Beautiful Countryside's net profit after adjustments is projected to increase by 41% in 2025

Siyenli will accelerate upgrades to its core business over the next two years and optimize its commercial site selection.

This article is an original piece by IPO Early Look

Author｜Robin

According to IPO Early Look, on March 27, Meili Tiangyuan (2373.HK) released its 2025 annual report. For the full year, it achieved revenue of RMB 3.00 billion, up 16.7% year over year; net profit was RMB 340 million, up sharply 34.8% year over year; and adjusted net profit was RMB 381 million, up 41.0% year over year, with the adjusted net profit margin increasing to 12.7%.

In 2025, the net cash flow from the Group’s operating activities increased significantly, reaching RMB 1.00 billion, up 25.4% year over year. As of December 31, 2025, the Group’s total cash and cash-equivalent items amounted to RMB 2.59 billion, a net increase of 41.6% year over year, providing solid support for subsequent industry consolidation and shareholder returns.

For 2026, the board of directors proposed to continue a high proportion of profit distribution, allocating 50% of 2025 net profit attributable to the parent company for dividends, with a dividend of HK$0.72 per share, up 38.5% year over year. In terms of management incentives, in 2025, the Group will tightly link the revenue and profit targets for the coming three years with equity incentive plans. The first-year performance target has already been met ahead of schedule; and the company has further raised the three-year performance targets under the management’s equity incentives.

Medical aesthetics grows against the trend, driving value to push back against industry “involution”

Regarding the evolving trends in the medical aesthetics industry, CEO Lian Songyong said during the earnings call that the current industry has entered the “product selection era.” On the upstream side, the number of compliant medical aesthetics products has grown significantly, improving the situation of supply shortages; while on the consumer side, premium customer segments are no longer satisfied with standardized solutions, but instead pursue one-of-a-kind, high-end quality service that fits them. In the face of this structural shift, Meili Tiangyuan has chosen to expand its lead through differentiated positioning, with its core strategy staying with “not getting drawn into price-war involution, but focusing on technical capabilities and service quality.”

In 2025, during the industry adjustment period, Meili Tiangyuan’s medical aesthetics segment achieved revenue of RMB 1.02B, up 9.6% year over year, and gross margin rose by 3.6 percentage points to 55.9%. Lian Songyong said that Xiu Ke’er medical aesthetics, through precise project-structure optimization, continuously improves the individualized medical value delivered, focusing on high-value customer segments and projects, successfully achieved an increase of RMB 490 in average annual spending per active member year over year, reaching RMB 28k.

Based on accumulated clinical case data and strengthened supply-chain bargaining power, Meili Tiangyuan has turned advantages in the product selection stage into “co-creation and dedicated research” capabilities. Lian Songyong said that Xiu Ke’er medical aesthetics, supported by upstream partners, has built a system of solutions starting from a single project. At the “Dedicated Research for Anti-Aging” brand upgrade launch event held in March this year, Xiu Ke’er unveiled a full-cycle product blueprint covering early-aging and anti-aging, anti-aging with frozen-age technology, and anti-aging against aging, forming a unique brand perception and avoiding homogeneous competition in the market.

To support this brand strategy, Meili Tiangyuan has deeply integrated with 150 expert doctors, feeding first-line clinical experience and advanced aesthetic concepts back into product R&D, co-creating distinctive anti-aging product offerings, and—through incubating doctor celebrity IP—adding a sense of trust in the brand through professional capabilities. As of December 31, 2025, the Group has applied for more than 150 patents in total, using technological barriers to create a professional medical aesthetics service experience.

Siyenli integration: the “top priority” over the next two years

After Meili Tiangyuan completed the acquisition of 100% equity of Siyenli, it immediately launched a systematic integration project. Lian Songyong said that unlike the three-step sequence used during the integration of Nairier (core business, consumer medical, platform enablement), the integration path for Siyenli is to first do platform integration, then lift up consumer medical, and finally carry out a fine-grained upgrade of the core business. In the management’s view, the upgrade of the core business is the “top priority” over the next two years or so.

Lian Songyong introduced that at the platform level, after one quarter of advancement, some functions of Siyenli have already been integrated, and once the full integration is completed, efficiency will be multiplied, and the front- and back-end middle-office capabilities will exceed their previously organically grown state. At the same time, Meili Tiangyuan is also using the mature medical aesthetics system of Xiu Ke’er to transplant capabilities to Siyenli and support its business lift.

In terms of the specific planning for upgrading Siyenli’s core business, first, it will re-focus its brand positioning. Lian Songyong said that Siyenli is fundamentally a high-end beauty brand that values technological efficacy, cutting-edge equipment, and products. In the future, it will further unlock brand value and fully demonstrate the dual functions of technology and experience.

Second is optimizing commercial site selection. Siyenli in the past has not fully kept pace with adjustments in China’s commercial layouts, and a significant number of stores still have substantial room for site-selection optimization. In 2026, the Group plans to optimize and adjust approximately 20 stores, enhancing Siyenli’s influence within those commercial districts by entering higher-quality business areas, thereby increasing its influence in this city.

A deeper level of upgrade lies in the experience system. Lian Songyong said that high-end beauty is not only about technological efficacy, but also about creating “a new way of life” and “a place to rest for both mind and body” for high-end target customers. Currently, Meili Tiangyuan has already, together with an external consulting firm, comprehensively started the upgrade planning for Siyenli’s experience system, with the first step of the upgrade expected to be implemented in late April, involving more than 50 categories and scenarios.