On September 23, Butong Group successfully debuted on the capital market with an impressive first-day performance: the stock opened at HK$100.4, surging 41.01% from the issue price of HK$71.2 per share. Based on a trading unit of 100 shares and excluding transaction fees, each lot generated a paper profit of HK$2,920, delivering substantial returns for IPO investors.

With "Creating Difference" as its core proposition, the company consistently maintains brand positioning of "high quality, high aesthetics, high technology," precisely targeting the high-end maternal and infant market segment through its premium brand BeBeBus. Since establishment, BeBeBus has launched multiple bestselling products, including the "Baby Stroller Artifact" which topped Tmall's baby four-wheel stroller bestseller list within just 7 days of launch. The Space Capsule series child safety seats quickly captured category TOP1 rankings across multiple dimensions including sales, reviews, and popularity on platforms like Tmall, generating enthusiastic market response. With outstanding financial performance and solid brand moat, the company has become a highly watched new stock target in the recent capital market.

**Seizing High-End Childcare Track, Market Leadership Advantage Highlighted**

Recently, the maternal and infant industry has welcomed intensive policy benefits, injecting long-term growth momentum into the market. In July this year, the government officially announced the childcare subsidy implementation plan, clarifying that starting January 1, 2025, each child can receive RMB 3,600 annual subsidies until age 3, with previously born infants under 3 also eligible. The National Health Commission indicated that it will continue multi-pronged efforts to reduce childbirth, childcare, and education costs, including raising individual tax special additional deduction standards, extending maternity leave, establishing spousal paternity leave and parental childcare leave. This series of substantial policy support is expected to boost maternal and infant consumption market confidence in the medium to long term.

Unlike most maternal and infant brands trapped in homogeneous competition and price wars, Butong Group proactively focused on high-end market segments, capturing structural growth opportunities. According to Frost & Sullivan reports, China's mid-to-high-end childcare products market size grew from RMB 25.6 billion in 2020 to RMB 34 billion in 2024, with a compound annual growth rate of 7.4%, significantly higher than the mass market's 3.4% growth rate. This counter-trend growth indicates that amid pressure on newborn numbers, maternal and infant consumption "upgrading" rather than "downgrading" has become a clear trend—new-generation parents pursue more refined, quality-oriented, and scientific childcare experiences, driving continuous expansion of the mid-to-high-end market.

Since launching premium maternal and infant brand BeBeBus in 2019, Butong Group has rapidly risen through differentiation strategy, quickly capturing consumer mindshare with first-mover advantage, becoming a leader in this market segment. According to Frost & Sullivan data, based on 2024 GMV, BeBeBus ranks first among brands targeting mid-to-high-end consumers in China's durable childcare products category, maintaining a solid market leadership position.

More impressive is its financial performance: from 2022 to 2024, company revenue jumped from RMB 507 million to RMB 1.249 billion, with an annual compound growth rate of 56.9%. The adjusted net profit compound annual growth rate reached an astonishing 236.8%, demonstrating high-quality, sustainable growth momentum. This performance not only validates the effectiveness of the company's high-end differentiation strategy but also marks the enterprise's strong profitability capability, achieving a virtuous cycle of sustainable growth.

**Crafting Ultimate "Product Power," Building Deep Brand Moat**

Behind outstanding performance, the secret to Butong Group achieving both high growth and high quality lies in the brand moat built through "ultimate product power." The company precisely focuses on new-generation parent groups in first and second-tier cities who are highly educated, aesthetically conscious, and high-net-worth. These consumers not only value practical functionality but also pursue integration of quality, aesthetics, technology, and emotional value, preferring solutions that precisely match high-quality childcare scenarios. The childcare philosophy of "raising children well while living one's own life well" makes them willing to pay premiums for quality products, establishing a solid market foundation for the brand's high-end positioning.

Accompanying the rise of new-generation childcare concepts, Butong Group continues increasing R&D and innovation investment, deeply integrating ultimate product pursuit and user care into product design and services, creating a differentiated product matrix combining functional and emotional value. To respond to consumption upgrade demands, the company systematically builds product competitiveness across four dimensions: design innovation, material application, craftsmanship, and technology:

The company established an "Original Aesthetics Center," abandoning traditional high-saturation cartoon styles to establish unique original product aesthetic language, featuring minimalist white, champagne gold, and other premium color tones paired with distinctive seven-color brand logos, creating a highly recognizable high-end visual image.

