Summary of the Medical Aesthetics and Cosmetics Industry Conference Call Industry Overview - The medical aesthetics industry in China has a significantly lower penetration rate compared to the US and South Korea, indicating substantial growth potential. The current penetration rate is approximately 2 per 1,000 people, while the US and South Korea have rates of 5‰ and 8‰ respectively, suggesting a large market opportunity for growth [2][3][4] - The consumer repurchase rate for medical aesthetics is high, with stable demand for light medical aesthetics services, which provides a solid foundation for industry development [2][3] Market Dynamics - The medical aesthetics industry is divided into two main segments: medical aesthetics and cosmetics. The medical aesthetics segment remains robust post-pandemic, with a focus on product and material development [3][4] - The upstream raw material sector has high gross margins, with companies like Aimeike achieving margins of 85%-90%. The typical markup at the consumer level is over three times the factory price, ensuring profitability for institutions and sales personnel [2][4] Capital Market Trends - Capital markets are increasingly focused on upstream manufacturers, particularly the transition from hyaluronic acid to active materials such as recombinant collagen and PDRN. This shift is driven by rising consumer demand for facial treatments [7] - The market for light medical aesthetics accounts for approximately 70% in leading hospitals, with new medical aesthetics primarily divided into photonic and injection categories [8] Product Market Size - The market size for hyaluronic acid and botulinum toxin at the factory level is estimated to be between 50 to 100 billion yuan. The markup for mature products typically ranges from 2 to 3 times, with high-end products potentially reaching 3 to 4 times [9] - The regenerative materials market has seen rapid growth, with several companies achieving sales exceeding 1 billion yuan since 2021. However, these materials are not fully replacing hyaluronic acid but rather expanding the market [10][11] Material Development and Trends - The development of regenerative materials is significant, with a focus on micro-spheres that stimulate natural repair and collagen regeneration. These materials are expected to enhance treatment effectiveness and safety in soft tissue filling and skin management [15][16] - The future of the medical aesthetics industry is expected to shift towards active micro-spheres and humanized collagen, with a focus on extracellular matrix and various collagen types [15] Cosmetics Industry Overview - The cosmetics industry has seen a clear trend towards domestic brand replacement, with domestic brands now accounting for over 50% of the market. Brands are leveraging e-commerce and live streaming to enhance growth, with increased R&D investments focusing on efficacy and ingredient-driven strategies [2][21] - The market has shifted from high-end luxury products to a broader consumer base, with skincare products maintaining steady growth despite the pandemic [21][22] Sales Dynamics - The sales of domestic cosmetics exhibit seasonal variations, with the first half of the year accounting for about 40% of total sales and the second half for 60%. Major shopping events like 618 and Double Eleven significantly impact annual sales [24] R&D Investment Differences - There is a notable difference in R&D investment between the medical aesthetics and cosmetics industries. The medical aesthetics sector focuses on material iteration, while the cosmetics industry emphasizes brand building and marketing to enhance consumer loyalty [25] Future Outlook - The future of domestic cosmetics companies appears optimistic, with expectations of revenue growth driven by channel changes and ingredient innovations. Companies like Perfect Diary and Proya are projected to reach revenue levels of 20 to 30 billion yuan in the next 3 to 5 years [30]

