Core Insights - The article discusses the shift in celebrity endorsement dynamics, particularly focusing on Yang Zi's recent entry into the personal care market with her endorsement of the Yangyuanqing hair care series, which has gained traction due to its affordable pricing and backing from Yunnan Baiyao technology [1][3]. Group 1: Market Dynamics - The incident surrounding MK brand's endorsement crisis highlighted a change in consumer expectations, where the logic of celebrity endorsements has shifted from "traffic is king" to "value co-existence" as Gen Z becomes the main consumer force [1]. - Yang Zi's live streaming event showcased a significant sales boost, with the Yangyuanqing shampoo selling out within an hour and overall sales for the brand's product lines increasing by 470% year-on-year [3]. Group 2: Audience Engagement - The live stream revealed a generational divide in audience engagement, with younger fans focusing on Yang Zi's appearance while older consumers inquired about product safety and suitability for children, indicating a broader audience appeal and the importance of product efficacy [5]. - The live demonstration of a "three-second hair drying" experiment attracted over 8 million viewers, setting a new record for live streaming in the personal care category [5]. Group 3: Social Impact - The event sparked a social initiative by the China Youth Development Foundation, promoting the message of "rejecting appearance anxiety," which aligns with Yang Zi's statement that "confidence is the best filter" [7]. - The article notes a cultural shift in consumer behavior, where fans are now making purchasing decisions based on product ingredients rather than just celebrity endorsements, as evidenced by a 21% decrease in return rates and a 37% increase in repurchase rates for celebrity-endorsed products compared to three years ago [7].

Core Viewpoint - Yunnan Baiyao's revenue growth remains stagnant while net profit shows double-digit growth, indicating deep-seated issues in the company's operational strategy and business structure [2][3]. Revenue and Profit Analysis - In 2024, Yunnan Baiyao achieved operating revenue of 40.033 billion yuan, a year-on-year increase of only 2.36%, while net profit reached 4.749 billion yuan, a significant increase of 16.02% [3]. - The company has experienced single-digit revenue growth for three consecutive years, with growth rates of 7.19% in 2023 and just 0.31% in 2022 [3]. Cost Management - The increase in profit despite low revenue is attributed to a reduction in expenses, with sales expenses decreasing by 2.26% and advertising costs dropping from 660 million yuan to 460 million yuan, a decline of 30% [4][5]. - Employee compensation also decreased from 1.833 billion yuan to 1.6 billion yuan, contributing to profit growth [4]. Business Segment Performance - The pharmaceutical segment showed better performance with revenue of 6.924 billion yuan, up 11.8%, while the health products segment grew only 1.6% to 6.526 billion yuan [10]. - The commercial segment generated 24.6 billion yuan in revenue, accounting for 61.5% of total revenue, but its growth was only 0.48% with a low gross margin of 6.21% [11]. R&D Investment - Yunnan Baiyao's R&D investment in 2024 was only 348 million yuan, representing just 0.87% of its revenue, significantly lower than industry averages [13]. - The company is lagging in the development of innovative drugs, with key projects behind by 2-3 years compared to industry leaders [14]. Dividend Policy - The company adopted an aggressive dividend strategy, distributing 4.279 billion yuan in dividends in 2024, which accounted for 90.09% of net profit, far exceeding the average in the A-share pharmaceutical sector [17][18]. - Over the past five years, total dividends reached approximately 17.7 billion yuan, representing 86.67% of net profit during the same period [17]. Cash Flow Concerns - In 2024, the net cash flow from operating activities was 4.297 billion yuan, with significant pressure from high dividend payouts, leaving little free cash flow for R&D [20].