Core Viewpoint - Beitaini's 2025 semi-annual report shows resilience in operations despite challenges in the cosmetics industry, with significant improvements in cash flow and inventory management [1][2] Financial Performance - In the first half of 2025, Beitaini achieved operating revenue of 2.372 billion yuan and net profit attributable to shareholders of 247 million yuan [1] - Operating cash flow reached 347 million yuan, a year-on-year increase of 145.70%, with Q2 cash flow netting 416 million yuan, indicating enhanced cash return capability [1][2] - The overall gross profit margin for the first half of 2025 was 76.01%, reflecting strong profitability and operational efficiency [2] Industry Context - The cosmetics industry in China is transitioning from "scale expansion" to "high-quality development," facing challenges of demand slowdown and intensified competition [1] - Companies are shifting growth strategies from external expansion to internal optimization, with a focus on improving operational efficiency [1] Inventory and Accounts Receivable Management - Beitaini effectively managed inventory turnover and accounts receivable, with 96.02% of accounts aged within one year and a reasonable bad debt provision rate of 5.29% [2] - The overall working capital structure has been optimized, maintaining ample liquidity [2] Research and Development - Despite short-term revenue pressures, Beitaini increased R&D investment, with an R&D expense ratio of 4.91%, up 0.83 percentage points year-on-year, maintaining industry leadership [2] Brand Performance - The main brand, Winona, continues to lead the sensitive skin care market in China, recognized as the top seller in sensitive skin care products for five consecutive years [3] - Beitaini's multi-brand matrix is maturing, with significant revenue growth from brands like Aikeman and Winona Baby, indicating successful activation of differentiated market segments [3] Global Expansion Strategy - Beitaini is focusing on deepening its presence in Southeast Asia and leveraging the Belt and Road Initiative for product registration and local operations [4] - The company emphasizes brand building and local adaptation, with products entering mainstream channels and establishing brand recognition through social media platforms [4]

Core Viewpoint - The event "New Journey of Investor Education Service" was successfully held by Guotai Junan Securities at the Shenzhen Stock Exchange, focusing on enhancing communication between listed companies and investors, specifically featuring the local cosmetics leader, Beitaini [1][11]. Group 1: Event Overview - The event took place at Beitaini's newly established central factory, which integrates cosmetics and medical device production, showcasing a modern "smart factory" [3]. - Over 20 investors participated in an immersive visit and in-depth dialogue, gaining insights into Beitaini's innovative genes and strategic layout [1][3]. Group 2: Company Insights - Beitaini's Vice General Manager, CFO, and Board Secretary Wang Long detailed the company's development history, highlighting its evolution from sensitive skin care to a multi-brand matrix [10]. - The company emphasized its strategic investments in research, including the establishment of the Beitaini Research Institute and a rare plant research institute, focusing on raw material innovation and sustainable practices [10]. Group 3: Investor Interaction - During the Q&A session, investors engaged in discussions about annual report performance, sub-brand incubation progress, competitive strategies, and marketing innovations [10]. - Wang Long provided targeted responses regarding core brand growth drivers, new brand cultivation rhythms, and strategic adjustments in response to market changes, offering clarity on the company's long-term value [10]. Group 4: Future Directions - The event facilitated better information symmetry and interaction between Beitaini and investors, laying a solid foundation for improving investor relations management and enhancing market image [11]. - Guotai Junan Securities plans to continue organizing investor education activities, fostering communication between investors and listed companies to promote a healthy capital market ecosystem [11].

