Investment Rating - The report maintains an "Overweight" rating for the consumer discretionary sector [7] Core Insights - The escalation of tariffs is reshaping global supply chains, leading to a structural impact on China's exports, while domestic demand is expected to benefit [1][11] - Companies with high domestic sales ratios are positioned to capitalize on the emerging opportunities in the local market as domestic brands continue to rise [1] Summary by Sections Home Appliances - Major home appliance companies like Haier are leveraging localization and production in Mexico to mitigate tariff impacts, thereby strengthening their market share in the U.S. [2][15] - The black appliance sector is seeing a shift towards Mexican production to buffer supply chain pressures, with companies like Hisense and TCL benefiting from cost control [2][16] Cleaning Appliances - The U.S. market remains highly dependent on Chinese manufacturing for cleaning appliances, with significant price increases expected due to high tariffs on imports from China and Vietnam [3][20] - Chinese companies are rapidly iterating products to gain market share in the U.S., with brands like Roborock surpassing local competitors in revenue [25][26] Light Industry and Home Furnishings - Southeast Asian production is likely to face challenges due to increased tariffs, but Chinese companies are actively seeking to adapt by expanding export regions and enhancing price transmission capabilities [4][29] - The reliance on the U.S. market for home furnishings has decreased, with exports expected to recover post-tariff adjustments [30][31] Cross-Border E-commerce - The supply chain disruptions are evident, but the competitive landscape may improve as smaller sellers face greater pressure due to the cancellation of the $800 tax exemption policy [5][39] - Major players are expected to benefit from market share consolidation as smaller competitors exit the market [40][41]

Core Viewpoint - The stock of Zibuyu (02420.HK) has surged significantly, driven by strong financial performance in 2024, with a notable recovery in revenue and profitability [2][4]. Financial Performance - In 2024, Zibuyu reported revenue of approximately 3.33 billion RMB, marking a year-on-year increase of 10.8% [3][4]. - The gross profit for the year reached about 2.47 billion RMB, reflecting a 26.4% increase compared to the previous year, with a gross margin of approximately 74.3%, up by 9.1 percentage points [4]. - The company achieved a net profit attributable to shareholders of 151 million RMB, successfully turning around from a loss in 2023 [3][4]. - Operating cash flow reached a historical high of approximately 261.87 million RMB [4]. Market Position and Strategy - Zibuyu is positioned as a leading cross-border e-commerce company in the footwear and apparel sector, primarily targeting the North American market [3][4]. - The majority of revenue, approximately 98%, comes from third-party platforms, with a significant portion generated from North America [4]. - The company has improved operational efficiency and inventory management, which has contributed to reduced inventory impairment and related storage costs [4]. Dividend and Investor Response - The board of Zibuyu announced a dividend of 0.12 HKD per share, reflecting a commitment to returning value to shareholders, which has positively influenced investor sentiment and stock performance [4]. Competitive Landscape - Despite strong performance, the competitive landscape in the cross-border apparel industry is intense, with concerns about design homogenization and the competitive advantages of larger platforms [4]. - The company's ability to maintain a competitive edge in the increasingly crowded e-commerce market remains uncertain [4]. Employee Engagement - The CEO announced a 4.5-day workweek to enhance employee efficiency and personal development, which has garnered positive attention from the public [5].

Core Viewpoint - The company, Zibuyu, has successfully crossed a performance inflection point in 2024, achieving significant revenue growth and a substantial improvement in net profit, indicating a transformation in investment value [1][4]. Financial Performance - In 2024, Zibuyu reported a revenue of 3.33 billion RMB, representing a year-on-year increase of 10.8% [1]. - The net profit reached 150 million RMB, a significant recovery from a loss of 266 million RMB in the previous year [1]. - Operating cash flow surged to 260 million RMB, an increase of 240% compared to 2023 [1]. - The gross margin improved to 74.3%, up by 9.1 percentage points year-on-year [3]. Operational Enhancements - The company underwent a comprehensive organizational restructuring under the leadership of the new CEO, enhancing operational efficiency [2]. - Zibuyu established a brand division focusing on nine core brands and accelerated its transition from "product export" to "brand export" [2]. - A self-developed digital platform and BI system were implemented to streamline the cross-border supply chain, improving operational efficiency and reducing reliance on domestic warehouses [3]. Strategic Focus - Zibuyu is prioritizing globalization as a core long-term development strategy, aiming to enhance its global supply chain integration and brand originality [5]. - The company plans to establish an overseas division to increase overseas production capacity and invest in global talent [5]. - Zibuyu is exploring new sales channels such as Temu and TikTok while integrating AI technology into its business processes [5]. High-End Brand Development - The company aims to strengthen its high-end brand segment as a second growth driver, with a goal to build internationally recognized fashion brands within three years [6]. - The focus on high-end brands is expected to enhance overall profitability and growth potential [6]. ESG Commitment - Zibuyu is committed to improving its performance in environmental, social, and governance (ESG) aspects, recently implementing a 4.5-day workweek to enhance employee well-being [6]. - The company's focus on ESG reflects a strategic vision to convert humanistic values into core competitive advantages, supporting sustainable high-quality development [6]. Market Outlook - The latest financial report validates the effectiveness of Zibuyu's operational adjustments, indicating stronger growth momentum and a commitment to long-term globalization goals [7]. - The company is expected to enter a phase of accelerated value realization, which is likely to be well-received by investors in the secondary market [7].