Summary of Haohai Biology Conference Call Company Overview - **Company**: Haohai Biology - **Date**: September 18, 2025 Key Points Industry and Company Performance - **Revenue Decline**: Haohai Biology's revenue for the first half of 2025 decreased by 34% year-on-year, primarily due to changes in VAT policy affecting hyaluronic acid products, resulting in a profit reduction of approximately 30 million yuan [2][3] - **Overall Revenue**: The company achieved a revenue of 1.304 billion yuan in the first half of 2025, a year-on-year decline of 7% but a quarter-on-quarter increase of about 11% [3] - **Net Profit**: The net profit attributable to shareholders was 210 million yuan, down 10% year-on-year, but up 34% quarter-on-quarter [3] Business Segment Performance - **Aesthetic Medicine Segment**: - Revenue decreased by 9% year-on-year, with hyaluronic acid sales down 17% [2][4] - Human epidermal growth factor sales increased by 14% [2] - High-end hyaluronic acid product "Haimi" saw sales growth exceeding double digits, now accounting for over 40% of the segment [2][7] - **Ophthalmology Segment**: - Revenue decreased by 20% year-on-year, but sales of preloaded aspheric intraocular lenses increased by 74% [2][4] - High oxygen permeability orthokeratology lenses saw an 86% increase in sales [2][5] - **Surgical Segment**: - Revenue grew by 60%, with innovative hemostatic product "Kangrui Gel" contributing 44 million yuan [2][5] - New anti-adhesion surgical products performed well, achieving 40 million yuan in sales shortly after launch [2][24] Product Development and Market Strategy - **High-End Product Focus**: The company is focusing on exporting high-end products, with preparations for "Haimi" and "Haimi Yuebai" underway [10] - **New Product Lines**: The company is expanding its aesthetic medicine offerings, including dermal fillers and light therapy devices, with some products receiving FDA certification [11][12] - **Technological Advantages**: "Haimi" utilizes a unique cross-linking process for smooth injection, while "Haimi Yuebai" employs amino acid cross-linking for safety and effectiveness [9] Market Challenges and Responses - **Impact of VAT Policy**: The adjustment of VAT from 3% to 13% on hyaluronic acid and chitosan products is expected to impact profits throughout 2025, but no similar effects are anticipated in 2026 [2][5] - **Competitive Landscape**: The OK lens segment faced challenges due to competition from new products like defocus frame glasses, leading to a decline in sales [20][21] - **Price Pressure**: The company is increasing R&D investment in mid-to-high-end products to counteract potential price pressures from upcoming procurement policies [15] Future Outlook - **Performance Expectations**: The company remains optimistic about future growth despite current economic uncertainties, focusing on steady marketing efforts and product development [26] - **Market Share Potential**: The domestic multifocal intraocular lens market share is expected to increase due to price adjustments in procurement policies [16] Additional Insights - **Sales of Human Epidermal Growth Factor**: This product has seen significant growth due to its application in aesthetic medicine, with sales increasing since 2024 [13] - **Surgical Product Innovations**: The innovative hemostatic product "Kangrui Gel" has entered the Shanghai medical insurance directory, with plans to expand into other provinces [25] This summary encapsulates the key insights from Haohai Biology's conference call, highlighting the company's performance, strategic focus, and market challenges.

Core Viewpoint - The Jiangsu Province Guan County Prosecutor's Office has initiated a comprehensive inspection of 323 registered beauty institutions, identifying 14 with serious legal violations and issuing over 260 health supervision opinions to prohibit non-medical institutions from conducting medical beauty projects [1][2]. Group 1: Regulatory Actions - As of the end of August, the relevant administrative agencies have completed a thorough "health check" of all registered beauty institutions in the county [1]. - The prosecutor's office has launched administrative public interest litigation procedures to address illegal medical practices in beauty institutions [1]. - A special rectification action was initiated, involving a "carpet-style" inspection of beauty institutions, focusing on those with concentrated complaints and risk hazards [1]. Group 2: Public Awareness and Education - On August 15, the prosecutor's office collaborated with relevant administrative agencies to conduct legal education in communities to enhance public awareness of illegal medical practices [2]. - Prosecutors emphasized that beauty institutions are strictly prohibited from conducting medical beauty projects and that advertising such services on social media constitutes false advertising [2]. Group 3: Industry Impact - The actions taken by the prosecutor's office and administrative agencies aim to effectively rectify industry chaos and establish a safety baseline for the public's pursuit of beauty [2].

