Core Insights - The company achieved significant growth during the 2025 "Double Eleven" shopping festival, showcasing a multi-dimensional breakthrough and impressive performance [1][2] Financial Performance - In Q3 2025, the company reported a net profit attributable to shareholders of 25.22 million yuan, a substantial year-on-year increase of 136.55%, indicating a strong recovery in profitability [4] - The sales gross margin improved to 74.33%, and operating cash flow reached 442 million yuan, with a year-on-year increase exceeding 67 times [4] Brand Performance - The core brand Winona performed exceptionally well during "Double Eleven," ranking in the top 5 of the full beauty industry on Vipshop, top 2 in domestic goods on JD.com, and top 1 in skincare on Douyin [5] - Winona Baby maintained a position in the top 10 of the Tmall baby care rankings, while Aikeman achieved significant growth, ranking second in the Tmall domestic new brand sales list [5] - The new investment brand Yujian topped multiple lists in the shower oil category during Tmall's pre-sale period, marking a key step in the company's offline channel expansion with its first experience store opening in Shanghai [5] R&D and Innovation - The company increased R&D investment, with expenses reaching 171 million yuan in the first three quarters, leveraging Yunnan's unique plant resources to complete 17 new raw material registrations [6] - Winona has developed a complete product matrix covering sensitive skin needs, including five core products, and is advancing towards a "medical evidence-driven 2.0" era in the industry [6] Strategic Development - The company successfully transitioned from a single-brand focus to a multi-brand collaborative development strategy, achieving clear differentiation and strong growth momentum across its brands [6] - The brand ecosystem is evolving to cover various consumer groups and price ranges, from mass market to high-end, and from functional skincare to daily makeup [6] Global Expansion - The company's globalization strategy is accelerating, with Winona entering the Thai market in May 2024 and expanding into Australia, Singapore, and Malaysia [8][10] - The company has shifted from "product output" to "brand output," showcasing its research capabilities and innovative concepts at international events, gaining recognition from global authorities [10]

Core Insights - The Watsons Health and Beauty Awards (HWB) 2025 announced that Winona won the Best Brand Award and its Clear Sunscreen won the Best Product Award, marking a significant achievement for the brand in the sensitive skin care market [1][3] Group 1: Brand Performance - Winona has maintained its position as the number one brand in sensitive skin care sales in China from 2020 to 2024, as certified by international agency, Sullivan [2][3] - The brand's success is attributed to its unique approach of developing skin care products based on clinical research and consumer needs, establishing a strong reputation and trust among consumers [2][4] Group 2: Product Innovation - Winona's new generation of star product, the second-generation Winona Special Care Cream, represents a significant iteration after 13 years, utilizing breakthrough technology for effective skin repair [3][4] - The Clear Sunscreen, which has been on the market for ten years, is recognized for its gentle formulation and effectiveness, having been rigorously tested for safety and efficacy [4][5] Group 3: Market Strategy - Winona's "Sensitive Skin PLUS" strategy focuses on addressing specific needs within the sensitive skin demographic, creating a diverse product line that includes specialized creams and sunscreens [4][5] - The brand has achieved significant recognition in the market, ranking in the top 10 sales at Watsons and demonstrating strong consumer approval [3][5] Group 4: Future Outlook - Winona aims to lead the sensitive skin care sector with medical-grade standards, continuously enhancing consumer trust and satisfaction while striving for health and beauty goals [7]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [5] Core Views - The company experienced a temporary pressure on performance, but the makeup business showed remarkable growth [1] - The skincare segment's revenue decreased by 1.41% year-on-year, while the makeup segment's revenue surged by 226.48% [3] - The company is focusing on multi-brand development with Winona as the core brand, aiming to enhance customer value through a combination strategy of single products and sets [4] Financial Performance Summary - For 2024, the company reported a revenue of 5.736 billion yuan, a year-on-year increase of 3.87%, and a net profit attributable to the parent company of 503 million yuan, a decrease of 33.53% [1] - The gross profit margin for 2024 was 73.74%, a slight decrease of 0.16 percentage points year-on-year [2] - The company’s revenue for Q1 2025 was 949 million yuan, down 13.51% year-on-year, with a net profit of 28 million yuan, down 83.97% [1] Segment Performance Summary - The skincare segment accounted for 83.70% of total revenue in 2024, while the makeup segment contributed 9.60% [3] - Online sales increased by 10.13% year-on-year, representing 68.21% of total revenue, while offline sales decreased by 10.72% [3] Future Projections - Revenue projections for 2025-2027 are 6.335 billion, 7.260 billion, and 8.491 billion yuan respectively, with net profits of 760 million, 923 million, and 1.057 billion yuan [4] - The company is expected to maintain a stable position in the market while exploring overseas expansion [4]