Financial Performance - The company reported a revenue of approximately 3.325 billion, representing a year-on-year growth of 10.83% [1] - Gross profit was around 2.471 billion, with a year-on-year increase of 26.39% [1] - Net profit reached approximately 151 million, marking a turnaround from loss to profit [1] - Operating cash flow net amount hit a historical high of about 262 million [1] - The board announced a dividend of 0.12 HKD per share to reward shareholders [1] Strategic Initiatives - Revenue growth was primarily driven by enhanced brand building and increased marketing efforts, leading to revenue growth on platforms like Amazon and TikTok [1] - The company focused on improving product operational efficiency, optimizing inventory structure, and significantly reducing inventory provisions and warehousing costs [1] - The company established a brand division to manage core brands and aimed to transition from "product export" to "brand export" [1] Product and Supply Chain Development - The company enhanced product capabilities by optimizing product structure, supply chain management, and quality control processes [2] - A shift towards a refined product design model was implemented, reducing the number of new product styles introduced annually while focusing on innovation and market adaptability [2] - The company optimized its supply chain and warehousing systems, promoting a direct shipping model with core suppliers to improve logistics efficiency and reduce costs [2]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 3,325,118, an increase of 10.8% from RMB 3,000,292 in 2023[15] - Gross profit for 2024 was RMB 2,471,328, up from RMB 1,955,273 in 2023, reflecting a gross margin improvement[15] - Profit before income tax for 2024 was RMB 154,671, a significant recovery from a loss of RMB 247,211 in 2023[15] - Net profit for the year was RMB 150,776, compared to a loss of RMB 265,786 in the previous year[15] - Earnings per share for 2024 increased to RMB 0.31, recovering from a loss of RMB 0.53 in 2023[15] - Net operating cash flow improved to RMB 261,868, compared to RMB 76,730 in 2023, indicating stronger operational efficiency[15] - The net profit attributable to shareholders reached approximately RMB150.8 million, turning around from a loss of approximately RMB265.8 million in 2023[28] - The company's net operating cash flow hit a historic high of RMB261.9 million[20] - For the year ended December 31, 2024, the Group's revenue was approximately RMB 3,325.1 million, representing a year-on-year increase of approximately 10.8% compared to RMB 3,000.3 million in 2023[53] - Gross profit for the year was approximately RMB 2,471.3 million, reflecting a year-on-year increase of approximately 26.4%[52] - The profit attributable to shareholders was approximately RMB 150.8 million, a turnaround from a loss of approximately RMB 265.8 million in 2023[52] Market Strategy and Expansion - The company plans to continue expanding its market presence and investing in new product development in the upcoming year[15] - The management expressed optimism about future growth prospects, citing a focus on technological advancements and market expansion strategies[15] - The company is exploring potential mergers and acquisitions to enhance its competitive position in the market[15] - New product lines are expected to be launched in 2025, aimed at capturing a larger market share[15] - The company aims to expand diversified sales channels and strengthen its global supply chain in response to competitive pressures[23] - The company is focused on high-quality fashion apparel and footwear products, selling through platforms like Amazon, Tiktok, and Temu[27] - The company aims to transition from "product export" to "brand export" by strengthening core brands and reducing channel pressure[54] - The company plans to strengthen its global supply chain, particularly in Southeast Asia, to enhance international production capacity contributions[132] - The company aims to diversify its sales channels by expanding non-Amazon platforms and increasing efforts in overseas offline channels and sales regions in Europe and Asia[132] Operational Efficiency - The company implemented a lean design model, reducing the number of new product styles while increasing sales scale, enhancing international competitiveness[46] - The company optimized its supply chain and warehousing system, promoting direct delivery from suppliers to improve logistics efficiency and reduce costs[47] - The company has formed a flexible supply chain system that integrates product research, development, design, production, and sales[27] - The Group's gearing ratio decreased to approximately 44.4% as of December 31, 2024, down from approximately 45.9% as of December 31, 2023, indicating stable financial leverage[108][113] Governance and Management - A new CEO, Mr. Chen Caixiong, took over from the founder, ensuring a smooth leadership transition and bringing extensive industry experience[48] - The company has appointed independent non-executive directors to enhance governance and provide independent opinions[150] - The Group has a strong governance structure with independent directors providing oversight and independent opinions to enhance decision-making processes[166] - The management team is committed to maintaining high standards of financial reporting and investor relations, crucial for building stakeholder trust[171] - The independent directors' diverse backgrounds in finance and corporate governance strengthen the Group's strategic direction and risk management[167] Employee and Talent Management - The company established a multi-tier talent ladder and a business-oriented employee training system to support sustainable development[49] - The Group's employee count decreased to 1,025 full-time employees as of December 31, 2024, down from 1,063 in 2023, reflecting adjustments in workforce strategy[120][124] - The Group plans to implement a 4.5-day work week starting February 2025 to enhance employee well-being and productivity[126][129] - The company is focused on building an international talent team to enhance organizational strength and broaden its talent structure[132] Financial Management - The cost of sales decreased by approximately RMB191.2 million, or 18.3%, to approximately RMB853.8 million for the year ended 31 December 2024, down from RMB1,045.0 