Core Viewpoint - Saint Bella Group, the largest maternity center in China, experienced a significant stock price drop after a strong debut on the Hong Kong stock market, highlighting the challenges faced by high-end service providers in a competitive market [1][4]. Group 1: Company Overview - Saint Bella Group was established in November 2017 in Hangzhou and has grown to become China's largest comprehensive family care brand group, operating under three brands: Saint Bella, Bella Isla, and Little Bella [1][5]. - The company operates 96 high-end maternity centers, including 62 self-operated and 34 managed centers, and has expanded its operations internationally [5]. Group 2: Financial Performance - The stock price of Saint Bella peaked at 11 HKD on its debut but fell to 6.56 HKD the following day, marking a 25.45% decline [1]. - Revenue figures from 2021 to 2024 show a growth trend, with revenues of 2.59 billion, 4.72 billion, 5.6 billion, and 7.99 billion respectively, indicating a year-on-year growth of 82.22%, 18.75%, and 42.64% [3]. - Despite high revenues, the company has not achieved profitability, with net losses of 1.19 billion, 4.07 billion, 2.39 billion, and 5.47 billion from 2021 to 2024 [4]. Group 3: Operational Challenges - The high-end positioning of Saint Bella leads to elevated operational costs, with rental and related costs rising from 71.2 million to 194 million from 2021 to 2024, comprising 37.2% to 36.7% of total sales costs [2]. - The decline in newborn numbers in China, from 14.7 million in 2019 to 9 million in 2023, has increased customer acquisition costs, further complicating profitability [2]. Group 4: Future Plans - The company plans to use funds raised from its IPO to expand its postpartum care network, open new maternity centers, and develop new services and products to meet customer lifecycle needs [6].