Summary of the Medical Aesthetic Industry Conference Call Industry Overview - The medical aesthetic industry has shown a GMV (Gross Merchandise Volume) growth of 13% year-on-year, reaching 450 million yuan for the period from January to November 2025, although the growth rate has slowed compared to the pandemic period [1][2] - The revenue from the Double Eleven shopping festival accounts for approximately 5% of the total revenue in Q4 [4] Key Insights - **Customer Spending Trends**: - The average transaction value for medical aesthetic products has significantly decreased, with an overall decline of 4% year-on-year. Non-surgical procedures, such as laser treatments and injections, saw a decline of 8-9%, while surgical procedures experienced a stable growth of 2% [1][5] - The long-term trend indicates a continuous decrease in average transaction value, particularly for injection products, which have seen a decline of over 8% [5][6] - **Market Dynamics**: - The decrease in product prices is attributed to increased information transparency, stricter regulations leading to product homogenization, and a rise in new products from upstream manufacturers, which lowers procurement costs [6][7] - Younger consumers are increasingly favoring lower-priced options, and demand from second and third-tier cities has contributed to the decline in average transaction value [6][7] - **Consumer Demographics**: - The proportion of male consumers has increased but remains low at around 5%. The share of younger consumers (ages 18-22) has decreased, while the proportion of consumers aged 35 and above has increased, showing a preference for mid to high-end services and higher repurchase rates [7] - Combined treatments, such as using laser devices alongside injections, have become the norm, reflecting a trend towards package sales [7] Financial Performance - The company has experienced a slowdown in revenue growth, with top-tier institutions reporting a year-on-year revenue increase of about 6% and a net profit margin maintained between 8% and 10% [3][11] - Customer traffic has increased by 12% year-on-year, but the average transaction value has decreased by approximately 5% [11] - The overall revenue growth for the year is expected to be no more than 10%, indicating a shift towards stable growth in the industry [3][11] Competitive Landscape - The market for various medical aesthetic products has become increasingly competitive, with mid-sized and chain clinics experiencing a general slowdown in growth. The overall industry is still growing at over 5%, but the explosive growth phase has ended, leading to a focus on refined operations [13] - The collagen market has seen significant growth, particularly for new specifications introduced by companies to extend product life cycles, despite increased competition from new entrants [19] Inventory Management - Medical aesthetic institutions typically maintain an inventory cycle of about 10 to 15 days, with a slight increase in inventory towards the end of the year to meet peak business demands and supplier requirements [23][24] Conclusion - The medical aesthetic industry is undergoing significant changes, with shifts in consumer behavior, pricing pressures, and competitive dynamics. Companies are adapting their strategies to maintain profitability and market share in a more regulated and competitive environment.

Core Insights - Emerging markets are becoming a significant growth driver for the medical beauty industry, leading to a more balanced industry structure [1] - Meituan Medical Beauty launched the "Navigator Plan" in 2025 to support high-quality medical beauty institutions in emerging markets, aiming to provide consumers with quality and reliable medical beauty services [1] Group 1: Industry Trends - The Meituan Medical Beauty summit in Hangzhou featured local institutions discussing the development of the medical beauty sector [1] - EG Tongyan Medical Beauty, a local institution, has served 12,338 clients in 566 days since joining the "Trustworthy Beauty" initiative, highlighting the importance of consumer trust in the industry [1] - The average daily traffic for Hangzhou's medical beauty market is projected to grow over 4% by October 2025, with an average transaction value exceeding 1,000 yuan, reflecting significant market potential [2] Group 2: Consumer Demographics - Women constitute 85% of the medical beauty clientele in Hangzhou, with individuals aged 20-35 making up over 66%, indicating that young women are the primary market segment [2] - Popular treatments among consumers include photon rejuvenation, injection shaping, hyaluronic acid wrinkle removal, and water light needles [2] Group 3: Strategic Collaborations - Meituan Medical Beauty signed a strategic cooperation agreement with Yazheng Institute, with 35 medical beauty institutions expected to join the Meituan platform this month [2] - The "Navigator Plan" will be expanded to more emerging cities, aiming to connect local quality medical beauty institutions with Meituan's service capabilities [2]