million in 2023[64][66] - General and administrative expenses decreased by approximately RMB47.5 million to approximately RMB110.2 million for the year ended 31 December 2024, down from RMB157.7 million in 2023[80] - Finance costs decreased from approximately RMB9.5 million for the year ended 31 December 2023 to approximately RMB7.5 million for the year ended 31 December 2024, a decrease of about RMB2.0 million[86] - Income tax expense decreased significantly from approximately RMB18.6 million for the year ended 31 December 2023 to approximately RMB3.9 million for the year ended 31 December 2024, a reduction of about RMB14.7 million[92] Innovation and Technology - The company enhanced its investment in digital technologies, utilizing AI for product design, intelligent advertising, and inventory management[21] - The company is committed to leveraging the new wave of innovation in the AI era to promote digital strategic transformation across all business segments[132]

Financial Performance - Zibuyu Group Limited reported a significant increase in revenue, achieving a total of $50 million for the first half of 2024, representing a 25% growth compared to the same period last year[4]. - In the first half of 2024, the Group achieved total revenue of approximately RMB1,462.1 million, representing an increase of approximately 6.3% compared to RMB1,375.3 million in the same period of 2023[11]. - Gross profit for the same period was approximately RMB1,080.9 million, reflecting an increase of approximately 8.0% from RMB1,001.3 million in the prior year[11]. - Profit before income tax increased by approximately 775.9% to approximately RMB93.3 million for the Reporting Period from approximately RMB10.7 million for the six months ended June 30, 2023, with profit before income tax as a percentage of revenue increasing to approximately 6.4% from 0.8%[40]. - The Group recorded a profit and total comprehensive income attributable to shareholders of approximately RMB91.4 million for the Reporting Period, representing an increase of approximately 789.1% compared to approximately RMB10.3 million for the six months ended 30 June 2023[46][48]. - Basic and diluted earnings per share increased to approximately RMB0.18, up from RMB0.02 in the same period of 2023[11]. - The company anticipates a revenue growth forecast of 20% for the second half of 2024, projecting total revenue to reach $120 million by year-end[4]. User Growth and Market Expansion - The user base expanded to 1.2 million active users, marking a 30% increase year-over-year[4]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[4]. Research and Development - Zibuyu is investing $10 million in R&D for new product development, focusing on enhancing user experience and technology integration[4]. - The total expenses for research and development of new IT systems were approximately RMB 17,652,000 for the six months ended June 30, 2024, compared to RMB 18,180,000 in 2023, showing a slight decrease of about 3%[150]. Cost Management and Profitability - The gross profit margin improved to 45%, up from 40% in the previous year, indicating better cost management[4]. - The cost of sales for the Group was approximately RMB381.2 million, an increase of approximately 1.9% from RMB374.0 million in the same period of 2023, primarily due to increased sales volume[22]. - Selling expenses and distribution costs amounted to approximately RMB941.7 million, an increase of approximately RMB17.8 million or 1.9% compared to RMB923.9 million in the same period of 2023, mainly due to increased marketing and advertising expenses[32]. - General and administrative expenses decreased to approximately RMB57.8 million, a reduction of approximately RMB15.3 million or 21.0% compared to RMB73.1 million in the same period of 2023, primarily due to decreased employee benefits expenses[33]. Strategic Initiatives - The management highlighted a strategic shift towards digital marketing, expecting a 40% increase in customer engagement through new campaigns[4]. - The Group has established a TikTok live broadcast team to explore new business models and optimize revenue structure[10]. - The company plans to actively explore diversified sales channels while consolidating existing cooperation platform advantages to achieve broader coverage[63]. - A high-end brand strategy will be implemented to drive new business growth and achieve a second growth curve[63]. Shareholder Value and Corporate Governance - Zibuyu's board of directors has approved a share buyback program worth $2 million to enhance shareholder value[4]. - The Company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[79]. - The report indicates a focus on corporate governance and compliance with regulatory requirements[70]. Financial Position and Liquidity - As of June 30, 2024, the Group had cash and cash equivalents of approximately RMB371.7 million, an increase from approximately RMB277.5 million as of 31 December 2023[50][52]. - The total liabilities decreased to RMB 372,134 from RMB 409,668 at the end of 2023, indicating improved financial stability[102]. - The overall financial position has strengthened, as evidenced by the increase in cash and cash equivalents and improved cash flow from operations[109]. Employee Management - As of June 30, 2024, the company had 963 full-time employees, a decrease of approximately 7.0% from 1,155 employees in the same period of 2023[58]. - The total staff cost incurred by the Group was approximately RMB102.3 million for the Reporting Period, representing a year-on-year decrease of approximately 7.0% from approximately RMB110.0 million in the same period of 2023[56]. - The company has adopted Share Award Schemes for existing and new shares on September 15, 2023, and December 1, 2023, respectively, to incentivize employees[62]. Taxation and Compliance - The Company's subsidiaries in the PRC are subject to a corporate income tax rate of 25% on assessable profits, with certain subsidiaries recognized as High New Tech Enterprises benefiting from a reduced rate of 15% for three years[158]. - For the six months ended 30 June 2024, several subsidiaries in the PRC qualified as small and micro enterprises, enjoying a corporate income tax rate of 20%[159]. - The Group operates internationally and is within the scope of the OECD Pillar Two model rules, with no current tax exposure as of 30 June 2024[164].

