Group 1: New Product Development - The company has five new raw materials registered, with two completed in 2025: "Feruloyl Tripeptide-129 Amide" and "Acetylated Tyrosine Cyclic D-Glutamyl Tripeptide-110 Amide" [1] - The company plans to develop products based on these new raw materials to enhance its product matrix [1] Group 2: Sales Performance and Outlook - The company has optimized its offline sales channels and management team in 2025, laying a solid foundation for 2026 [1] - The company is optimistic about both online and offline performance in 2026, although actual results will depend on operational data [1] Group 3: Product Progress and Clinical Trials - The recombinant type III humanized collagen freeze-dried fibers have completed clinical trials and are preparing to submit application materials [2] - The injectable recombinant type III humanized collagen gel aims to start clinical trials this year [2] Group 4: Sales Channels and Profitability - The company's offline sales channels are categorized into professional channels, CS channels, KA channels, and OTC channels [2] - The company anticipates a recovery in net profit margins due to the optimization of offline sales channels, which typically have higher margins compared to online [2] Group 5: Dividend Plans - The company's dividend plan for 2026 is not yet determined, with further announcements expected on April 23, 2026 [2] - The company is committed to returning value to investors through cash dividends, contingent on 2025 performance and 2026 funding plans [2]

Core Viewpoint - The functional skincare industry in China is experiencing a rise of domestic brands, with various listed companies involved across the supply chain, including raw materials, packaging, and sales channels [1][2]. Group 1: Industry Overview - Functional skincare products are designed to address specific skin issues and possess certain pharmacological effects, indicating a growing market for targeted skincare solutions [1]. - The industry is characterized by a diverse range of companies, from raw material suppliers to online and offline sales channels [2]. Group 2: Company Distribution - Key companies in the raw materials segment include Kesheng Co., Qingsong Co., and Xinhang New Materials, while packaging material companies include Jiaheng Household and Jinsong New Materials [2][3]. - Major players in the functional skincare segment include Betaini, Huaxi Biological, Shanghai Jahwa, and Chuang'er Biological, with significant online sales channels represented by Alibaba, JD.com, and Pinduoduo [2][4]. Group 3: Financial Performance - Betaini leads the industry with a revenue of 57.36 billion yuan in 2024, followed by Huaxi Biological with 53.71 billion yuan and Shanghai Jahwa with 56.79 billion yuan [6][18]. - The gross profit margins for most companies in the functional skincare sector range from 70% to 85%, with Juzhi Biological achieving the highest margin at 82.09% [17][18]. Group 4: Business Strategies - Companies are focusing on R&D innovation, brand enhancement, and channel optimization to capture more market share and adapt to competitive pressures [19]. - Betaini plans to enhance its product offerings in the baby skincare segment and expand its online and offline presence, while Huaxi Biological is shifting towards anti-aging strategies and enhancing its technological capabilities [20][19]. Group 5: Market Positioning - Betaini has a dominant market position with 99.49% of its business in functional skincare, primarily targeting the Chinese market [16]. - Huaxi Biological and Shanghai Jahwa have also established strong brand identities with competitive product lines, while Chuang'er Biological focuses on collagen products [14][16].