1. Report Industry Investment Rating - The industry rating is "Bullish" [1] 2. Core Views of the Report - The cosmetics industry continues to show differentiation, with brand demand being weak in the off - season, agents seeking change in difficult situations, and producers seizing supply - chain reconstruction opportunities. The medical aesthetics industry has new entrants with better - than - expected shipments, and new product catalysts are worth attention [3][4] 3. Summaries According to Relevant Catalogs 3.1 Cosmetics: Continued Differentiation 3.1.1 Brand Merchants - In 1 - 3Q25, beauty brand merchants' revenue was 28.4 billion yuan, a year - on - year decrease of 0.6%; personal care brand merchants' revenue was 5.7 billion yuan, a year - on - year increase of 12.4%. In 3Q25, beauty and personal care brand merchants' revenues were 8.05 billion and 1.805 billion yuan, a year - on - year decrease of 1.3% and an increase of 7.6% respectively. Beauty revenue weakened quarter - on - quarter, while personal care remained flat [18] - Beauty: Affected by the earlier Double Eleven promotion, consumer enthusiasm declined in September, and brands reduced live - streaming activities. In terms of single - quarter revenue growth, Shuiyang Co., Ltd. and Shanghai Jahwa increased by over 20%, Marubi Co., Ltd. had double - digit growth, Proya had low - double - digit decline, and Betaine and Freda had high - single - digit decline [18] - Personal care: Runben Co., Ltd.'s Q3 revenue increased by 17% year - on - year, with a slight increase in growth rate quarter - on - quarter. Baiya Co., Ltd.'s 3Q25 revenue improved, and Dengkang Oral Care had steady growth [18] - In 1 - 3Q25, beauty brand merchants' net profit after non - recurring items was 2.33 billion yuan, a year - on - year decrease of 15%; personal care brand merchants' was 604 million yuan, a year - on - year decrease of 3.4%. Some companies showed initial cost - control effects [24] 3.1.2 Agents - Agents are seeking change in difficult situations by exploring three paths: incubating self - owned brands (represented by Ruoyuchen), using AI to reduce costs and increase efficiency (represented by Yiwow), and expanding high - growth categories (such as Qingmu Technology expanding into trendy toy agency operations) [30] - Ruoyuchen's self - owned brands Feicui and Zhanjia continued to gain momentum. In Q3, self - owned brand revenue was 451 million yuan, a year - on - year increase of 344.5%, accounting for 55.1%. Zhanjia's Q3 revenue was 227 million yuan, a year - on - year increase of 119%, and 1 - 3Q revenue was 680 million yuan. Feicui's Q3 revenue was 203 million yuan, a quarter - on - quarter increase of over 98.8%, and 1 - 3Q revenue was 362 million yuan [30] 3.1.3 Producers - Demand continued to recover, and the revenue of the producer sector increased by 9%, 17%, and 30% year - on - year from Q1 to Q3, with the growth rate increasing quarter by quarter [33] - QingSong Co., Ltd. focused on optimizing customers and product structure, and its profit turned positive for four consecutive quarters from 2Q24 to 1Q25. Jieya Co., Ltd. had increasing orders from overseas big customers, and its Q3 performance growth accelerated. Jiaheng Home Co., Ltd. increased revenue but not profit, mainly due to the short - term impact of the Huzhou base's capacity ramp - up [33] 3.2 Medical Aesthetics: New Entrants with Better - than - Expected Shipments 3.2.1 Upstream Consumables - The growth rate of demand expansion slowed down, and supply - side competition intensified. In terms of the cumulative number of Class III medical device approvals, hyaluronic acid > regenerative (Sculptra/Poly - L - Lactic Acid) > botulinum toxin > recombinant collagen. Old products of hyaluronic acid and regenerative types faced growth pressure, and the growth rate of recombinant collagen Class III medical device products slowed down significantly quarter - on - quarter [38] - Hyaluronic acid: Aimeike's revenue growth rate from 24Q1 to 25Q3 was + 28.2%/+2.3%/+1.1%/ - 7%/ - 18%/ - 25%/ - 21% year - on - year, showing a quarterly decline since 24Q2 [38] - Collagen: Jinbo Biotech's revenue growth rate from 24Q1 to 25Q1 was + 76%/+100%/+92%/+73%/+63% year - on - year, and in 2Q25/3Q25, it was + 30%/+13% year - on - year. On October 23, the "Recombinant Type I α1 Subtype Collagen Freeze - Dried Fiber" Class III medical device certificate of Giant Biogene was approved by NMPA [38] - Leapmed Medical's medical aesthetics shipments were better than expected, with Q3 medical service and health management business revenue