Core Viewpoint - New Oxygen (SY.O) has become a focal point in the medical beauty industry, experiencing a 440% surge in stock price over 30 days, despite a 7% year-on-year decline in revenue for Q2 2025 [1][2]. Revenue Performance - In Q2 2025, New Oxygen reported revenue of 379 million yuan, down 7% year-on-year, with a net loss of 36 million yuan [2][14]. - The platform business generated 135 million yuan, a decline of over 33% year-on-year, primarily due to a decrease in the number of medical service providers subscribing to its platform [10][11]. - Conversely, the offline medical beauty chain business achieved significant growth, with revenue of 144 million yuan, representing over 400% year-on-year growth, marking the first time this segment surpassed the platform business [4][12][13]. Business Transformation - New Oxygen is transitioning towards offline medical beauty institutions, showing initial positive results [3]. - The CEO, Jin Xing, anticipates the opening of several new stores in the second half of the year, with plans for 2-3 pilot franchise stores [6][21]. Market Strategy - The company is focusing on the anti-aging market, developing products centered around "Miracle Youth" injections [7]. - New Oxygen has launched nine approved youth injections, benefiting from a price reduction trend in upstream materials, which enhances its revenue potential [8][26]. Store Operations - As of June 2025, New Oxygen operates 29 self-managed stores across nine cities, with 25 stores generating positive monthly cash flow [17]. - The majority of revenue in Q2 came from 14 stores in the growth phase, contributing 90 million yuan, accounting for over 60% of total revenue [18]. Future Growth Potential - The company plans to increase its store count to 50 by the end of the year, with a focus on major cities like Beijing [21]. - New Oxygen is exploring a cautious franchise model to maintain service standards across both franchise and self-managed stores [23]. Competitive Landscape - New Oxygen's customer acquisition cost is low, with over 70% of new customers coming from private traffic and referrals [26]. - The company faces competition from major internet players entering the offline medical beauty space, which could impact its market position [26][29].

Core Viewpoint - New Oxygen (SY.O), known as the "first stock in internet medical beauty," is transitioning to offline institutions, having opened 23 self-operated medical beauty institutions across 9 cities in China within two years since May 2023 [1] Group 1: Business Expansion - In Q1 2025, New Oxygen's medical beauty chain business revenue reached 99 million yuan, a year-on-year increase of over 500% [1] - Management expects the revenue for this business in Q2 to be between 120 million and 140 million yuan [1] Group 2: Conflict with Suppliers - Tensions are rising between New Oxygen and upstream medical beauty material companies, particularly regarding the compliance issues of the "Aivilan" product used in New Oxygen's self-operated clinics [2] - The supplier, Changchun Shengboma Biological Materials Co., claims it does not guarantee the authenticity of the products sold by New Oxygen and has not trained their medical staff on the product [2][3] Group 3: Pricing Strategy - New Oxygen's pricing strategy involves selling a combination product called "Miracle Youth," which includes Aivilan and is priced at 5,999 yuan, significantly lower than the standard price of around 18,000 yuan for Aivilan alone [6][7] - This pricing strategy has raised concerns about whether the use of Aivilan for purposes beyond its approved indications constitutes off-label use [8] Group 4: Industry Dynamics - The conflict reflects broader issues in the medical beauty industry, where upstream manufacturers are losing pricing power amid fierce competition and price wars [10][11] - New Oxygen argues that its pricing strategy is a necessary correction to an unreasonable profit structure in the industry, aiming to make medical beauty services more accessible to a wider audience [13]