Recently, New Oxygen (NASDAQ stock code: SY), China's leading Internet plus medical beauty industry group, released its financial report for the first quarter as of March 31, 2024. During the reporting period, in the face of the constantly changing market landscape of the medical beauty industry, New Oxygen achieved profits in the first quarter for the first time in five years under non US GAAP standards.
The financial report shows that New Oxygen's net income in the first quarter was 318 million yuan (approximately 4408 US dollars), a year-on-year increase of 2.6%. Under non US GAAP, the net profit attributable to New Oxygen Group is RMB 4.05 million (approximately USD 560000).
Continuously promoting differentiated competitive strategies
As the leader of the Internet medical beauty industry, the community e-commerce sector of New Oxygen showed a strong growth trend in the first quarter financial report. Thanks to differentiated competitive strategies, the new oxygen community e-commerce sector has achieved significant results. Through years of continuous deepening of the content ecosystem, New Oxygen has established a high-quality community with rich and diverse content. Continuously introducing KOLs and doctor IPs, enriching content creation, and sharing professional knowledge; Continuously enhancing the platform's authority, creating vertical medical beauty competitions, and also building a professional and serious medical beauty exchange platform for doctors.
At the same time, New Oxygen has launched diversified products and services for different user groups. By conducting professional analysis and providing customized medical beauty projects, New Oxygen continuously expands its consumer base and increases user coverage from non-surgical to high-end customization, ultimately promoting the increase in average customer value and helping institutions increase profits.
Light medical beauty continues to be popular, with high digit growth in upstream business sectors
In recent years, based on the advantages of high-quality medical beauty services and medical beauty information, New Oxygen has gained insight into cutting-edge trends, acquired Qizhi Laser, laid out authentic ecology and agency business, and actively expanded its upstream business. By tracing the upstream supply chain through Internet thinking, New Oxygen has opened a new growth space for the medical beauty Internet platform.
According to financial report data, in the first quarter of 2024, the upstream business sector of New Oxygen continued to rise rapidly, with revenue increasing by 23.3% compared to the same period last year. This also confirms that the Chinese light medical beauty market is still maintaining rapid growth. In mainstream medical beauty institutions, light medical beauty has greatly increased the willingness of beauty seekers to consume due to its advantages of fast recovery, timeliness, and good results, and has gradually become the mainstream choice in first and second tier cities in China. According to the "Market Outlook and Investment Strategy Planning Analysis Report on China's Hyaluronic Acid Industry" released by Forward Industry Research Institute, hyaluronic acid accounts for 31.7% of non surgical medical beauty projects in injection projects; It is expected that by 2026, the market size of hyaluronic acid in China will reach 12.7 billion yuan, with a compound annual growth rate of approximately 14.18%. Strong market vitality, driven by high-quality products, brings new growth opportunities to the platform. The Korean hyaluronic acid brand Airasti, exclusively represented by New Oxygen, has also become a super explosive product for New Oxygen to enter the upstream and empower downstream institutions. The financial report shows that after two years of effort, New Oxygen has created a comprehensive expansion channel for Ailasti, currently covering more than 750 institutions nationwide.
Jin Xing, Chairman and CEO of New Oxygen Group, said, "The company will integrate upstream, midstream, and downstream resources of the medical beauty industry from the perspective of building a platform, fundamentally reduce costs and increase efficiency, provide consumers with better and more cost-effective medical beauty delivery services, enable the platform to achieve sustainable growth in revenue and profits, and ultimately create more long-term value for our shareholders."