In the first three quarters, Betini's revenue increased by 17.09% year-on-year, with Q3 quarterly revenue increasing by 14.04% year-on-year. However, the company's net income decreased significantly, with net income attributable to mother decreasing by 28.39% year-on-year in the first three quarters, and a net loss occurred in Q3 single quarter.

Yunnan Beteni Biotechnology Group Co., Ltd. is a biotechnology company dedicated to the field of skin health. Its core brand is "Winona", focusing on sensitive skin care, providing skincare products including creams, toners, masks, essences, lotions, etc. The company operates sales of skincare products, makeup, and medical instruments.

On October 24, Beteni released the third-quarter report for 2024.

1) Main financial data

• Revenue: In the first three quarters, revenue reached 4.018 billion yuan, a year-on-year increase of 17.09%; in Q3 alone, revenue increased to 1.213 billion yuan, a year-on-year increase of 14.04%.
• Net Income: In the first three quarters, achieved a net profit attributable to the parent company of 0.415 billion yuan, a year-on-year decrease of 28.39%; in Q3 alone, a net loss of 68.9993 million yuan, a year-on-year decrease of 153.41%.
• Gross Margin: The company achieved a sales gross margin of approximately 73.73% from the beginning of the year to the end of the reporting period, a decrease of about 2.69 percentage points from the same period last year, with a gross margin of 76.35% in Q3 alone.

2) Reasons for changes in the profit and loss statement from the beginning of the year to the end of the reporting period.

Regarding the growth in revenue for the first three quarters, the announcement states that it is mainly due to the increase in the company's sales scale from the beginning of the year to the end of the reporting period compared to the same period of the previous year and the comprehensive impact of Yuezjiang (Guangzhou) Investment Co., Ltd., which was included in the company's consolidation scope starting from October 31, 2023.

Based on the scope of statistics for the same period last year, the company's total operating income from the beginning of the year to the end of the reporting period for "Winona" and other major brands amounted to 3636.7618 million yuan, an increase of approximately 5.98% compared to the same period last year, with a sales gross margin of approximately 75.34%.

The company's cost of goods sold from the beginning of the year to the end of the reporting period was 1055.5383 million yuan, an increase of 246.3037 million yuan compared to the same period last year, with a growth rate of approximately 30.44%. This increase is mainly due to the comprehensive impact of the company's promotional policies and the dynamic response of product (brand) sales structure to market demand from the beginning of the year to the end of the reporting period.

The company's selling expenses from the beginning of the year to the end of the reporting period amounted to 2009.9881 million yuan, an increase of 405.4129 million yuan compared to the same period last year, with a growth rate of approximately 25.27%. This increase is mainly due to the company's continuous increase in brand image promotion and advertising costs, personnel expenses, and warehouse expenses as the sales scale and revenue grow.

The increase in the company's selling expenses from the beginning of the year to the end of the reporting period exceeded the growth in sales scale. This is mainly attributed to the comprehensive impact of actively enhancing the company's and brand's visibility to prepare for the large promotional activities across all channels in the fourth quarter of 2024. During the reporting period, the company actively increased investments in Douyin channel seeding, traffic diversion, and other promotional activities, as well as added investments in brand endorsements, co-branding activities, and other advertising marketing initiatives.

From the beginning of the year to the end of the reporting period, the company's management expenses were 339.5592 million yuan, an increase of 95.3507 million yuan compared to the same period last year, with a growth rate of approximately 39.04%. The growth in management expenses of the company from the beginning of the year to the end of the reporting period exceeded the growth in sales scale, mainly due to the stock-based incentive expenses accrued for the employee stock ownership plan during the reporting period. The expenses for administrative personnel, depreciation and amortization costs of long-term assets used for management purposes, and other administrative expenses during the period from the beginning of the year to the end of the reporting period are basically in line with the growth of the company's sales scale.