Summary of the Medical Aesthetics Industry Conference Call Industry Overview - The medical aesthetics market is experiencing overall poor performance in August 2025, with surgical procedures declining significantly and non-surgical projects showing slowed growth. Revenue growth is expected to remain flat compared to the same period last year, making it difficult to achieve over 5% growth [1][6][41]. - A large promotional campaign is planned from late August to mid-September to counteract the seasonal downturn, with expectations for growth in September and October, projecting a 25% growth in September 2023 and 14% in 2024 [1][7]. Financial Performance - Current profit margins have decreased to around 7-8%, prompting institutions to negotiate with suppliers, eliminate unprofitable product lines, and introduce high-margin products to mitigate the impact of declining profit margins [1][8]. - Sales of specific products like "少女针" (Youth Needle) and "乳白天使" (Milky Angel) have slowed, with sales volume for the Youth Needle down 16% year-on-year from January to July 2025, and Milky Angel down 2% [1][11][12]. Product Performance - The "苏颜萃" (Sculpture) product line was launched in July 2025, showing strong brand power and a significant profit margin, priced at 21,800 yuan with a procurement cost of over 4,000 yuan [1][13]. - The "HITTY" product line has seen a decline in sales, particularly HITTY 1.0 and HITTY 1.5, which dropped 23% and 13% year-on-year, respectively, due to competition and limited profit margins [1][19][20]. Market Dynamics - The overall market performance in August 2025 is disappointing, with revenue growth slowing across both national chains and light medical aesthetics institutions. Non-surgical project clinics have been less affected but still show minimal growth [1][5][6]. - The 4 mg purified collagen remains the most widely used category, but its growth rate is expected to slow to about 15% in 2025, down from 61% last year [2][28]. Competitive Landscape - The market for collagen products is shifting, with 10 mg and 17-type collagen showing faster growth rates compared to the 4 mg variant [2][29]. - The introduction of new products like "真爱苏菲" (True Love Sophie) is anticipated to replace the usage of "艾舒菲" (Ai Shufei) with a more favorable procurement price [1][23]. Strategic Considerations - The group plans to expand its store network by opening 5 to 6 new locations in 2025, while also focusing on eliminating outdated product lines and introducing new ones to stabilize profit margins [1][41]. - The competitive landscape indicates that small to medium-sized companies need to adapt, with a focus on light medical aesthetics brands showing promising growth [1][42]. Regulatory and Quality Control - The industry is under strict regulation, and the introduction of compliant new products is seen as beneficial for overall growth. Ensuring medical quality is a priority for leading institutions, which have built strong brand recognition and accumulated professional expertise over the years [1][41][44]. Conclusion - The medical aesthetics industry is facing significant challenges in growth and profitability, with a need for strategic adjustments and a focus on high-margin products to navigate the current market conditions.

Summary of the Conference Call Industry Overview - The light medical beauty industry is transitioning from reliance on high-priced projects and well-known doctors to standardized, cost-effective services. New Oxygen focuses on dermatology and small store layouts to meet consumer demands for transparency in product ingredients and pricing [2][4][18]. - The competition in the upstream product market for medical beauty is intensifying, with a significant increase in the issuance of three types of certificates in China. It is expected that by 2026, more companies will launch alternative products, breaking the monopoly of a few high-priced products and leading to market scaling [2][6][7]. Company Strategy and Operations - Traditional medical beauty institutions face high marketing costs and limited profit margins. New Oxygen aims to improve profit margins by controlling marketing costs, optimizing the supply chain, and developing proprietary products. The company is also exploring a model of self-operated small clinics [2][8][9]. - The chain rate in the light medical beauty industry is expected to increase, but it requires the provision of standardized treatments and high cost-performance services. New Oxygen implements a hard discount model to maintain profit margins while offering cost-effective services [2][10]. - The operational efficiency of chain clinics is influenced by scale, density, and efficiency. New Oxygen adopts a strategy that balances breadth and depth, focusing on high-density layouts in key cities to highlight chain advantages and improve overall efficiency [2][11]. Market Dynamics - The Chinese medical beauty market has developed rapidly over the past few years, but the industry chain structure still leans towards a seller's market with low chain rates. New Oxygen recognizes the challenges and pain points in the development of medical beauty chains and plans to leverage its advantages to achieve growth [3][8]. - The rise of regenerative products like water light needles and botulinum toxin has increased the proportion of dermatology projects, which are characterized by high frequency, low risk, and suitability for small chain stores [4][5]. Financial Performance and Projections - Traditional medical beauty institutions have low profit margins, with some large institutions only achieving around 3% to 5%. Marketing costs account for 30% to 50%, along with 20% to 30% for product costs. New Oxygen aims to control marketing costs within 10% and reduce product costs through its supply chain [8][9][22]. - Currently, the net profit margin for New Oxygen's stores is approximately 10% to 15%. In the next two to three years, as the proportion of proprietary products increases, the company expects the net profit margin to rise to 15% or even 20% [22]. Customer Retention and Cost Management - New Oxygen's model leans towards benefiting consumers and achieving equity in medical beauty services. The company employs various strategies to enhance customer retention and meet the needs of price-sensitive consumers, including membership operations, promotional activities, and community engagement [18][19]. - The company maintains a cost advantage in customer acquisition primarily through user referrals and private domain operations, which account for nearly 70% of its customer acquisition strategy [21]. Future Outlook - The light medical beauty industry is naturally suited for chain penetration due to its high standardization. New Oxygen plans to expand its presence in key cities with high-density layouts to leverage chain advantages [10][11]. - The company is also testing different site selection strategies for new clinics, focusing on core business districts and popular shopping centers to optimize overall operational effectiveness [14][16]. Conclusion - New Oxygen is strategically positioned to capitalize on the evolving landscape of the light medical beauty industry by focusing on cost-effective services, optimizing supply chains, and enhancing customer engagement. The company's proactive approach to market dynamics and operational efficiency is expected to drive future growth and profitability [2][10][21].

