新氧20250822

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].