在互动交流环节，贝泰妮副总经理、财务总监、董事会秘书王龙向投资者详细讲述了企业发展历程。他 以品牌成长为脉络，详述了贝泰妮从敏感肌护肤领域突围到多品牌矩阵（如瑷科缦、贝芙汀等）协同发 展的进阶之路，解析线上线下全渠道融合的运营策略。重点介绍了公司在科研端的战略投入：贝泰妮研 究院的前沿探索、珍稀植物研究所的原料创新、绿色供应链及环保包装的实践成果，以及全球化研发布 局的推进路径。同时阐述了企业在ESG领域的持续深耕，展现科技向善的发展理念。 为深化投资者服务内涵，推动上市公司与投资者深入交流，8月13日上午，在深圳证券交易所、云南证 监局、云南省证券业协会及云南省上市公司协会的联合指导下，国泰海通证券于深交所上市公司贝泰妮 （股票代码：300957）成功举办"踔厉奋发新征程 投教服务再出发"专题活动。国泰海通证券云南投教 基地组织20余名投资者走入贝泰妮，通过沉浸式探访与深度对话，零距离感知本土化妆品龙头的创新基 因与战略布局。 本次活动在贝泰妮2023年正式投产的集团中央工厂举办。这座集化妆品与医疗器械生产于一体的现代化 基地，生动展现了"智慧工厂"的科技内核。在工作人员引导下，投资者系统了解了贝泰妮旗下核 ...

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 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]

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 report maintains a "Recommended" rating for the company, with a target price based on projected earnings growth and valuation metrics [4][5]. Core Insights - The company reported a revenue of 5.736 billion yuan for 2024, reflecting a year-on-year growth of 3.87%. However, the net profit attributable to shareholders decreased by 33.53% to 503 million yuan [2][5]. - The main revenue source is the brand "Winona," which saw a revenue decline of 5.45% to 4.909 billion yuan, while "Winona Baby" and "Aikeman" experienced significant growth of 34.03% and 65.59%, respectively [2][4]. - The gross margin for 2024 was 73.74%, with a slight decrease of 0.16 percentage points year-on-year. The net profit margin decreased by 4.93 percentage points to 8.77% [3][4]. Financial Performance Summary - Revenue projections for 2025, 2026, and 2027 are 6.285 billion yuan, 7.153 billion yuan, and 8.146 billion yuan, respectively, with growth rates of 9.6%, 13.8%, and 13.9% [5][7]. - The net profit attributable to shareholders is expected to recover to 700 million yuan in 2025, with a growth rate of 39.2%, followed by 856 million yuan in 2026 and 1.059 billion yuan in 2027 [5][7]. - The report indicates an increase in operating expenses, with sales, management, and R&D expense ratios rising significantly in recent quarters [3][4]. Brand Strategy and Market Position - The company is expanding its market presence with a multi-brand strategy, focusing on the main brand "Winona" and introducing new products in the sensitive skin segment [4]. - The launch of the "Winona 2.0" strategy aims to enhance brand positioning and product offerings, which is expected to drive long-term growth [4][5].

Core Insights - Yunnan Betaini Biotechnology Group Co., Ltd. reported steady performance growth in its 2024 annual report, achieving significant results in its multi-brand strategy [1] Financial Performance - The company achieved an operating revenue of 5.736 billion yuan in 2024, representing a year-on-year increase of 3.87% [1][2] - The net profit attributable to shareholders decreased by 33.53% to 503 million yuan due to multiple factors [1][2] - Total assets reached 8.304 billion yuan, a 10% increase from the previous year [2] - The net asset attributable to shareholders increased by 3% to 6.050 billion yuan [2] - The basic and diluted earnings per share were both 1.20 yuan, down 32% from the previous year [2] Brand Strategy - The company continued to deepen its multi-brand strategy, focusing on the "Winona" brand while promoting other brands such as "Winona Baby," "AOXMED," "Beforteen," "Za," and "PURE&MILD" [1][3] - The main brand "Winona" launched a 2.0 strategy, upgrading its brand concept to "Researching Sensitive Skin," reinforcing its leading position in the sensitive skin care sector [1] Brand Performance - "Winona Baby" focused on solutions for infant eczema, achieving sales of 201 million yuan, a growth of 34.03% [3] - "AOXMED" specialized in skin youthfulness, with sales nearing 60 million yuan, a growth of 65.59% [3] - "Beforteen" established a brand image through targeted marketing and private domain operations [3] Research and Development - The company invested 337 million yuan in R&D in 2024, maintaining an average annual investment intensity of over 5% for three consecutive years [5] - The company registered 9 new cosmetic raw materials and accumulated 12, with 43 self-developed cosmetic and 9 food raw materials [5] - The company obtained 88 patents and published 107 SCI papers, receiving international innovation awards [5] Operational and Social Responsibility - The company made significant progress in channel construction, supply chain optimization, and social responsibility [5] - It adopted an omnichannel strategy to cover a broader consumer base and improved operational efficiency through supply chain optimization and digitalization [5] - The company actively participated in public welfare projects, providing scientific skin care and sun protection support to residents in remote areas [5] Future Outlook - The company aims to continue its mission of "building a Chinese skin health ecosystem," focusing on brand building, member operations, and collaborative growth [5]