Core Insights - The medical beauty industry is undergoing transformation driven by technological advancements and evolving aesthetic perceptions, with non-surgical procedures becoming increasingly popular, particularly in anti-aging treatments [1] - Injection-based aesthetic procedures are gaining traction due to their effectiveness, short recovery times, and high repeat purchase rates, positioning the injection market as a new growth area within the medical beauty sector [1] Injection Aesthetic Concepts and Classification - Injection aesthetic procedures are minimally invasive treatments primarily categorized into hyaluronic acid, botulinum toxin, collagen, regenerative injectables, lipolytic injections, and thread lifting [2] - The market is dominated by hyaluronic acid and botulinum toxin, with botulinum toxin leading globally with 8.878 million treatments in 2023, followed by hyaluronic acid with 5.565 million treatments [2] Market Heat Analysis - The synthetic regeneration field is becoming an investment hotspot, with new materials and combinations expanding market boundaries [5] - By November 2024, 15 injectable products have been approved, primarily hyaluronic acid, with several others including polylactic acid and botulinum toxin [5] Hyaluronic Acid Development Status and Trends - Hyaluronic acid maintains its leading position, with a growth rate of 29.1% from 2022 to 2023, driven by diverse applications and combination treatments [11] - The industry faces challenges such as product homogenization and safety concerns, but innovation and differentiation present opportunities for growth [14][15] Botulinum Toxin Development Status and Trends - The botulinum toxin market is evolving towards a coexistence of natural and recombinant products, with recombinant botulinum toxin expected to penetrate the market due to its safety and customization potential [17] Regenerative Materials Development Status and Trends - Regenerative injectable products, particularly polylactic acid (PLA) and polycaprolactone (PCL), are gaining attention, with hydroxyapatite emerging as a potential market player [23] Collagen Development Status and Trends - The application of collagen in medical aesthetics is expanding, with various types being explored for their unique benefits, particularly types I and III for skin support and hydration [31] User Preferences and Trends - Users increasingly prioritize skin quality and overall facial harmony, with a shift towards personalized beauty standards [39] - The demand for skin improvement remains strong, with private care and hair transplant services emerging as new market opportunities [42] User Decision-Making and Experience - Safety and effectiveness are the primary concerns for users, with a growing emphasis on the qualifications of medical personnel and the quality of procedures over cost [45][60] - Users exhibit a cautious approach to decision-making, with a significant portion requiring thorough research before engaging in aesthetic procedures [47] Market Trends and Future Outlook - The injection aesthetic market is transitioning from simple filling procedures to a focus on long-lasting, precise, and personalized treatments, driven by technological advancements and consumer expectations [68] - Chinese companies are increasingly looking to international markets for growth, with a focus on regulatory compliance and brand recognition to overcome market entry barriers [71]

Core Viewpoint - The recent announcement by Fosun Pharma regarding the approval of RT002 (DaxibotulinumtoxinA) for treating adult cervical dystonia indicates a potential expansion of botulinum toxin applications beyond aesthetic uses into therapeutic areas [1][4]. Industry Overview - The primary application of botulinum toxin in the domestic market remains in the medical aesthetics sector, where it is highly favored for procedures such as wrinkle reduction, facial slimming, and shaping [2][3]. - In 2020, botulinum toxin accounted for approximately 58% of the global injectable product market, surpassing hyaluronic acid, which held a 40% share [2]. Competitive Landscape - Numerous medical aesthetic companies are actively developing botulinum toxin products through acquisitions, independent research, and exclusive licensing agreements [3]. - The market currently features four major products, with competition expected to intensify as more players enter the market [3]. Therapeutic Potential - The therapeutic applications of botulinum toxin are significant, with potential uses in treating conditions such as strabismus, muscle tension disorders, migraines, obesity, and excessive sweating, spanning various medical specialties [5][6]. - Compared to developed countries, the range of approved indications for botulinum toxin in China is relatively limited, suggesting substantial growth potential in the market as more indications undergo clinical trials [6]. Development Challenges - The development cycle for botulinum toxin is lengthy and costly, with high barriers to entry due to regulatory scrutiny and the complexity of industrial production processes [7]. - The typical timeline for a drug to move from development to approval can take 8-10 years, highlighting the significant investment required in both time and resources [7].