Financial Performance - In the first half of 2024, the Group achieved total revenue of approximately RMB1,462.1 million, representing an increase of approximately 6.3% compared to RMB1,375.3 million in the same period of 2023[12]. - Gross profit for the same period was approximately RMB1,080.9 million, reflecting an increase of approximately 8.0% from RMB1,001.3 million in the prior year[12]. - Net profit attributable to shareholders was approximately RMB91.4 million, a significant increase of approximately 789.1% compared to RMB10.3 million in the same period of 2023[12]. - Revenue from third-party e-commerce platforms reached approximately RMB1,440.8 million, marking an increase of approximately 10.5% from RMB1,304.0 million in the previous year[15]. - Revenue from North America was approximately RMB1,396.9 million, representing an increase of approximately 8.6% compared to RMB1,286.5 million in the same period of 2023[20]. - Profit before income tax increased by approximately 775.9% to approximately RMB93.3 million for the Reporting Period from approximately RMB10.7 million for the six months ended 30 June 2023, with profit before income tax as a percentage of revenue increasing to approximately 6.4% from 0.8%[41]. - The Group recorded a profit and total comprehensive income attributable to shareholders of approximately RMB91.4 million for the Reporting Period, representing an increase of approximately 789.1% compared to approximately RMB10.3 million for the six months ended 30 June 2023[47][49]. - Basic and diluted earnings per share rose to RMB 0.18, compared to RMB 0.02 for the same period in 2023[98]. Cost and Expenses - The cost of sales for the Group was approximately RMB381.2 million, an increase of approximately 1.9% from RMB374.0 million in the same period of 2023, primarily due to increased sales volume[23]. - Selling expenses and distribution costs amounted to approximately RMB941.7 million, an increase of approximately RMB17.8 million or 1.9% compared to RMB923.9 million in the same period of 2023, mainly due to increased marketing and advertising expenses[33]. - General and administrative expenses decreased to approximately RMB57.8 million, a reduction of approximately RMB15.3 million or 21.0% compared to RMB73.1 million in the same period of 2023, primarily due to decreased employee benefits expenses[36]. - Finance costs amounted to approximately RMB4.4 million, a decrease of RMB0.8 million compared to approximately RMB5.2 million for the six months ended 30 June 2023, mainly due to reduced interest expenses for lease liabilities[40]. Cash Flow and Liquidity - As of 30 June 2024, the Group had cash and cash equivalents of approximately RMB371.7 million, an increase from approximately RMB277.5 million as of 31 December 2023[51][53]. - Cash generated from operations for the six months ended June 30, 2024, was RMB 126,261, an increase of 68.5% compared to RMB 74,881 for the same period in 2023[108]. - Net cash generated from operating activities reached RMB 130,116, up from RMB 57,332, reflecting a significant growth of 126.5% year-over-year[108]. - The total unutilized amount of net proceeds as of June 30, 2024, is HK$71.8 million, down from HK$86.4 million at the end of 2023[91]. Shareholder Information - As of June 30, 2024, Mr. Hua Bingru holds 236,056,036 shares, representing approximately 47.21% of the shareholding[68]. - The total number of shares issued by the company is 500,000,000[70]. - The Company does not hold any treasury shares as of June 30, 2024[80]. - The Board does not recommend the payment of interim dividend for the reporting period, consistent with the previous period where no dividend was paid[80]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[80]. - The Company has adopted the Model Code for securities transactions by Directors, with all Directors confirming compliance during the Reporting Period[82]. - The Company continues to monitor and review its corporate governance practices to maintain high standards[82]. Organizational Changes and Strategy - The board of directors includes Mr. Hua Bingru as Chairman and Mr. Chen Caixiong as Chief Executive Officer, with a recent change in executive roles[5]. - The Group has established a TikTok live broadcast team to explore new business models and optimize revenue structure[10]. - The Group's operational strategies included organizational changes, efficiency enhancements, and inventory structure optimization[14]. - The company plans to actively explore diversified sales channels while consolidating existing cooperation platforms to achieve broader coverage and sales synergies[63]. Market Outlook - The company remains optimistic about the recovery and development of the global economy despite a complex macroeconomic environment[64].

