Core Viewpoint - The article discusses the extended payment terms in the automotive and beauty care industries in China, highlighting the impact on suppliers, particularly small and medium enterprises, and the implications of the revised regulations aimed at improving payment practices [1][2]. Group 1: Payment Terms in Automotive Industry - Domestic automotive companies have an average payment term exceeding 170 days, with some exceeding 240 days, effectively transferring financial pressure to suppliers [1]. - The revised "Regulations on Payment for Small and Medium Enterprises" mandates that large enterprises must pay small and medium suppliers within 60 days of delivery [2]. Group 2: Payment Terms in Beauty Care Industry - The beauty care industry has an average payment term of 101 days, which has increased by one week compared to the previous year [3]. - The medical beauty sector shows significantly longer payment terms, with some companies like Huaxi Biological having payment terms of 197 days, an increase of 25 days year-on-year [4][12]. Group 3: Financial Health of Companies - Huaxi Biological's accounts payable balance reached 820 million yuan, a year-on-year increase of 18.22%, indicating a growing reliance on extended payment terms despite having a relatively high liquidity position [12][14]. - Jinbo Biological reported a payment term of 166 days in 2024, with a notable increase in overdue accounts payable, suggesting liquidity challenges [9][10]. Group 4: Industry Dynamics and Competition - The medical beauty industry faces high regulatory barriers and concentrated market power, leading to extended payment terms as companies leverage their bargaining power over suppliers [5][6]. - The competitive landscape in the hyaluronic acid market has intensified, impacting Huaxi Biological's revenue and profit margins, which have seen significant declines in recent years [13]. Group 5: Comparison Among Major Players - Among the "three giants" in the hyaluronic acid market, Huaxi Biological and Aimeike have payment terms exceeding 100 days, while Haohai Biological maintains a stable payment term of under 30 days, indicating a stark contrast in financial practices [14][15].

Core Insights - The medical beauty industry is rapidly emerging, driven by advancements in medical technology and evolving consumer perceptions, expanding from traditional cosmetic surgery to non-invasive beauty treatments, laser skincare, and body management [1][16] - The industry is experiencing significant growth potential due to improved consumer decision-making facilitated by big data, alongside a push towards standardization through enhanced regulation [1][16] - The long-term outlook for the industry remains positive, supported by rising disposable incomes and increasing demand for quality living [1][16] Industry Overview - Medical beauty, abbreviated as "医美," utilizes medical methods, including drugs, instruments, and surgeries, to enhance external beauty and improve physiological functions [2] - The industry encompasses various segments, including facial beauty, body beauty, skin beauty, non-invasive beauty, and oral beauty [2] Market Trends - Consumer acceptance of light medical beauty is increasing, with 34% of consumers planning to engage in light medical beauty services in the coming year, reflecting a 36% year-on-year growth [5] - The emerging consumer base includes young people, men, and consumers from lower-tier markets, indicating a shift in demand driven by changing aesthetic values and rational consumption attitudes [5] Industry Structure - The medical beauty industry chain consists of upstream products and equipment, midstream service providers, and downstream customer acquisition platforms, with a stable upstream structure and a competitive midstream landscape [7][8] - Upstream manufacturers face high entry barriers due to regulatory requirements and technical challenges, making it the most profitable segment of the industry [8] - The downstream market is characterized by intense competition and low concentration, with 71% of service providers being private clinics or beauty salons [10] Market Size and Growth - The Chinese medical beauty market has shown steady growth, with a compound annual growth rate (CAGR) of 17.5% from 2017 to 2021, reaching nearly 190 billion yuan, and is projected to grow at a CAGR of 15.2% to nearly 400 billion yuan by 2026 [11] - The penetration rate of medical beauty services in China was 4.5% in 2022, indicating significant room for growth compared to Japan (11.3%), the U.S. (17.2%), and South Korea (22.0%) [11] Regulatory Environment - The industry has faced challenges such as varying qualifications, false advertising, and price transparency issues, prompting the government to enhance regulatory frameworks and industry standards [14] - Increased compliance awareness among institutions and improved consumer protection mechanisms are expected to foster a healthier development phase for the industry [14] Investment Opportunities - Key companies in the medical beauty sector include Aimeike, Huaxi Biological, Longzi Co., and Huadong Pharmaceutical, which are positioned to benefit from the industry's growth and regulatory improvements [16]