Core Viewpoint - The UK Health Security Agency has issued a warning regarding the risk of botulinum toxin poisoning associated with cosmetic procedures, highlighting a rise in confirmed cases from 38 to 41 within a two-month period [1] Group 1: Case Statistics - From June 4 to August 6, there have been 41 clinically confirmed cases of iatrogenic botulinum toxin poisoning, primarily in the North East and North West of England [1] - The previous report on July 18 indicated 38 confirmed cases up to July 14, showing an ongoing increase in risk [1] Group 2: Health Implications - Patients have exhibited severe symptoms including difficulty swallowing, slurred speech, and respiratory distress requiring support [1] - The UK Health Security Agency has advised clinicians to closely monitor individuals who have recently undergone cosmetic procedures for signs of botulinum toxin poisoning [1] Group 3: Regulatory Insights - Botulinum toxin is classified as a prescription medication and should only be administered by qualified healthcare professionals [1] - Products obtained from unauthorized sources may be counterfeit or unlicensed in the UK, posing significant health risks [1]

Summary of Pro Pharmaceutical Conference Call Company Overview - Pro Pharmaceutical is a leading pharmaceutical integration platform under the Hongdian Group, established in 1989 and headquartered in Dongyang, Zhejiang [4][5][16] - The company has developed a significant business scale over 30 years, focusing on CDMO, APIs, and formulations, with global competitiveness [4][5] Strategic Focus - The company has launched a 2030 strategy focusing on four key areas: raw materials, CDMO, pharmaceuticals, and medical aesthetics, with CDMO identified as the core growth driver [2][4] - CDMO business is currently in an explosive growth phase, benefiting from years of accumulation and expanding into cutting-edge technologies like ADC and peptides [2][6] Financial Performance - In 2024, the revenue from the three main segments is projected to be: raw materials and intermediates at 8.651 billion yuan, CDMO at 1.884 billion yuan, and formulations at 1.256 billion yuan [4] - Gross profit margins for these segments are expected to be 45.17%, 26.98%, and 26.63% respectively, indicating a strong performance in raw materials [4] CDMO Business Development - Pro Pharmaceutical has established itself as a core player in the global innovative drug CDMO market, with over 600 R&D personnel and a significant increase in project numbers [5][6] - The number of API projects in the R&D phase has grown from 28 in 2021 to 79 in 2024, with commercialized human drug projects increasing from 74 to 262 [6] Domestic Innovation Drug Industry - The domestic innovative drug industry is experiencing rapid growth, with significant revenue increases reported by leading biotech companies [7] - Pro Pharmaceutical has established partnerships with 572 domestic and international innovative drug companies, with over 300 agreements signed with leading domestic firms [7] International Market Performance - The overseas market remains a major revenue source, with expectations of achieving over 10 commercialized projects annually through strategic partnerships with international pharmaceutical companies [8] - The company has a long-standing presence in the CDMO sector, contributing to stable revenue growth [8] API Commercialization - Key products entering the API commercialization phase include Donafenib tosylate, Paltomide mesylate, and Fuzuloparib, with expected demand reaching ton-level [9] - These products are crucial growth drivers for the company, supported by their inclusion in national insurance directories and treatment guidelines [9] Collaborations with Multinational Companies - Pro Pharmaceutical has established close collaborations with major multinational pharmaceutical companies, including Pfizer and Merck, focusing on early-stage development orders [10][11] - The company has also built strong relationships in the veterinary medicine sector, with consistent growth in commercialized projects [11] Formulation Business Outlook - The formulation business is expected to enter a rapid growth phase starting in 2026, driven by increased approvals and a focus on market demand [13][14] - The company anticipates approval for approximately 10 formulations in 2025, with a target of over 15 by 2026 [13] Raw Materials and Intermediates Business - The raw materials and intermediates segment is the core revenue and profit contributor, with projected revenue of 8.651 billion yuan in 2024 [15] - The company is diversifying its raw material offerings across antibiotics, veterinary drugs, chronic disease medications, and medical aesthetics [15] Future Growth Expectations - Pro Pharmaceutical is expected to enter a new growth cycle starting in 2025, with a projected compound profit growth rate of over 20% [16] - The company is considered to have a favorable valuation, encouraging investors to pay attention to related assets [16]

