Summary of the Conference Call for Xinyang Company Overview - Xinyang has an estimated valuation of approximately 800 million RMB after acquiring Jizhi Laser and is acting as an agent for 11 Korean hyaluronic acid products. The company operates 32 Xinyang Youth Clinics and plans to expand to 50 clinics by the end of 2025, focusing on franchise openings in second and third-tier cities [2][3][10]. Industry Insights - The non-surgical segment of China's light medical beauty market has reached 70%-80% market share, with intense competition in the hyaluronic acid market. Xinyang effectively controls customer acquisition costs, averaging 600 RMB, significantly lower than traditional medical beauty institutions [2][4][7]. - The light medical beauty market is expected to see over 2,000 institutions in China, based on the penetration rate observed in South Korea [5]. Financial Performance - Xinyang's total revenue for 2023 and 2024 is projected to be around 1.5 billion RMB, with chain revenue of 170 million RMB in 2024 and nearly 100 million RMB in Q1 2025. The company anticipates achieving profitability in Q4 2025 [4][10][25]. Business Model and Expansion Strategy - Xinyang's business model consists of three main segments: an internet platform (Xinyang APP), upstream products (including the acquisition of Jizhi Laser), and downstream light medical beauty chain brand Xinyang Youth Clinics [3][4]. - The company plans to open 50 new clinics by the end of 2025, with a focus on second and third-tier cities, and aims to maintain a rapid expansion pace [20][31]. Operational Efficiency - Xinyang has streamlined its SKU offerings, focusing on standardized projects like phototherapy and anti-aging injections, which enhances operational efficiency [2][13]. - The average customer acquisition cost is only 600 RMB, compared to 30%-50% of total costs for traditional medical beauty institutions [7][15]. Product Development and Supply Chain - Xinyang is set to launch new water light and picosecond devices in the second half of 2025, with plans for new generation products in 2026-2027 [8][16]. - The company has invested significantly in supply chain management, securing exclusive rights to upstream manufacturers, which allows for better pricing and cost control [16][27]. Competitive Advantages - Xinyang's advantages over competitors include a strong internet platform, proprietary products, and a robust team of professional doctors, which enhance cost-effectiveness and market competitiveness [11][19]. - The company believes that the entry of giants like JD Health into the medical beauty sector will not pose significant competitive pressure due to their lack of brand recognition and medical resources [23]. Customer Retention and Marketing - Xinyang employs private domain operations and pricing advantages to enhance user satisfaction and acquisition effectiveness, with a significant portion of customer acquisition coming from private channels [14][15]. - The company has a structured approach to doctor training and team building, ensuring high-quality service delivery [35]. Challenges and Future Outlook - Xinyang faces challenges in standardizing offerings due to the high skill requirements for personalized aesthetic services. The company is addressing this by focusing on easily standardized projects [13]. - The company is optimistic about achieving profitability in Q4 2025, despite current losses due to heavy investments in chain business development [25][36]. Conclusion - Xinyang is strategically positioned in the rapidly growing light medical beauty market in China, with a clear expansion plan, operational efficiencies, and a focus on product development. The company is well-equipped to navigate competitive pressures and capitalize on market opportunities.

Core Viewpoint - The company is undergoing a significant business transformation, shifting focus from an online medical beauty platform to a chain of physical clinics, while also extending upstream in the industry chain [2][3]. Financial Performance - In 2024, the company's total revenue is projected to be 1.47 billion yuan, a year-on-year decrease of 2.1%, with core business revenue from information and appointment services dropping 19.3% to 930 million yuan [2]. - The chain business, however, has shown remarkable growth, achieving revenue of 170 million yuan, a year-on-year increase of over 1200% [2]. Business Strategy - The CEO indicated that the transformation was necessary due to the increasing competition from larger platforms like Meituan and Alibaba, which have a competitive edge in online traffic [2]. - The company aims to establish itself as the largest offline brand in the domestic medical beauty industry, with plans to expand from 25 to 50 clinics by the end of the year and ultimately to 1000 clinics in the long term [3]. Market Positioning - The new clinics, named "Xinyang Youth Clinics," focus on "light medical beauty" services, offering high-quality, low-cost treatments without the need for surgical procedures [8][10]. - The clinics operate on a model that avoids traditional practices like membership cards and prepayments, aiming to maximize profit margins through self-operated services [10]. Competitive Landscape - The company faces challenges from existing medical beauty institutions, which view its entry into the physical clinic space as a threat to their business [5][6]. - Despite some backlash, many institutions have chosen to continue their partnerships with the company, indicating a recognition of the potential for market expansion [6]. Future Outlook - The company has invested significantly in upstream operations, including acquiring stakes in medical device companies and establishing its own production facilities for beauty products [8][9]. - The CEO believes that the medical beauty market in China is still growing, with the potential for the company to capture a larger market share despite current financial pressures [12][14].