省公安厅12月23日召开新闻发布会，通报"昆仑—2025"专项工作成果。今年以来，我省共侦办食药 环和知识产权领域刑事案件2767起、抓获犯罪嫌疑人6444名，接报警情数和发案量同比分别下降 22.5%、22%。 在生物多样性保护方面，江苏强化禁猎护鸟攻势，通过打击职业化团伙、强化线上线下巡查排查， 有效斩断危害鸟类犯罪"黑色产业链"，共侦办相关案件330起，抓获犯罪嫌疑人688名，查获解救画眉、 棕头鸦雀、黑水鸡等一批野生保护动物，全省涉鸟类警情数同比下降36%。 聚焦打造食药平安高地，江苏公安机关紧盯侵害老年、妇女、儿童及"大慢特"群体权益的犯罪，针 对肉毒素、减肥针、化妆品、风湿药等重点产品加大打击力度。依托3家中心实验室和59家快检室，我 省构建起"全域覆盖、全省联动"的快检工作体系，常态化开展暗访抽检，根据异常结果循线破案71起。 江苏已连续七年组织开展"昆仑"专项工作，对食药环和知识产权领域突出犯罪保持严打高压态势。 围绕美丽江苏建设，我省公安机关全链条打掉非法倾倒油泥磨灰、化工废液、建筑垃圾等团伙18个。同 时，江苏积极推进"公安+行政"联勤共治生态警务机制，今年以来，省公安厅会同省有关部门精准 ...

Core Insights - The "light medical beauty" market in China has rapidly penetrated modern life, with treatments like photon rejuvenation and water light needles becoming accessible during short breaks, reflecting a shift in consumer behavior and preferences [1][3][4] - The market has evolved significantly over the past decade, with a growing user base and increasing market transparency, leading to a projected user scale of 31.05 million by 2025 [1][2] - The industry is experiencing consolidation, with small institutions facing challenges due to increased competition from new players like New Oxygen and JD Health, indicating a trend towards chain operations and larger entities [2][12] Market Growth and Trends - The user scale of China's light medical beauty market reached 23.54 million in 2023, with expectations to grow to 31.05 million by 2025 [1] - The medical beauty market size is projected to increase from 227.4 billion yuan in 2021 to 364 billion yuan by 2025, with light medical beauty accounting for 53.3% of the market [1] - The consumer demographic has expanded from a niche market to a broader age range, including Z generation to individuals over 40, indicating a shift towards a more inclusive consumer base [5][12] Consumer Behavior and Preferences - There is a notable shift in consumer preferences from "internet celebrity faces" to more natural aesthetics, with 78% of consumers seeking natural results [4][5] - Male consumers are emerging as a significant growth segment, with their share in the medical beauty market increasing from 14% to 29% between 2022 and 2025 [5][6] - Consumers are increasingly prioritizing quality and personalized aesthetic design over mere procedural outcomes, reflecting a maturation in consumer awareness [4][10] Product and Service Evolution - The market has seen a shift in dominant products, with botulinum toxin and hyaluronic acid remaining the leading choices, while regenerative materials are gaining traction [6][7] - Regenerative materials, such as polylactic acid and recombinant collagen, are being introduced, but experts believe hyaluronic acid will maintain its dominant position due to its established safety and effectiveness [7][8] - The price of medical beauty services is becoming more transparent, with significant reductions in costs for treatments like photon rejuvenation, making them more accessible to a wider audience [10][11] Industry Dynamics and Future Outlook - The medical beauty industry is undergoing significant restructuring, with a high turnover rate of institutions and a trend towards professional consolidation [12][13] - Future industry developments are expected to focus on chain operations, involvement of listed companies, and participation of state-owned capital, enhancing trust and operational efficiency [13][14] - The market is anticipated to continue evolving towards a dual-track model of professionalization and market segmentation, with large chains dominating standardized treatments while niche clinics focus on personalized services [14]

Core Insights - The Chinese medical aesthetics industry has surpassed 300 billion yuan, with the light medical aesthetics market expected to grow at a compound annual growth rate (CAGR) of over 20% in the next five years, becoming the mainstream segment by 2024 [1] - Injection projects, as the core growth engine of light medical aesthetics, have seen their market size grow from 25.7 billion yuan in 2018 to 67 billion yuan in 2023, with a CAGR of 21.1%, projected to reach 147 billion yuan by 2027 [1] - The industry faces challenges such as rapid market changes driven by consumer preferences and increasing competition, necessitating innovation in material research to build competitive barriers [1] Market Dynamics - In 2024, the market share of injection materials is projected to be approximately 36% for hyaluronic acid, 29% for botulinum toxin, 19% for collagen, and 16% for regenerative