SAINT BELLA: Leading the Postpartum Care Industry - Secrets to Success and Future Strategies

1. Secrets to Industry Leadership: Rarity of Domestic High-End Service Brands and Standardized Operational Replication Capability

A) Rare High-End Brand

In the maternal and infant care sector, the core of a high-end brand lies in providing sufficient experience and identity recognition beyond meeting basic functional needs. The high opportunity costs faced by postpartum care center consumers determine that brand recognition is critical for building trust and effectively reducing customer acquisition costs.

In 2024, SAINT BELLA Inc.'s postpartum confinement center services accounted for 85% of its total revenue. Through the establishment of a multi - brand matrix, this business covers personalized maternal, infant, and postpartum care needs at different levels. SAINT BELLA is positioned as an ultra-high-end brand, with package prices in Tier 1 Cities starting at RMB 138,800 per 28-day stay, targeting high-net-worth families in Tier 1 and New Tier 1 Cities with high living standards. Bella ISLA focuses on the mid-to-high-end market, primarily offering soothing mental recuperation with a focus on postpartum mental health recovery. Its target customers are mostly modern, self-caring, white-collar women from mid-to-high income families who know how to please themselves, with package prices starting at RMB 108,800 per 28-day stay. Baby BELLA targets young middle-class families, with package prices starting at RMB 68,800 per 28-day stay. Each brand expands its customer base through differentiated positioning, creating synergistic effects. According to the IPO Prospectus, calculated by 2024 revenue, SAINT BELLA Inc. holds market shares of 16.0% and 5.7% in core cities such as Hangzhou and Shanghai, respectively. In addition, with the trust endorsement from high-profile groups such as celebrities and entrepreneurs, the company has further elevated its brand to a social status symbol, thereby solidifying its ultra-premium brand perception.

B) Standardized Operational Replication Capability

The asset-light operation model provides strong support for rapid expansion and cost control. SAINT BELLA Inc. mainly operates postpartum care centers by signing flexible lease agreements with high-end hotels, typically without minimum room booking commitments. It secures more favorable rates through periodic leases in mature centers, significantly reducing capital expenditure and shortening the investment payback period. This model supports the company's rapid scaling-up. From 2022 to 2024, the group added 11, 7, and 34 self- and co-operated centers, respectively. New centers typically achieve positive net operating cash flow within three months of operation (cited from the IPO prospectus). Furthermore, SAINT BELLA enhances its bargaining power by cooperating with a decentralized network of hotel operators, further mitigating the risk of rising rental costs.

Figure: Gross Profit Margin of Self-operated Postpartum Care Centers by Year of Establishment, source: SAINT BELLA Inc. Prospectus

Specifically, the Single-Unit Economics model is as follows:

For example, a mature, self-operated SAINT BELLA postpartum care center has an initial investment of approximately RMB 800,000 to 1,500,000. At maturity stage, the average monthly occupancy is 16 to 17 guests, generating an annual revenue of RMB 40 million and an annual store-level net profit after tax of RMB 5.16 million, corresponding to a gross profit margin of 35% and a net profit margin of 13-20%.

Costs and expenses include personnel, rent, meals, and other items, specifically: a) Personnel: accounting for 20%-25% of revenue, including nurses, housekeepers and operation teams providing one-on-one or two-on-one care. The average monthly salary of nurses in Tier 1 Cities is approximately RMB 10,000 (reaching RMB 25,000 with social security benefits); b) Rent: accounting for approximately 20% of revenue. For example, in a five-star hotel-style postpartum care center, the daily suite rental ranges from RMB 1,000 to 1,500, which is about RMB 30,000 to 45,000 per month; c) Meals: accounting for nearly 10% of revenue, with an average monthly expenditure of RMB 18,000-20,000 per client; d) Other: Including materials (diapers, toiletries, etc.), marketing, customer acquisition costs (with leading centers in Tier 1 Cities incurring approximately RMB 1,500-2,300 per new customer), vehicle expenses, and allocation of headquarter management costs. The proportion varies depending on the operation model.

In summary, the Single-Unit Economics model of leading postpartum care centers is an asset-light, high-turnover one. Rent and labor account for a large proportion of costs. The gross profit margin is higher than the industry average, and the net profit margin reaches 13% - 20%, demonstrating strong scalability and counter-cyclical resilience. The overall market remains fragmented, but a clear trend towards standardization is emerging, with leading players like SAINT BELLA gradually increasing its market share.

Figure: SAINT BELLA Inc.’s sales cost as a percentage of total revenue(Year 2022-2024), source: SAINT BELLA Inc. Prospectus

In addition, relying on its proprietary care service platform and CRM system, the group has realized service standardization and precise resource allocation. The system dispatches care experts based on the needs of each center and the sufficient rate of personnel, while simultaneously tracking key performance indicators (KPIs) such as customer acquisition and retention rates, to continuously optimize Standard Operating Procedures (SOPs). By the end of 2024, SAINT BELLA Inc. has accumulated 44,218 registered members.

2. Long-Term Strategy: Horizontal Global Expansion, and Vertical Expansion of Full Life-Cycle Family Care Landscape

Global Expansion: The need for postpartum women to heal both physically and mentally is a common global need. SAINT BELLA Inc. is the first Chinese postpartum care brand to expand overseas. Revenue from regions outside Mainland China has gradually increased from RMB 2.15 million in 2023 to RMB 9.12 million in 2024, with revenue share rising from 0.5% to 1.3%. It now operates in five major regions: Hong Kong (China), Singapore, Los Angeles, New York, and Bangkok. Currently, SAINT BELLA's overseas operations focus on families of Chinese descent living abroad. As market education for the "baby honeymoon" concept deepens, there is potential for future expansion to a broader demographic.

Full Life-Cycle Services: Beyond postpartum care centers, SAINT BELLA Inc. has further extended postnatal care services to other life stages, operating family care services and food, contributing 8.6% and 6.4% of revenue in 2024, respectively, and maintaining strong growth. These businesses create synergy with postnatal care, covering a longer cycle and a broader range of family care scenarios. Through the cross-penetration of user needs, they build a "pregnancy-postpartum-long-term health management" consumer lifecycle, further leveraging the synergistic value of the brand matrix.

Conclusion:

SAINT BELLA's industry leadership stems from its premium brand equity and ability to replicate standardized operations: the former covers different customer groups through a multi-brand matrix and obtains endorsements from celebrities, while the latter achieves rapid expansion through the asset-light model, ensuring strong unit economics, and also realizes service standardization through systems. Its future strategies involve global integrated expansion and maximizing customer lifetime value. Let's continue to pay attention to SAINT BELLA's growth potential.