of 320 million yuan, a year - on - year increase of 28%, and the revenue of Sculptra and Hydrodermabrasion reaching 86.1367 million yuan [36] 3.2.2 Downstream - The new model of Xinoxygen Medical Clinics showed high - growth potential. The Q3 revenue guidance was 150 - 170 million yuan, a year - on - year increase of 231% - 275%, and a quarter - on - quarter increase of 4% - 18%. It plans to implement the "100 - City, 1000 - Store" plan in the long term [40] - Stores are expanding from first - tier cities to new first - tier and second - tier cities. As of November 6, it covered 42 stores in 10 cities. The promotion of self - owned brands was remarkable, and it cooperated with Xihong Miracle Sculptra 3.0, priced at 2999 yuan, which was officially launched on September 25 [43] 3.3 Investment Recommendations - Brands with upward potential and both growth and certainty: Recommend Maogeping (Oriental aesthetics, dual - wheel drive of makeup and skincare, and the second - curve of perfume is worth looking forward to) and Shangmei Co., Ltd. (with one cornerstone brand, five growth brands, and N seed businesses) [8][46] - Companies with new product pipelines and expected performance elasticity: Pay attention to Giant Biogene and Leapmed Medical [8][46] - Companies in strategic adjustment and expected to reach an inflection point: Recommend Shuiyang Co., Ltd. (the effect of high - end transformation is gradually emerging), and pay attention to Shanghai Jahwa, Betaine, and Freda [8][46]

Core Insights - The 2025 World Internet Conference held from November 6 to 9 focused on building a collaborative and inclusive digital future, with discussions on AI technology and the digital economy [1] - Jin Xing, founder and CEO of New Oxygen Group, highlighted the transformation of the medical beauty industry from a marketing-driven model to a user experience-centered delivery model, driven by AI and digitalization [1][3] Industry Overview - The Chinese medical beauty market is projected to reach 312 billion yuan in 2024, with a year-on-year growth of 14.8% [3] - The rise of diverse aesthetic values and the "self-appreciation economy" has made medical beauty a representative of new consumption [3] - However, uneven distribution of medical resources and high product prices have led to a trust crisis among consumers [3] Company Strategy - New Oxygen has implemented vertical integration and cost structure optimization since 2021, enhancing the safety, quality consistency, and inclusiveness of medical beauty services through digitalization and AI [3][4] - The company has established standardized fulfillment and dynamic quality control mechanisms to unify service quality across its stores [4][5] - New Oxygen has opened 41 stores in 10 major cities, becoming the largest chain in the light medical beauty sector in China [3] AI and Digitalization - New Oxygen has explored various AI applications in medical beauty, including intelligent skin detection and cross-regional store management, with five AI algorithms registered with the National Internet Information Office [7][8] - The company faces challenges in deep AI application due to high costs and the need for extensive multimodal data [8] - Jin Xing emphasized the importance of overcoming technical challenges to expand AI applications in the medical beauty sector [8] Pricing and Consumer Trust - The average customer price for light medical beauty in China is approximately 3,146 yuan, which is nearly equal to the average monthly disposable income [10] - High prices have contributed to the rise of "black medical beauty," creating potential medical risks [10] - New Oxygen aims to reduce marketing and supply chain costs from 60-80% to below 20% through vertical integration and digital operations, establishing a transparent pricing system [10] Regulatory Environment - Recent government policies are accelerating changes in the medical beauty pricing system, with efforts to streamline clinical trial approval processes [11] - The approval of various popular medical beauty products is expected to shift the market from a seller's market to a buyer's market, enhancing consumer trust [11] - New Oxygen is committed to maintaining transparency and quality in its services while expanding its store network [11]

