First annual revenue decline after going public, Betaine starts "saving money"

“Betteni, the first publicly listed company focusing on sensitive skin, has experienced its first annual revenue decline since listing. Betteni's 2025 financial report shows that its annual operating revenue was 5.359 billion yuan, down 6.58% year-on-year. However, the profit side presents a completely different picture. In 2025, Betteni’s net profit attributable to shareholders increased slightly by 0.53% to 506 million yuan, while the net profit excluding non-recurring items—which better reflects the quality of the main business’s profitability—soared by 48.22% to 356 million yuan. "Profit increases without revenue growth" directly points to a shift in Betteni’s core management logic, moving from "burning cash for scale" to "controlling expenses to protect profits." In 2025, Betteni’s sales expenses, management expenses, and R&D expenses were 2.676 billion yuan, 495 million yuan, and 237 million yuan, respectively, down 6.65%, 3.47%, and 19.58% year-on-year. Looking at basic business, the weakness in traditional core business is the main reason for total revenue decline. In 2025, Betteni’s most core skincare category generated 4.575 billion yuan in revenue, down 4.71% year-on-year. During the same period, both makeup and medical device products failed to escape decline, with revenues of 472 million yuan and 265 million yuan, dropping 14.35% and 25.39% respectively year-on-year. As the main brand “Winona” enters a stage of stock competition in the sensitive skin sector, coupled with the peak of online traffic dividends in the industry, such transitional pains are inevitable. However, as the main brand slows down, Betteni’s sub-brands, which have been cultivated for years, are achieving rapid growth. For example, in 2025, "Winona Baby," focusing on functional skincare for infants and children, generated 235 million yuan in revenue, up about 17.02% year-on-year. Extending from sensitive skin care to high-repurchase tracks like baby products, Betteni is attempting to offset the risk of slowing growth in a single brand with a multi-brand matrix. In the first quarter of this year, Betteni’s revenue trend has shown improvement, achieving operating income of 1.118 billion yuan, up 17.84% year-on-year. The profit side’s performance is remarkable, with net profit attributable to shareholders reaching 65.97 million yuan in the same period, a surge of 132.76% year-on-year. However, this is mainly influenced by non-recurring gains and sharply reduced R&D expenses. In the first quarter of 2026, Betteni’s “other income,” including government subsidies, reached 34.29 million yuan, soaring by 359.01% year-on-year. Excluding these non-recurring factors, Betteni’s net profit excluding non-recurring items for the first quarter of 2026 actually grew 94.81% year-on-year. Moreover, Betteni also significantly cut R&D expenses, amounting to 34.82 million yuan in the first quarter of 2026, nearly a 40% decrease year-on-year. Whether the growth trend in the first quarter can be maintained remains a focus of continuous market attention. Risk Warning and Disclaimer The market has risks, and investment needs to be cautious. This article does not constitute personal investment advice, nor does it consider the specific investment objectives, financial situation, or needs of individual users. Users should determine whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Any investment based on this article is at your own risk.