Core Viewpoint - The medical beauty platform, New Oxygen (Nasdaq: SY), reported a decline in performance for the second quarter of 2025, with total revenue of 379 million yuan, a year-on-year decrease of 7%, and a net loss of 36 million yuan, compared to a profit of 18.9 million yuan in the same period last year. The revenue drop is attributed to a decrease in the number of medical service providers subscribing to the platform [2][4]. Group 1: Financial Performance - New Oxygen's revenue from medical beauty treatment services surged by 426.1% year-on-year to 144 million yuan, becoming the largest source of income for the company [2]. - The information and booking services segment continued to face pressure, with revenue of 135.2 million yuan, a decline of 35.6% compared to 209.7 million yuan in the same quarter of 2024 [4]. - The overall medical beauty market in China reached 280.4 billion yuan in 2023, with expectations to grow to 381.6 billion yuan by 2025, attracting significant interest from major internet companies [6][7]. Group 2: Business Transformation - New Oxygen is transitioning from a traditional B2B information intermediary model to a B2C vertical integrator in the medical beauty industry, facing intense competition [3]. - The company has established 29 operational chain stores in major cities, with 25 centers achieving positive monthly cash flow [5]. - The CEO anticipates that the medical beauty industry will see a significant increase in the number of chain stores, aiming for a thousand-store scale within 8 to 10 years [6]. Group 3: Industry Challenges and Opportunities - The medical beauty industry is experiencing dual challenges of intensified competition and rising consumer expectations, with platforms like Alibaba Health and Meituan diversifying their offerings [4][8]. - The CEO emphasizes that the core issue in the industry is a surplus of demand but a shortage of quality supply, presenting a key opportunity for New Oxygen's expansion [6]. - The industry is expected to undergo a transformation towards a "mass medical beauty" era as product prices normalize and quality supply increases, which will enhance the overall trust in the industry [6][9]. Group 4: Competitive Landscape - Major players like JD Health and Alibaba are actively entering the medical beauty space, with JD Health launching its first self-operated offline clinic and Alibaba creating a service matrix leveraging its ecosystem [7]. - The competition is shifting towards a model where online platforms dominate while offline services require a diverse approach, focusing on quality and customer experience [8]. - The industry is entering a phase of strong regulation, with new standards and policies being implemented to promote development and compliance [9].

Core Insights - JD Health has entered the medical beauty sector with the opening of its first self-operated clinic in Beijing Yizhuang, named "JD Medical Beauty (Yizhuang Store)" [1] - This marks the first physical store launch after the establishment of JD Health's medical beauty subsidiary in March 2023, with a second store set to open on September 30 in Beijing's Guomao area [1] - The Yizhuang store is integrated within JD Health's comprehensive outpatient department and offers popular light medical beauty services such as skin whitening, water light beauty, wrinkle removal, and anti-aging treatments [1] - The JD Medical Beauty services are accessible through the JD App, allowing users to search for "medical beauty" and navigate to the dedicated channel for services [1] - JD Medical Beauty has also launched a WeChat mini-program for additional accessibility [1] Trademark Registration - Beijing JD 360 Degrees E-commerce Co., Ltd. has applied for multiple "JD Medical Beauty" trademarks, covering international classifications such as advertising sales, medical gardening, and scientific instruments, with many trademarks currently awaiting substantive examination [4]

Core Insights - JD Health has officially launched its first self-operated medical beauty clinic named "JD Medical Beauty (Yizhuang Store)" on July 14, marking its entry into the offline medical beauty market [1] - The clinic offers four main services: skin whitening, water light beauty, wrinkle removal, and light-based anti-aging treatments [1] - JD Health has been gradually entering the medical beauty sector since 2021, collaborating with over 2,000 certified institutions and establishing direct supply partnerships with major manufacturers [2][3] Company Developments - The Yizhuang store has been in trial operation for over two months, initially serving JD employees before opening to the public [1] - JD Health plans to open a second flagship store in Beijing's Guomao Wantong Center by September or October [1] - In March 2023, JD Health established a subsidiary focused on medical beauty services and applied for the "JD Medical Beauty" trademark [2] Market Context - The Chinese medical beauty market is experiencing rapid growth, with a market size of 217.9 billion yuan in 2021, projected to exceed 1 trillion yuan by 2030 [3] - Competitors like Meituan and Alibaba have also entered the medical beauty sector, with Alibaba launching its medical beauty channel in 2017 and Meituan's GMV in the medical beauty category expected to surpass 38 billion yuan in 2024 [3]

