On February 13, Hang Seng Indexes Company announced the results of its quarterly review, with BUTONG GROUP (06090) being added to the Hang Seng Composite Index, subsequently qualifying it as an investible target under the Southbound Hong Kong Stock Connect program. This change will take effect on March 9, 2026. For BUTONG GROUP, inclusion in the Stock Connect program signifies more than just an addition to a list; it serves as a form of official market recognition for the company's fundamentals, liquidity, and governance quality. Gaining Stock Connect status means the company formally enters the investment universe for southbound capital, opening up trading channels for mainland investors. This is expected to boost retail participation and overall trading activity, leading to a significant improvement in liquidity. Furthermore, on the effective date of the Hang Seng Index adjustment, ETFs tracking the relevant indices will be required to make passive portfolio adjustments. This will gradually create relatively stable buying demand, providing substantial impetus for an upward re-rating of the company's valuation.
Amid a rationalizing consumer market and intensifying competition in niche segments, BUTONG GROUP has not only achieved remarkable performance growth but has also built differentiated competitive barriers through its unique positioning as a "premium family parenting lifestyle brand." With the added liquidity boost from Stock Connect inclusion, this leading player in its segment is poised for a new round of value reassessment.
How has BUTONG GROUP become the "preferred choice" for the new generation of parents through its focus on premium quality and robust technology? Despite a challenging macroeconomic environment, BUTONG GROUP delivered an impressive performance. From 2022 to 2024, the company's revenue surged from RMB 507 million to RMB 1.249 billion, representing a compound annual growth rate of 56.9%. The CAGR for adjusted net profit was even more remarkable at 236.8%, fully validating the sustainability of its business model.
Behind this rapid growth lies BUTONG GROUP's deep understanding of its core users. The company defines itself as a technology firm centered on the "family life" scenario, precisely targeting the "Family CFO" within new-generation families. These post-90s and post-95s parents are not just executors of household purchases but also planners of lifestyle quality and decision-makers of family aesthetics. Unlike previous generations who prioritized functionality and durability, new-generation parents seek both professional parenting solutions and enjoyable personal experiences; they value product quality and are enthusiastic about experiencing tech-integrated products. BUTONG GROUP has keenly captured this shift in generational demand. Upholding its value proposition of "Creating Differences," the company has honed its product capabilities around "high quality, high aesthetics, and high technology."
Since its establishment, the company's premium maternal and infant brand, BeBeBus, has successively launched multiple bestselling products, including strollers, smart child safety seats, cribs, and highchairs. It is understood that as of June 30, 2025, the group had accumulated 200 domestic registered patents and 17 international registered patents, establishing a comprehensive intellectual property system covering material technology, structural design, and smart sensing, which strongly underpins its "hardcore tech" attributes.
Beyond its unique brand value, the company's outstanding performance is also attributable to its efficient channel network and highly engaged user base. In terms of channel structure, while online revenue remains dominant, offline growth (+30%) in the first half of 2025 began to outpace online growth (+23%), indicating a healthy trend of balanced omnichannel development. Online, BeBeBus maintained high growth on both traditional e-commerce platforms (Tmall, JD.com) and interest-based e-commerce platforms (Douyin), with its GMV for the first 11 months of 2025 surpassing the full-year 2024 figures. The number of third-party stores operated by its distributors and key account customers surged from 742 at the end of 2022 to 3,400 by the end of June 2025. The company has also opened experience stores in locations such as Ningbo and Hong Kong, significantly increasing its offline penetration.
As its channels expanded, the company's member base grew rapidly. By September 30, 2024, the number of members on its online platforms exceeded 2 million. By June 30, 2025, its accumulated private domain members reached 3.5 million. Notably, the repurchase rate within its private domain increased from 45.7% in 2022 to 47.5% in 2023, and further to 53.6% in the first three quarters of 2024. The enhancement in user stickiness is primarily due to the company's effective integrated "product + service" strategy. On one hand, the company provides 24/7 parenting advisory services, with a professional team offering real-time solutions to parenting challenges, thereby elevating simple transactional relationships into long-term trust-based relationships. On the other hand, the company collaborates with users on new product co-creation and promotion, utilizing methods like influencer collaborations and new product testing to identify user pain points and reach potential user groups. This has successfully built a positive growth flywheel of "demand insight — product optimization — user dissemination."
Concurrently, the company's global strategy is advancing steadily, with active expansion into international markets including Europe, North America, Japan, and South Korea. Since 2024, the company has established BeBeBus USA and BeBeBus Korea, showcased its full-scenario product lineup at Kind + Jugend in Cologne – one of the world's largest and most important trade fairs for juvenile products – and formed deep partnerships with brands such as South Korea's SonoKong. It is actively setting up an overseas business division, recruiting global R&D and marketing talent to build a localized brand ecosystem, providing strong support for the group's international expansion.
Overall, BUTONG GROUP has demonstrated its self-sustaining capability through its performance. Its differentiated strategy has built a competitive edge, and its highly repurchasing, highly engaged user base has deepened the brand's moat. Looking ahead, BUTONG GROUP will remain committed to its "family life" core, aiming to build broader and more diversified parenting lifestyle scenarios and gradually advance towards its goal of becoming a "global technology lifestyle company for elite families." The recent inclusion in the Stock Connect program is expected to inject new momentum into subsequent product iterations, channel expansion, and global layout, helping the company accelerate into a new growth cycle and unlock its long-term growth potential.
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