Based on forward-looking consumer insights, the company pioneered the product concept of "focusing on newborn spinal health," launching star products including baby strollers, safety seats, cribs, and high chairs focused on "spine protection" functionality.

In material and technology innovation, the company actively explores cross-industry integration, achieving breakthrough applications of multiple cross-sector materials. The company's smart child safety seats use automotive-grade Cobra memory foam and aviation-grade aluminum-magnesium alloys. The "Artist Baby Stroller Series" and "Segmented Child Spine Growth Pillow Series" received ICA International Chiropractic Association certification, making BeBeBus the only domestic maternal and infant brand to receive this honor.

Company products adopt multiple high-end processes, such as the Butterfly Stroller Artifact equipped with patented butterfly biomimetic lumbar support system, reducing spinal curvature risk by 42%. The backrest features memory foam filling, ensuring infant back pressure values exceed EU standards even during extended use. The Space Capsule safety seat employs industry-first integrated foam molding process, achieving perfect material-structure integration, combined with automatic rotation and APP control functions, greatly enhancing usage convenience.

Additionally, the company adheres to an "integrated production-research" strategy, establishing self-research and self-production facilities in Ningbo, Zhejiang, including the industry's first internal testing laboratory certified by IATF16949, achieving full autonomous quality control to ensure product consistency.

In sustainable development, the company actively advances ESG system construction, building frameworks around five dimensions: supply chain management, employee management, corporate governance, energy consumption, and waste generation. Its proprietary factory has obtained carbon footprint certification (carbon labels) for multiple core products including Space Capsule, Lunar Explorer Pro, Astronomer Pro, Petal Learning Chair, and Dabai Crib, and received EATNS carbon management system certification in 2022, continuously strengthening responsible corporate image.

Through comprehensive "product power" construction across four dimensions, Butong Group continues consolidating competitive advantages in high-end market segments while effectively enhancing consumer trust and brand loyalty, forming comprehensive barriers difficult for competitors to overcome short-term.

**Connecting Channels and User Loop, Driving High-Quality Sustainable Growth**

The value of Butong Group's ultimate product strategy receives direct validation through impressive financial metrics. While company performance grows rapidly, user stickiness, customer unit price, and channel construction all show outstanding performance:

Data shows average transaction amounts for orders containing at least one core product remain above RMB 2,400, clearly positioning high-purchasing-power customer groups. Customer scale expands significantly, with total customers growing from 356,800 in 2022 to 953,300 in 2024, achieving leapfrog improvement. User loyalty also strengthens continuously, with overall repurchase rates rising substantially from 20.1% in 2022 to 40.2% as of June 30, 2025.

In channel construction, the group has built comprehensive online-offline sales networks precisely connecting target customer groups. As of June 30, 2025, online business covers 9 major e-commerce platforms including Tmall, JD, and Douyin, operating 14 self-operated stores and 2 platform-operated stores, accumulating 3.5 million private domain members. Offline channels include 155 distributors covering over 3,400 third-party stores.

Notably, the 3.5 million private domain member system has become the group's core asset for high-value, low-cost operations, not only facilitating efficient brand reach and conversion but also providing solid support for repurchase improvement and precision marketing.

Furthermore, Butong Group steadily advances its globalization strategy. By entering core markets in Europe, North America, Japan, and South Korea, the company aims to develop BeBeBus into an internationally renowned maternal and infant brand, opening new growth ceilings and consolidating global market position.

Looking forward, the company will focus on core family users, extending solutions from childcare scenarios to broader parent-child lifestyle scenarios, gradually growing into a technology lifestyle brand trusted by global elite families through diverse product matrix construction.

**Summary**

Butong Group's success stems not only from strategic foresight in precisely positioning the high-end market but also from systematic capabilities deeply combining user insights, aesthetic innovation, and technology R&D. This capability not only helps the brand establish deep emotional connections with new-generation parents but also creates positive cycles driving continuous product iteration and brand value growth through efficient omni-channel operations.

Butong Group's successful capital market debut undoubtedly provides a high-quality benchmark for how Chinese consumer brands can escape inefficient competition and win markets through ultimate product power.