Core Insights - Qingsong Co., Ltd. is a leading ODM enterprise in the cosmetics industry, established in 2001 and listed in 2010, with a strong R&D capability and diverse product lines [1] Financial Performance - In Q3 2025, Qingsong's revenue reached 1.553 billion yuan, ranking first among seven companies in the industry, surpassing the second-ranked Qingdao Kingway's 1.246 billion yuan and the industry average of 842 million yuan [2] - The net profit for the same period was 107 million yuan, also the highest in the industry, exceeding the second-ranked Kesi's 73.628 million yuan and the industry average of 37.206 million yuan [2] Business Segmentation - The main business segments include facial masks (450 million yuan, 48.07%), skincare products (323 million yuan, 34.47%), wet wipes (125 million yuan, 13.36%), and other products (29.577 million yuan, 3.16%) [2] Financial Ratios - As of Q3 2025, the asset-liability ratio was 36.14%, a decrease from 42.74% year-on-year, slightly above the industry average of 36.05% [3] - The gross profit margin was 19.20%, an increase from 16.56% year-on-year, but below the industry average of 21.95% [3] Executive Compensation - Chairman and CEO Fan Zhanhua's compensation for 2024 was 1.2222 million yuan, an increase of 653,600 yuan from 2023 [4] Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 15.93% to 25,300, while the average number of circulating A-shares held per shareholder increased by 18.95% to 20,100 [5] Market Outlook - Qingsong aims to become a world-class cosmetics manufacturing service provider, focusing on enhancing customer service and R&D innovation [5] - Revenue forecasts for 2025 have been adjusted to 2.089 billion yuan, with an increase in gross margin to 17.4% and a decrease in profit forecast to 104 million yuan [5] - Qingsong's net profit projections for 2025-2027 are 104 million, 119 million, and 139 million yuan, with corresponding PE ratios of 27, 23, and 20 [5] Competitive Position - Qingsong is recognized as one of the largest domestic ODM enterprises in cosmetics, with six competitive advantages and multiple business departments to enhance service quality [6]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on expected performance relative to the market index [7]. Core Insights - The company has achieved a turnaround in profitability for 2024, with a reported revenue of 1.94 billion yuan, a slight decrease of 1.51% year-over-year, and a net profit of 55 million yuan, compared to a loss of 68 million yuan in the previous year [1][4]. - The subsidiary, Nosber, has shown significant improvement in its cosmetics business, with a revenue of 1.93 billion yuan and a gross margin increase of 5.42 percentage points to 17.16% [1][4]. - The company is focusing on cost reduction and efficiency improvements, which have positively impacted gross margins across its product categories [2][3]. Financial Performance Summary - For 2024, the company reported a revenue of 1.94 billion yuan, with a year-over-year decline of 1.51%, and a net profit of 55 million yuan, marking a significant recovery from a loss of 68 million yuan in 2023 [1][6]. - The revenue forecast for 2025-2027 is adjusted to 2.00 billion yuan, 2.10 billion yuan, and 2.22 billion yuan, reflecting growth rates of 3.2%, 5.1%, and 5.6% respectively [4][6]. - The net profit projections for the same period are 114 million yuan, 144 million yuan, and 187 million yuan, indicating substantial growth rates of 108.2%, 26.6%, and 29.5% respectively [4][6]. Product Category Performance - In 2024, the revenue breakdown by product category shows facial masks, skincare, and wet wipes generating 815 million yuan, 739 million yuan, and 291 million yuan respectively, with corresponding gross margins of 18.02%, 16.90%, and 14.29% [2]. - The company has reported production increases in its product lines, with facial masks up by 14.2%, skincare by 17.0%, and wet wipes by 42.8% [2]. Competitive Advantages - Nosber has established a strong competitive position as one of the largest domestic ODM cosmetics manufacturers, leveraging its resources in talent, customer relationships, supply chain, and R&D capabilities [3]. - The company is enhancing its service quality and response speed by creating specialized teams for different customer types, which is expected to improve market competitiveness [3].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on expected performance relative to the market index [7]. Core Views - The company has achieved a turnaround in profitability for 2024, with a reported revenue of 1.94 billion yuan, a slight decrease of 1.51% year-over-year, and a net profit of 55 million yuan, compared to a loss of 68 million yuan in the previous year [1]. - The improvement in gross margin is attributed to cost control measures, including better management of raw material procurement and optimization of production processes [1][2]. - The subsidiary, Nosber, has solidified its competitive advantages, including talent acquisition, customer resources, and a robust quality control system, which are expected to enhance market competitiveness [3]. Financial Performance Summary - For 2024, the company reported a revenue of 1.94 billion yuan, with a year-over-year decline of 1.51%. The net profit was 55 million yuan, marking a significant recovery from a loss of 68 million yuan in 2023 [6]. - The revenue forecast for 2025-2027 is adjusted to 2.00 billion yuan, 2.10 billion yuan, and 2.22 billion yuan, reflecting growth rates of 3.2%, 5.1%, and 5.6% respectively [4]. - The net profit projections for the same period are 114 million yuan, 144 million yuan, and 187 million yuan, with year-over-year growth rates of 108.2%, 26.6%, and 29.5% respectively [4][6]. Product Performance Summary - The company has seen revenue growth in its three main product categories: facial masks, skincare, and wet wipes, with respective revenues of 815 million yuan, 739 million yuan, and 291 million yuan for 2024 [2]. - Gross margins for these categories improved, with facial masks at 18.02%, skincare at 16.90%, and wet wipes at 14.29%, reflecting increases of 7.08%, 6.03%, and 0.11% year-over-year [2]. Competitive Positioning - Nosber, as a leading domestic ODM in the cosmetics sector, has established a multi-faceted competitive advantage, including a strong supply chain and innovation capabilities [3]. - The company is enhancing its service quality and responsiveness by creating specialized teams to cater to diverse customer needs, particularly in the e-commerce sector [3].