materials [3] - The competition in the hyaluronic acid market has intensified, leading to revenue declines for major companies like Huaxi Biological and Aimeike, with revenue drops of 18.36% and 21.49% respectively in the first three quarters of 2025 [3][4] - In contrast, the recombinant collagen market is rapidly growing, with a projected CAGR of 44.93%, expected to reach 58.57 billion yuan by 2025 [3] Innovation and Product Development - Companies are accelerating new product launches to capture market opportunities, with Huaxi Biological introducing compliant products for facial skin improvement and other companies like Jinbo Biological launching innovative recombinant collagen products [5] - The emergence of new materials such as alginate and hydroxyapatite is set to enrich the market supply, with several products receiving regulatory approval in 2025 [6] Regulatory Environment - The industry is experiencing a shift towards compliance, with increased regulatory scrutiny leading to a "survival of the fittest" scenario, pushing medical aesthetic institutions to accelerate compliance transformations [2] - Despite the growth in compliant products, issues such as illegal operations and counterfeit products remain prevalent, posing risks to consumer safety [11][12] Pricing and Market Structure - The supply expansion has led to a restructuring of interests within the industry, with upstream manufacturers and downstream medical institutions engaged in pricing power struggles [8][9] - New platforms like Xinyang are disrupting traditional pricing models by significantly reducing costs through digitalization and centralized procurement, indicating a shift from a seller's market to a buyer's market [9][10] Future Trends - The industry is expected to evolve towards a more transparent and competitive landscape, with a focus on product and scenario-driven strategies, comprehensive treatment solutions, and enhanced consumer awareness [10] - The ongoing regulatory efforts and market dynamics suggest that the medical aesthetics industry is moving towards a more mature and compliant operational model, emphasizing innovation and safety [14]

Summary of the Medical Aesthetics Industry Conference Call Industry Overview - The medical aesthetics industry is experiencing a slowdown in revenue growth, with a slight year-on-year decline expected in 2025. Some institutions have reported declines of up to 50%, while large chain institutions and compliant small to medium-sized institutions continue to grow, indicating a market divergence [1][6]. - The industry is facing intensified price competition, leading to a continuous decrease in average transaction value. The net profit margin is expected to remain between 8% and 10% in 2025, similar to the previous year [1][8]. Key Insights - **Revenue Growth**: The overall revenue growth for the medical aesthetics industry in 2025 is projected at 5%, down from 7% in 2024. This slowdown is attributed to a 4% decrease in average transaction value, despite a 9% increase in customer traffic [3]. - **Customer Dynamics**: The number of new customers has decreased, particularly among university students and young consumers, influenced by stricter advertising regulations and seasonal factors [4][5]. - **Market Regulation**: Stricter regulations since 2022 have significantly impacted the market, especially affecting younger consumers who are more reliant on advertising and influencer marketing [5]. Competitive Landscape - There is a clear differentiation between large chain institutions and smaller ones. Large chains like Langzi, Yilai Mei, and Lige maintain single-digit growth despite a slowdown, while many smaller institutions, particularly in the light medical aesthetics sector, are experiencing declines [7]. - The competition among upstream medical aesthetics products is intensifying, yet the gross profit margin remains high, typically above 90% [10]. Product Insights - **PDRN Market Potential**: The PDRN (Polydeoxyribonucleotide) market is expected to grow significantly, with relevant registrations anticipated in 2026. PDRN offers advantages in skin management over traditional hyaluronic acid and collagen due to its anti-inflammatory and tissue repair properties [13][14]. - **Collagen Market Trends**: The recombinant collagen market still has growth potential, but the growth rate may slow down due to increased competition and lower procurement prices. The effectiveness