“坐个月子收我100万，你还说亏钱？”

Core Viewpoint - Saint Bella Inc. is moving closer to its IPO in Hong Kong, but despite high pricing for its luxury postpartum services, the company has reported significant losses over the past few years, raising questions about the profitability of high-end maternity centers [1][2]. Financial Performance - Saint Bella's net losses from 2021 to 2024 (first half) are as follows: 122.4 million RMB, 411.6 million RMB, 238.9 million RMB, and 480 million RMB, totaling over 1.2 billion RMB in losses over three and a half years [1][2]. - The adjusted profit for the first half of 2024 is only 17.15 million RMB, indicating that even after excluding non-operational losses, profitability remains elusive [1][2]. Business Model Challenges - The high-end maternity center business is characterized by significant intermediary costs, with middlemen taking a large share of the profits [3]. - Saint Bella's gross margin for the first half of 2024 is only 34%, while its competitor, Aidi Palace, has an even lower gross margin of 25.5% [4]. - High rental costs are a major factor, with Saint Bella spending approximately 25% of its revenue on rent [12][14]. Cost Structure - Labor costs are substantial, with Saint Bella's labor and rental costs combined consuming nearly half of its revenue [14]. - The company has attempted to reduce costs through acquisitions, integrating its services with brands like Guanghetang and S-bra, but these efforts have not been entirely successful [17][23]. Marketing and Customer Acquisition - High marketing expenses are a barrier to profitability, with sales expense ratios remaining high as the company invests heavily in branding and social media presence [18][20]. - The business model faces inherent challenges in customer acquisition due to the nature of the service being a one-time purchase for most families, leading to difficulties in scaling [20]. Market Trends - The market for maternity centers is expected to polarize, with budget centers focusing on core services and high-end centers expanding their offerings to enhance customer lifetime value [21][22]. - Saint Bella is pursuing a dual strategy of retail expansion and brand diversification to capture different market segments [23]. Competitive Landscape - Public hospitals are entering the mid-range market, offering a combination of professional services and cost-effectiveness, which could challenge private maternity centers [25].