With revenue surpassing 10 billion yuan and a 60% surge in net profit, Kidswant's 2025 financial report appears quite impressive.
In 2025, the company achieved operating revenue of 10.273 billion yuan, a year-on-year increase of 10.03%; net profit attributable to shareholders of the listed company reached 298 million yuan, a year-on-year increase of 64.21%.
However, against the backdrop of a continuous decline in birth rates, overall demand in the maternal and child industry has weakened. Kidswant's full-year revenue from maternal and child products was 8.671 billion yuan, up only 6.28% year-on-year; revenue from maternal and child services was 259 million yuan, a year-on-year decline of 5.94%.
The operational efficiency of self-operated outlets also declined, with average store revenue for Kidswant's self-operated stores falling 5.47% year-on-year, while Leyou's self-operated stores dropped 11.09%.
Facing the reality of slowing growth, Kidswant has gradually developed a &#34;three expansions&#34; path in recent years: expanding categories, expanding business formats, and expanding tracks.
Over the past year, in terms of expanding categories, Kidswant's private labels and exclusive customized products generated 1.24 billion yuan in revenue, a significant year-on-year increase of 79.33%; in terms of expanding business formats, the company accelerated its penetration into lower-tier markets through the franchise model, with franchised stores reaching 173 by year-end.
In comparison, &#34;expanding tracks&#34; is carrying higher expectations.
In July 2025, Kidswant acquired a 65% stake in the scalp care brand Siyou Biotechnology for 1.65 billion yuan, marking a significant move into the new consumer services track.
By the end of 2025, Siyou Biotechnology had a total of 2,617 tech-based hair care stores, generating nearly 380 million yuan in revenue during the six months since its consolidation.
From a short-term financial performance perspective, this transaction has quickly demonstrated a &#34;profit-boosting&#34; effect, contributing approximately 147 million yuan in profit, nearly half of the company's total annual net profit attributable to the parent; Leyou International's profit contribution share fell back to around 40%.
Regarding integration, the company launched synergistic operations for its membership system in the second half of 2025 and plans to introduce scalp care zones in large stores to drive cross-selling.
In the future, Siyou Biotechnology will extend its product side to upstream core raw materials, focus its channel side on East China, Central China, Hong Kong, and Southeast Asian markets, and continue to strengthen its franchise system management capabilities on the operations side.
Cross-industry expansion does not come without a price.
As of the end of 2025, Kidswant's goodwill rose significantly from 782 million yuan to 1.932 billion yuan, with Siyou contributing approximately 1.025 billion yuan, increasing potential impairment risks.
A model highly dependent on franchising also creates uncertainties for subsequent integration.
With over 93% of Siyou's stores being franchised, the difficulty of unifying service standards and operational quality has increased significantly. The company also admitted in its annual report that the franchise system faces risks of inconsistent management standards and varying operational quality.
In addition to external mergers and acquisitions, Kidswant is also doubling down on &#34;technological variables.&#34;
The company continues to promote the application of AI in retail, having built over 1,500 user tags and 700+ intelligent models; in 2025, GMV contributed by DTC automated precision marketing accounted for more than 26% of the monthly average GMV for branded maternal, infant, and child products.
By the end of 2025, Kidswant's registered membership had exceeded 98 million, providing a traffic foundation for its multi-format and multi-category expansion.
At the capital and strategic levels, the company clarified that it will continue to seek high-quality supply chains, brands, IPs, and AI hardware targets centered on the needs of maternal and child, parent-child families, and female demographics.
The path has been laid out, but whether the new narrative of breaking through the growth ceiling can truly hold up remains to be seen.

Behind Kidswant's 60% Net Profit Surge: Acquired Hair Care Business Accounts for Half of Profits