China Net Finance, April 25 (Reporter Liu Xiaofei) In recent years, the integration of the maternal and infant industry has accelerated. Accurately understand the needs of users, continue to cultivate and innovate in the business, and bravely open a new situation in the "changing situation", and embark on the road of high-quality development.
On the evening of April 24, Kid King released its 2023 annual report. During the reporting period, the operating income of Kidwang was 8.753 billion yuan, a year-on-year increase of 2.73%, continuing to lead the maternal and infant industry, excluding the impact of convertible bond interest expenses and share-based payment expenses, the net profit attributable to the parent company was 211 million yuan, a year-on-year increase of 55.7%.
It is worth mentioning that the increase in the scale and profitability of Kid King is not achieved by sacrificing cash flow. In 2023, the net cash flow generated by Kidwang's operating activities will be 804 million yuan. This is the sixth consecutive year that the operating cash flow has been positive since the financial data of Kid King was available in 2018, which is not easy at a time when the downward pressure on the economy is increasing.
As of the end of 2023, the monetary funds on the account of Kidwang reached 2.472 billion yuan, with abundant cash flow and healthy finances, highlighting the high-quality operating characteristics of A-share listed companies.
With the support of steady performance, the child king does not forget to give back to investors. In the 2023 annual report, Children's King threw out a dividend plan of "0.5 yuan per 10 shares", with a total cash distribution of 55.0894 million yuan, accounting for 52.41% of the net profit attributable to the parent company. In addition, in November 2023, KidKing launched a new round of repurchase plan, with a repurchase scale of 30 million yuan to 50 million yuan. Cash payouts are a direct response to investors' trust and support, while buybacks demonstrate the company's confidence in future development. This dual initiative of Kid King not only allows investors to share the company's growth dividends, but also further enhances the company's image in the capital market and investor confidence.
The endogenous "hematopoietic" ability is strong, and the single-store model of the children's living hall for all ages runs through
Kid King has maintained a positive cash flow for many years, indicating that he has a good self-"hematopoietic" ability.
According to the data, at the beginning of its establishment in 2009, Kid King mainly carried out the retail of maternal and infant products through offline stores;In the following years, Kid King continued to be guided by customer needs, and created a large store model with members as the core asset, "goods + services + social", parenting consulting services and a single customer economic model under the heavy membership system;In 2023, Kid King innovated again, announcing the development from "single lane" to "ten lanes", further broadening the service boundary, and creating the first all-age children's life hall, which is 1— At the same time, it has also launched the "AI Parenting Consultant Model" KidsGPT, which continues to create user value with "technological power + humanized service".
At present, the single-store model of the Children's Life Hall of the All-Age Children's Life Hall has been run through. Among them, the first store in Hongyang, Nanjing opened on July 28, 2023, and as of December 31 of that year, the transaction volume of a single store increased by more than 20% year-on-year, and the number of consumers increased by nearly 30%, and 200 stores will be upgraded across the country in the next 3 years, which is expected to bring a new "growth pole" to the performance of Kid Wang.
It is reported that the Children's King All-Age Children's Life Pavilion has been officially launched on the APP, which is synchronously subdivided into parent-child life scenarios such as dressing, learning to play, nutritional supplements, and outdoor sports, and unlocking a new immersive parent-child shopping experience through all channels.
Reflected in the annual report, it is the income structure continuously optimized by Kid Wang. In 2023, the amount of maternal and infant service revenue of Kid King will be 311 million yuan, a year-on-year increase of 23.98%, and the proportion of total revenue will increase by 0.6 percentage points compared with the same period last year. It is worth mentioning that the gross profit margin of Kid King's maternal and infant services is 92.48%, much higher than the 20.29% of maternal and infant product sales. This means that with the continuous increase in the proportion of maternal and infant service revenue, the profitability of Childking is expected to further increase.
The children's king, whose service income has increased significantly, is also continuing to increase the differentiated supply chain and continuously enrich its own product matrix. In 2023,
The differentiated supply chain of Kidwang achieved a total sales revenue of about 820 million yuan, accounting for 10.82% of the sales revenue of maternal and infant products. Among them, the transaction volume of private brands increased by 74.37% year-on-year.
At present, Kid King has 11 major self-owned brands such as Better Double, Chuyi Meng, etc., covering many major categories such as supplies, toys, underwear and home textiles, and accessories. These private brands of the child king have a good market foundation and have a good user reputation, which provides a strong self-owned supply chain foundation for the follow-up vigorous development of the franchise model.
Kidwang revealed that it will continue to increase the proportion of its own brand revenue, continue to create differentiated explosive products and achieve the ultimate single product efficiency, and enhance brand competitiveness and the company's gross profit margin.
Epitaxial mergers and acquisitions complement each other's advantages, and the number of stores after the acquisition of Leyou exceeds 1,000
The child king, who has strong endogenous growth, is also actively carrying out extension mergers and acquisitions. In 2023, Kidwang will complete the largest acquisition in the history of domestic maternal and infant chains, and officially incorporate Leyou into its portfolio, so as to accelerate the layout of the northern market and open up the development model of boutiques and franchise stores. The two form a complementary effect in terms of advantages and scenes, which further strengthens the leading position of the child king.
At present, after the acquisition of Leyou, Kid King has entered the stage of deep integration, and has achieved the effect of "1+1>2". By the end of 2023, there will be 1,025 stores in 21 provinces (cities) and more than 200 cities across the country. So far, Kid King has built a chain system with the widest urban grid layout in the industry.
