Core Viewpoint - SAINT BELLA Inc. has received approval to initiate its IPO process in Hong Kong, aiming to become the "first stock in family quality care" in the Hong Kong market [1] Group 1: Financial Performance - SAINT BELLA achieved a net profit of 20.77 million yuan in 2023 and is projected to maintain profitability with a net profit of 17.15 million yuan in the first half of 2024, representing a 122.4% increase compared to the same period in 2023 [1] - Revenue figures for SAINT BELLA from 2021 to 2023 were 259 million yuan, 472 million yuan, and 560 million yuan, respectively, indicating a compound annual growth rate of 47.1% [1] - In the first half of 2024, SAINT BELLA's revenue reached 358 million yuan, a 32.0% increase from 271 million yuan in the same period of 2023 [1] Group 2: Market Position - According to a report by Frost & Sullivan, SAINT BELLA is the largest postpartum care group in China based on revenue from ultra-high-end confinement centers in 2023 [2] - SAINT BELLA is also recognized as the fastest-growing scaled postpartum care group in China from 2021 to 2023, with its revenue from postpartum care surpassing that of its main competitor in the first half of 2024 [2] Group 3: Business Strategy and Development - SAINT BELLA's growth and industry leadership can be attributed to its differentiated services targeting various consumer segments, from high-end to value-for-money offerings [4] - The company has expanded its service offerings beyond postpartum care, establishing a comprehensive family care ecosystem that includes brands like "baby bella" for young families and "Bella ISLA" for psychological healing [4][5] - SAINT BELLA has also ventured into the women's health functional food sector by acquiring Guanghetang, transitioning its sales focus from offline to online, resulting in a significant increase in online orders and gross margin [5] - The company has developed into a leading comprehensive family care brand group in Asia, covering multiple areas such as maternal and infant care, family parenting, and women's health food retail [5]

Core Viewpoint - Saint Bella Group has officially submitted its IPO application to the Hong Kong Stock Exchange, aiming to pioneer the family quality care sector in the Hong Kong market [1] Financial Performance - From 2021 to 2023, the group's sales increased from RMB 258.76 million to RMB 559.91 million, nearly doubling, while operating revenue rose from RMB 259 million to RMB 560 million, representing an increase of over 116% [2] - For the first half of 2024, the group reported revenue of RMB 357.78 million, a year-on-year growth of 32%, with gross profit reaching RMB 121.75 million, up approximately 30% compared to the same period last year [3] Business Model and Structure - Saint Bella Group focuses on high-quality family care services through three main business segments: postpartum care centers, family care services, and women's health functional foods, achieving a comprehensive layout of "scenario-based services + new retail products" [1] - The group has attracted investments from several well-known institutions, including Tencent with an 11.6% stake and Gao Rong Capital with approximately 8.3%, indicating strong market confidence in the group's growth prospects [3] Market Outlook - The successful IPO of Saint Bella Group is expected to provide new investment opportunities for investors and further promote the development of the family quality care market, as consumer demand for high-quality family care services continues to rise [5]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $337.7 million, a 20.3% increase from $280.7 million in Q1 2024 [9] - Adjusted earnings per share rose to $1.42, up 17.4% from $1.21 in Q1 2024 [9] - Adjusted EBITDA increased to $40.6 million, a 25.1% rise from $32.4 million in Q1 2024 [9] - Gross margin percentage improved to 31.9% from 31.4% in Q1 2024 [24] - Adjusted EBITDA margin was 12%, compared to 11.6% in Q1 2024 [25] Business Line Data and Key Metrics Changes - Personal Care segment revenues were $258.3 million, accounting for 76.5% of total revenue, with a 7.4% organic revenue growth [23] - Hospice same store revenue increased by 9.9%, with average daily census rising to 3,515, a 4.6% increase year-over-year [14][21] - Home Health segment revenues were $18 million, representing 5.3% of total revenue, with a 1.3% organic revenue growth [22] Market Data and Key Metrics Changes - Personal Care services received favorable reimbursement support, including a 5.5% rate increase in Illinois effective January 1, 2025 [12] - Same store hours in Personal Care increased by 2% compared to Q1 2024, marking the largest year-over-year volume growth in recent quarters [13] - The company experienced solid caregiver hiring success, with 79 hires per day in Personal Care, up from 78 in Q1 2024 [10] Company Strategy and Development Direction - The company aims for a minimum annual revenue growth of 10%, focusing on acquisitions that complement organic growth [17] - The Gentiva acquisition added approximately $280 million in annualized revenues, significantly expanding market coverage [22] - The company is actively pursuing additional acquisition opportunities to enhance density in existing markets and add clinical services [23][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued demand for home-based care, viewing it as a growth opportunity [18] - The company anticipates stable gross margins and consistent cash flow conversion in line with historical averages [25][27] - Management noted that the clinical hiring environment remains challenging, but improvements have been observed in the personal care segment [11][67] Other Important Information - The company utilized approximately $2.5 million in ARPA funding during Q1 2025, with $8.8 million remaining [28] - As of March 31, 2025, the company had cash on hand of approximately $97 million and reduced bank debt by $20 million [9][28] Q&A Session Summary Question: Commentary on hospice cap limitations - Management indicated that cap limitations have not been material, with effective management of referral mix [33][34] Question: Impact of weather on personal care services - Management confirmed weather events affected January but noted a rebound in February and March, expecting hours growth to remain in the 2% to 2.5% range [40][41] Question: Hospice revenue growth expectations - Management projected hospice revenue growth in the 5% to 7% range, leaning towards the upper end [44] Question: Margin expansion expectations - Management expects typical margin expansion of 40 to 50 basis points into Q2, with Q1 usually being the low point [50][51] Question: Impact of Medicaid changes - Management stated that potential changes to Medicaid would likely have no direct impact on the company, as its patient base is primarily elderly and disabled [54][56] Question: Performance of Gentiva post-acquisition - Management reported that Gentiva's bottom line performance has exceeded expectations, while top line growth was slightly lighter than anticipated [77] Question: Update on home health services - Management noted stability in Medicare rates and improvements in contracting with Medicare Advantage plans, with discounts narrowing from 40% to 15-20% [106]