of low-cost collagen products is comparable to high-cost alternatives, with differences mainly in brand influence and physician training [17][18]. Financial Performance - The company's collagen sales growth from January to November 2025 is 53%, down from 79% in 2023 and 66% in 2024. Despite this decline, the growth rate remains high, and market share is expected to continue increasing, although at a slower pace [19]. - The average transaction value is expected to continue declining, which may pressure profit margins. The company is exploring cost-reduction strategies, including outsourcing production [9][28]. Customer Retention and Acquisition - The increase in repeat purchases from existing customers is a key driver of overall customer traffic growth, with the average number of repeat purchases rising from 5.5 to 6.5 times per year [26]. - The cost of acquiring new customers has increased by at least 5% compared to the previous year, influenced by reduced marketing expenditure and increased costs across various online platforms [28]. Future Outlook - The medical aesthetics industry is expected to continue growing in the coming years, but at a slower rate than in the past. The concentration of the industry is likely to increase, with higher barriers for new entrants requiring refined operations and strong customer retention strategies [22][23][24]. - The market may see a consolidation of smaller, poorly performing institutions, leading to a more robust and competitive landscape for compliant and capable companies [22].

Core Viewpoint - The medical beauty industry has rapidly developed due to increasing consumer interest in "beauty economy," but it faces significant issues such as false advertising, unclear qualifications, inconsistent results, opaque pricing, and difficult post-operative disputes [1][11]. Pre-Consumption: Identifying Common Traps - Consumers should verify the qualifications of medical beauty institutions and personnel, ensuring they possess the necessary licenses and certifications [2][12]. - The legality of projects and products must be confirmed, including checking for approval numbers from the National Medical Products Administration for all used drugs and medical devices [2][12]. - Consumers should be cautious of exaggerated and false claims, maintaining a rational perspective on promotional content and understanding the actual effects and risks of procedures [2][12][13]. - It is essential to sign detailed medical service contracts or informed consent forms that clearly outline project details, product usage, pricing, rights and obligations, risk disclosures, and dispute resolution methods [3][13]. Post-Consumption: Complaint Channels - Consumers should actively seek redress through official channels if they feel their rights are compromised during or after medical beauty consumption [4][10]. - The 12315 hotline and platform serve as the highest authority for complaints, directly connecting consumers to market supervision departments for issues like false advertising and price violations [5][13]. - Complaints regarding medical institution qualifications and medical quality should be directed to local health administrative departments (Health Commission) [6][14]. - The 12345 government service hotline is a convenient option for consumers unfamiliar with complaint channels or dealing with issues involving multiple departments [7][15]. - Third-party platforms like "Black Cat Complaints" provide additional support for consumer rights protection, offering a user-friendly interface and social oversight [8][15][16]. Targeted Suggestions: Choosing the Right Channel - For issues related to ineffective results, pricing disputes, and contract disagreements, consumers should prioritize using the 12315 platform or Black Cat Complaints [9][18]. - Serious medical safety issues, such as illegal medical practices or unqualified practitioners, should be reported immediately to the local Health Commission [9][18]. - For complex complaints involving multiple departments, the 12345 hotline is recommended for efficient resolution [9][18]. Conclusion - Proactive prevention is more effective than post-consumption redress in the medical beauty sector. Consumers should conduct thorough qualification checks and contract reviews before engaging in services. In case of disputes, they should act decisively and utilize various official and third-party platforms to protect their rights [10][18].

