Core Viewpoint - Zhenyan Biotechnology Co., Ltd. has recently listed on the New Third Board, with expectations of targeting the Beijing Stock Exchange for future listing opportunities [1][2]. Company Overview - Zhenyan Biotechnology specializes in post-surgical skin repair in the medical beauty sector, offering products such as medical masks, sprays, and moisturizers [2]. - The company's "Recombinant Mussel Adhesive Protein Hydrogel Dressing" and "Recombinant Collagen Repair Sterile Dressing" are designed for post-procedure care following laser and photon rejuvenation treatments [2]. Financial Performance - In 2024, Zhenyan's medical masks generated revenue of 251 million yuan, accounting for over 40% of total revenue [2]. - The company reported total revenues and net profits of 597 million yuan and 74 million yuan respectively in 2024, reflecting year-on-year growth of 22.89% and 7.34% [3]. - Online sales contributed approximately 318 million yuan, making up around 50% of total revenue [3]. Market Position and Competition - If Zhenyan successfully lists, it could become the first stock in the medical mask segment on the Beijing Stock Exchange [3]. - The company’s revenue structure is similar to that of Chuangye's "medical mask first stock" (301371.SZ), which has faced significant profit declines [3]. - Despite industry challenges, Zhenyan has maintained growth, while competitors like Chuangye have seen substantial revenue drops due to increased competition and market dynamics [3]. Sales and Marketing Strategy - Zhenyan's sales expenses surged to 276 million yuan in 2024, a year-on-year increase of approximately 50%, representing 46% of total revenue [4]. - The company has adopted a competitive pricing strategy, with its medical repair dressing priced lower than similar products from competitors [5].

Core Insights - The company, Fulejia, is facing significant operational pressure in the first half of 2025, with revenue of 863 million yuan, a year-on-year decline of 8.15% [1] - The decline in both revenue and profit reflects the challenges faced by the company, once known as the "first stock of medical beauty masks," amid industry changes [1] Revenue and Profit Trends - Fulejia's revenue has decreased, with sales expenses accounting for nearly half of its costs, indicating a heavy burden on the company [1] - The traditional distribution system has seen a sharp decline, with offline revenue contribution dropping to less than 20%, while online channels, despite rapid growth, are unable to fully compensate for the revenue gap [1] Marketing and Sales Strategy - The company has shifted its marketing resources significantly towards live e-commerce and influencer marketing, leading to a situation where sales expenses are growing faster than revenue [1] - Heavy investments in collaborations with top influencers and platform promotions have increased online visibility and order growth but have not translated into sustainable sales [1] Product and Brand Challenges - The core product category of "medical beauty masks" is facing a trust crisis due to regulatory tightening and consumer perception changes [1] - The company is struggling with slow innovation cycles, relying heavily on traditional sheet masks, while counterfeit products are undermining brand value and consumer trust [1] Strategic Directions for Growth - The company needs to focus on three key areas for transformation: - Rebalancing channels by enhancing offline professional channels and reducing reliance on single-path traffic purchases [1] - Accelerating the development of high-value products to replace marketing premiums with technological barriers [1] - Rebuilding brand value through transparent supply chains and anti-counterfeiting measures, shifting marketing focus from "medical beauty concepts" to "professional solutions" [1]

Core Insights - The company, Fulejia, is facing significant operational pressure with a revenue of 863 million yuan in the first half of 2025, representing a year-on-year decline of 8.15%, and a net profit of 230 million yuan, down 32.54% year-on-year [1] Group 1: Business Performance - The decline in both revenue and profit indicates a challenging environment for Fulejia, which was once known as the "first stock of medical beauty masks" [1] - The company's sales expenses account for nearly half of its revenue, suggesting a struggle with the cost-effectiveness of its growth strategy [1] Group 2: Channel Transformation - The shift towards online channels has led to a drastic reduction in traditional distributor income, with offline revenue contribution dropping to less than 20% [2] - Despite rapid growth in online channels, it has not compensated for the revenue shortfall, revealing a need for improved operational capabilities in offline channels [2] - The heavy investment in marketing, particularly in live-streaming and influencer partnerships, has resulted in sales costs growing significantly faster than revenue, leading to a profit squeeze [2] Group 3: Product and Brand Challenges - The core product category, "medical beauty masks," is facing a trust crisis due to regulatory tightening and consumer perception changes, which has compressed previous marketing premium spaces [3] - The company is experiencing delays in R&D innovation, with a heavy reliance on traditional product forms and insufficient differentiation compared to competitors [3] - The presence of counterfeit products across multiple platforms is damaging brand value and consumer trust, complicating the recovery of customer relationships [3] Group 4: Strategic Directions - Fulejia's transformation requires a focus on three key areas: rebalancing channels by enhancing offline professional service capabilities, accelerating the development of high-value products, and rebuilding brand trust through transparent supply chains [4] - The company must shift its marketing focus from "medical beauty concepts" to "professional solutions" to restore consumer confidence [4] Group 5: Industry Reflection - The challenges faced by Fulejia reflect a broader industry shift from traffic-driven growth to value-driven strategies, emphasizing the importance of solid product capabilities over mere marketing [5]