Core Viewpoint - In 2023, the global economy underwent significant adjustments due to unexpected interest rate hikes by the Federal Reserve and ongoing geopolitical conflicts, impacting the trade landscape and supply chains, particularly in the consumer sector [1] Company Performance - In 2023, the company reported revenue of 3 billion yuan, remaining stable compared to the previous year [1] - The company is one of the largest cross-border e-commerce B2C firms in China, primarily selling apparel and footwear through third-party platforms like Amazon, which holds a 50% market share in North America [1] - The company has successfully expanded into new sales channels such as Temu and TikTok, with notable revenue growth from these platforms [1] Brand and Inventory Management - The company's top ten brands saw sales revenue increase by over 15% year-on-year, contributing to sustainable growth [1] - The company undertook significant inventory adjustments, focusing on clearing slow-moving stock and reallocating resources to best-selling products, which improved inventory turnover [1] - The company recorded an inventory impairment of approximately 388 million yuan, a substantial increase from 55 million yuan the previous year, impacting profitability [1] Cash Flow and Operational Efficiency - Despite profitability pressures, the company maintained a positive operating cash flow of 76.73 million yuan, indicating healthy business operations [2] - The company has embraced technological advancements, integrating AI and digitalization into its operations to enhance efficiency across the entire business chain [2] Industry Outlook - The Chinese e-commerce market is experiencing slower growth, while overseas markets still have significant potential for expansion, particularly in cross-border B2C e-commerce [2] - The cross-border e-commerce market for apparel is projected to grow from 750.3 billion yuan in 2021 to 1,827.6 billion yuan by 2026, with a compound annual growth rate of 19.5% [2] - The company is expected to continue expanding its non-Amazon channels and international markets, focusing on high-quality development and enhancing brand investment [2]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 3,000,292, a decrease of 2.15% from RMB 3,066,331 in 2022[9] - Gross profit for 2023 was RMB 1,955,273, down 16.66% from RMB 2,347,755 in 2022[10] - The company reported a loss before income tax of RMB 247,211 for 2023, compared to a profit of RMB 127,190 in 2022[11] - The net loss attributable to shareholders for the year was RMB 265,786, a significant decline from a profit of RMB 110,694 in 2022[12] - Total assets as of December 31, 2023, were RMB 893,406, down from RMB 1,360,708 in 2022, representing a decrease of 34.4%[14] - Current assets decreased to RMB 839,070 in 2023 from RMB 1,253,503 in 2022, a decline of 33.1%[14] - Total liabilities were RMB 409,668 as of December 31, 2023, down from RMB 573,387 in 2022, a decrease of 28.6%[16] - Total equity attributable to shareholders decreased to RMB 483,738 in 2023 from RMB 787,321 in 2022, a decline of 38.5%[17] - Cash flow from operating activities showed a net inflow of RMB 76.7 million despite the net loss, indicating healthy operating conditions[41] Inventory and Cost Management - The company undertook substantial inventory clearance, resulting in an increase in the provision for write-down of inventories[22] - The provision for write-down of inventories during the reporting period amounted to approximately RMB 387.8 million, an increase of RMB 333.0 million compared to RMB 54.8 million in the previous year[40] - The proportion of inventory was significantly reduced, contributing to more stable cash flow[27] - Inventory balance at the end of 2023 decreased by RMB 355.3 million compared to the end of 2022, mainly due to large-scale disposal of inventories[78] - The Group's cost of sales for the year ended December 31, 2023, amounted to approximately RMB 1,045.0 million, an increase of approximately RMB 326.4 million or 45.4% from RMB 718.6 million for the year ended December 31, 2022[52] Sales and Market Strategy - The company primarily sells products through channels including Amazon and Temu, indicating a focus on e-commerce expansion[2] - Revenue from third-party e-commerce platforms was approximately RMB 2,921.4 million, remaining stable compared to RMB 2,939.0 million in 2022[45] - The sales income of the top ten brands grew by over 15% year-on-year, with multiple brands exceeding annual sales income of RMB 100 million[35] - The Group focused resources on hot-selling products, improving inventory turnover and optimizing inventory structure[40] - Revenue from Asia for the year ended December 31, 2023, was approximately RMB 106.5 million, representing an increase of approximately RMB 92.6 million or 664.0% compared to RMB 13.9 million for the year ended December 31, 2022[50] Strategic Initiatives and Future Plans - In 2024, the company aims to refine its brand globalization strategy and establish a brand matrix[29] - The company plans to attract international talent and deploy a global supply chain system to enhance operational efficiency[29] - Continued investment in research and development is planned to promote digital transformation and system optimization[29] - The company will expand its diversified sales channel system, focusing on non-Amazon and offline channels in Europe and Asia[29] - The company aims to establish Zibuyu as an internationally renowned operator of fashionable apparel and footwear products, focusing on high-quality offerings to consumers globally[93] Management and Governance - The organizational structure was transformed to create a more innovative system, laying a solid foundation for succession[26] - The management team has a strong educational background, with degrees in marketing, bioscience, and phytology from reputable universities[104] - The Group aims to enhance its business development and management strategies through the insights provided by its diverse board members[105] - The company is focused on enhancing its corporate governance through experienced independent directors with diverse backgrounds in law and finance[113] - The leadership team has been actively involved in the supply