Huatai Securities: Some international leading beautycosmetics companies in mainland China continue to warm up.

Huatai Securities research report indicates that the annual and 4th quarter performance of overseas beauty/luxury goods/consumer leaders over the past 25 years are being gradually revealed. Overall, most of the leading companies in the China region have continued to show a warming trend since the 3rd quarter of 25: Estee Lauder's share of mainland China revenue in the group has increased from 15% in the 3rd quarter of 25 to 22% in the 4th quarter of 25; L'Oreal stated that the year-on-year growth rate of revenue in the mainland China market has increased from low single digits in the 1st half of 25 to mid-single digits in the 2nd half of 25, and pointed out that the start of 26 in the mainland China market has been strong; Shiseido stated that the core brand of the group continued to show good growth in China in the 4th quarter of 25; Procter & Gamble stated that in a cautious overall consumption environment, the revenue in the Greater China region in the 4th quarter of 25 continued to grow for several consecutive quarters year-on-year. L'Oreal's management stated that with the improvement in the Chinese stock market, Chinese consumers' willingness to purchase high-end products of luxury brands and medical beauty products has somewhat recovered; management also stated that since the beginning of this year, Chinese consumers' confidence in purchasing high-end products has been restored, and this trend has not changed, with the overall momentum in mainland China being positive. We believe that the trend of a recovery in high-end consumption in mainland China is expected to continue.