Group 1 - The core viewpoint of the article highlights the recognition of Beitaini Group as a leading brand in the international market, particularly through its inclusion in the "Top 100 Chinese Brands for Internationalization" list, showcasing its global influence and innovative capabilities [1][2] - The conference aimed to decode the successful path of Chinese brand internationalization, focusing on innovation, leadership, and brand value, thereby establishing a new image for Chinese brands on the global stage [1] - Beitaini Group has established research and development centers in Shanghai and Kunming, as well as advanced laboratories in Paris and Tokyo, to enhance international R&D collaboration [1] Group 2 - The company is set to launch its Southeast Asia headquarters in Bangkok in early 2024, further solidifying its global operational footprint [1] - Beitaini Group leverages its strong R&D capabilities and unique plant resources from Yunnan to market advanced skincare technologies, including sensitive skin and anti-aging products [1] - The core brand Winona has been recognized in the first batch of China's consumer brand list published by the Ministry of Industry and Information Technology, reflecting its brand value and market position [2]

Group 1: Company Developments - The company has successfully registered 3 new raw materials, including the first single new raw material, Long-stem Wintergreen Glycoside, bringing the total to 16 registered cosmetic raw materials [3] - The main brands, including Winona and Aikeman, have products featured in the 618 shopping festival livestream hosted by Li Jiaqi [3] Group 2: Product Launches - Winona's new product "Little Ice Ton" features high-energy technology for cooling and moisturizing, while the "Clear Whitening Sunscreen" targets sensitive skin with sun protection and whitening benefits [3] - Aikeman has launched the "White Moonlight" series, which includes products aimed at reducing spots and tightening skin [3] Group 3: Brand Activities - Aikeman participated in the "Blue UP" salon focusing on marine biodiversity protection, showcasing the company's commitment to environmental sustainability [3] - The company emphasizes its eco-friendly product development, such as the "Little King Kong" physical sunscreen that avoids coral reef pollution [3] Group 4: Financial Performance - The company's overseas revenue grew by over 550% in 2024, accounting for 1.37% of total revenue [4] - The top five online self-operated stores contributed approximately 58.15% to online sales revenue, with a two-year repurchase rate of 38.76% for one Tmall store and 31.13% for one Douyin store [4]

Core Viewpoint - Beitaini's revenue and net profit have significantly declined in recent quarters, indicating pressure on its financial performance and the need for strategic adjustments in its product offerings and market positioning [3][5][6]. Financial Performance - In 2024, Beitaini's revenue growth rates were 3.87% and -13.51% for the first quarter, while net profit growth rates were -33.53% and -83.97% respectively [3][5]. - The company's net profit for 2024 dropped to 503 million yuan, less than half of the same period in 2022 [6]. - The overall performance in the first quarter of 2025 showed a revenue of 949 million yuan, a decline of 13.51%, and a net profit of 28 million yuan, marking an 84% decrease, the lowest since its listing [7]. Brand and Product Strategy - Beitaini focuses on the "skin health internet+" model, with multiple brands including Winona, Winona Baby, and AOXMED, targeting various skincare needs [5]. - The main brand, Winona, has undergone a brand upgrade to focus on "sensitive skin," launching key products like the Winona Soothing Moisturizing Cream [9]. - Despite the brand's efforts, Winona's revenue declined by 5.5% in 2024, contrasting with significant growth in its sub-brands Winona Baby and AOXMED, which saw increases of 34% and 65.6% respectively [9][10]. Market Position and Competition - Beitaini's performance in major promotional events has weakened, with Winona ranking 10th in the Tmall beauty sales during the 2024 promotional events, down from 5th in 2023 [9][11]. - The company faces increased competition and has had to raise marketing expenditures, impacting profitability [6][10]. Future Outlook - Beitaini plans to implement five core solutions for its main brand, focusing on enhancing customer value through product combinations [10]. - The company aims to leverage its advancements in plant-based ingredients and AI technology to regain market traction [9].

