Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - In 2024, the company achieved operating revenue of 5.37 billion yuan, a year-on-year decline of 11.6%, and a net profit attributable to shareholders of 170 million yuan, down 70.6% year-on-year. In Q4 2024, the operating revenue was 1.5 billion yuan, a decrease of 19.3% year-on-year, with a net profit of -190 million yuan [2][4]. - For Q1 2025, the company reported operating revenue of 1.08 billion yuan, a year-on-year decline of 20.8%, and a net profit of 100 million yuan, down 58.1% year-on-year [2][4]. - The company is focusing on overall resource efficiency and is undergoing a phase of adjustment in its skincare business, while the raw material business is growing steadily, and the high-margin medical terminal business is expanding rapidly [9]. Summary by Sections Financial Performance - In 2024, the raw material business generated revenue of 1.24 billion yuan, up 9.5% year-on-year, with international market expansion showing a growth of 17.7%, particularly in the Americas, Europe, and Southeast Asia, where growth exceeded 20% [9]. - The medical terminal business achieved revenue of 1.44 billion yuan, a year-on-year increase of 32%, with skin-related medical products growing by 43.6% [9]. - The functional skincare business reported revenue of 2.57 billion yuan, down 31.6% year-on-year, while the nutritional science business generated 80 million yuan, up 41% year-on-year [9]. Cost and Profitability - The company's gross margin improved by 0.8 percentage points year-on-year, with the raw material, medical terminal, and functional skincare gross margins changing by 0.9, 2.3, and -1.1 percentage points respectively [9]. - The net profit margin decreased by 6.5 percentage points year-on-year due to increased management expenses and changes in the organizational structure [9]. Future Outlook - The company is expected to see improvements in revenue and profit as it continues to adjust its skincare business and launch new products. The raw material business is expected to maintain a strong market position, and the medical beauty business is gradually contributing more to overall performance [9]. - EPS forecasts for 2025-2027 are 0.95, 1.33, and 1.67 yuan per share respectively [9].

Group 1: Financial Performance - In Q1 2025, the company achieved operating revenue of 876 million yuan and a net profit attributable to the parent company of 51 million yuan [1] - As of March 31, 2025, total assets amounted to 6.044 billion yuan, with net assets attributable to the parent company at 4.156 billion yuan [1] Group 2: Cosmetics Business - The cosmetics segment generated operating revenue of 526 million yuan in Q1, with a gross margin of 61.06% [1] - The Yilian brand experienced significant growth, with Q1 revenue of 250 million yuan, representing a 25% year-on-year increase [1] - The Yilian spray product line announced a new spokesperson, Zhang Linghe, leading to a 69% increase in sales [1] - The focus on the "Pongrun" cream as a core product resulted in a 65% year-on-year increase in sales for the Pongrun water and milk products [1] - The Aier Doctor brand accelerated its brand adjustment, achieving Q1 revenue of 236 million yuan [1] - The Aier Doctor brand launched new products, including a "probiotic special gift box" and a new cleansing product [1] - The Kemi brand focused on "collagen anti-aging" and implemented a strategy centered on collagen products, ranking first in popularity on Douyin for collagen essence [1] Group 3: Pharmaceutical Business - The pharmaceutical segment maintained stable performance with operating revenue of 108 million yuan and a gross margin of 54.80% [2] - The company continued to advance drug research and development, launching two functional beverages during the reporting period [2] - Organizational changes were made to adapt to market policy changes, including the establishment of a KA sales department and a digital marketing department [2] - The company developed 200 new clients in hospital and OTC channels [2] Group 4: Raw Materials and Additives - The raw materials and additives segment achieved operating revenue of 86 million yuan with a gross margin of 39.54% [2] - The raw materials segment focused on technological innovation, obtaining two new authorized invention patents [2] - The company established a national-level postdoctoral research workstation and progressed with domestic and international pharmaceutical-grade project applications [2] - The sales of hyaluronic acid raw materials increased by 32% year-on-year, with an 11 percentage point increase in gross margin [2]