In the second quarter of this year, China’s internet medical beauty platform, Beijing New Oxygen Technology Co., Ltd. (New Oxygen Technology), reported a loss of 36 million yuan (RMB), turning from profit to loss. The company’s core business information and appointment services are currently facing severe challenges.
On August 15th, New Oxygen Technology released unaudited financial statements for the second quarter ending June 30th. The financial report indicated that the company’s overall revenue for the second quarter decreased by 7.0% compared to the previous year, amounting to 379 million yuan. The net loss for the second quarter reached 36 million yuan, compared to a net profit of 18.9 million yuan in the same period of 2024, marking a shift from profit to loss.
Specifically, the company’s revenue from information and appointment services in this quarter amounted to 135 million yuan, a significant decrease of 35.6% from the same period in 2024 which was 210 million yuan. Sales of medical products and maintenance services in the second quarter were 76 million yuan, a drop of 28.1% from 106 million yuan in the same period last year.
The financial report attributed the loss to the direct impact of declining revenue and continuous investment in expanding offline business and optimizing operational systems during the company’s transformation process.
New Oxygen Technology’s CFO, Zhao Hui, mentioned during the performance communication meeting that the decrease in the number of medical institutions subscribing to the platform’s information services was a major factor leading to the loss.
According to news from “Daily Economic News” on August 17th, New Oxygen Technology’s costs for medical beauty services in the second quarter amounted to 109 million yuan, a significant increase of 405.5% from 21.6 million yuan in the second quarter of 2024. The report stated that the growth in service costs was primarily due to the expansion of brand medical beauty centers, indicating a further shrinkage of the company’s traditional New Oxygen business while the offline business was undergoing large-scale expansion. Overall, New Oxygen Technology’s core business of information and appointment services is facing significant challenges.
Beijing New Oxygen Technology Co., Ltd. is an internet medical beauty platform established in 2013. As of the end of 2020, it had become China’s largest and most popular online platform for consulting, selecting, and booking medical beauty services. On May 2, 2019, the company was listed on the U.S. stock market.