chain and administrative management, ensuring effective business operations[100] Risks and Challenges - The company faced challenges in 2023 due to inflationary pressures and fragile consumer spending recovery[22] - Major risks include disruptions in relationships with third-party e-commerce platforms like Amazon and Temu, which could adversely affect business operations[146] - The Group's success is dependent on accurately predicting fashion trends and consumer preferences to design and launch new products[146] - The Group recognizes its social responsibilities in monitoring and reducing environmental risks associated with its operations[147] - The Group faces risks related to foreign exchange rate fluctuations, which could impact financial performance[149] Shareholder Information - The Group's five largest customers accounted for approximately 3.80% of its total revenue during the Reporting Period, compared to 0.35% in 2022[177] - The aggregate percentage of the Group's total purchases attributable to the five largest suppliers was 70.5% during the Reporting Period, up from 66.2% in 2022[177] - The largest supplier accounted for approximately 65.4% of the Group's total purchases during the Reporting Period, compared to 62.8% in 2022[177] - The Group's distributable reserves amounted to RMB 281.7 million, an increase from approximately RMB 161.7 million as of December 31, 2022, representing a growth of 74%[184] - The Share Award Scheme (Existing Shares) was adopted on September 15, 2023, and is designed to recognize and reward eligible participants for their contributions to the Group's growth[184]

Financial Performance - Revenue for 2023 decreased to 3,000,292 from 3,066,331 in 2022, reflecting a decline of approximately 2.2%[8] - Gross profit for 2023 dropped to 1,955,273 from 2,347,755 in 2022, a decrease of approximately 16.7%[9] - Loss before income tax for 2023 was 247,211, compared to a profit of 127,190 in 2022[10] - Loss for the year 2023 was 265,786, compared to a profit of 110,694 in 2022[10] - Total assets decreased to 893,406 in 2023 from 1,360,708 in 2022, a decline of approximately 34.3%[13] - Total liabilities decreased to 409,668 in 2023 from 573,387 in 2022, a reduction of approximately 28.5%[15] - Total equity decreased to 483,738 in 2023 from 787,321 in 2022, a decline of approximately 38.5%[15] - Non-current assets decreased to 54,336 in 2023 from 107,205 in 2022, a reduction of approximately 49.3%[12] - Current assets decreased to 839,070 in 2023 from 1,253,503 in 2022, a decline of approximately 33.1%[13] - Current liabilities decreased to 399,292 in 2023 from 529,725 in 2022, a reduction of approximately 24.6%[14] - Total revenue for 2023 was approximately RMB3,000.3 million, remaining stable compared to 2022[33][37][42] - Gross profit for 2023 was approximately RMB1,955.3 million, a year-on-year decrease of 16.7%[37][38] - Net loss attributable to shareholders for 2023 was approximately RMB265.8 million, compared to a profit of RMB110.7 million in 2022[37][38] - Revenue from third-party e-commerce platforms in 2023 was approximately RMB2,921.4 million, remaining stable compared to 2022[44] - Provision for write-down of inventories in 2023 increased to RMB387.8 million, up from RMB54.8 million in 2022[39][40] - Total staff costs increased by RMB47.7 million, a year-on-year increase of 28.4%[39][40] - Cash flow from operating activities remained positive with a net inflow of RMB76.7 million despite a net loss[40] - North America revenue decreased by 5.1% to RMB2,799.8 million in 2023, primarily due to reduced self-operated online store operations[48][49] - Asia revenue surged by 664.0% to RMB106.5 million in 2023, driven by increased marketing efforts for consignment services[48][49] - Cost of sales increased by 45.4% to RMB1,045.0 million in 2023, mainly due to a RMB333.0 million increase in inventory provisions[51][53] - Gross profit decreased by RMB392.5 million to RMB1,955.3 million in 2023, with gross profit margin dropping to 65.2% from 76.6% in 2022[52][54] - Other income decreased by RMB5.0 million to RMB8.2 million in 2023, primarily due to reduced government grants[58] - Net foreign exchange gains decreased to RMB11.2 million in 2023 from RMB13.5 million in 2022, contributing to lower other gains[61][62] - Selling and distribution costs decreased by 1.6% to RMB2,052.3 million in 2023 from RMB2,085.9 million in 2022, primarily due to reduced marketing expenses and freight costs[64] - General and administrative expenses increased by RMB15.6 million to RMB157.7 million in 2023, driven by higher employee benefits, IT server expenses, and office costs[65][66] - Finance costs decreased by RMB6.4 million to RMB9.5 million in 2023, mainly due to lower interest expenses on bank borrowings[69][70] - Loss before income tax was RMB247.2 million in 2023, compared to a profit of RMB127.2 million in 2022, primarily due to increased inventory provisions[71][72] - Income tax expenses increased by 12.7% to RMB18.6 million in 2023, mainly due to the reversal of deferred income tax assets[75] - The company recorded a loss attributable to shareholders of RMB265.8 million in 2023, compared to a profit of RMB110.7 million in 2022[77] - Inventory balance decreased by RMB355.3 million in 2023 due to large-scale disposal and refined inventory management[77] - Capital expenditures decreased to RMB6.4 million in 2023 from RMB12.6 million in 2022, primarily due to increased investment in office and warehouse equipment[77] - Cash and cash equivalents decreased to RMB277.5 million as of 31 December 2023 from RMB294.5 million in 2022[79] - Total indebtedness as of 31 December 2023 was RMB193.4 million, comprising borrowings of RMB162.0 million and lease liabilities of RMB31.4 million[79] - Gearing ratio increased to 45.9% in 2023 from 42.1% in 2022, primarily due to inventory clearance losses[82] - Total staff costs increased by 28.4% to RMB215.5 million in 2023, driven by expansion of talent reserves and hiring of mid-to-high level management and IT technicians[85] - Full-time employees decreased to 1,063 in 2023 from 1,233 in 2022, mainly based in mainland China[85] - The Group's distributable reserves as of 31 December 2023 were RMB281.7 million, compared to RMB161.7 