Core Viewpoint - New Oxygen Technology is undergoing a significant strategic transformation amid a slowdown in online traffic and increasing regulation in the medical beauty industry, with a notable shift from online services to offline light medical beauty chain operations [1][2]. Financial Performance - In Q2, New Oxygen reported total revenue of 379 million yuan, a year-on-year decline of 7.0% [3]. - The company experienced a net loss of 36 million yuan in Q2, compared to a profit of 18.9 million yuan in the same period last year [4]. - Revenue from information and appointment services, a core business, fell by 35.6% to 135 million yuan, indicating intensified competition and regulatory pressures [3][4]. Business Transition - New Oxygen's offline light medical beauty chain business saw a remarkable growth of 426.1% in revenue, reaching 144 million yuan, becoming the largest revenue source for the company [1][6]. - The company plans to expand its "New Oxygen Youth Clinic" brand across China, aiming for a thousand-store scale in 8 to 10 years [6][7]. Operational Strategy - The management emphasizes a self-operated model for new stores, which allows for controlled capital expenditure and shorter payback periods, supported by a cash reserve of 999 million yuan [8]. - A franchise model is also being considered, with plans to pilot 2 to 3 franchise stores later this year [9]. Market Outlook - The rapid growth of the light medical beauty market is attracting more participants, leading to increased competition, which poses ongoing challenges for New Oxygen [9].

Core Viewpoint - New Oxygen Technology is undergoing a significant strategic transformation amid a slowdown in online traffic and increasing regulation in the medical beauty industry, with a notable shift from online services to offline light medical beauty chain operations [1][2]. Financial Performance - In Q2, New Oxygen reported total revenue of 379 million yuan, a year-on-year decline of 7.0% [3]. - The company experienced a net loss of 36 million yuan in Q2, compared to a profit of 18.9 million yuan in the same period last year [4]. - Revenue from information and appointment services, a core business, fell by 35.6% to 135 million yuan, indicating intensified competition and regulatory pressures [3][4]. Business Transformation - New Oxygen's offline light medical beauty chain business saw a dramatic increase, with revenue soaring by 426.1% to 144 million yuan, becoming the largest revenue source for the company [1][5]. - The company aims to expand its "New Oxygen Youth Clinic" brand across major cities, with plans to increase the number of medical centers to 50 by the end of 2025 [6][7]. Market Position and Strategy - The management emphasizes the importance of standardization and product innovation to maintain market leadership in the light medical beauty sector [5]. - New Oxygen plans to adopt a mixed model of self-operated and franchised stores, with pilot franchise stores expected to launch in Q4 [7]. Future Outlook - The company has set a long-term goal of achieving a thousand-store scale within 8 to 10 years, reflecting confidence in the growth potential of the light medical beauty market [6][7]. - Despite the positive developments, New Oxygen faces challenges from increasing competition as more players enter the light medical beauty market [8].

Core Insights - New Oxygen has officially become the largest light medical beauty chain brand in China with 31 operational stores as of June 2025, marking a significant milestone in its strategic transformation to New Oxygen 2.0 [1][4] - The chain business revenue has become the largest income source for New Oxygen, indicating a successful shift from a transaction platform to an integrated industry platform [1][4] Group 1: Business Growth and Strategy - Since the opening of its first self-operated clinic in May 2023, New Oxygen has achieved a remarkable growth of 370 times in customer visits, from 54 to over 20,000 in just 24 months, relying solely on natural foot traffic without the New Oxygen app [2][6][7] - The company has built a comprehensive supply chain through acquisitions and exclusive partnerships, establishing a full-chain industry layout from equipment to consumables [2] - New Oxygen has assembled a team of over 120 full-time doctors, with a rigorous training system and a four-tier service structure, achieving an average of 3,048 procedures per doctor annually, significantly above the industry average [2][13] Group 2: Trust and Customer Satisfaction - New Oxygen addresses the long-standing trust crisis in the medical beauty industry by prioritizing delivery over marketing, ensuring high-quality service and transparency [3][10] - The company has reduced customer acquisition costs to below 10%, compared to 30%-50% in traditional institutions, fostering a cycle of high satisfaction and repeat purchases, with customer satisfaction consistently at 4.98 out of 5 and a repeat purchase rate exceeding 60% [3][9] - By adopting a model similar to "胖东来," New Oxygen provides decision-making support tools that enhance transparency and allow customers to make informed choices, thereby improving trust [3][16]

Core Viewpoint - So-Young International Inc. reported a decline in total revenue for Q1 2025, with a significant growth in its light medical beauty chain business, indicating a strategic shift amidst increasing competition in the medical beauty industry [1][4]. Financial Performance - Total revenue for Q1 2025 was RMB 297 million, a year-on-year decrease of 6.6% [1]. - Net loss expanded from RMB 21.2 million in the same period last year to RMB 33.1 million [1]. - Revenue from the light medical beauty chain business surged by 551.4% to RMB 98.8 million, marking a record high for a single quarter [1]. Online Business Challenges - Revenue from information, reservation services, and others fell by 34.1% to RMB 143 million, previously RMB 217 million in Q1 2024 [4]. - Revenue from medical product sales and maintenance services decreased by 35.7% to RMB 55.6 million [4]. - Combined revenue from online services accounted for less than 67% of total revenue, down from 94% in the same period last year [4]. Industry Competition - The medical beauty industry is experiencing intensified competition, with major players like Alibaba Health and Meituan expanding their presence [1][4]. - New platforms such as Douyin and Xiaohongshu are reshaping traffic acquisition through live streaming and short videos, impacting traditional online models [5]. Strategic Initiatives - The company is focusing on vertical integration and business diversification to strengthen its competitive position [1]. - New-Young has launched its light medical beauty chain brand "So-Young Youth Clinic" and aims to improve service efficiency and reduce costs through centralized procurement [7][8]. - As of March 31, 2025, So-Young operates 23 medical beauty centers across nine major cities, with 18 centers achieving positive monthly cash flow [8]. Future Outlook - For Q2 2025, the company anticipates medical treatment service revenue to reach between RMB 120 million and RMB 140 million, representing a year-on-year growth of 337% to 410% [8]. - The company plans to continue expanding its offline medical beauty center business and improve operational efficiency [8].