Core Insights - The medical beauty industry is undergoing transformation driven by technological advancements and evolving aesthetic perceptions, with non-surgical procedures becoming increasingly popular, particularly in anti-aging treatments [1] - Injection-based aesthetic procedures are gaining traction due to their effectiveness, short recovery times, and high repeat purchase rates, positioning the injection market as a new growth area within the medical beauty sector [1] Group 1: Injection Aesthetic Concepts and Classification - Injection aesthetic procedures are primarily categorized into hyaluronic acid, botulinum toxin, collagen, regenerative injectables, lipolytic injections, and thread lifting, with hyaluronic acid and botulinum toxin dominating the market [2] - In 2023, botulinum toxin treatments led globally with 8.878 million procedures, followed by hyaluronic acid with 5.565 million procedures, indicating a strong preference for these two categories [2] Group 2: Market Heat Analysis - The injection aesthetic market is experiencing rapid growth, driven by advancements in materials and techniques, with synthetic regenerative materials becoming a focal point for investment [6] - By 2024, approximately 60% of investments in injection materials are expected to be directed towards regenerative biological materials, highlighting a shift towards innovative solutions in the market [6] Group 3: Hyaluronic Acid Market Development - Hyaluronic acid maintains a strong market position, with a growth rate of 29.1% from 2022 to 2023, indicating its resilience and adaptability in the face of emerging competition [12] - The market faces challenges such as product homogenization and safety concerns, but opportunities exist for differentiation through innovation and new applications [14][15] Group 4: Botulinum Toxin Market Trends - The botulinum toxin market is evolving towards a dual existence of natural and recombinant products, with recombinant botulinum toxin expected to gain market share due to its safety and customization potential [17] - The market is characterized by intense competition, necessitating a focus on product differentiation and strategic positioning to navigate challenges [19] Group 5: Regenerative Materials Market Insights - The regenerative materials market is currently focused on polylactic acid (PLA) and polycaprolactone (PCL), with significant growth potential in the coming years [23] - New entrants are encouraged to explore innovative technologies and applications, particularly in areas like hydroxyapatite, which is gaining traction for its structural support in aesthetic procedures [27] Group 6: Collagen Market Trends - The collagen market is expanding with various types being explored for aesthetic applications, particularly types I and III, which are popular for their skin-supporting properties [31] - The market is expected to see increased competition as more types of collagen are developed and their applications are diversified [33] Group 7: User Preferences and Trends - Users are increasingly focused on skin quality and overall facial harmony, with a shift towards personalized aesthetic solutions [39][42] - Safety and effectiveness remain the top concerns for users, with a growing emphasis on the qualifications of medical professionals and the quality of procedures over cost [45][60] Group 8: Market Expansion and Internationalization - Chinese medical beauty companies are increasingly looking to international markets, with a focus on regulatory compliance and brand recognition to overcome challenges in foreign markets [70] - The injection aesthetic products are leading the charge in this internationalization effort, with significant investments in regions like Southeast Asia and the Middle East [70]