Core Insights - The medical beauty consumption market in 2024 is characterized by an increase in volume but a decrease in price, with 31 million consumers, a 10.7% year-on-year growth, and a 10% decline in average spending [1] - New Oxygen's chain business has experienced explosive growth, with a 381% year-on-year increase in customer visits and a 458% increase in service points [1][2] - The company is transitioning from traditional business models to a new chain model, which is expected to maintain high growth rates and offset declines in traditional services [3] Group 1: Market Trends - The medical beauty market is seeing a rational consumer decision-making process, with a growing demand for high-quality and cost-effective services [1] - The average spending per consumer in the medical beauty sector has decreased by 10% year-on-year [1] Group 2: Company Performance - New Oxygen has opened 31 stores across nine cities, with significant revenue growth in both first and second-tier cities, achieving a 643% increase in first-tier cities and a 99% increase in second-tier cities [2] - The gross margin of New Oxygen's stores has improved, with a 22% quarter-on-quarter increase, and 50% of stores achieving a gross margin exceeding 24% [2] Group 3: Financial Outlook - Despite the growth in the chain business, New Oxygen reported a net loss of 36 million yuan in the second quarter, with a 35.6% decline in revenue from its core information and appointment services [2] - The company anticipates that its light medical beauty chain business will reach between 150 million and 170 million yuan by the third quarter of 2025, representing a growth of 230.5% to 274.6% compared to the same period in 2024 [3]

Summary of the Conference Call on New Oxygen and the Medical Aesthetic Industry Industry Overview - The medical aesthetic industry experienced rapid growth from 2019 to 2022 but has faced challenges due to upstream price wars and weak downstream consumer demand in recent years. However, in 2025, there are signs of weak recovery with structural opportunities and innovative models emerging [2][4]. Company Insights - New Oxygen, a pioneer in the medical aesthetic e-commerce sector, once held an 86% market share in the medical aesthetic app market. The company was founded in 2013 and went public on NASDAQ in 2019 [2][4]. - The company has faced increased competition from internet platforms, leading to rising customer acquisition costs, which have negatively impacted revenue and profit [2][4]. Strategic Initiatives - New Oxygen is seeking to reverse its fortunes by expanding its supply chain and entering the downstream medical aesthetic institution operation sector. This includes acquiring companies like Qizhi Laser and becoming the exclusive agent for high-end products like Ellastin [1][5]. - As of mid-2025, New Oxygen has opened 32 stores under the New Oxygen Youth Clinic brand, generating total revenue of 170 million yuan [1][5]. Business Model and Performance - The New Oxygen Youth Clinic has a profitable model, with L Mall stores generating monthly revenues of 4 to 5 million yuan. The sales expense ratio is lower than traditional medical aesthetic clinics, resulting in a net profit margin superior to traditional retail [1][7]. - The clinic's customer retention is strong, with a 60% repurchase rate, a 50% referral rate, and 15% of traffic coming from organic sources [1][8]. Future Plans - New Oxygen plans to expand the number of clinics to 50 by the end of 2025, with 18 new stores expected to open in the second half of the year [1][8]. Quality Assurance and Transparency - New Oxygen ensures service quality and price transparency by tracing the qualifications of medical staff and maintaining a transparent pricing system. Prices for similar products in their clinics are at least 30% to 40% lower than market rates [1][10]. Standardization in the Industry - The medical aesthetic industry can achieve standardization, particularly in the light medical aesthetic sector, through a structured approach. New Oxygen employs a tiered management system for doctors and simplifies its product offerings to enhance standardization [11][12]. Challenges for Smaller Clinics - Smaller light medical aesthetic clinics face challenges such as traditional retail models, high customer acquisition costs, and difficulties in negotiating with suppliers. New Oxygen addresses these challenges by focusing on a light asset model and leveraging its established brand to drive traffic [14]. Conclusion - New Oxygen is positioned to capitalize on the recovery of the medical aesthetic industry through strategic expansions, a focus on quality and transparency, and a robust business model that leverages its brand equity and operational efficiencies [1][2][5][8][10].

Core Insights - The key operational data from Xinyang's light medical beauty chain, Xinyang Youth Clinic, shows that the cumulative number of services has surpassed 200,000 as of June 7, with the second 100,000 services achieved in just 155 days, a 74% acceleration compared to the first 100,000 services period [1][3] Group 1: Business Model and Strategy - Xinyang adopts a reverse approach in the traditionally marketing-driven medical beauty industry by focusing on "standardized medical delivery," allocating 90% of resources to improving service quality [3] - The company has established a rigorous training system for doctors, requiring new doctors to pass systematic assessments before starting, and has implemented a four-tier doctor service system based on experience [3] - Each Xinyang Youth Clinic is staffed with an average of 3-4 doctors, with each doctor completing an average of 330 treatments per month, significantly exceeding the industry average, leading to a customer satisfaction score of 4.98 out of 5 and a repurchase rate exceeding 60% [3] Group 2: Cost Management and Financial Performance - Xinyang's founder, Jin Xing, stated that the company has reduced customer acquisition costs to below 10%, compared to 30%-50% in traditional institutions, through a "de-marketing" strategy [6] - The first quarter financial report indicates that 78% of Xinyang Youth Clinic locations achieved positive operating cash flow monthly, with 16 clinics turning a profit, validating the feasibility of "medical delivery driving growth" [6] Group 3: Technology and Data Utilization - Xinyang is building the first "data-algorithm-service" closed loop in the medical beauty industry, using technology to enhance the precision of medical decisions [9] - Over 70% of the traffic to offline clinics comes from private domain fission and word-of-mouth, creating a positive cycle of "effect verification-repurchase-recommendation," breaking the traditional medical beauty industry's cycle of "high prices and low repurchase" [9]

Core Viewpoint - New Oxygen (SY) reported a strong financial performance for Q1 2025, with revenue reaching 297 million yuan, driven by a significant growth in its light medical beauty chain business, which achieved 98.88 million yuan in revenue, marking a 551% year-on-year increase, indicating a successful strategic transformation [1][4]. Group 1: Financial Performance - In Q1 2025, New Oxygen's revenue was 297 million yuan, with the light medical beauty chain business contributing 98.88 million yuan, a 551% increase year-on-year, achieving a record high for a single quarter [1]. - The chain business has shown continuous growth for six consecutive quarters, with over 92,900 projects redeemed in the quarter, a 989% increase year-on-year, and over 45,500 paid users, an 874% increase [4]. Group 2: Business Strategy and Growth - The company is focusing on its transformation strategy, emphasizing the development of the light medical beauty chain business and investing in vertical integration and business diversification to strengthen its competitive position in the evolving medical beauty sector [1][8]. - New Oxygen has established its first light medical beauty chain store in May 2023, rapidly expanding its presence and becoming a leading player in the industry [1]. Group 3: Customer Satisfaction and Service Model - New Oxygen's service model emphasizes transparency, high quality, and cost-effectiveness, leading to a user satisfaction score of 4.98 out of 5 in Q1 [5]. - The company has expanded its professional doctor team with a 10% acceptance rate, ensuring consistent quality in medical delivery through systematic training and digital management [6]. Group 4: Product and Platform Development - The company has developed a robust upstream product ecosystem, with over 1,500 service institutions and a 14% year-on-year increase in the shipment of its hyaluronic acid brand, exceeding 27,900 units in Q1 2025 [8]. - New Oxygen is transitioning its platform to a "premium mall" model to enhance user experience and conversion rates, with a total transaction value (GMV) of 303 million yuan in Q1 2025 [8].

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].