Summary of the Conference Call for Mao Geping Company Overview - The conference call discusses Mao Geping, a company operating in the cosmetics industry, focusing on makeup, skincare, and fragrance products. Key Points and Arguments 1. **Growth in Online and Offline Channels** Mao Geping's online and offline channels are both experiencing growth. The online channel on Douyin has seen over 40% year-on-year growth, with nearly 50% growth during the 618 shopping festival. Monthly GMV has reached over 100 million RMB. Offline same-store sales have increased by nearly double digits year-on-year, and the number of stores is expanding positively [2][3]. 2. **Performance of Key Products** In the makeup segment, the caviar cushion has maintained a doubling growth rate, while the small gold fan powder has seen an 89% increase in online channels. The light and transparent powder cream has grown over 55%, ranking among the top three online products. In skincare, the caviar mask and black cream remain core products, with the new soft skin primer experiencing a remarkable ninefold year-on-year growth [2][5]. 3. **New Product Launches** Mao Geping has launched new products across makeup, skincare, and fragrance categories. The Oriental fragrance series has seen significant demand, with many SKUs going out of stock shortly after launch, indicating strong market demand [2][5]. 4. **Market Resilience** Despite a general trend of cosmetics brands experiencing a peak followed by a decline during the 618 period, Mao Geping's half-year and annual reports maintain a positive outlook, demonstrating strong anti-cyclical characteristics [2][6]. 5. **Future Growth Potential** The company is expected to continue focusing on new makeup products and expanding into the fragrance category. There is potential for deeper exploration of higher-end and youth-oriented skincare products, which may lead to stronger product offerings and increased market confidence [4][6]. 6. **Investment Recommendation** Based on the tracking of Mao Geping's operational data and fundamentals, along with confidence in its product extension capabilities and governance structure, the current stock price below 100 HKD is considered to be in a value range. The company is strongly recommended for investment [2][6]. 7. **Dividend Policy** Mao Geping's active dividend policy is expected to enhance shareholder EPS, serving as a catalyst for EPS growth in the coming years, thereby increasing investment attractiveness [4]. Additional Important Content - The company has a strong operational performance in the first half of 2025, with online channels achieving nearly 50% GMV growth and offline channels showing significant same-store growth [3]. - The company has completed a store expansion plan, exceeding expectations with a growth rate of around 10% in store numbers [3]. This summary encapsulates the key insights from the conference call regarding Mao Geping's performance, product offerings, market dynamics, and investment outlook.

Summary of Key Points from the Conference Call Records Industry Overview Jewelry and Beauty Industry - The gold and jewelry industry is experiencing rapid growth in terminal sales, with a significant increase in demand for investment gold bars and coins, while the consumption of gold jewelry has declined year-on-year. [1][2] - High-end ancient gold and lightweight jewelry are becoming market hotspots, catering to the self-indulgent needs of the middle class and younger consumers. [1][4] - The cosmetics industry is seeing a slowdown in overall growth, with increased competition and the fading of e-commerce benefits. [1][13] Market Performance - In the first half of 2025, the gold and jewelry market performed strongly, with a retail sales growth rate exceeding 12% from January to May, significantly outpacing overall retail growth. [2] - Despite a general decline in terminal consumer demand, the demand for investment gold bars and coins has increased significantly, with gold jewelry consumption down 27% year-on-year in Q1 2025. [2] Company Performance Key Companies in Jewelry Sector - **Lao Pu Gold**: Exceeded expectations in store opening speed and saw an increase in profit margins due to product updates and revenue expansion. [6][7][8] - **Chow Tai Fook**: Achieved revenue growth through product upgrades and plans to open 20 new stores, with a focus on channel optimization. [9] - **Chao Hong Ji**: Attracted young consumers with trendy and high-end products, showing strong performance in Q1 2025. [10] - **Tai Bai Co.**: High proportion of investment gold products provides significant elasticity in the current market. [11] Cosmetics Sector - **Mao Ge Ping**: A high-end domestic makeup brand with strong product recognition and balanced online and offline channel development. [14][15] - **Shangmei Co.**: Showed strong growth during the 618 shopping festival, with significant increases in various product lines. [16] Sanitary Napkin and Oral Care Industry - The sanitary napkin industry faced short-term fluctuations due to public sentiment and promotional events, but Baia Co. is actively responding and expanding nationally. [17][18] - The oral care market remains stable, with rising demand for specialized products driving price increases. [18] Future Outlook Gold Price Expectations - Gold prices are expected to remain high in the second half of 2025, supported by geopolitical conflicts, safe-haven demand, and central bank purchases. [5] - Investment gold demand may cool down, but high-end ancient gold and lightweight jewelry are expected to continue growing. [5] Risks and Challenges - The furniture industry faces risks from potential real estate downturns, intensified price competition, and insufficient domestic demand leading to inventory buildup. [30][35] - The cosmetics industry is experiencing increased competition and a shift away from rapid growth, necessitating a focus on product development and operational capabilities. [13] Conclusion - The jewelry and beauty industries present significant investment opportunities, particularly in companies that are adapting to market changes and consumer preferences. [12]