Core Viewpoint - Betaini (300957.SZ), known as the "first stock in functional skincare," is intensifying its capital market strategy by investing in a new healthcare fund, aiming to diversify its business beyond its core beauty segment [1][11]. Investment Strategy - On October 13, Betaini announced plans to invest as a limited partner in the Wuxi Jinyu Maowu Medical Health Industry Investment Partnership (referred to as "Jinyu Fund"), with a total fund size of CNY 1 billion [1][7]. - The fund will focus on sectors such as consumer healthcare, medical aesthetics, specialty foods, pharmaceuticals, medical devices, and AI-driven drug development [1][7]. Financial Commitment - Betaini intends to contribute CNY 50 million, which will account for a 5% stake in the Jinyu Fund [1][7]. - Other partners in the fund include Jiangsu Wuxi Biomedical Industry Special Mother Fund (CNY 300 million), and Jiangyin High-tech Zone Financial Investment Co., Ltd. (CNY 250 million) [7]. Previous Investments - Over the past few years, Betaini has invested in several funds, including Sequoia Fund, San Zheng Fund, and Jinguo Fund, totaling approximately CNY 280 million across various sectors [1][11]. - Specific investments include CNY 100 million in the Sequoia Fund in June 2022, CNY 100 million in the San Zheng Fund in April 2023, and CNY 30 million in the Jinguo Fund in October 2023 [6][8]. Business Performance - Betaini's revenue growth has been declining, with revenues of CNY 40.22 billion, CNY 50.14 billion, CNY 55.22 billion, and CNY 57.36 billion from 2021 to 2024, showing a decreasing growth rate [11]. - The net profit has also decreased significantly, from CNY 8.63 billion in 2021 to CNY 5.03 billion in 2024, indicating a trend of increasing revenue but declining profitability [11]. Market Context - The beauty industry is witnessing a trend where major brands, including Betaini, are increasingly investing in capital markets to seek growth opportunities amid slowing core business performance [11][12]. - Competitors like Proya and Marubi are also exploring similar investment strategies to enhance their market positions and seek new growth avenues [12][13].

Core Viewpoint - Betaini, known as the "first stock in functional skincare," is increasing its capital investments to explore new business opportunities amid declining performance in its core skincare segment [1][9]. Investment Strategy - On October 13, Betaini announced plans to invest as a limited partner in the Wuxi Jinyu Maowu Medical Health Industry Investment Partnership, with a total fund size of 1 billion CNY, focusing on consumer healthcare, pharmaceuticals, medical devices, and AI in drug development [1][5]. - Betaini will contribute 50 million CNY, holding a 5% stake in the fund, which aims to enhance the company's competitive edge and profitability through strategic partnerships in the health ecosystem [5][9]. Financial Performance - Betaini's revenue from 2021 to 2024 showed a declining growth trend, with revenues of 40.22 billion CNY, 50.14 billion CNY, 55.22 billion CNY, and 57.36 billion CNY, reflecting year-on-year growth rates of 52.57%, 24.65%, 10.14%, and 3.87% respectively [9][10]. - The net profit during the same period was 8.63 billion CNY, 10.51 billion CNY, 7.57 billion CNY, and 5.03 billion CNY, with year-on-year growth rates of 58.77%, 21.82%, -28.02%, and -33.53%, indicating a trend of increasing revenue but decreasing profit [10]. Brand Dependency - The company's revenue heavily relies on its core brand "Winona," which contributed 48.85 billion CNY, 51.92 billion CNY, and 49.09 billion CNY from 2022 to 2024, accounting for approximately 97%, 94%, and 86% of total revenue respectively [10]. Diversification Efforts - To mitigate risks associated with reliance on a single brand, Betaini is developing a multi-brand strategy, acquiring stakes in other brands such as "Za" and "PURE&MILD" to expand its business portfolio [10][11]. - The company has invested approximately 280 million CNY in various funds over the past three years, indicating a proactive approach to diversify its investment portfolio beyond its primary beauty business [5][9]. Market Trends - The beauty industry is witnessing a trend where leading brands, including Betaini, are increasingly investing in capital markets to seek growth opportunities amid slowing sales in their core businesses [9][12].

