Core Viewpoint - The article discusses the recent IPO of Shengbeila, a high-end postpartum care center operator, highlighting its rapid growth, high service prices, and ongoing financial losses despite increasing revenues [3][11][14]. Group 1: Company Overview - Shengbeila was listed on the Hong Kong Stock Exchange on June 26, 2023, becoming the "first stock of global family quality care" with an IPO subscription rate exceeding 193 times, raising approximately HKD 630 million [3]. - The company operates 72 postpartum care centers across 25 cities in China, making it the largest postpartum care and recovery group in the country [12][11]. - The average customer price for Shengbeila's services is around RMB 220,000, with various packages priced between RMB 168,800 and RMB 588,800 [25][6]. Group 2: Financial Performance - Shengbeila's revenue from 2021 to 2024 (first half) was RMB 259 million, RMB 472 million, RMB 560 million, and RMB 358 million respectively [12][13]. - Despite revenue growth, the company reported losses of RMB 1.22 billion, RMB 4.12 billion, RMB 2.39 billion, and RMB 480 million over the same period [14][57]. - The company’s adjusted profit turned positive in 2023, reaching approximately RMB 17.15 million in the first half of 2024 [60]. Group 3: Market Position and Strategy - Shengbeila targets high-net-worth families, with a focus on luxury services and partnerships with five-star hotels for its centers [10][22]. - The company has diversified its offerings, including postpartum recovery services and acquisitions of health-related brands, aiming to create a multi-billion yuan retail brand ecosystem in the family care industry [49][45]. - The high-end segment of the postpartum care market is expected to grow faster than the mass market, driven by increasing consumer spending power among affluent families [55]. Group 4: Industry Trends - The postpartum care and family child care service market in China is projected to reach RMB 2,059 billion and RMB 931 billion by 2030, with compound annual growth rates of 19.2% and 16.5% respectively from 2024 to 2030 [66]. - Despite a declining birth rate in China, the demand for third-party maternal and infant care services is expected to continue growing, indicating a promising outlook for the industry [65][67].

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].