Summary of Betaini's Conference Call Company Overview - **Company**: Betaini - **Fiscal Year**: 2024 - **Revenue**: RMB 57.35 billion, up 3.87% year-on-year - **Net Profit**: RMB 5.03 billion, down 33% year-on-year - **Non-recurring Profit**: RMB 2.4 billion, down 60% year-on-year [2][4][6] Key Financial Metrics - **Online Sales Proportion**: 69% - **Private Domain Sales Proportion**: 9% - **Offline Sales Proportion**: 22% [2][4] - **Main Brand Revenue**: - Winona: RMB 49.1 billion, down 5.45% - Baby Brand: RMB 60 million, up 66% - Betaini Brand: RMB 460 million - Gome Brand: over RMB 50 million [2][4][5] - **Gross Margin**: - 2024: 73.7% - Q1 2025: 77.47% [2][4][6] - **Inventory Reduction**: From RMB 900 million to RMB 550 million [2][4][6] Brand Performance - **Winona**: Revenue decline indicates brand performance issues - **Baby Brand**: Significant growth suggests strong market potential - **Okas**: Revenue of RMB 60 million, up 66%, indicating successful market penetration [2][4][12][13] Strategic Initiatives - **Channel Investment**: Increased focus on Douyin (TikTok) for sales and marketing, with notable success in whitening products [2][8] - **OTC Channel Expansion**: Plans to increase the number of pharmacies carrying makeup products from 100,000 to 150,000 and medical devices from 200,000 to 250,000 [2][35][36] - **Sustainability Goals**: Commitment to low-carbon initiatives, including increased use of recyclable materials and bottle recycling [3][16][17] Research and Development - **New Ingredients**: 12 new cosmetic ingredients registered, 88 patents granted [7] - **International R&D**: Establishment of research centers in Japan and France to enhance product innovation [39] Marketing and Sales Strategy - **E-commerce Focus**: Emphasis on balancing content e-commerce and shelf e-commerce to optimize sales channels [26] - **Membership Strategy**: Enhancing customer loyalty through targeted membership programs and personalized skin care solutions [19][23] Future Outlook - **Profit Recovery**: Expected gradual improvement in profit margins throughout 2025, aiming for double-digit growth [38] - **Brand Development**: Continued focus on core product lines and expansion into sensitive skin care solutions [20][31] - **Investment in Partnerships**: Strategic investments in upstream and downstream companies to enhance market position [30] ESG and Corporate Responsibility - **Sustainability Practices**: Integration of sustainable practices into operations, with a focus on environmental impact and community support [15][18] Challenges and Market Dynamics - **Competitive Landscape**: Increased competition in the efficacy skincare market necessitates continuous innovation [22][28] - **Supply Chain Management**: Emphasis on efficient supply chain management to maintain product quality and cost-effectiveness [28] This summary encapsulates the key points from Betaini's conference call, highlighting financial performance, strategic initiatives, brand dynamics, and future outlook.