Core Viewpoint - Betaini, known as the "first stock in efficacy skincare," is intensifying its capital market strategy by investing in a new healthcare fund, aiming to enhance its presence in the health and wellness sector [1][3]. Investment Strategy - On October 13, Betaini announced plans to invest as a limited partner in the Wuxi Jinyu Maowu Medical Health Industry Investment Partnership, with a total fund size of 1 billion yuan, focusing on areas such as consumer healthcare, pharmaceuticals, and AI in drug development [1][3]. - Betaini will contribute 50 million yuan, acquiring a 5% stake in the fund, which is part of a broader strategy to deepen collaboration with professional funds and enhance its competitive edge in the health ecosystem [3]. Historical Investments - Over the past three years, Betaini has invested approximately 280 million yuan across various funds, including the Sequoia Fund and the San Zheng Fund, indicating a strategic shift towards capital investments beyond its core beauty business [2][3]. - The timeline of investments includes: - 100 million yuan in the Sequoia Fund in June 2022 [4] - 100 million yuan in the San Zheng Fund in April 2023 [5] - 30 million yuan in the Jin Gao Fund in October 2023 [5] - A planned 300 million yuan investment in the Yun Zhong Fund, which was later terminated due to policy changes [6][7]. Financial Performance - Betaini's revenue growth has been declining, with reported revenues of 4.022 billion yuan in 2021, 5.014 billion yuan in 2022, 5.522 billion yuan in 2023, and 5.736 billion yuan in 2024, reflecting a decreasing growth rate [8]. - The net profit attributable to shareholders has also shown a downward trend, with figures of 863 million yuan in 2021, 1.051 billion yuan in 2022, 757 million yuan in 2023, and 503 million yuan in 2024, indicating a pattern of increasing revenue but declining profitability [8]. Market Context - The beauty industry is witnessing a trend where major players like Betaini, Proya, and Marubi are increasingly investing in capital markets to seek growth opportunities amid slowing core business performance [9][10].

Group 1: Financial Performance - The company has improved its gross margin by focusing on high-margin products and optimizing cash flow and inventory structure [2] - Short-term performance pressures do not diminish the long-term value, with a strong emphasis on R&D and operational efficiency to support recovery [2] Group 2: Brand and Product Strategy - The mid-to-high-end brand Aokeman has been expanding its offline channels and is now entering the home beauty market through e-commerce live streaming, with significant sales growth in the first half of 2025 [3] - The company has established a clear multi-brand matrix, focusing on sensitive skin (Winona), infant skin care (WinonaBaby), anti-aging (Aokeman), and acne treatment (Beforteen) [3] Group 3: Channel Development - The company has successfully integrated online and offline channels through an "OMO" model, which has led to high repurchase rates and average transaction values [3] - Douyin (TikTok) has shown the fastest growth among channels, with a 7.4% increase in the first half of the year [3]

Investment Rating - The investment rating for the company is "Maintain Buy" [5] Core Views - The company is experiencing pressure on its performance in the first half of 2025, with both revenue and profit declining. The revenue for the first half of 2025 was 2.372 billion yuan, a year-on-year decrease of 15.43%, and the net profit attributable to shareholders was 247 million yuan, down 49.01% year-on-year [1][2] - The company has a clear brand positioning and strong brand-building capabilities, focusing on natural plant active ingredients for skin care products, particularly targeting sensitive skin. It has successfully integrated online and offline sales channels, leveraging internet and AI technologies to create a new retail system [3][4] Financial Summary - Revenue for 2023 is projected at 5.522 billion yuan, with a growth rate of 10.1%. However, a decline of 4.7% is expected in 2025, with revenue estimated at 5.468 billion yuan [1] - The net profit attributable to shareholders is expected to decrease to 476 million yuan in 2025, reflecting a year-on-year decline of 5.3% [1] - The company's gross margin for the first half of 2025 was 76.01%, an increase of 3.42 percentage points year-on-year, while the net profit margin decreased by 6.48 percentage points to 10.47% [2] - The company is projected to have an EPS of 1.12 yuan in 2025, with a corresponding P/E ratio of 40.7 times [9]