Core Viewpoint - The report from China Galaxy Securities highlights optimism for investment opportunities in the pharmaceutical industry by 2026, suggesting that after recent fluctuations, valuations have returned to relatively low levels, with a potential for a resurgence in growth [1] Investment Outlook - The pharmaceutical sector is expected to see significant differentiation in 2025, with various factors driving rapid growth in the innovative drug segment, particularly in the Hong Kong market [2] - China's innovative drug development is gaining a competitive edge globally due to cost advantages and efficient conversion capabilities, transitioning from a "technology follower" to a "leading participant" in the global pharmaceutical innovation landscape [2] Policy Outlook for 2026 - The 14th Five-Year Plan marks a year of deepening collaboration in the healthcare system, with policies expected to enhance the efficiency of medical insurance funds and support for innovative drugs and devices [3] - The focus will be on optimizing procurement rules to balance quality and innovation, driving domestic alternatives, and improving public health capabilities [3] Sector-Specific Investment Insights - **Innovative Drugs**: Anticipated breakthroughs in domestic innovative drugs, with several promising candidates entering late-stage clinical trials [4] - **Life Sciences and CXO Sector**: A structural recovery is expected as global financing conditions improve and domestic innovation ecosystems stabilize [4] - **Medical Devices**: Growth opportunities in the domestic medical device sector are anticipated, particularly in aging-related markets and overseas exports [4] - **Traditional Chinese Medicine and Biologics**: Market dynamics may shift due to clinical re-evaluations, with potential changes in profit margins for traditional Chinese medicine [4] Healthcare Services - The aging population presents a reliable opportunity in the healthcare services sector, emphasizing the importance of maintaining a strong position in this area [5] Aesthetic Medicine - Upgrades in ingredient formulations and the rise of domestic brands in aesthetic medicine are noteworthy, with a focus on specific segments like collagen and botulinum toxin [6] Pharmaceutical Commerce - Attention is drawn to accounts receivable turnover, with a positive outlook on new business models in Contract Sales Organizations (CSO) [7] Medical AI - The acceleration of artificial intelligence in healthcare is expected to significantly enhance clinical service capabilities and efficiency, particularly in medical diagnostics [7]

Core Viewpoint - Haohai Biological Technology has been actively repurchasing its shares, indicating a strategy to support its stock price amid declining performance metrics in the medical aesthetics sector [1][4]. Share Buyback Activity - The company spent HKD 805,700 to repurchase 29,600 shares on November 5, marking the third consecutive trading day of buybacks in November [1]. - In total, Haohai has conducted 23 share buybacks this year, with 11 in the first half and 12 in the second half [1]. - The share buybacks in the second half were divided into two phases: the first from September 15 to September 24, and the second from October 27 to November 5 [1]. Financial Performance - For Q3 2025, the company reported revenue of CNY 594 million, a year-on-year decline of 11.29%, and a net profit of CNY 93.58 million, down 11.39% [4]. - Year-to-date revenue for the first three quarters was CNY 1.899 billion, down 8.47%, with a net profit of CNY 305 million, a decrease of 10.63% [4]. - The decline in revenue is attributed to insufficient domestic consumer demand, intensified industry price competition, and tax rate adjustments [4]. Business Segment Performance - The medical aesthetics segment generated CNY 575 million, accounting for 44.35% of total revenue, with hyaluronic acid products contributing CNY 347 million, down 16.80% [5]. - The epidermal growth factor products saw revenue of CNY 92.38 million, reflecting a growth of 13.73% [5]. Market Position and Valuation - Haohai's current PE (TTM) ratio is 14.82, below the industry average of 20, indicating potential undervaluation [3]. - Despite the stock price decline, the company maintains a net asset value of HKD 26.93 per share, providing an arbitrage opportunity for investors [7]. - Since August 20, 2023, the proportion of shares held by Hong Kong Stock Connect investors has increased from 30.35% to 35.78% [7]. Strategic Focus on Botulinum Toxin - The company has invested USD 31 million in Eirion to develop various botulinum toxin products, aiming to capture a share of the growing market [9]. - The medical aesthetics injection market is dominated by hyaluronic acid and botulinum toxin, which together account for 65% of the market [10]. - The domestic penetration rate for botulinum toxin is significantly lower than in mature markets, suggesting substantial growth potential [12]. Future Outlook - Despite current performance challenges, the company's ongoing development in the botulinum toxin sector may provide a pathway for recovery [14]. - The collaboration with Eirion is expected to yield new products that could enhance market presence and profitability in the future [14].