million in 2022, representing an increase of approximately 74.2%[183] Strategic Initiatives and Future Plans - The company plans to refine its brand globalization strategy and establish a brand matrix to create more differentiated global brands[28] - Efforts will be made to expand the talent base, particularly focusing on attracting international talent and deploying a global supply chain system[28] - The company will continue its digital transformation, increase R&D investment, and enhance digital management capabilities[28] - Expansion of diversified sales channels, including non-Amazon channels, offline channels, and regions such as Europe and Asia, will be intensified[28] - The company anticipates that the 2024 fiscal year will continue to present both challenges and opportunities due to the slow global economic recovery in the post-pandemic era[91] - The company plans to expand sales channels, including non-Amazon channels, offline channels, and regions such as Europe and Asia[93] - The company aims to increase brand investment to create a global brand and enhance brand competitiveness[93] - The company will continue to invest in the supply chain and overseas layout to improve product innovation capabilities and operational efficiency[93] - The company plans to increase investment in digital infrastructure to enhance digital management capabilities[93] - The company will further enrich the management talent structure across various segments to improve overall management levels[93] - The Group aims to further consolidate its leading position in China's cross-border e-commerce industry in 2024[152] Operational Efficiency and Inventory Management - Inventory structure was optimized, significantly reducing the proportion of inventory and stabilizing cash flow[26] - The company undertook substantial inventory clearance of slow-moving stock, resulting in an increase in the provision for write-down of inventories[21] - The company restructured its supply chain, refined business processes, and utilized intelligent algorithm systems to improve inventory turnover efficiency[25] - The company focused on hot-selling products, optimizing inventory structure and increasing inventory turnover[33][39] - The company expanded its presence on emerging e-commerce platforms, enhancing its sales network and customer base[33] Leadership and Management - The company's founder, Mr. Hua Bingru, has over ten years of industry experience and is responsible for formulating overall corporate and business strategies[94] - Mr. Hua Bingru founded the company in April 2011 and has been the chairman of the board and general manager of Zhejiang Zibuyu since then[95] - Mr. Hua Bingru was awarded the Top 10 Pioneer Youth in Hangzhou in 2019 and received a nomination for the Ten Outstanding Entrepreneur in Hangzhou[96] - Mr. Wang Weiping, an executive Director and vice president, is primarily responsible for overseeing the administrative management of the Group[98] - Mr. Wang has over ten years of experience in the Group, managing supply chain and administrative operations since joining in April 2013[99] - Mr. Dong Zhenguo, aged 35, has been an executive Director and vice president since June 2021, overseeing the self-operated online stores business[99] - Mr. Dong has over ten years of experience in sales, marketing, and business management, joining Zhejiang Zibuyu in June 2013 and holding various director and general manager roles in subsidiaries[101] - Ms. Hua Hui, aged 35, was appointed as a non-executive Director in June 2021, with eight years of experience in the Group, primarily responsible for business development recommendations[103] - Ms. Hua served as the sales director of Zhejiang Zibuyu from October 2013 to May 2020, focusing on third-party platform online store operations[103] - Mr. Yu Kefei, aged 45, was appointed as an independent non-executive Director, bringing over 20 years of experience in accounting and business management[105] - Mr. Yu has served as financial director for several companies, including Zhejiang Ming Jewelry Co., Ltd. since March 2017[106] - Mr. Yu obtained the certificate of secretary to the board issued by the Shenzhen Stock Exchange in December 2019 and passed the Certified Public Accountants Examination of the PRC in December 2015[108] - Mr. Shen Tianfeng has over 30 years of legal practice experience and served as the managing partner of Grandall Law Firm (Hangzhou) from January 2001 to April 2019[110] - Mr. Shen has served as an independent director for multiple listed companies, including Hangzhou Weiguang Electronic Co., Ltd. and Zheshang Securities Co., Ltd.[110] - Dr. Lau Kin Shing Charles has more than 20 years of experience in financial and business management and served as the chief financial officer of Sitoy Group Holdings Limited from August 2015 to July 2021[113] - Dr. Lau obtained a bachelor's degree in accounting from Curtin University of Technology in August 1993 and a doctor of business administration degree from the University of Newcastle, Australia in July 2008[115] - Dr. Lau was admitted as a Certified Practising Accountant by CPA Australia in March 2001 and a Certified Public Accountant by the Hong Kong Institute of Certified Public Accountants in July 2001[115] - Dr. Lau was honored as the Model Worker of China Central Government Enterprises by the Ministry of Human Resources and Social Security and the State-owned Assets Supervision and Administration Commission of the State Council in April 2009[115] - Mr. Chen Caixiong appointed as co-chief executive officer on 27 March 2024, responsible for overseeing overall operations and supply chain management[117][119] - Mr. Chen joined the Group in March 2023 and was appointed as vice president in May 2023, with extensive experience in supply chain management[118][119] - Ms. Yuan Ding, vice president and financial senior director, joined the Group in July 2023, overseeing operation and daily financial management[120][123] - Ms. Yuan previously served as senior financial manager and financial director at Alipay (Hangzhou) Information Technology Co., Ltd. (Ant Group) from September 2014 to May 2023[120][123] - Ms. Xie Xi, senior merchandise operations director, joined the Group in December 2023, responsible for merchandise planning and allocation management[121][123] - Ms. Xie has over ten years of experience in supply chain and merchandise management, previously working at Decathlon Group and Shanghai Shading Technology Co., Ltd.