Speed Up The Listing Of Betaine Gem! Beautiful Racing Track, Direct Competition With International Big Brands

On January 14, Yunnan beitaini Biotechnology Group Co., Ltd. (hereinafter referred to as "Bertini") disclosed the draft of its prospectus, which is a step closer to its gem listing.

According to the official website of Shenzhen Stock Exchange, Bertini's IPO application was accepted on July 6, 2020. On October 30, 2020, it successfully passed the meeting at the 39th meeting of the municipal Party Committee on the gem in 2020, and is currently in the stage of "submitting for registration".

Maybe the name of betaine is a little strange, but its core brand "Winona", which focuses on sensitive skin care, once appeared in the live broadcasting room of head anchors Li Jiaqi and Weiya, causing heated discussion.

Recently, a number of consumers interviewed told the 21st century economic report that they had used Winona's "Shumin moisturizing special care cream". Some of them were planted grass directly, while others paid more attention to the ingredients of skin care products.

Founded in 2010, betaine's IPO has lasted 10 years. So, how did it get to today on the beautiful track?

From dealer to independent operation "Winona"

According to the prospectus (Registration draft) disclosed on January 14, the company's predecessor, betaine Co., Ltd., was established on May 13, 2010 with natural persons Dai kaihuang, Deng Xiaoling and Ma Ruyu as the capital contribution. At the time of establishment, the company had a registered capital of 500000 yuan in the form of currency. In March 2019, it became a joint-stock company as a whole.

It is worth mentioning that betaine was originally the distributor of its flagship product "Winona". "Winona" is an incubation project established by Dianhong pharmaceutical in 2008. Due to its small proportion in the business system of Dianhong Pharmaceutical Co., Ltd., the annual sales revenue accounts for less than 3% of the operating income of Dianhong Pharmaceutical Co., Ltd. and continues to suffer losses. In December 2012, during the preparation for domestic IPO, Dianhong pharmaceutical company stripped off the intangible assets of "Winona Winona" series and transferred them to betaine Co., Ltd., which has been independently operated by betaine.

At present, betaine focuses on sensitive skin care, with star brand Winona, Winona baby focusing on professional infant care, acne care focusing on acne skin care, beauty focusing on high-end skin repair The main popular products are "Winona Shumin moisturizing special care cream", "Winona Shumin moisturizing lotion" and "Winona Shumin moisturizing and repairing essence", etc.

Beautiful economic circuit running all the way

During the reporting period, betaine, which focuses on sensitive skin care, has achieved amazing high growth relying on its core product Winona.

From January to June of 2017 to 2020, betaine achieved revenue of RMB 798 million, RMB 1.240 billion, RMB 1.944 billion and RMB 942 million respectively, with net profits of RMB 155 million, RMB 263 million, RMB 413 million and RMB 160 million respectively.

Among them, "Winona" brand is the absolute "responsibility" of the company's revenue at present: from January to June of 2017-2020, "Winona" brand sales revenue accounted for 99.68%, 99.85%, 99.37% and 99.06% of the main business income.

In terms of production mode, betaine mainly adopts the production mode of independent production, entrusted processing and OEM production. From January to June of 2017 to 2020, the proportion of production cost of entrusted processing in all products produced in the current period was 73.93%, 71.04%, 74.09% and 71.60%, respectively, which became the main production mode of the company.

Online marketing plays an important role

Betaine clearly stated that after years of cultivation, the company's "Winona" brand has occupied a relatively high market share in the corresponding domestic market segments, and the company's products have launched direct competition with famous international cosmetics brands such as Vichy, La Roche Posay and Avene.

In terms of channels, betaine mainly sells through online and offline channels, including tmall, wechat, Jingdong, Winona online shopping mall, xiaohongshu, Jumei Youpin, mushroom street, koala shopping mall, offline sales are mainly through commercial companies, direct supply customers and regional distributors.

At present, online sales is the most important sales channel for betaine, which has a pivotal position.

According to the data, betaine's online sales accounted for 62.09%, 71.71%, 76.70% and 83.16% respectively from January to June, 2017.

Take the official flagship store of Winona (tmall) as an example, which has accumulated more than 7 million fans. In 2018 and 2019, the official flagship store of Winona (tmall) of Bertini ranked No.9 in the sales of tmall's "double 11" main category (beauty and skin care / body care / essential oil), and its Chinese products ranked fourth and third respectively. From 2018 to 2020, the company's "Winona" brand won the tmall gold makeup Award for three consecutive years.