Summary of Medical Aesthetic Industry Conference Call Industry Overview - The medical aesthetic industry is experiencing a slowdown in growth, with leading chain institutions and light medical aesthetic models still maintaining growth. Single stores or non-compliant institutions are facing difficulties, and the proportion of channel medical aesthetics is decreasing [1][2][12]. Key Insights and Arguments - Revenue growth for institutions is up 6% year-on-year, with increased customer flow but a decrease in average transaction value (ATV) by approximately 6%. First-tier cities performed particularly well, with an expected annual growth rate of about 10% for chain institutions [1][2][3][4]. - Promotional activities were advanced to September, significantly boosting revenue, with the repurchase rate of existing customers rising to 61% [1][5]. - The pricing strategy varies significantly among products, with low-priced products used for customer acquisition and high-priced products maintaining profit margins. Institutions attract new customers with low initial prices, then revert to original prices for subsequent treatments [1][9][10]. - Regulatory tightening has led to reduced advertising expenditures in traditional channels, shifting focus to customer referrals and internal membership management systems, resulting in decreased marketing costs but improved ROI [1][11]. Market Dynamics - The industry is expected to focus more on profit margins rather than solely on revenue growth, with a projected overall revenue growth of less than 10% by 2026 and a potential further decline in ATV [3][25]. - The customer demographic has shifted, with a 16% year-on-year increase in customer flow in September, and a notable rise in the proportion of returning customers [5]. - High-end products like collagen and hyaluronic acid are expected to see increased procurement, while non-compliant products will be suspended [3][25]. Product Performance - Different price segments are performing well, with significant growth in customer acquisition products such as water light needles and photon rejuvenation [6][8]. - The price of some products has decreased, such as the Ningbo Weimei 4mg product, while high-end products have maintained stable pricing [8][9]. - The market for botulinum toxin has shown stable growth, with annual growth rates exceeding 10% from 2023 to 2025, despite strict regulations limiting advertising [24]. Future Trends - The industry is expected to develop more healthily and sustainably, with a focus on compliance and quality. Non-compliant small institutions may be eliminated due to increased regulatory scrutiny [12][13]. - Mergers and acquisitions are occurring, particularly among traditional institutions that have not adapted to the light medical aesthetic trend [14]. - Institutions prefer self-built stores over acquiring local existing institutions to maintain brand consistency and leverage operational advantages [15]. Conclusion - The medical aesthetic industry is navigating a complex landscape of regulatory changes, shifting consumer preferences, and competitive pressures. Institutions are adapting by refining their marketing strategies, focusing on customer retention, and optimizing product offerings to ensure sustainable growth in a challenging environment [12][30].

Summary of Langzi Co., Ltd. Conference Call Company Overview - **Company**: Langzi Co., Ltd. - **Industry**: Medical Aesthetics and Fashion Retail Key Financial Performance - **Net Profit**: For the first three quarters of 2025, the net profit attributable to shareholders reached 989 million yuan, a year-on-year increase of 366% [2][3] - **Non-recurring Net Profit**: Decreased by 4.1% year-on-year, indicating a need for improvement in profit quality [2][3] - **Operating Cash Flow**: Slight decline observed, reflecting potential operational challenges [2][3] Medical Aesthetics Business - **Revenue Contribution**: Medical aesthetics revenue exceeded 50% of total revenue for the first time, reaching 2.237 billion yuan, a 2.5% increase year-on-year [2][4] - **Gross Margin**: Improved to 55.6%, up 1.8 percentage points year-on-year [2][4] - **Net Profit Contribution**: Decreased by 33.5% year-on-year, indicating challenges in profitability [2][4] - **Revenue Breakdown**: - Milan Fabric Division: 1.159 billion yuan, up 2.2% - Financial Services Division: 393 million yuan, up 9.7% - Hancheng Division: 318 million yuan, up 16% - Wuhan Wuzhou: 146 million yuan, down 9% - Changsha Yamei: 132 million yuan, down 13% - Gao Doctor: 109 million yuan, down 11% [4] Women's Clothing Business - **Revenue**: Approximately 1.407 billion yuan, stable year-on-year [5] - **Gross Margin**: Maintained at around 64% [5] - **Net Profit Contribution**: Increased by 1% year-on-year [5] - **Online Sales Growth**: Significant growth of over 22%, accounting for more than 46% of total women's clothing revenue [5] - **Inventory**: Total inventory at the end of Q3 was approximately 769 million yuan, with a focus on preparing for Q4 [5] Yingdong Division Performance - **Revenue**: Approximately 674 million yuan, a slight decline of 1.6% year-on-year [7] - **Gross Margin**: Decreased by 4.2 percentage points to 61.4% [7][8] - **Net Profit**: Approximately 6.87 million yuan, down 33% [8] Trends in Medical Aesthetics - **Revenue Trends**: Despite a 6% decline in