Core Viewpoint - The company SAINT BELLA is experiencing rapid growth with a compound annual growth rate of 47.1% from 2021 to 2023, despite facing criticism for high losses, indicating a discrepancy between perceived financial health and actual performance [1][3]. Financial Performance - The reported losses of 1.2 billion RMB over three years are largely attributed to accounting standards, which may misrepresent the company's actual profitability [3]. - In 2023, SAINT BELLA achieved an adjusted net profit of 20.77 million RMB, marking its first profitable year, with a 122.4% increase in adjusted net profit to 17.15 million RMB in the first half of 2024 [3][5]. - The company's financial statements reflect significant non-cash expenses, such as long-term asset amortization and stock-based compensation, which inflate the perceived losses [3][5]. Cost Structure - The misunderstanding of "Cost of Sales" in the financial reports has led to misinterpretations of the company's marketing expenditures; "Cost of Sales" refers to core operational costs rather than advertising expenses [6][11]. - SAINT BELLA's marketing costs are relatively low compared to industry standards, with advertising expenses accounting for only 7.90% of revenue in the first half of 2024 [8][10]. - Major cost components include labor costs (1.22 billion RMB), high-end property leasing (1 billion RMB), and new retail product costs (420 million RMB), emphasizing investment in service quality and management optimization [14][16]. Business Model and Strategy - SAINT BELLA is evolving from a traditional maternity center to a comprehensive family care ecosystem, addressing women's health needs throughout their life cycle [17][19]. - The company has diversified its offerings through acquisitions and product development, including a new retail product system and a focus on women's health, which has significantly increased online sales and profitability [20][22]. - The strategic use of technology, including a proprietary SaaS platform for service management, positions SAINT BELLA as a leader in the industry, enhancing service quality and operational efficiency [21][22]. Market Position - The maternity care market in China is projected to grow significantly, with a compound annual growth rate of 24% from 2024 to 2030, presenting a substantial opportunity for SAINT BELLA [25]. - The company has successfully differentiated itself in a fragmented market, achieving revenue growth that surpasses its competitors, with a 41% increase in revenue from 2021 to 2023 [25][26]. - SAINT BELLA's multi-brand strategy allows it to cater to various consumer segments, from high-net-worth families to more budget-conscious customers, thereby expanding its market reach [26][28].