Beingmate(SZ:002570) Xin Lang Cai Jing·2025-09-16 10:42Core Viewpoint - In the first half of 2025, Beiyinmei reported a decline in revenue despite an increase in net profit, indicating challenges in its core business, particularly in the milk powder segment, which is heavily relied upon for overall performance [1][2]. Revenue Performance - Beiyinmei's revenue for the first half of 2025 was 1.355 billion yuan, a year-on-year decrease of 4.37% [1]. - The company's net profit attributable to shareholders was 74 million yuan, reflecting a year-on-year increase of 43.68% [1]. - Revenue from milk powder products was 1.209 billion yuan, down 4.43% year-on-year, accounting for 89.2% of total revenue [1]. - Sales of rice flour products increased by 33.13% year-on-year to 48 million yuan, but this category only represented 3.54% of total revenue [1]. Market Dynamics - The decline in milk powder sales is attributed to a decrease in newborn birth rates and increased market competition, with sales volume dropping by 6.04 percentage points compared to the previous year [1]. - The Chinese government's cash subsidies for child-rearing, effective from January 1, 2025, aim to alleviate family costs, but have led to consumer concerns about price increases for baby products, including those from Beiyinmei [2][3]. Marketing and Pricing Strategy - Beiyinmei's marketing expenses rose to 399 million yuan, a year-on-year increase of 7.98%, resulting in a sales expense ratio of 29.48% [2]. - Despite the increase in marketing spending, revenue growth has not kept pace, raising questions about the effectiveness of the marketing strategy [2]. - Following the announcement of government subsidies, Beiyinmei faced consumer backlash regarding price hikes, although the company claimed that no price increases had occurred and emphasized maintaining a profit margin of 5% [3].