half-year revenue, Q3 showed slight growth of about 2% [9] - **Product Mix Changes**: - Regenerative materials accounted for 22% of revenue, up 5.1 percentage points - Hyaluronic acid decreased to 12.6%, down 1.9 percentage points [9] - **Light Medical Aesthetics**: Increased focus on light medical aesthetics projects, with significant growth in revenue [10] Strategic Considerations - **Pricing Strategy**: Emphasis on providing comprehensive solutions rather than relying solely on product pricing [12] - **Cost Management**: Efforts to reduce customer acquisition costs through channel optimization and content marketing [12] - **M&A Strategy**: Active pursuit of high-quality medical aesthetics targets through external fund acquisitions, with a focus on integration [14][17] Market Environment and Future Outlook - **Market Conditions**: Current market conditions have influenced M&A activities, with many small institutions being acquired for better growth opportunities [15][16] - **Investment Plans**: Positive outlook on future growth, especially in new regions, with ongoing monitoring of potential targets [17] Cost and Supplier Dynamics - **Material Costs**: Decreased by 1.4 percentage points year-on-year, benefiting from strong supplier relationships [19] - **Supplier Power**: Upstream suppliers maintain significant power, particularly in high-end products [20] This summary encapsulates the key points from the conference call, highlighting the financial performance, business segments, strategic initiatives, and market dynamics of Langzi Co., Ltd.

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 75.81 based on a 2025 PS of 11X [4][10]. Core Insights - The company achieved revenue of RMB 1.87 billion in the first three quarters of 2025, showing a slight decrease of 0.01% year-on-year, while net profit attributable to shareholders improved, reducing losses by RMB 343 million to RMB -120 million [4][10]. - As of September 30, 2025, the company had cash reserves of RMB 2.19 billion, a decrease of RMB 427 million from June 30, 2025 [4][10]. - In Q3 2025, the company reported revenue of RMB 755 million, reflecting a growth of 14.45% year-on-year, with net profit attributable to shareholders at RMB -16 million, indicating continued loss reduction [4][11]. - The company effectively controlled its expense ratios, with a gross profit margin of 54.01% (down 4.37 percentage points), and reductions in sales, general and administrative, and R&D expense ratios [4][12]. - The company holds a significant number of patents, with 640 domestic and 492 foreign effective patents, totaling 1,132 effective authorized patents as of September 30, 2025 [4][13]. Financial Summary - Total revenue projections for the upcoming years are as follows: RMB 2.87 billion in 2025, RMB 3.33 billion in 2026, and RMB 3.78 billion in 2027, with respective growth rates of -4.7%, 16.1%, and 13.5% [3]. - The net profit attributable to shareholders is projected to improve significantly from RMB -146 million in 2025 to RMB 151 million in 2027, reflecting a growth rate of 1,538.4% [3]. - The company’s return on equity (ROE) is expected to turn positive by 2027, reaching 1.9% [3].

Investment Rating - The report maintains an "Outperform" rating for the company [4][12][26]. Core Insights - The company has shown stable overall performance, with explosive growth in new products such as "童颜针" (Youth Needle) and "水光针" (Water Light Needle), driving rapid profit growth [1][4]. - In the first three quarters of 2025, the company achieved revenue of RMB 4.94 billion, a year-on-year increase of 3.20%, and a net profit attributable to shareholders of RMB 982 million, up 22.35% [4][12]. - The target price is set at RMB 20.29, based on a PE ratio of 35X for 2025, reflecting the company's stable growth and rapid expansion of new products [4][12]. Financial Summary - Total revenue for 2023 is projected at RMB 7.98 billion, with a decrease of 24.8% compared to the previous year. However, revenue is expected to grow by 10.1% in 2025 and continue to rise in subsequent years [3][5]. - Net profit attributable to shareholders is forecasted to be RMB 1.09 billion in 2025, a significant increase of 341.5% from 2024 [3][5]. - The company reported a net cash flow from operating activities of RMB 1.01 billion, reflecting a substantial increase of 139.37% [4][12]. Product Performance - In Q3 2025, the company generated revenue of RMB 1.57 billion, with specific products like "童颜针" and "水光针" contributing RMB 86.14 million for the first time [4][13]. - The cardiovascular intervention segment remains the largest revenue contributor, generating RMB 1.79 billion, up 7.45% year-on-year [4][15]. - The medical services and health management segment also showed growth, with revenue reaching RMB 796 million, an increase of 6.79% [4][15].