Core Viewpoint - Haohai Biological Technology has been actively repurchasing its shares, indicating a strategy to support its stock price amid declining performance metrics in the medical aesthetics sector [1][4]. Share Buyback Activity - The company spent HKD 805,700 to repurchase 29,600 shares on November 5, marking the third consecutive trading day of buybacks in November [1]. - In total, Haohai has conducted 23 share buybacks this year, with 11 in the first half and 12 in the second half [1]. - The second phase of buybacks occurred from October 27 to November 5, following an initial phase from September 15 to September 24 [1]. Financial Performance - For Q3 2025, the company reported revenue of CNY 594 million, a year-on-year decline of 11.29%, and a net profit of CNY 93.58 million, down 11.39% [4]. - Year-to-date revenue for the first three quarters was CNY 1.899 billion, down 8.47%, with net profit decreasing by 10.63% to CNY 305 million [4]. - The decline in revenue is attributed to insufficient domestic consumer demand, intensified industry price competition, and tax rate adjustments [4]. Business Segment Analysis - The medical aesthetics segment generated CNY 575 million in revenue, accounting for 44.35% of total revenue, with hyaluronic acid products contributing CNY 347 million, down 16.80% [4][6]. - The epidermal growth factor products saw a revenue increase of 13.73% to CNY 92.38 million [4][6]. Market Position and Valuation - Haohai's current PE (TTM) ratio stands at 14.82, below the industry average of 20 [3]. - Despite the declining stock price, the company maintains a net asset value of HKD 26.93 per share, providing potential profit opportunities for investors [8]. Strategic Focus on Botulinum Toxin - The company has entered a partnership with Eirion to develop botulinum toxin products, aiming to capture a share of the growing market [10][15]. - The botulinum toxin market is dominated by foreign brands, but there is significant room for growth in China, where the penetration rate is currently low compared to mature markets like the U.S. [12][13]. Industry Trends - The medical aesthetics market is experiencing a shift, with hyaluronic acid and botulinum toxin being the leading materials, comprising 98% of the injection market [10]. - The domestic market for collagen is growing rapidly, with a projected compound annual growth rate of 41.45% from 2023 to 2027 [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].

Core Viewpoint - In the first half of 2025, Sihuan Pharmaceutical turned a profit of 103 million yuan after three consecutive years of losses, with the medical beauty business contributing over 300 million yuan, becoming the largest profit source [1][4]. Group 1: Company Transformation and Financial Performance - Sihuan Pharmaceutical, established in 2001, was once a leader in the cardiovascular drug market but faced significant challenges from 2015 to 2024, resulting in a nearly 90% drop in market value [3]. - The company announced a strategic shift in 2020, moving from a focus on generic drugs to medical beauty and innovative drugs [3][4]. - By the first half of 2025, the medical beauty segment generated 585 million yuan in revenue, surpassing the revenue from generic drugs for the first time [6][7]. Group 2: Medical Beauty Business - The medical beauty business is now the flagship segment for Sihuan Pharmaceutical, with expectations of reaching 1 to 1.2 billion yuan in revenue for the year [6][7]. - The company has expanded its product offerings through acquisitions and partnerships, covering various categories in the medical beauty sector, with over 30 approved products [7][8]. - Sihuan's reliance on botulinum toxin remains significant, contributing approximately 80% of its medical beauty revenue, but this is expected to decrease as new products are launched [8]. Group 3: Innovative Drug Development - Sihuan Pharmaceutical has been involved in innovative drug development since 2008, but its contribution to overall revenue remains low, accounting for less than 5% in the first half of 2025 [11][12]. - The company has three commercialized innovative drugs, with only one, Annelazole, generating revenue [11][12]. - The competitive landscape for innovative drugs is intense, with multiple companies vying for market share in similar therapeutic areas [13][14].