Summary of the Conference Call Transcript Company Overview - **Company**: 贝泰妮 (Betaini) - **Industry**: Consumer Goods, specifically skincare and beauty products Key Points and Arguments 1. **Profitability Goals**: The company aims for a double-digit net profit margin by 2025, up from 8.8% in 2024, supported by a targeted 3% increase in gross margin, efficiency improvements, and operational leverage [1][4] 2. **Revenue Targets**: - Main brand, 薇诺娜 (Winona), is expected to achieve single-digit revenue growth, focusing on product reform and promotional control [1][4] - Emerging brands are projected to maintain growth momentum, with 薇诺娜宝贝 (Winona Baby) targeting over 30% growth, 瑗科缦 (Yuan Keman) over 100%, and 贝芙汀 (Beifutin) aiming for 50 million yuan [1][4] 3. **Quarterly Performance**: The second quarter shows improvement, with a strong start to the 6.18 shopping event, reporting a 20-30% increase in GMV through live streaming channels and a 30-40% increase on Douyin [1][4] 4. **Inventory Management**: Inventory balances improved, with figures of 556 million yuan and 612 million yuan for Q1 2025 and FY2024 respectively, down 34% and 32% from FY2023 [1][4] 5. **OTC Channel Expansion**: Sales in the OTC channel are recovering, with a projected 10% growth in sales for approximately 129,000 OTC pharmacies in 2024 [1][4] 6. **Financial Forecasts**: - Revenue is expected to grow from 5.736 billion yuan in FY24 to 6.196 billion yuan in FY25, with a compound annual growth rate (CAGR) of 10% from 2025 to 2027 [1][9] - Adjusted net profit is projected to increase from 503 million yuan in FY24 to 654 million yuan in FY25 [1][8] 7. **Market Position**: Winona is the largest efficacy skincare brand in China, holding a 20% market share, outperforming competitors like 理肤泉 (La Roche-Posay) and 修丽可 (SkinCeuticals) [1][9] 8. **Valuation**: The target price is set at 66 yuan, corresponding to a 35x 12-month forward P/E ratio, based on a discounted cash flow analysis [1][14] Additional Important Information - **Risks**: - Downside risks include potential failure in brand expansion, high traffic costs, intensified competition, and increased regulatory scrutiny on efficacy skincare advertising [1][16] - Upside catalysts include better-than-expected performance of new products and successful acquisitions [1][16] - **Stock Performance**: The stock price as of May 28, 2025, is 45.29 yuan, with a target price of 66.00 yuan by December 2025 [2][22] This summary encapsulates the essential insights from the conference call, highlighting the company's strategic direction, financial targets, market positioning, and associated risks.

Group 1: Brand Strategy - The brand Winona Baby will continue to focus on pediatric dermatology, specifically addressing infant eczema, and aims to provide comprehensive skincare solutions segmented by season, area, and age [3] - AOXMED will deepen its product matrix in 2025, targeting professional clinics and home care scenarios, with plans to launch new products based on anti-aging concepts [3] - The company has opened 179 new direct-operated stores by the end of last year, focusing on core business districts in first and second-tier cities [3] Group 2: Distribution Channels - As of last year, the OTC distribution channel has covered over 129,000 pharmacies nationwide [3] - The average transaction value on the OMO online sales platform exceeded RMB 1,500, demonstrating strong market penetration [3] Group 3: Technological Innovation - The company collaborates with 63 top-tier hospitals for clinical validation of Winona products, resulting in nearly 500 published academic papers and participation in the formulation of 68 group standards [4] - AI systems are utilized to enhance production speed and blockchain technology is employed to combat counterfeit products, ensuring consumer rights [4] - The company has established research centers in France and Japan and has received international innovation awards for its unique ingredients [4]

Group 1: Brand Development and Strategy - The main brand's growth is complemented by the successful performance of sub-brands like Winona and AOXMED, indicating a balanced resource allocation strategy [2][3] - The company employs an internal incubation mechanism for sub-brands, allowing independent team operations and budget management [2] - The brand matrix has been established with various brands targeting different consumer segments, including Winona Baby and Beforteen [3][4] Group 2: Information Disclosure and Investor Relations - The company adheres to strict information disclosure obligations, ensuring transparency and effective communication of key operational and financial information [3] - In the 2023-2024 period, the company received an "A" rating for information disclosure from the Shenzhen Stock Exchange, reflecting its commitment to improving disclosure quality [3] - The company actively engages with investors through various channels, including dedicated personnel for inquiries and participation in strategy meetings and roadshows [3] Group 3: Operational Efficiency and Future Directions - The company plans to enhance operational capabilities through digital transformation, AI empowerment, and supply chain cost reduction strategies [3][4] - Future growth directions include focusing on infant skincare, high-end anti-aging, and AI acne treatment, with specific brands assigned to each segment [4] - The company aims to balance marketing investments for brand expansion with profitability goals, ensuring sustainable growth [3][4]

Group 1 - The trend of refined parenting is emerging as a new generation of parents, primarily those born in the 1990s and 2000s, are driving changes in child-rearing concepts and consumption patterns, leading to an increased demand for children's skincare products [1] - The baby and toddler skincare market in China is expected to reach nearly 50 billion yuan by 2026, with the skincare segment projected to reach 18 billion yuan, expanding from basic cleaning and moisturizing to more functional areas such as sensitive skin, eczema, sun protection, and mosquito repellent [1] - Domestic beauty companies are increasingly entering the baby skincare market, with brands like Jichu launching products that address common skin issues in infants, such as eczema, through patented micro-ecological balance technology [1] Group 2 - Sales of baby skincare products on major e-commerce platforms are reaching new highs, with companies like Shiseido's subsidiary, Up Beauty, launching multiple baby skincare brands, including Red Elephant and Newpage, which reported significant revenue growth [4] - Newpage achieved a revenue of 376 million yuan in 2024, marking a year-on-year growth of 146.3%, while its revenue growth in 2023 was nearly five times [4] - Other brands like Winona Baby and Qichu are also gaining traction, with Winona Baby generating 201 million yuan in revenue in 2024, reflecting a year-on-year increase of 34.03% [4]