Investment Rating - The report maintains a "Buy" rating for the company [6][13]. Core Views - The company's overall performance is stable, with explosive growth in new products such as "Tongyan Needle" and "Water Light Needle," driving rapid profit growth [2][13]. - The company achieved a revenue of 4.939 billion yuan in the first three quarters of 2025, representing a year-on-year increase of 3.20%, and a net profit attributable to the parent company of 982 million yuan, up 22.35% [13]. Financial Summary - Total revenue for 2023 is reported at 7,980 million yuan, with a projected decrease of 24.8% [4]. - Net profit attributable to the parent company for 2023 is 1,258 million yuan, reflecting a decrease of 42.9% [4]. - The earnings per share (EPS) for 2023 is 0.67 yuan, with a projected EPS of 0.58 yuan for 2025 [4]. - The company’s return on equity (ROE) is 7.9% for 2023, expected to rise to 9.2% by 2027 [4]. Revenue Breakdown - In Q3 2025, the company reported a revenue of 1.569 billion yuan, an increase of 11.97%, with "Tongyan Needle" and "Water Light Needle" generating 86.14 million yuan in revenue [13]. - The cardiovascular intervention segment generated 555 million yuan in revenue, up 7.18%, while the anesthesiology segment saw a decline of 37.38% [13]. - The pharmaceutical segment achieved a revenue of 1.57 billion yuan, with a growth of 6.37% [13]. Target Price and Valuation - The target price for the company is set at 20.29 yuan, based on a price-to-earnings (PE) ratio of 35 times for 2025 [13].

Core Insights - The company reported a revenue of 4.939 billion yuan for the first three quarters of 2025, representing a year-over-year increase of 3.2%, with a net profit of 982 million yuan, up 22.35% year-over-year [1] - In Q3 2025, the company achieved a revenue of 1.569 billion yuan, marking an 11.97% year-over-year growth, and a net profit of 291 million yuan, which is a significant increase of 176.18% year-over-year [1] Group 1: Financial Performance - The medical device segment generated revenue of 2.57 billion yuan, showing a slight increase of 0.33%, with the cardiovascular intervention segment growing by 7.45% to 1.79 billion yuan [2] - The pharmaceutical segment's revenue reached 1.57 billion yuan, up 6.37%, with the formulation business recovering to 1.36 billion yuan, reflecting a 14.32% increase [2] - The medical services and health management segment reported revenue of 796 million yuan, a growth of 6.79%, with new products like the "童颜针" and "水光针" contributing to nearly 30% growth in Q3 [2] - The company's gross margin improved to 64.21%, an increase of 1.41 percentage points, while the net profit margin rose to 20.17%, up 3.8 percentage points [2] - Cash flow for the first three quarters totaled 1.01 billion yuan, a significant increase of 139%, with expectations to reach 1.4 to 1.5 billion yuan for the full year [2] Group 2: Growth Drivers - The aesthetic medicine segment is accelerating, with the "童颜针" achieving approximately 100 million yuan in revenue since its launch in early August, covering over 80% of major brand chains and smaller institutions [3] - The innovative drug segment is progressing with various pipelines, including MWN109 and MWN105, with ongoing clinical trials and plans for business development collaborations [3] - The neuro-regulation and brain-machine interface segment is expected to see the approval of the deep brain stimulation device soon, with revenue contributions anticipated next year [3] Group 3: Profit Forecast - Revenue projections for 2025-2027 are estimated at 6.618 billion, 7.363 billion, and 8.347 billion yuan, with year-over-year growth rates of 8.44%, 11.26%, and 13.35% respectively [4] - Net profit forecasts for the same period are 1.12 billion, 1.293 billion, and 1.546 billion yuan, with substantial growth rates of 353.48%, 15.43%, and 19.63% respectively [4] - The current price-to-earnings ratios are projected at 29, 25, and 21 times for the years 2025, 2026, and 2027 [4]