RYC(SZ:003010) Sou Hu Cai Jing·2025-09-22 13:15Core Viewpoint - Ruoyuchen, a fast-moving consumer goods e-commerce company listed on the Shenzhen Stock Exchange, has rapidly gained popularity in the new consumption sector, with its stock price increasing over 700% in the past year, leading to a market capitalization of approximately 13.7 billion RMB [2][3]. Group 1: Company Overview - Founded in 2011, Ruoyuchen initially focused on e-commerce agency services, specializing in beauty, pet food, and health products, becoming one of China's leading e-commerce TP companies [3]. - In 2020, the company shifted its strategy to launch its own brand, Zhanjia, targeting the high-end home cleaning market, and subsequently introduced other brands focused on oral beauty and dietary supplements [3][4]. Group 2: Market Trends and Positioning - The new consumption trend emphasizes personalized experiences and value recognition, driving brands to shift from merely selling products to creating resonance with consumers [4]. - Ruoyuchen positions itself as a consumer-driven new brand company, aiming to create popular products across multiple categories, focusing on "self-care," "health," and "quality" [4]. Group 3: Financial Performance - The company's total revenue grew from 1.217 billion RMB in 2022 to 1.766 billion RMB in 2024, with a compound annual growth rate (CAGR) of 20.5%, while net profit surged from 33.79 million RMB to 106 million RMB, reflecting a CAGR of 76.8% [10]. - In the first half of 2025, Ruoyuchen achieved a revenue of 1.319 billion RMB, a year-on-year increase of 67.6%, with net profit rising by 85.6% [10]. - The revenue structure has shifted significantly, with the self-owned brand business becoming the largest revenue source in the first half of 2025, surpassing the e-commerce operation service, which has seen a decline [10][11]. Group 4: Product and Brand Strategy - The flagship product Zhanjia includes items like laundry detergent and car air fresheners, combining functionality with emotional appeal, emphasizing "self-care and lifestyle aesthetics" [6]. - Zhanjia has the highest growth rate among established brands in the home cleaning industry, with a growth rate of 72.6% from 2022 to 2024 [8]. Group 5: Challenges and Risks - Despite rapid growth, Ruoyuchen faces challenges, including high dependence on a few e-commerce platforms, with 61.4% of its self-owned brand sales coming from Douyin in the first half of 2025 [16]. - The company has seen a significant increase in sales and marketing expenses, which reached 5.99 billion RMB in the first half of 2025, accounting for 45.4% of total revenue, raising concerns about long-term sustainability [17]. - The second-largest shareholder has been reducing their stake, which may affect investor confidence amid the company's rapid growth [18].