Core Viewpoint - The medical beauty business is increasingly attracting attention from major internet companies, with JD Health opening its first offline self-operated medical beauty clinic in Beijing [2][4]. Company Developments - JD Health's first self-operated medical beauty clinic, named "JD Medical Beauty (Yizhuang Store)," has opened in Beijing and is integrated into the JD APP's medical beauty channel [2][8]. - A second clinic, "Guomao Store," is set to open on September 30 [3][15]. - The Yizhuang Store has been in trial operation for over two months, primarily serving JD internal employees before its public launch [10][12]. Competitive Landscape - JD Health and Meituan are competing in the medical beauty sector, with Meituan focusing on being a platform without self-operated clinics, while JD Health adopts a dual approach of self-operation and third-party clinic integration [4][20]. - The entry of internet giants like JD and Meituan is intensifying competition for customer acquisition among downstream medical beauty institutions [6][24]. Service Offerings - The Yizhuang Store offers four main light medical beauty services: skin whitening, water light beauty, wrinkle reduction, and light-based anti-aging [16]. - However, the range of specific medical beauty products available is limited, with popular items like "童颜针" (youthful needle) not yet offered [17]. Pricing Strategy - The pricing for services at JD Medical Beauty (Yizhuang Store) is primarily below 1,000 yuan, but some prices, such as for the black gold DPL facial treatment, are higher than competitors [17]. - Current prices are at internal employee rates, with potential future increases anticipated [17]. Market Dynamics - The competition has led to aggressive pricing strategies among medical beauty institutions, with some institutions resorting to significant discounts to attract customers [21]. - JD's entry into the market is seen as a challenge for smaller clinics lacking traffic sources, raising concerns about their survival in a competitive environment [24]. Industry Trends - New Oxygen, another internet platform, has also entered the offline medical beauty clinic space, having opened 30 self-operated clinics across nine cities since May 2023 [23]. - The overall trend indicates a shift towards online platforms integrating offline services, creating a more competitive landscape for traditional medical beauty institutions [20][24].

Core Insights - The medical beauty business is increasingly attracting interest from major internet companies, with JD.com opening its first self-operated medical beauty clinic in Beijing [1][4]. Group 1: JD.com Medical Beauty Clinic - JD.com has launched its first self-operated medical beauty clinic named "JD Medical Beauty (Yizhuang Store)" located on the first floor of JD Health's comprehensive outpatient department [2]. - The clinic has been in trial operation for over two months, initially serving only JD internal employees, and is now officially open to the public [2]. - The clinic's online access is integrated into the JD APP, requiring users to search for "medical beauty" to find the channel, and a mini-program has also been established on WeChat [2]. Group 2: Services and Expansion Plans - The Yizhuang store offers four main light medical beauty services: skin whitening and rejuvenation, water light beauty, wrinkle reduction, and photonic anti-aging [2]. - JD Medical Beauty plans to open another store in Beijing's Guomao Wantong Center by September 30 [2]. - Although the clinic's service categories are comprehensive, specific popular products like "baby face needles" and collagen injections are currently not available, but will be introduced in the future [3]. Group 3: Competitive Landscape - The medical beauty sector is a significant business area for Meituan, indicating a competitive landscape as JD.com and Meituan are set to compete in this field [3]. - Other internet platforms, such as Xinyang, have also entered the market, with Xinyang opening its first self-operated clinic in May 2023 and expanding to 23 clinics across nine cities in two years [5]. - The entry of industry leaders into the medical beauty space poses challenges for downstream institutions that lack traffic sources [5].