, a year-on-year decline of 7.0%, with a net loss of 36 million RMB. However, the stock price had increased over fivefold prior to the earnings announcement [1][3]. - The traditional information and reservation services segment generated revenue of 135 million RMB, down 35.6% year-on-year, while the aesthetic treatment services segment saw revenue of 144 million RMB, up 426.1% year-on-year, becoming the largest revenue contributor [4][5]. Strategic Transformation - The company is shifting from a "traffic broker" model to an "industry landlord" model, focusing on offline chain operations, which has led to a significant increase in revenue from light medical beauty services [6][7]. - The rapid growth of the offline chain business has largely offset the decline in traditional business, indicating a successful transition to a new growth engine [7][8]. Business Model and Competitive Advantage - The company has established a comprehensive business model combining "platform + supply chain + stores," creating a closed-loop system that enhances customer acquisition, operational efficiency, and service delivery [10][19]. - The company has built a large private traffic pool, allowing for lower customer acquisition costs compared to industry averages, which supports the expansion of its offline chain business [10][11]. Market Potential - The light medical beauty market in China is projected to grow from 176 billion RMB in 2023 to over 258 billion RMB by 2025, with a compound annual growth rate exceeding 20% [26][29]. - As a leading player in the industry, the company is well-positioned to capitalize on this growth, with plans to expand its store count significantly in the coming years [29]. Future Outlook - The company is expected to achieve a positive cash flow from its 25 stores, indicating a clear path to profitability as it continues to scale its operations [24][25]. - The ongoing digital transformation and integration of AI technologies are anticipated to enhance operational efficiency and service quality, further solidifying the company's competitive edge [25][26].

Financial Performance - New Oxygen (SY.US) reported Q2 revenue of 378.7 million RMB, a year-on-year decrease of 7.0%, exceeding market expectations [1] - The company posted a net loss of 36 million RMB, compared to a net profit of 18.9 million RMB in the same period last year [1] - The loss per ADS was 0.35 RMB, down from a profit of 0.18 RMB per ADS in the previous year [1] Revenue Breakdown - Revenue from beauty treatment services was 144.4 million RMB, a significant year-on-year increase of 426.1% [1] - Revenue from information and booking services was 135.2 million RMB, a year-on-year decrease of 35.6% [1] - Sales from medical products and maintenance services were 76 million RMB, down 28.1% year-on-year [1] - Other service income decreased by 64.0% to 23.2 million RMB [1] User Engagement - The total transaction volume facilitated by New Oxygen's platform for medical beauty was 303.9 million RMB, compared to 427.8 million RMB in the same period of 2024 [1] - The number of active users exceeded 100,400, a significant increase from approximately 16,000 in the previous year [2] - The company operates 29 fully operational brand aesthetic centers across nine major cities, with 25 centers achieving positive monthly operating cash flow [2] Future Guidance - For Q3 2025, New Oxygen expects revenue from beauty treatment services to be between 150 million and 170 million RMB, representing a year-on-year growth of 230.5% to 274.6% [3]