The management of Kidwang mentioned on the interactive platform that the follow-up will focus on the upstream and downstream and related industrial chains, give full play to the role of mergers and acquisitions in the capital market, actively look for high-quality investment and merger targets, and promote the company to expand its scale advantages and enhance its core competitiveness.
In 2024, the franchise business of the big store and Leyou store of the Kid King system will be officially opened, sharing the core capabilities of the existing store digital management and member precision marketing. Guotai Junan pointed out in a recent research report that this move is expected to further increase the market share of Kid King.
Consumer organizations have all recognized the "three expansion strategies" to lay out new growth
At the same time of store expansion, KidKing also adapts to the changes in consumer demand in multiple scenarios, empowers the whole business line with digital intelligence, and realizes the integrated development of online and offline. In 2023, the online sales revenue of Child's King maternal and infant products will be 3.289 billion yuan, accounting for 43.42% of the sales revenue of maternal and infant products. As of the end of the period, the APP had more than 56 million users, the Mini Program had more than 62 million users, and the enterprise and micro private domain service users exceeded 10 million.
Among them, the city's digital real-time retail services continue to upgrade. Kid King has successively launched products such as one-hour delivery, city-wide delivery, and half-day delivery, with a timely order fulfillment rate of over 99%, which meets the needs of users for instant shopping and helps Kid King continue to expand its leading edge on the track of instant retail.
Zhao Zhiguo, chief engineer of the Ministry of Industry and Information Technology, recently said that he will accelerate the empowerment of digital technology and promote the development of the manufacturing industry to digitalization, networking and intelligence. Enterprises with industry-leading intelligence levels such as Kid King are expected to take the lead in seizing this round of rush window to enhance their competitiveness. At present, KidsKing has created an AIGC intelligent platform, launched KidsGPT intelligent consultant to master 1 billion+ maternal and infant knowledge, and launched AI live broadcast, AI cute treasure photo, etc., in addition, the carrying rate of AI customer intelligent robots has been increased to 80%.
At the same time, Kid Wang's local parent-child growth service business showed a strong momentum of development. It is understood that Kid King has opened up three major service platforms of "maternity plus", "growth plus" and "same city plus" to meet the local life needs of members in an all-round and all-round way. Among them, the transaction volume of "Intra-city Plus" in 2023 will increase by 105% year-on-year. According to industry insiders, the supply of parents and children in the same city is generally very certain, and the development of local parent-child growth services can not only help the users of the child king save money, but also help parks, aquariums and other places solve the problem of passenger flow in the off-season, achieving a "win-win" effect.
At the beginning of 2023, KidKing launched the "100 Cities and 10,000 Stores" alliance plan to unite high-quality small and medium-sized chains and mother stores to create a mother, baby and child ecosystem. At present, the number of service-type merchants in different industries cooperated by Kid King has exceeded 15,000 across the country, and the "moat" has been further deepened and widened.
Kid King takes multiple measures to increase the stickiness of member users. For example, with physical stores as the carrier and parenting consultants as the link, we can provide customers with help and solve parenting problems. At the same time, the company holds thousands of interactive activities for pregnant mothers and children in each store every year, building a diversified interactive area for parent-child families. The online model of "user digitalization + employee consultation" is adopted to dig deep into customer needs to improve the consumer experience, and at the same time, through the "social + content" model, it creates an "industrial ecology" around the development of members and maternal and infant communities.
By the end of 2023, the cumulative number of members of KidKing has exceeded 87 million (including Leyou International), and the scale of black gold members and the annual output value of a single customer have increased. Kidwang said that it will continue to deepen the "single customer economy", accurately understand consumer needs, improve operational efficiency, further strengthen customer consumption stickiness, and promote the continuous growth of the number of members.
The C-end is favored by consumers, and it has also been recognized by institutions in the capital market. Guotai Junan mentioned in the research report that the government work report mentions improving fertility support policies and optimizing the maternity leave system, and the child king may hope to benefit. Guoyuan Securities said that with the recovery of the offline consumption economy and the continuous promotion of omni-channel integration, improve customer retention, strengthen supply chain management, and continuously expand brand advantages, Guoyuan Securities maintained an "overweight" rating on Childking.
According to the Kid King plan, in 2024, efforts will be made in the following seven aspects: 60 children's life halls for all ages are planned to be upgraded, the proportion of non-standard products will be increased, and its own brands will be vigorously developed, focusing on differentiated explosive products, and the services in the same city will continue to be strengthened, focusing on the development of parent-child families in the same city, and the preferred service platform for parent-child families in the same city will be created. Accelerate the transformation of digital intelligence, increase the exploration and application of AIGC, further play the role of AIGC intelligent innovation platform, and use the power of science and technology to better serve parent-child families; at the same time, focus on the improvement of single customer output value and drive business growth; actively look for target assets that are in line with the company's overall business development strategy, and integrate industrial resources through cooperation and acquisition.
At the same time, Kidwang emphasized that it will continue to focus on business and innovation around user relationships, tap the structural increment of the stock area, focus on the three expansion strategies of "expanding categories, expanding tracks, and expanding business formats", and resolutely win the three must-win battles of "children's life hall, non-standard growth, and parent-child in the same city", and build a new ecology of Chinese maternal and infant services based on digitalization and intelligence, all scenes, and all ages, so as to promote the sustainable and high-quality development of the company.
(The picture is authorized by Kid Wang to be used by China.com Finance)
(Editor in charge: Zhang Ziyi)