Baitaini (300957.SZ), today is the most tragic in the two markets, with a decline of over 16%.

In the capital market, there are too many cases of "watching him build a high-rise building, watching his building collapse."

When it was just listed, Beitaini caught up with the medical beauty trend and was highly sought after. There was even a voice from an institution, someone said with certainty that Beitaini below 80 billion is a big bargain, which was widely spread at one time.

As a result, Beitaini's market value soared more than twice on its first day of listing, reaching 70 billion. However, the speculation was far from over, and later it approached 120 billion.

Now, Beitaini is left with only 30 billion, barely a 25% discount.

Today, it is also a heavy volume plummet, for two reasons.

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First, some investors are worried that the third quarter report performance is not up to expectations.

Second, according to the report of Yinshi Finance, recently, the Double 11 has started, and a certain institution's Double 11 beauty preset data tracking released on the Internet shows that as of October 24, the brand preset GMV of Beitaini's core brand Weina in Li Jiaqi's live broadcast room was 146 million, a year-on-year decline of 71%.

Behind it is all a negative feedback on performance, and this is not groundless.From 2018 to 2021, Beitaini entered a rapid growth phase, with revenue increasing from 1.24 billion to 4.02 billion, and profits growing from 261 million to 863 million.

However, since the third quarter of last year, not only has the growth rate slowed down, but there has also been a situation where revenue increases without corresponding profit growth. In 2022 Q3, 2022 Q4, 2023 Q1, and 2023 Q2, Beitaini's revenue growth rates were 20.7%, 10.9%, 6.78%, and 21.2% respectively, while the profit growth rates were 35.5%, 5.17%, 8.41%, and 17.1% respectively. Previously, the average of these indicators was above 40%.

Additionally, the financial report released by the industry leader Aimeike yesterday has further intensified market concerns about Beitaini. However, there are differences between the two companies. Although Aimeike's performance has slowed down, its gross margin has remained excellent, with a gross margin of 95.07% in the third quarter, an increase of 0.13% year-on-year. Aimeike's products still have strong competitiveness, and the issue lies in the temporary weakening of demand. In the long term, medical aesthetics is still a golden track.

The problem with Beitaini lies in the increasingly fierce competition in the sensitive skin market. Firstly, Beitaini's core brand is Winona, which started with sensitive skin. With the rise of newcomers like Yuzhe, Winona is no longer the dominant player.

During the 2022 Double 11 shopping festival, Winona's sales on Tmall reached 1.8 billion, a year-on-year increase of 28%, but this is a significant decline compared to the 60% growth rate in 2021, with most of the growth coming from price increases.

Price increases have already been met with some backlash, with some consumers saying that in the past, Winona was a more affordable alternative to La Roche-Posay, but now La Roche-Posay has become the more affordable alternative to Winona. Winona needs to rethink its pricing model.

Secondly, the core focus of Winona lies in whether it can expand beyond the niche market of sensitive skin to a broader audience in the future. This year, Winona launched a whitening essence called "Xiu Bai Bottle". Since its launch, it has reached a monthly sales level of tens of millions, and whether it can maintain this level still needs to be observed.

It is worth noting that the essence of the skincare business model is B2C, which requires a focus on marketing. This year, Winona has unfortunately lost a significant marketing figure. Its non-executive director Dong Junzi resigned in March, and Dong Junzi was previously mainly responsible for the online business of the Winona brand.Behind the continuous decline in stock prices, in addition to the emergence of flaws in the fundamentals, more importantly, it is the substantial cashing out by major shareholders. Since last May, shareholders including Xiamen Zhenli Consulting and Sequoia have cashed out approximately 7 billion yuan, and they were still cashing out until August of this year.

No matter how good a company is, shareholders' unrestrained selling can deter potential investors. Moreover, Winona needs to improve the flaws in its fundamentals by replicating other tracks.