Runben Biotechnology (SH:603193) Nan Fang Du Shi Bao·2025-05-13 11:25Core Viewpoint - Runben Co., Ltd. (603193.SH) reported strong financial performance for 2024 and Q1 2025, with significant revenue and profit growth, but faces concerns regarding its marketing-heavy strategy and rising inventory levels [1][4][14]. Financial Performance - In 2024, the company achieved revenue of 1.318 billion yuan, a year-on-year increase of 27.61%, and a net profit of 300 million yuan, up 32.8% [1][2]. - For Q1 2025, revenue reached 240 million yuan, reflecting a 44% year-on-year growth, while net profit was 44.2 million yuan, a 24.6% increase [1][2]. Revenue Breakdown - The revenue from the mosquito repellent series was 439 million yuan, up 35.39%, accounting for 33.3% of total revenue; the baby care series generated 690 million yuan, a 32.42% increase, making up 52.4%; and the essential oil series brought in 158 million yuan, growing by 7.88%, representing 11.9% [4][9]. Marketing and R&D Expenditure - The company has spent significantly on marketing, with promotional expenses totaling nearly 6 billion yuan from 2020 to 2023, while R&D expenses were only 71 million yuan during the same period [14][15]. - In 2024, sales expenses reached 380 million yuan, a 41.25% increase, with 321 million yuan allocated for promotional activities [14][15]. Inventory Concerns - As of the end of 2024, the company's inventory value was 119 million yuan, a 28% increase year-on-year, marking the highest level since 2020 [12][10]. - The production volumes exceeded sales volumes across all product lines, leading to inventory accumulation, with mosquito repellent, baby care, and essential oil series having respective unsold stock increases of 14.25%, 12.93%, and 39.82% [12][13]. Future Plans - The company plans to invest 6 billion yuan in a new R&D base in Guangzhou, aimed at enhancing its production and research capabilities in personal care, cosmetics, and medical devices [18][19].