Abstract: It is reported that Runben’s baby care products 2022 revenue was 390 million yuan ($54 million), officially being the first major business segment of Runben Biotechnology.
Runben Biotechnology Co., Ltd (hereinafter referred to as “Runben Biotechnology”) updated its prospectus. This also means that the “first stock of baby care” is a step further.
According to the prospectus, Runben Biotechnology was established in 2013, mainly engaged in the research and development, production and sales of mosquito repellent and personal care products, and has formed three core product series: mosquito repellent products, baby care products and essential oil products.
Since its establishment, Runben Biotechnology has adhered to the integrated strategy of research, production and sales of “big brands and small categories”. With “Runben” as the main brand, and enhanced the brand reputation and brand reputation of Runben brand in the main field by enriching the product matrix.
From the perspective of profitability, according to the prospectus published by Runben Biotechnology, from 2020 to 2022, it achieved revenues of RMB443 million ($61.2 million), RMB582 million ($80 million) and RMB856 million ($118 million) respectively, with an average annual compound growth rate of 39.04%. The net profits was RMB95 million ($13 million), RMB121 million ($16.7 million) and RMB160 million ($22 million) respectively, with an average annual compound growth rate of 29.99%. It is expected that the revenue from January to June 2023 can reach RMB610-630 million ($84.3 million-$87 million), with a year-on-year growth rate of 38.96% to 43.51%.
It is reported that the sales of Runben Biotechnology mainly focus on Internet channels, deploying online channels for many years, with Tmall, JD, Douying (Chinese verson of TikTok), Vipshop and accumulated an online consumer base. According to the prospectus, from 2019-2022, the amount of sales revenue from Tmall platform direct store grew from 148 million yuan ($20.4 million) to 300 million yuan ($41.5 million). The annual number of purchasing users of direct stores on Tmall and JD platforms increases from 5,379,500 in 2019 to 10,412,200 in 2022, and the amount of sales in the Jitterbug channel reaches 158 million yuan ($21.8 million) in 2022.
By product, the main business revenue of Runben Biotechnology mainly comes from mosquito repellent series products, baby care series products, essential oil series products and other products. The revenue of mosquito repellent products was 270 million yuan ($37.3 million) in 2022, accounting for 31.82%. In Runben’s Tmall flagship store, the highest-selling product is Runben’s children’s mosquito repellent, priced from 19.9 yuan ($3), with monthly sales of 400,000+ units.
According to the prospectus, the sales of baby care products increased from 144 million yuan ($20 million) in 2020 to 390 million yuan ($54 million) in 2022, accounting for 32.47% to 45.59%. The business revenue, sales of baby care products accounted for the first time more than the mosquito repellent products, officially became the first major business segment under the Runben Biotechnology.
According to Zhuoshi Consulting data, the market share of Runben’s baby care products in the entire online channel will be about 4.2% in 2022. The market share or ranking of the Company in the aforementioned e-commerce platforms (ranking indicators are mainly based on the public ranking data of specific e-commerce platforms) includes the top three in the category of “baby products” in the “618” campaign of Tmall in 2022 and the top three in the category of “baby products” in the “618” campaign of Douyin in 2022. The top three rankings for “baby products” in the 2022 Tmall “618” campaign.
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