Core Viewpoint - The company, Betaini, reported a resilient performance in the sensitive skin segment despite short-term revenue and profit pressures, with a strategic focus on product optimization, channel refinement, and supply chain efficiency [1][3]. Financial Performance - In the first half of 2025, Betaini achieved revenue of 2.372 billion yuan and a net profit of 247 million yuan [1]. - The gross margin improved by 3.42 percentage points to 76.01%, indicating enhanced product profitability [1]. - Operating cash flow reached 347 million yuan, a year-on-year increase of 145.70%, providing ample cash reserves for future R&D and market expansion [1]. Brand Strategy - Betaini has developed a multi-brand matrix, including key brands such as Winona, Winona Baby, AOXMED, Beforteen, Za, PURE&MILD, and TriPollar [2]. - The core brand, Winona, generated revenue of 1.95 billion yuan in the first half of 2025, maintaining its leading position in the Chinese sensitive skin care market [3]. - Winona's strategic upgrade to focus on "researching sensitive skin" has expanded its product offerings to include anti-aging and whitening solutions [3]. Growth Drivers - The AOXMED brand recorded revenue of 51.47 million yuan, a year-on-year growth of 93.90%, indicating strong market demand [4]. - The company has also invested in the high-end body care brand "BATHFELL," acquiring a 20% stake to enhance its health ecosystem [5]. - Betaini's channel strategy includes a focus on both online and offline sales, with online revenue accounting for 73.93% of total sales [7]. Global Expansion - Betaini has established a Southeast Asia headquarters in Bangkok, focusing on local market adaptation and brand building [8]. - The company is leveraging social media platforms like Instagram and TikTok to enhance brand recognition in international markets [9]. - The participation in the China-South Asia Expo reflects the company's commitment to global expansion and enhancing international competitiveness [9]. Future Outlook - With the release of new products and growth in overseas markets, Betaini is expected to experience a performance recovery in the second half of the year [10].

Group 1 - The core viewpoint of the article highlights that Yunnan Betaini Biotechnology Group Co., Ltd. reported a revenue of 5.736 billion yuan for 2024, marking a year-on-year increase of 3.87%, while net profit decreased by 33.53% to 503 million yuan due to various factors including increased marketing expenses and rising operational costs [1][2] - The revenue growth is attributed to the company's continuous investment in brand expansion, product innovation, and channel development, alongside effective product strategies [1] - The company plans to distribute a cash dividend of 6 yuan per 10 shares, totaling 253 million yuan for its shareholders [1] Group 2 - In 2024, the company's R&D investment reached 337 million yuan, maintaining over 5% of revenue dedicated to R&D for three consecutive years, emphasizing its strategy of building value through technological barriers [1] - The company is focusing on a dual strategy of "multi-brand synergy + product matrix expansion" to enhance market vitality, particularly targeting sensitive skin consumers with core brand Winona consistently ranking in the top ten on Tmall for eight years [1] - The high-end anti-aging sub-brand AOXMED saw a revenue increase of 65.59% year-on-year in 2024, showcasing the effectiveness of the brand's collaborative efforts in niche markets [1][2] Group 3 - The Chinese dermatological skincare market is expanding, with a market size of approximately 33.96 billion yuan, growing by about 3.30% year-on-year despite a slowdown in overall cosmetics retail [2] - Analysts predict that domestic brands will continue to rise as international beauty brands retreat from the market, reinforcing confidence in domestic consumption and the growth of local brands [2] - The company is establishing a framework for sustainable growth amidst industry challenges, focusing on its mission to create a "Chinese skin health ecosystem" and enhancing its brand foundation and ecological layout [2]