New Stock Preview | Kidswant Children Products (301078.SZ) re-enters the capital market, can "single customer economy" support the second curve?

Currently, the "parent-child new consumption" market in China is undergoing a structural upgrade, with retail models shifting from traditional focus on maternal and child products to a comprehensive ecosystem integrating products, services, social interactions, and smart technology. As one of the industry participants, Kidswant Children Products (301078.SZ) is transforming into a comprehensive omni-channel service provider by integrating its core brands - "Kidswant Children Products" and "Loyou" in the maternal and child field, as well as the leading brand "Siyu" in the new track of family health and beauty aesthetics. Now that Kidswant Children Products is listed on the A-share market, why has it chosen to embrace the capital market again? How will its business model and strategic upgrade from "parenting" to "raising a family" shape its future growth trajectory? "Single Customer Economy": a paradigm shift from managing goods to managing relationships Kidswant Children Products has positioned itself as a comprehensive service provider focused on "managing users" rather than a traditional retail business focused on "managing goods" since its inception. Under the company's "single customer economy" model, Kidswant Children Products meets users' differentiated needs through C2B customized products, providing targeted comprehensive solutions combining goods and services based on user lifecycles and demand cycles. According to the prospectus, as of September 30, 2025, Kidswant Children Products has accumulated over 97 million registered members, forming a large private traffic pool, which has become one of the company's core assets. Furthermore, as of September 30, 2025, the company's sales and service network includes 1143 parent-child family service stores and 2567 technology hair care stores. Through the Kidswant Children Products App, WeChat Mini Program, and an efficient same-city instant retail system, the company seamlessly connects offline experiences with online convenience, meeting consumers' instant and diverse needs in different scenarios. In recent years, Kidswant Children Products has rapidly expanded its business boundaries into high-growth, high-margin service tracks through a series of strategic acquisitions, such as acquiring Loyou Group to enhance its presence in the northern market, and acquiring Siyu Group to enter the scalp and hair care market. During the reporting period, the company's revenue achieved steady growth, increasing from RMB 8.52 billion in 2022 to RMB 9.337 billion in 2024, with a compound annual growth rate of 4.67%. For the nine months ending on September 30, 2025, the company's revenue increased by 8.1% year-on-year to RMB 7.349 billion. In terms of profitability, the company's net profit attributable to shareholders decreased by 13.91% to RMB 105 million in 2023 and increased to RMB 181 million in 2024, a year-on-year growth of 72.44%. For the nine months ending on September 30, 2025, net profit attributable to shareholders increased by 59.01% to RMB 209 million year-on-year. The net profit margin remained stable at 1.4% in 2022 and 2023 before increasing to 2.2% in 2024. For the nine months ending on September 30, 2025, the company's net profit margin increased from 2.3% in the same period the previous year to 3.1%. Improvements in profitability were mainly attributed to the scaled-up sales of maternal and child products, benefiting from the successful integration of Loyou Group in August 2023, the expansion of the northern business map, and the stable contribution of value-added services with high margins to suppliers. Omnichannel intelligence transformation, challenges of market fragmentation, and the future blueprint of AI empowerment It is understood that the Chinese parent-child new consumption market in which Kidswant Children Products operates is currently in a critical period of deep integration and model iteration. On one hand, the maternal and child products and services market, as a core component of the parent-child new consumption ecosystem, is facing irreversible structural challenges due to the macro population trend of declining birth rates. On the other hand, although the growth rate of the core maternal and child products and services market is relatively moderate, with a forecasted compound annual growth rate of 4.1% from 2025 to 2029, its overall scale is huge, reaching RMB 3.995 trillion in 2024, and the market is highly fragmented. This indicates both the significant potential for industry consolidation and the difficulty of establishing absolute barriers for any single brand. To address the challenges of market dispersion and slowing growth of core customer groups, Kidswant Children Products is focusing its strategy on the deep transformation into omnichannel intelligence. In terms of technology empowerment, Kidswant Children Products has invested over RMB 1.2 billion in building its digital infrastructure, ranking first in the Chinese parent-child new consumption market in terms of cumulative digital investment and the size of its digital team, forming an irreplicable data-driven capability. Furthermore, the company has independently developed KidsGPT intelligent consultants in the maternal and child vertical domain, using AI smart tools to improve marketing and operational efficiency. The company has successfully launched its first self-developed AI intelligent companion toy "Ababe" and introduced multiple AI education and entertainment products to create an AI companion smart product matrix covering emotional companionship and other areas. However, the company has stated that AI products are still in the early stages of development and currently make up a small proportion of the overall business, not significantly impacting the company's performance. Investors are advised to maintain rational expectations regarding the short-term technological contributions. In terms of channels and formats, Kidswant Children Products is accelerating its expansion with lightweight assets to address the trend of market sinking. The company has the industry's only store network covering all provincial-level administrative regions in mainland China and is actively promoting the "thousand cities and ten thousand stores" franchise model to rapidly penetrate into third-tier and below cities with a standardized "product + service + social" model, capturing the preferred entry point for the expected 5.1% same-city instant retail and parent-child family services in the region. This refined and comprehensive omni-channel, all-scenario, and all-lifecycle operational system is a key asset for Kidswant Children Products to stand out in the fragmented market competition. Looking ahead, Kidswant Children Products' strategic core is to become an integrated "chain-leading enterprise" that combines research, production, supply, sales, and service, continuously deepening its own brand strategy to optimize its profit structure, and utilizing Siyu Group's R&D capabilities to achieve product innovation and iterative upgrades in the field of health and beauty aesthetics. In addition, international layout has been elevated to a strategic height, with the company planning to replicate its validated business model and differentiated supply chain in emerging markets such as Southeast Asia to seek new growth engines. However, all these grand plans are built on the foundation of technology empowerment and data-driven strategies. The challenge facing Kidswant Children Products is how to prudently and efficiently transform these diverse and high-cost strategic assets into sustainable and continuous shareholder returns, successfully hedging the risks brought by the market and integration.