Core Insights - The Chinese beauty industry is undergoing a significant transformation, shifting from a focus on traffic competition to one centered on technological strength and brand value [1] - Strategic elevation and differentiated competition are essential for domestic beauty brands, with companies like Betaini redefining industry rules through "hard technology" [1][3] Financial Performance - Betaini reported a total revenue of 5.736 billion yuan, a year-on-year increase of 3.87%, with a net cash flow from operating activities of 695 million yuan, up 13.83% [3][4] - The overall retail sales of cosmetics in China decreased by approximately 1.10% year-on-year, highlighting Betaini's ability to achieve growth in a challenging market [4] Brand Ecosystem - Betaini has developed a multi-brand ecosystem, with its core brand Winona maintaining a leading market share in the domestic dermatological skincare segment [6] - New businesses within Betaini's brand matrix, such as Winona Baby and AOXMED, have shown significant growth, with sales increases of approximately 34.03% and 65.59% respectively [6][7] R&D Investment - Betaini's R&D investment reached 337 million yuan in 2024, accounting for 5.87% of its revenue, positioning the company among the top tier in the industry [7][10] - The company has established a strong advantage in the field of Yunnan specialty plant extraction, completing the development of 13 unique plant raw materials [10] Industry Standards and Leadership - Betaini has set six national standards and 68 group standards in 2024, aiming to establish industry authority and influence [11] - The company is actively involved in creating standards for children's skincare products, addressing the challenges of an immature market [11][13] Strategic Vision - Betaini's three-step strategy of "R&D foundation, ecological layout, and standard leadership" illustrates its transition from marketing competition to value competition [13] - The company's focus on technological core competencies is expected to distinguish it as a leader in the beauty industry as market conditions evolve [13]

Core Viewpoint - The company reported its 2024 annual report and Q1 2025 results, showing performance slightly below market expectations, with revenue growth but significant declines in net profit and cash flow metrics [1][4]. Financial Performance - 2024 revenue reached 5.736 billion yuan, a year-on-year increase of 3.87%, while net profit attributable to shareholders was 503 million yuan, down 33.53% year-on-year [1]. - Q1 2025 revenue was 949 million yuan, a year-on-year decline of 13.51%, with net profit attributable to shareholders at 28 million yuan, down 83.97% year-on-year [1]. - The company declared a cash dividend of 6.00 yuan per 10 shares (including tax) [1]. Profitability and Cost Structure - The gross margin for 2024 was 73.74%, a decrease of 0.16 percentage points year-on-year, while the net profit margin was 8.63%, down 5.12 percentage points year-on-year [1]. - The sales expense ratio increased to 49.97%, up 2.71 percentage points year-on-year, primarily due to increased brand promotion and online channel costs [1]. - The management expense ratio rose to 8.94%, up 1.46 percentage points year-on-year, attributed to depreciation and personnel costs [1]. Segment Performance - In 2024, skincare revenue was 4.801 billion yuan, down 1.42% year-on-year, while color cosmetics revenue surged to 551 million yuan, a growth of 226.51% year-on-year [2]. - Online channel revenue reached 3.912 billion yuan, up 10.13% year-on-year, with Douyin platform revenue growing by 30.96% to 827 million yuan [2]. Strategic Focus - The company is deepening its "sensitive skin PLUS" strategy, focusing on core products that enhance brand value and sales [3]. - The 2025 strategy will emphasize brand building, membership operations, and collaborative growth, with a focus on scientific communication and emotional content [3]. - The brand matrix includes various sub-brands targeting specific demographics, enhancing market penetration [3][4]. Future Outlook - The company has adjusted its profit forecasts for 2025-2026 and introduced a new forecast for 2027, expecting net profits of 667 million, 769 million, and 899 million yuan respectively [4]. - The price-to-earnings ratio is projected to be 26, 23, and 20 times for 2025, 2026, and 2027 respectively [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's short-term performance is under pressure, but there is an expectation for an operational turning point in the future [1] - The company reported a revenue of 5.736 billion yuan for 2024, representing a year-on-year growth of 3.87%, while the net profit attributable to shareholders was 503.05 million yuan, down 33.53% year-on-year [7] - The company is actively advancing its brand matrix construction to solidify its leading position in the sensitive skin market [7] Financial Performance Summary - Total revenue forecast for 2024 is 5.736 billion yuan, with a projected growth of 3.87% [1] - The net profit attributable to shareholders for 2024 is expected to be 503.05 million yuan, reflecting a decline of 33.53% [1] - The earnings per share (EPS) for 2024 is projected at 1.19 yuan, with a price-to-earnings (P/E) ratio of 34.87 [1] - The company anticipates a recovery in net profit to 660.45 million yuan in 2025, with a growth rate of 31.29% [1] - The gross profit margin for 2024 is expected to be 73.74%, slightly down from the previous year [8] Brand and Market Position - The company has established a brand matrix centered around "Winona," which includes several sub-brands, contributing to its market leadership in dermatological skincare products [7] - The "Winona" brand ranks eighth in the skincare product market, with a market share of approximately 20.70% [7] - Online channels and color cosmetics categories have shown growth, with skincare revenue slightly declining by 1.4% [7]