Core Viewpoint - The article discusses the challenges and controversies surrounding the high-end maternity care brand "Saint Bella," which is preparing for an IPO in Hong Kong, highlighting its financial instability and compliance issues despite its premium pricing and celebrity endorsements [3][4][6]. Financial Performance - Saint Bella's revenue for 2022, 2023, and the first half of 2024 was reported at 472 million RMB, 560 million RMB, and 358 million RMB respectively, with adjusted net profits of -44.63 million RMB, 20.77 million RMB, and 17.15 million RMB, indicating unstable profitability [4][8]. - The core business segments include postpartum care (maternity centers), family child care services, and women's functional foods, with the maternity center contributing over 80% of total revenue consistently from 2021 to 2024 [8][10]. Business Model and Market Position - Saint Bella operates 72 maternity centers, with 58 self-operated and 14 managed centers, maintaining an average revenue of approximately 220,000 RMB per self-operated client from 2021 to the first half of 2024 [10][11]. - The average number of clients per self-operated center has decreased from 122 in 2021 to 49 in the first half of 2024, indicating a significant drop in customer acquisition [12]. Cost Structure - Rental and related costs accounted for 39.7% to 37.2% of total sales costs from 2021 to the first half of 2024, while professional care team costs represented 30% to 34.1% of total sales costs during the same period [12][13]. - The company has adopted a light-asset model by leasing high-end hotels, but this strategy has led to high rental costs concentrated in first-tier cities, which impacts profitability [12][13]. Compliance and Legal Issues - Saint Bella has faced multiple compliance issues, including commercial defamation lawsuits and administrative penalties for unauthorized medical practices, which have raised concerns about its operational integrity [6][21]. - The company has been involved in controversies regarding false advertising and has been penalized for misleading claims about its services and certifications [20][21]. Industry Challenges - The maternity care industry in China is highly fragmented, with Saint Bella holding only about 1% market share despite being the second-largest postpartum care group by revenue [26]. - A significant decline in newborn numbers in China, from 15.2 million in 2018 to 9.02 million in 2023, poses a fundamental challenge to the industry's growth potential, as fewer births directly reduce the customer base for maternity services [27].