Betaine said in the prospectus that the company has made full use of the dividend of e-commerce channels, implemented precision marketing through the use of flexible Internet marketing means and advanced big data analysis methods, and successfully achieved overtaking on the curve in the industry environment with high concentration of international brands in the cosmetics industry. In 2018, 2019 and January June 2020, the company's online channel sales revenue increased by 80.55%, 68.26% and 48.15% respectively over the same period of last year, higher than the industry average level.

R & D strength is recognized by the market

On January 18, Wang Zhuo, a global partner of beauty streams, which focuses on the investment in daily chemical industry, told 21st century economic reporter that betaine's advantages lie in "accurate positioning and clear cognition; secondly, it has research and development foundation, reputation and customer base. Winona was the first project hatched from Dianhong pharmaceutical. In addition, the company has the academic and clinical experience of dermatologists alliance Third, he is good at e-commerce, digital marketing, especially KOL marketing (especially doctors).

Another A-share skincare company told the 21st century economic reporter, "with the growing number of" ingredient party "groups, consumers pay more and more attention to the ingredients and efficacy behind the products. Betaine's product research and development has its own precipitation."

Northeast Securities pointed out that "beitani takes doctors & clinical data as its endorsement, and its close contact with dermatologists has made Winona products more exposed in hospitals and drugstores, making it easier for the brand to gain consumer trust, and at the same time, it has used social media marketing to amplify its voice."

Betaine's R & D strength has been recognized by the market.

According to the prospectus, as of June 2020, betaine has 46 valid domestic patents and 11 core technologies. It has strong technical advantages in the preparation of effective ingredients of plant extracts from Plateau Characteristic plants such as Portulaca oleracea, prickly thorn fruit and Yunnan camellia, as well as the production of sensitive skin care products containing active ingredients of Plateau Characteristic plants.

And its R & D team has won the first prize of scientific and technological progress of Yunnan Province and the first prize of innovation team of Yunnan Province. In 2019, the company was approved as a provincial post doctoral research station by the Department of human resources and social security of Yunnan Province.

Among the core personnel, Guo Zhenyu, the actual controller of betaine, is also the director general of international self-care Fund (ISF), vice president of China non prescription drug association, deputy director of skin Professional Committee of China Association of non-public medical institutions, and executive vice president of Yunnan Private Entrepreneurs Association. From January 2003 to November 2014, he served as chairman and President of Dianhong pharmaceutical.

In addition, Wang Feifei, the company's core personnel, also has the relevant experience of Dianhong: from July 2006 to April 2011, he served as the R & D Engineer and director of Dianhong Co., Ltd., and from April 2011 to December 2014, he served as the R & D department manager, R & D director and director of R & D center of Shanghai Dianhong.

The cost of customer acquisition continues to rise, and high gross profit rate faces challenges

However, Wang Zhuo also pointed out that "betaine's product category and brand are relatively single, in addition, the marketing cost is high, and the profitability sustainability is questionable". In his opinion, whether the company's products can maintain the differentiation advantage is also worthy of attention.

The above A-share skincare companies also pointed out that "betaine's online revenue accounts for a large proportion. How to grasp the opportunities brought about by the changes in channels and new traffic platforms is the key to future performance growth."

According to the prospectus, from January to June in 2017-2020, the amount of customer acquisition cost of betaine was 23.3362 million yuan, 57.0859 million yuan, 117.1885 million yuan and 97.310 100 yuan, respectively, with the customer acquisition rate of 5.73%, 8.46%, 9.99% and 14.66%, showing a continuous upward trend.

Bertini explained that the cost of customer acquisition is mainly distributed in the platform stores under the online promotion mode, mainly including tmall, Jingdong, vipshop and other major e-commerce platform stores.

At the previous meeting of the IEC, another issue of the IEC pointed out that betaine's comprehensive gross profit rate was significantly higher than the average gross profit rate of the industry, requiring it to explain whether the high gross profit rate is sustainable.

According to the prospectus, betaine's comprehensive gross profit margin was as high as 81.28%, 81.16%, 80.22% and 81.96% from January to June, 2017, respectively.

For the performance in 2020, betaine is expected to achieve revenue of 2.48 billion yuan - 2.71 billion yuan, an increase of 27.59% - 39.42% compared with the same period of last year; net profit is expected to be 478 million yuan - 558 million yuan, an increase of 16.03% - 35.45% compared with the same period of last year.