New stock interpretation | Starting with high-end "baby walking artifacts", what do different groups rely on to impress the new generation of parents?

As more and more new-generation parents pursue quality parenting, the demand for high-end parenting products has become "popular." Taking the newly emerging consumer brand BeBeBus as an example, with a "magic" baby stroller, it has established a strong market position in the mid-to-high-end parenting products market in just 5 years. According to Frost & Sullivan data, based on the GMV in 2024, BeBeBus ranks first among durable parenting product brands for mid-to-high-end consumers in China. On September 11, BeBeBus's parent company, different group, held a hearing on the Hong Kong Stock Exchange, getting closer to listing on the secondary market. The company was established in November 2018 and founded the BeBeBus brand in 2019, focusing on the high-end parenting products market. In recent years, with the upgrading of consumption and the continuous increase in residents' income levels, the demand for "quality" and "high-end" maternal and child products and services from the new generation of parents has been growing, paving the way for the rapid rise of the company. If this IPO is successful, what kind of growth story will different groups write on the Hong Kong stock market? Starting with high-end "baby stroller magic," strong fundraising effect Although the number of newborns in China has been declining for consecutive years (9.02 million births in 2023), the trend of refined and quality parenting is very clear. Parents born in the 1990s and 1995s are willing to consume "less but better" for their children, and the growth rate of the mid-to-high-end maternal and child market is much higher than the industry average. According to Frost & Sullivan's data, the size of the mid-to-high-end parenting products market in China increased from 25.6 billion yuan in 2020 to 34 billion yuan by 2024, with a compound annual growth rate of 7.4%, while the compound annual growth rate of the mass market during the same period was only 3.4%. Therefore, the positioning of different groups as a high-end parenting product brand can be said to accurately hit the golden track of consumption upgrading. According to reports, different groups mainly entered the market with high-end baby strollers ("walking baby magic"), and then extended their product line to sleep, feeding scenes, especially rapidly expanding the infant care scene. Currently, the company's products include baby strollers, children's car seats, baby beds, high chairs, diapers, soft cotton towels, etc. Due to the precise positioning on the "golden track," the strong fundraising effect of different groups is very strong. According to the data from the prospectus, the company achieved revenue of 507 million yuan, 852 million yuan, and 1.249 billion yuan in 2022-2024, respectively, with an annual growth rate, among which the growth rate reached 46.8% in 2024. As of the first half of 2025, the company achieved revenue of 726 million yuan, an increase of 24.7% year-on-year. At the same time, the company's profitability is also very strong. From 2022 to the first half of 2025, different groups' gross profit was 242 million yuan, 427 million yuan, 629 million yuan, and 359 million yuan, respectively, showing a continuous growth; the overall gross profit margin was 47.7%, 50.2%, 50.4%, and 49.4%, maintaining at a high level. The strong fundraising effect is also reflected in the company's net profit. In 2022, the company recorded a net loss of 21 million yuan, and by 2023, the company turned losses into profits, achieving a net profit of 27 million yuan. From 2024 to the first half of 2025, the company maintained a growth trend, with net profits of 59 million yuan and 49 million yuan, respectively, representing year-on-year growth rates of 114.9% and 72.1%. Looking at the product structure, the high gross margin level of different groups mainly relies on the company's high-end product positioning strategy. During the reporting period, the gross profit margin of the company's products in the travel scene was 46.6%, 51.6%, 50.2%, 49.5%; the gross profit margin in the sleep scene was 53.3%, 56.7%, 59.5%, 59.8%; the gross profit margin in the feeding scene was 49.4%, 65.1%, 62%, 61.9%; and the gross profit margin in the infant care scene was 38.7%, 39.2%, 43.3%, 43.4%. Among them, due to the large proportion of income in the travel scene and infant care scene, during the reporting period, the income of different groups' travel scene products maintained between 35% and 65%, while the income of infant care scenes increased from 8% to around 43%. In other words, the company's strong profitability mainly depends on the high gross profit margin of these two major products. According to the company's prospectus, during the historical period, the average transaction amount of orders containing at least one core product was maintained at above 2,400 yuan. From the above financial data, it can be seen that with its brand building, track selection, and high-quality strategy for product expansion, different groups are undoubtedly outstanding in the context of the upgrading of maternal and child products its high growth revenue data and strong profitability also verify the success of its strategy. Strong on marketing, light on research and development, can it impress young parents with "clever tricks"? In fact, although the mid-to-high-end parenting market maintains an upward trend in the context of consumption upgrading, the increasingly fierce competition clearly brings some resistance to this industry, promoting a "spiral upward." According to observations by GMTEight, the competition in the mid-to-high-end maternal and infant market is currently intense. There are international high-end brands such as Stokke and Bugaboo pressing from the front, traditional giants with deep channels like gb in the back, and numerous new online brands (such as BeBeBus, Clever Bear, etc.) launching cost-effective attacks from the periphery. Therefore, different groups need to continuously invest a large amount of resources to maintain their market position. The "trump card" played by different groups is to capture the needs of young parents through new marketing methods such as Xiaohongshu and Douyin. According to the prospectus, from March 2023 to September 2024, the brand content of different groups on the two major platforms Xiaohongshu and Douyin has triggered more than 830,000 posts and original videos. In addition to social platforms, different groups are also consciously maintaining their own private traffic. As of June 30, 2025, the company's online channels have approximately 3.5 million members. During the period, the company's customer base and sales network continued to expand, with the number of customers increasing from 356,756 people in 2022 to 953,250 people in 2024, and the number of third-party stores operated by distributors and KAs increased from 742 as of December 31, 2022 to 2,221 as of December 31, 2024, and 3,400 as of June 30, 2025; the customer retention rate also gradually increased from 20.1% in 2022 to 40.9% in 2024 and 40.2% in 2025. Thanks to the above layout, most of the revenue of different groups comes from online channels. As of the first half of 2025, the company's online channel revenue was 532 million yuan, accounting for a high proportion of 73.2%. During the same period, the revenue from offline channels was 194 million yuan, accounting for 26.8%. It is worth noting that, although different groups promote the innovative design and extraordinary aesthetics of the BeBeBus products, the company's research and development expenses have not changed much over the past few years. From 2022 to the first half of 2025, the research and development expenses of different groups were 16.247 million yuan, 23.845 million yuan, 21.411 million yuan, and 10.716 million yuan, with corresponding research and development expense ratios of 3.2%, 2.8%, 1.7%, and 1.5%, decreasing year by year. By comparison, the expenses for sales and distribution of different groups are much higher. From 2022 to the first half of 2025, the sales and distribution expenses of different groups were 1.89 billion yuan, 2.86 billion yuan, 3.91 billion yuan, and 2.25 billion yuan, accounting for 37.2%, 33.5%, 31.3%, and 31% of total revenue, respectively. It is easy to see that as a new consumer brand positioning mid-to-high-end parenting products, different groups pay more attention to establishing consumer awareness through new marketing methods than focusing on research and development, creating an obvious "heavy on marketing, light on research and development" operating pattern. Overall, in terms of growth, different groups are undoubtedly excellent they have achieved rapid revenue growth and improved profitability with precise high-end brand positioning, excellent content marketing capabilities, and successful product line expansion in recent years. Of course, if you are optimistic about the trend of consumer upgrading and branding in China and believe that more parents are willing to pay for quality and design, then it is a good investment target. However, in terms of sustainability, there is a question mark whether its model of relying too much on marketing efforts can be sustained, whether it can build real product technology barriers through research and development... These are the key issues that need to be continuously observed, and this will also affect investors' interest in investing.