IPO Outlook | Kid King (301078.SZ) re-enters the capital market, can the “single-customer economy” support the second curve?

Currently, China's “new consumption for parent-child families” market is undergoing a structural upgrade. The retail model is shifting from a traditional single focus on mother and child products to a comprehensive ecosystem integrating products, services, social networking, and intelligent technology.

As one of the industry players, Kids King (301078.SZ) transformed into a comprehensive omnichannel service provider by integrating its core brands, “Kids King” and “Loeyou”, which are deeply involved in the field of mother, child and child, and entering the leading brand “Silk Domain” on the new circuit of family health and aesthetics.

Now, why did Wang, a child who is already listed on A-shares, once again choose to embrace the capital market. How will its business model and strategic upgrade from “childcare” to “nurture a family” depict the second curve of its future growth?

“Single customer economy”: a paradigm revolution from operating products to business relationships

The Zhitong Finance App learned that since its inception, Kid Wang has positioned itself as a comprehensive service provider for “business users” rather than a traditional retailer that “operates products.”

Under the company's “single customer economy” model, KidWang meets the differentiated needs of users through C2B customized products, and provides users with comprehensive solutions combining products and services in a targeted manner around the user life cycle and demand cycle.

According to the prospectus, as of September 30, 2025, Kid Wang has accumulated more than 97 million registered members worldwide. It forms a huge private traffic pool and has become one of the company's core assets.

Furthermore, as of September 30, 2025, the company's sales and service network includes 1,143 parent-child family service stores and 2,567 technology hair care stores. Through the Kids King App, WeChat Mini Program, and an efficient instant retail system in the same city, the company seamlessly connects offline experiences with online convenience to meet the immediate and diverse needs of consumers in different scenarios.

It is worth mentioning that in recent years, Kidwang has rapidly expanded its business boundaries to a high-growth, high-margin service-oriented circuit through a series of strategic mergers and acquisitions, such as the acquisition of Leyou Group to improve the layout of the northern market, and the acquisition of Siyu Group to enter the scalp and hair care market.

During the track record period, the company's revenue achieved steady growth, from RMB 8.520 billion in 2022 to RMB 9.337 billion in 2024, with a compound annual growth rate of 4.67%; for the nine months ended September 30, 2025, the company's revenue increased 8.1% year on year to RMB 7.349 billion.

In terms of profitability, the company's net profit to mother decreased by 13.91% year on year to RMB 105 million in 2023, and increased to RMB 181 million in 2024, up 72.44% year on year; for the nine months ending September 30, 2025, net profit to mother increased by 59.01% year on year to RMB 209 million.

The net profit margin remained stable from 1.4% in 2022 to 1.4% in 2023, then increased to 2.2% in 2024; for the nine months ending September 30, 2025, the company's net profit margin increased to 3.1% from 2.3% in the same period last year.

Among them, the improvement in profit efficiency is mainly due to the large-scale increase in sales of maternal, infant and child products. Thanks to the successful integration of Leyou Group in August 2023, the expansion of the business layout in the North, the expansion of distribution and franchise models, and the provision of high-margin value-added services such as marketing and technical support to suppliers remained stable.

The future blueprint for omni-channel intelligent transformation, market fragmentation challenges, and AI empowerment

The Zhitong Finance App learned that at present, the new consumer market for Chinese parent-child families, where Kid Wang is located, is in a critical period of deep integration and model iteration.

On the one hand, the market for maternal, infant and child products and services, as a core component of the new consumption ecosystem for parent-child households, is facing irreversible structural challenges under the macro-demographic trend where the birth rate continues to decline.

On the other hand, although the growth rate of the core maternal and child products and services market is relatively moderate, and the CAGR is expected to be 4.1% from 2025 to 2029, its overall scale is huge, reaching RMB 3995 billion in 2024, and the market is highly fragmented. This not only shows the huge potential for industry consolidation, but also highlights how difficult it is for any single brand to establish absolute barriers.

The Zhitong Finance App learned that in order to meet the challenges of market fragmentation and slowing core customer base growth, Kids Wang focused its strategy on the deep transformation of omni-channel intelligence.

In terms of technological empowerment, Kid Wang has invested more than RMB 1.2 billion to build its digital infrastructure. In terms of cumulative digital investment and digital team size, it has ranked first in the new consumer market for parent-child families in China, creating data-driven capabilities that are difficult to replicate.

In addition, the company independently developed KidsGPT intelligent consultants in the vertical field of mother, child and child, and used AI smart tools to improve marketing and operation efficiency, and successfully launched the first self-developed AI intelligent companion toy “Abebe”. At the same time, it has introduced various AI educational and entertainment products, such as story robots and chess learning robots, with the aim of creating an AI companion intelligent product matrix covering fields such as emotional companionship.

However, the company also stated that since AI products are still in the initial development stage, they currently account for a relatively small share of the overall business, which does not have a significant impact on the company's performance. In this regard, investors need to maintain rational expectations for short-term technological contributions.

In terms of channels and business formats, child Wang is speeding up asset-light expansion to cope with the sinking trend of the market. According to information, the company already has the only store network in the industry covering all provincial administrative regions in mainland China, and is vigorously promoting the “Thousand Cities, Ten Thousand Stores” franchise model to rapidly penetrate third-tier cities and below using the standardized “good+service+social networking” model, capturing the region's expectations of 5.1% as the preferred gateway for immediate retail of parent-child family services in the same city.

This omni-channel, full-scenario, and full-life cycle refined operation system is a key bargaining chip that Kid Wang hopes to stand out from the fragmented competition in the market.

Looking forward to the future, the core of Kid Wang's strategy is to become a “chain master enterprise” integrating research, production, supply and marketing services, optimizing the profit structure through continuous deepening of its own brand strategy, and using the R&D capabilities of the Silk Domain Group to achieve product innovation and iterative upgrading in the field of health and aesthetics.

Furthermore, the international layout has also been elevated to a strategic level, and the company plans to replicate its proven business model and differentiated supply chain to emerging markets such as Southeast Asia to seek new growth engines. However, the grand blueprint for all of this is based on technology-enabled and data-driven.

Currently, the challenge facing Kid Wang is still how to quickly and steadily transform these diversified, high-cost strategic assets into continuous and sustainable shareholder returns in a prudent and efficient manner, and successfully hedge against the risks brought about by the market and integration.