On June 26, 2024, Saint Bella Inc. (hereinafter referred to as "Saint Bella"), a holding company of Hangzhou Beikang Health Technology Group Co., Ltd. from Zhejiang, submitted its prospectus to the Hong Kong Stock Exchange, planning to IPO on the main board of Hong Kong Stock Exchange.
Link for the Nezha Auto IPO prospectus:
https://www1.hkexnews.hk/app/sehk/2024/106567/documents/sehk24062501237_c.pdf
Main Business
Founded in November 2017 in Hangzhou, Shengbella has become China's largest integrated family care brand group (by revenue in 2023), covering three major business lines: maternity centers (including postpartum care and repair services), family care services, and women's health functional foods.
According to the Frost Sullivan report, based on the revenue generated by super high-end maternity centers in 2023, Shengbella is China's largest postpartum care and repair group; based on the revenue growth rate from 2021 to 2023, Shengbella is also the fastest-growing scaled postpartum care and repair group.
Shengbella adopts a multi-brand strategy for its operations, which includes the flagship super high-end maternity center brand Shengbella, the high-end maternity center brand Bella Isla, the high-end maternity center brand Xiao Bella, the postpartum training institute brand, the home care service brand, the female health functional food brand Guanghe Tang, and the women's underwear brand S-bra (as part of postpartum repair services).
Maternity centers
Shengbella operates maternity centers under the Shengbella, Bella Isla, and Xiao Bella brands, mainly located in high-end hotels, with some Shengbella centers located in standalone villas. Offering high-end lodging experience and postpartum care services, the company provides personalized professional services of high quality and standards, including postpartum care services (lodging, mother and baby care, and dining, with customers staying in the company's centers throughout their stay and enjoying all-day service) and postpartum repair services (body conditioning, postpartum muscle repair, postpartum skin repair, lactation consultation, shaping projects, etc.).
According to the Frost Sullivan report, as of June 16, 2024, Shengbella has the largest network of high-end maternity centers in China, with 54 high-end centers located in 18 tier-one and tier-two cities in mainland China, including 46 self-owned centers (centers fully owned or controlled by the company) and 8 managed centers (fully owned or controlled by third parties and managed by Shengbella). By revenue in 2023, Shengbella had a market share of 14.0% and 5.1% in the maternity center markets of Hangzhou and Shanghai, respectively.
Outside the mainland, according to the Frost Sullivan report, Shengbella is the first maternity center operator in mainland China to expand beyond the mainland. As of June 16, 2024, the company has 3 managed centers in Hong Kong, 1 self-owned center in Singapore, and 1 managed center in the greater Los Angeles area.
Family care services
Shengbella arranges trained nurses with corresponding skills to provide the necessary family care services for customers. The company offers family care service packages from three months to 36 months, with prices ranging from approximately RMB 1.728 million to RMB 3.84 million per year. Most customers opt for three- to 12-month packages.
Women's Health Functional Foods
Through Guanghe Tang food, Shengbella acquired and now owns the Guanghe Tang brand since October 2021. According to the Frost Sullivan report, Guanghe Tang is one of the leaders in China's women's health food industry, with more than 20 years of history in nutrition, health, and wellness. With plant extracts and patented formulas as the core and drawing on traditional Chinese medicine theories, Guanghe Tang constantly innovates its products, developing a complete product portfolio. After years of accumulation, Guanghe Tang has developed a four-stage postpartum care model and a three-stage small month repair system. Guanghe Tang's products can help women manage their daily health from menstruation to pregnancy, lactation, postpartum, miscarriage, and other different stages.
Shareholder Structure
According to the prospectus, Shengbella's shareholder structure prior to listing was:
Mr. Xiang owns 38.24% and 4.25% of the shares through Primecare BVI and Xiang SPV, respectively;
Holdco SPV* owns 11.88% of the shares;
*Holdco SPV's shareholders: Ms. Hua Xiangli (30.9%, Mr. Xiang's mother), Ms. Lin Wanyi (53.2%), Mr. Han Jiwen (9.1%), and Ms. Yang Pan (6.8%), hold the shares through BVI companies they fully own.
Tencent (00700.HK) holds 11.61% of the shares through Tencent Mobility;
Gaorong Capital holds 8.26% of the shares through Gaorong BK;
Ningbo Tangzhu (Kunshan Tangzhu is the GP, and Guangdong Liansu Ventures holds 98.94% LP equity) holds 6.61% of the shares;
Kunshan Tanglu (Kunshan Tangzhu is the GP, and Gao Tian, Liu Yajuan, Wang Kexin, and Zhou Wei are the LP) holds 3.96% of the shares through Panda Six.
Sun Hung Kai Co (00086.HK), holds 2.98%;
China Life Insurance (601628.SH, 02628.HK), holds 1.96% through China Life;
River Delta, holds 1.75%;
Hainan Christmas, holds 1.72%;
C Capital, holds 1.69%;
Zhuji Jiantou, holds 1.27%;
Gotham Equity, holds 1.19%;
Yaohe, holds 1.08%;
Pegasus Capital, holds 0.85%;
Swire Properties (01972.HK), holds 0.68% through JPMorgan;
Board of directors and executives
The Sanbella board of directors consists of five directors, including:
1 executive director: Mr. Xiang Hua (founder, chairman of the board, and CEO);
1 non-executive director: Mr. Liang Jun;
3 independent non-executive directors: Ms. Wu Shuqing, Mr. Rainer Josef Bürkle, and Mr. Zeng Gangxiong.
In addition to the executive director, the management team includes co-founder and COO Ms. Lin Wanyi, Chief Nursing Officer Dr. Liu Meifang, Chief Nutrition Officer Dr. Zhong Yufu, and Vice President of Finance and Innovation Mr. Zhao Mingyang.
Corporate Performance
According to the prospectus, in 2021, 2022 and 2023 respectively, Sanbella's revenue was RMB 259 million, RMB 472 million and RMB 560 million, while its net losses were RMB 122 million, RMB 412 million and RMB 239 million, respectively. Adjusted net profits for the same periods were RMB -29.868 million, RMB -44.628 million and RMB 20.772 million, respectively.
Intermediary Team
Sanbella's IPO intermediary team includes: UBS Group and Citic Sec as joint sponsors; EY as the auditor; Tongshang as the company's Chinese lawyer, cybersecurity and data compliance lawyer; DeHeng as the company's Chinese lawyer; Allen Overy Shearman Sterling as the company's Hong Kong and US lawyer; King & Wood Mallesons and Sullivan & Cromwell as the brokerage's Chinese lawyer and brokerage's Hong Kong and US lawyers, respectively; and Foster Sullivan as the industry consultant.