Brand Portfolio and Market Strategy - Jiangnan Buyi's brand portfolio includes multiple brands across different stages, such as the mature brand JNBY and three growth brands: Sketch, jnby by JNBY, and LESS, along with emerging brands like POMME DE TERRE and onmygame, enhancing market segmentation [5]. - The company has established a multi-channel interactive platform consisting of physical retail stores, online platforms, and WeChat-based social media marketing, crucial for attracting and converting potential fans into loyal customers [10]. - In 2024, Jiangnan Buyi expanded its brand matrix by acquiring the children's clothing brand onmygame, further diversifying its offerings to cater to a broader age demographic [10]. - The company plans to continue focusing on design-driven strategies and multi-brand development to enhance market presence and brand strength [16]. - The company plans to enhance its brand power and optimize its designer brand portfolio to drive sustainable long-term growth [19]. - The company aims to expand its retail network and improve its smart supply chain capabilities to create value-added services for its fans [19]. - The company has implemented a multi-brand strategy to attract different consumer segments, with each brand catering to specific preferences [50]. Financial Performance - Revenue for the fiscal year ending June 30, 2024, reached RMB 5,238,149 thousand, a 17.3% increase from RMB 4,465,124 thousand in the previous year [12]. - Gross profit increased to RMB 3,470,485 thousand, reflecting a 19.0% growth compared to RMB 2,916,992 thousand in the prior year [12]. - Operating profit rose by 39.2% to RMB 1,194,266 thousand from RMB 857,898 thousand year-over-year [12]. - Net profit for the year was RMB 848,139 thousand, a 36.5% increase from RMB 621,283 thousand in the previous year [12]. - The company achieved a net cash flow from operating activities of RMB 1,602,967 thousand, up 70.7% from RMB 939,119 thousand [12]. - The gross margin improved to 66.3%, up from 65.3% in the previous year, indicating enhanced profitability [12]. - The company reported a net profit margin of 16.2%, an increase from 13.9% year-over-year [12]. - The group's profit before tax increased from RMB 850.8 million in fiscal year 2023 to RMB 1,213.1 million in fiscal year 2024, reflecting a growth of 42.6% [33]. Retail and Sales Performance - The number of independent retail stores increased from 1,990 to 2,024, with a total of 924 stores under the mature brand JNBY and 1,043 stores under growth brands [20]. - Comparable store sales for physical retail locations grew by 10.7% in fiscal year 2024, driven by store image upgrades and the introduction of new consumer scenarios [25]. - Active membership accounts increased to over 550,000, up from nearly 510,000 in the previous fiscal year, contributing over 80% of total retail sales [25]. - The number of member accounts with annual purchases exceeding RMB 5,000 rose to over 310,000, with total retail sales from these members reaching RMB 4.49 billion, up from RMB 3.54 billion [25]. - Online sales revenue grew by 18.4% to RMB 1,008.4 million, while offline sales revenue increased by 17.1% to RMB 4,229.7 million [29]. Operational Efficiency and Management - Inventory turnover days decreased to 155.9 days from 190.9 days, indicating improved inventory management [13]. - The debt-to-asset ratio improved to 49.4% from 51.3%, reflecting a stronger financial position [13]. - The company plans to continuously upgrade its information technology systems to support ongoing operational and business growth [54]. - The company emphasizes the importance of its information technology systems for operational efficiency, integrating various management systems to analyze operational data in real-time [54]. - The company has established a robust risk management and internal control system to ensure asset safety and protect shareholder interests, with an annual review of its effectiveness [120]. Sustainability and ESG Initiatives - The company is committed to integrating Environmental, Social, and Governance (ESG) practices into its corporate governance framework, with a goal to achieve its 2025 ESG commitments [35]. - The proportion of sustainable raw materials in total raw material procurement reached 22.4% as of the fiscal year 2024, with a target of 30% by the end of fiscal year 2025 [135]. - The company achieved a 139.2% year-on-year increase in the recycling and utilization of inventory fabrics, totaling 189,000 meters [140]. - The company has integrated ESG factors into its business strategy, establishing an ESG governance framework led by the board of directors [145]. - The company emphasizes the use of organic cotton, organic linen, hemp, and ramie, which do not require significant pesticide or fertilizer use, thus reducing environmental impact [166]. Corporate Governance - The company has adopted a corporate governance code and has adhered to all applicable provisions during the fiscal year 2024 [96]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, complying with the listing rules regarding board composition [96]. - The company emphasizes diversity in its board composition, considering various factors such as age, culture, and professional experience [96]. - The company has established a whistleblowing policy to allow employees to report concerns regarding financial reporting and internal controls confidentially [108]. - The company has a dedicated internal audit department responsible for annual risk reporting procedures and evaluating risk management practices [120]. Employee and Management Practices - The total employee count increased to 1,596 as of June 30, 2024, up from 1,508 a year earlier, with total employee costs amounting to RMB 486.5 million, representing 9.3% of revenue [34]. - The company provides competitive compensation and training opportunities to employees, aiming to attract and retain dedicated staff [57]. - The company has implemented a comprehensive quality management system, achieving ISO 9001 certification and multiple product certifications, including OEKO-TEX® STANDARD 100 for infant products [188]. - The company emphasizes customer experience and satisfaction through a fully integrated sales network combining offline and online platforms [196]. Challenges and Risks - The company faces significant competition in the designer fashion market, with competitors potentially having stronger brand recognition and financial resources [51]. - The company acknowledges the risk of not meeting sales targets for new brands or product categories, which could adversely affect cash flow and growth prospects [52]. - The company relies on selected domestic OEM suppliers for production, which may be affected by industry downturns or natural disasters, potentially leading to supply shortages [53].
江南布衣(03306) - 2024 - 年度财报