Beijing, Shanghai, Guangzhou, and Shenzhen contribute 65% of revenue! With 700 stores, Beautiful Countryside doesn't want to engage in a price war | Live coverage of the earnings conference

“We focus on target areas with China’s strong economic development advantages, and we build 20 direct-operated cities with annual revenue exceeding 1.72M. In 2025, the 20th National Congress-related high-tier cities will contribute 93% of revenue, while the revenue share of the ultra–first-tier cities of Beijing, Shanghai, Guangzhou, and Shenzhen is 65%.” The CEO of Meili Tiantian, Lian Songyong, disclosed this at the performance briefing.

On March 27, Meili Tiantian held its 2025 performance press conference. Chairman Li Yang, Vice Chairman and CEO Lian Songyong, and the Secretary to the Board of Directors and CFO Zhou Min attended together.

In 2025, Meili Tiantian achieved revenue of 3.0 billion yuan, up 16.7% year over year. Gross margin increased to 49.1%, up 2.8 percentage points year over year. Net profit after accounting for deductions was 380 million yuan, up 41% year over year.

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In terms of business segments, as a core cornerstone business, last year Meili Tiantian’s beauty and healthcare services achieved revenue of 1.66 billion yuan, up 14.9% year over year. Attendance at direct-operated stores reached 146k person-times, active members increased to 146k, and the average annual spend per active member was 9,738 yuan.

During the reporting period, the overall revenue of the consumer healthcare segment was 1.34 billion yuan, up 18.9% year over year, accounting for 44.8% of revenue. The revenue share of sub-health medical services also first exceeded 10%, and the revenue of the Yuanyuan Medical business increased 62.2% year over year to 330 million yuan.

Strong growth in performance has also made investors worry that the company may lack momentum going forward. In response, CFO Zhou Min said at the meeting that through internal growth and external acquisitions and mergers, Meili Tiantian’s future profits are expected to maintain growth. In 2026, it will invest in brand and digitalization, and use profits generated from efficiency improvements to lay out the future.

According to what Lian Songyong revealed, Meili Tiantian has already invested 500 million yuan in total, formed a digital team of more than 100 people, and the resource system it has built includes more than 40 items. It can already be iterated and expanded continuously based on business and organizational forms, laying the foundation for AI applications.

He said that the commercial system is the company’s core capability supporting its response to uncertainties in the industry. It includes four core modules: the customer value growth system builds a value framework around the full customer lifecycle; the platform + business-department architecture supports expansion of multiple brands; and the full-process acquisition and value growth system supports the landing of the acquisition strategy.

The progress of acquisitions and integration is also a key focus for the outside world. In October last year, Meili Tiantian announced that it planned to team up with a subsidiary to acquire 100% of the issued shares of Siyanli at a price of 1.25 billion yuan (about HK$1.37B). This transaction means that within two years, Meili Tiantian successively brought into its fold the industry’s second-largest market share brand (Nairui’er) and the third-largest brand.

Regarding the integration situation, Lian Songyong said that Siyanli’s integration drew on the experience from the acquisition of Nairui’er. It adopted a path of integrating the back-office and front-office first, lifting with consumer healthcare, and upgrading the basic business. He emphasized that currently, the integration efforts for Siyanli are progressing smoothly. In the future, it will optimize the locations of 20 stores, upgrade store experiences, and the integration effect is expected to be better than that of Nairui’er.

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Lian Songyong emphasized that in the future, Siyanli will continue Nairui’er’s mature experience of a “three-step approach,” while improving revenue at individual stores, it will expand net profit margin levels and release the brand’s greater growth potential. As for Nairui’er, the brand has already been established in the mature market in the Greater Bay Area. Next, it will refine its mature store-opening model, accelerate expansion outward, and will officially enter the Yangtze River Delta in 2026.

These brands’ growth has strengthened Meili Tiantian’s scale. As of the end of 2025, Meili Tiantian has 549 stores, including 289 direct-operated stores and 260 franchised stores. By January 2026, after Siyanli is consolidated into the group, the total number of stores will exceed 700.

At the performance briefing, Lian Songyong discussed that in 2025 the overall medical beauty industry faced pressure and adjustment. However, Meili Tiantian adheres to its high-end differentiated value route, and in the end both quantity and pricing rise for high-net-worth customer segments, with the number of basic customers growing 16% year over year. In this year’s first quarter (as of March 24, 2026), Meili Tiantian’s medical beauty revenue increased 24% year over year.

He said that going forward, Meili Tiantian will continue to focus on technology-based services, adhere to differentiated competition, and maintain a growth trend. “Our firm strategy is not to fight a price war and ‘crawl into a price competition’.”

In addition, Meili Tiantian’s reach is also beginning to extend into the supply chain, upgrading its product R&D and innovation system. In February this year, it reached a strategic cooperation agreement with Shiseido, a globally well-known skincare brand.

In an interview, Zhou Min told reporters from the International Finance News that cooperation with Shiseido China is a very landmark event. In the past, due to scale constraints, it was difficult for Meili Tiantian to reach the minimum order quantity for purchases. Now that the three major brands in the industry have been brought together, scale has increased, which brings better channel resources and can further drive supply-chain upgrades and cost reduction.

In the future, Meili Tiantian’s product R&D and innovation approach will expand into three parallel models: global curation, international brand cooperation, and joint R&D with top international laboratories.

Reporter Wu Dian

Text editor Sun Wanqiu