[122][123] - Mr. Xu Shijian, vice president and chief financial officer, responsible for financial strategic planning, investment and financing, investor relations, legal affairs, and inspection[124][125] - Mr. Xu has over twenty years of experience in finance and corporate management, joined the Group in November 2016, and served as chief financial officer and vice president[125] - Mr. Xu previously served as financial director of Lvcheng E-commerce Co., Ltd. from February 2011 to May 2016[125] - Mr. Xu was a practicing certified public accountant and served as project manager and head of department at Shaoxing Tianyuan Accountant Office from March 2006 to January 2011[125] - Mr. Cheng Bing, Vice President, is responsible for managing new business, including expansion into new channels and development of new product offerings[128] - Mr. Cheng Bing oversees sales and marketing management through third-party e-commerce platforms such as Amazon, Temu, and TikTok[129] - Mr. Peng Yulong, Chief Technology Officer, is responsible for formulating the overall technology strategy and overseeing the design, development, and operation of the company's information products[130] - Mr. Peng Yulong has extensive experience in big data and internet industries, previously serving as the head of data and algorithm product department at Ant Financial[131] - The company's legal compliance matters are managed by Ms. Zheng Huanxin, who serves as the manager of the legal department[133] - Ms. Yu Anne, appointed as one of the joint company secretaries, has over 20 years of experience in the corporate secretarial field[135] - Mr. Hua Bingru was re-designated as a co-chief executive officer of the Group on 27 March 2024[158] - Mr. Chen Caixiong was appointed as a co-chief executive officer of the Group on 27 March 2024, assisting in the overall business development[158] - Mr. Hua Bingru was appointed as Co-CEO on 27 March 2024, assisting the founder and Chairman in leading the company's business development[159] - Mr. Chen Caixiong was appointed as Co-CEO on 27 March 2024[159] Shareholder and Corporate Governance - Mr. Hua Bingru holds a 47.21% stake in the company with 236,056,036 shares[167] - Mr. Wang Weiping holds a 4.52% stake in the company with 22,608,772 shares[167] - Mr. Dong Zhenguo holds a 3.93% stake in the company with 19,634,654 shares[167] - Ms. Hua Hui holds a 2.10% stake in the company with 10,498,364 shares[167] - No significant transactions or contracts involving directors or controlling shareholders were reported during the year[161][162][163] - No changes in directors' resumes were reported except for the appointment of Mr. Hua Bingru as Co-CEO[159] - Compensation for directors and top executives is detailed in Notes 34 and 11 of the consolidated financial statements[159] - Total number of shares issued as of 31 December 2023 is 500,000,000[169] - Mr. Hua holds a 47.21% stake in the company through Hone Ru Trust, Gfxtmyun, and TMY ONE[171] - Ms. Yu holds a 5.02% stake in the company through Wiloru Holding and Hyufeng[171] - Mr. Wang Shijian and Ms. Rao Xingxing each hold an 8.89% stake in the company through Chichiboy Holdings Limited and Xringirl[172] - TMY THREE holds a 5.65% stake in the company[172] - The Group's five largest customers accounted for approximately 3.80% of its total revenue (2022: 0.35%)[176] - The Group's five largest suppliers accounted for 70.5% of total purchases (2022: 66.2%), with the largest supplier contributing approximately 65.4% (2022: 62.8%)[176] - The total number of issued shares as of 31 December 2023 was 500,000,000[182] - The Board did not recommend the payment of a final dividend for the Reporting Period (2022: HK$ 25.0 million)[178] - The Annual General Meeting is proposed to be held on 13 May 2024, with the register of members closed from 8 May to 13 May 2024 for eligibility determination[179][180] - The Share Award Scheme (Existing Shares) was adopted on 15 September 2023, with a maximum award limit of 10% of the Company's issued share capital, equivalent to 50,000,000 shares[189] - The Share Award Scheme (Existing Shares) is valid for a period of approximately 9 years and 6 months from the adoption date, ending on the earlier of the 10th anniversary or when all awarded shares are fully vested, settled, lapsed, forfeited, or canceled[187] - Eligible participants for the Share Award Scheme (Existing Shares) include employees of the Group and individuals who have contributed to the Group's past or long-term growth[185] - The Share Award Scheme (Existing Shares) is administered by the Board, with decisions being final and binding, and is supported by a trustee, Core Trust Company Limited, or its wholly-owned subsidiary, Gongfenxiang One[184] - The maximum number of Shares that may be granted to a selected participant under the Share Award Scheme (Existing Shares) shall not exceed 1% of the Company's total issued Shares during any 12-month period[191] - Awards granted are subject to the acceptance of the grant by the selected participant in the time and manner stipulated in the grant letter, otherwise, the award shall be forfeited[192] - The vesting period and vesting schedule are subject to the discretion of the Board, and the awarded Shares shall vest in the selected participant upon fulfillment of all vesting conditions[193] - No awards have been granted, cancelled, or lapsed under the Share Award Scheme (Existing Shares) since its adoption up to the date of the annual report[194] - The Share Award Scheme (New Shares) was approved by Shareholders and adopted on 1 December 2023, and is to be funded solely by new shares[197] - The purpose of the Share Award Scheme (New Shares) is to provide selected participants with an opportunity to obtain a proprietary interest in the Company and to incentivize contributions to the Company[197] - The Board will administer the Share Award Scheme (New Shares) in accordance with the scheme rules and may appoint a third-party professional service provider as the administrator[198] -