Table_BaseInfo 2024 年 3 月 4 日 公司动态分析 江南布衣（3306.HK） 证券研究报告 纺织服装 业绩超预期增长，高股息具吸引力 投资评级： x 未有 事件：近日，江南布衣公布2024财年上半年业绩表现，公司收入为29.8亿元， 同比增长 26.1%；净利润 5.74 亿元，同比增长 54.5%；此外公司宣派中期股息 目标价格： 未有 每股 0.46 港元及特别股息每股 0.39 港元。公司业绩表现超市场预期，高股息 具有吸引力。 现价(2024-3-1)： 14.54港元 报告摘要 知名设计师服装集团，上半财年业绩超预期 江南布衣是国内知名的设计师服装 总市值(百万港元) 7,542.63 集团，旗下拥有成熟品牌JNBY、成长品牌LESS、速写、jnby by JNBY（童装）， 流通市值(百万港元) 7,542.63 总股本(百万股) 518.75 新兴品牌蓬马、JNBYHOME、A PERSONAL NOTE。截至2023年12月31日止半年 流通股本(百万股) 518.75 度，公司实现收入 29.8 亿元，同比增长 26.1%，收入增长主要来自于线下同店 12个月低/高( ...

Investment Rating - The report assigns an "Outperform" rating to the company, indicating an expected relative outperformance of more than 10% compared to the benchmark index [1] Core Views - The company is a leading designer fashion group with high brand recognition and customer loyalty, ranking first in retail sales in China's designer fashion industry in 2022 [4] - The company's brand matrix includes mature, growing, and emerging brands, with mature brands contributing 56.3% of revenue in FY23 [4] - The company has optimized its omnichannel retail network with a focus on fan economy, achieving a 17.7% CAGR in membership growth from FY19 to FY23 [4] - The company's FY23 gross margin reached a historical high of 65.3%, making it one of the few companies in the industry to continuously improve gross margin since the pandemic [5] - The company's inventory turnover days decreased to 188 days in FY23, the lowest among comparable peers [5] Financial Performance and Valuation - The company's FY23 revenue was HKD 4.465 billion, with a YoY growth of 9.28% [6] - Net profit for FY23 was HKD 621 million, representing a YoY growth of 11.17% [6] - The company's FY23 ROE was 31.35%, ranking first among comparable peers [5] - The report forecasts FY24-FY26 net profit of HKD 831 million, HKD 971 million, and HKD 1.102 billion, respectively, with EPS of HKD 1.60, HKD 1.87, and HKD 2.12 [5] - The report values the company at 9-10x FY24 PE, corresponding to a fair value range of HKD 15.68-17.42 per share [5] Brand and Market Position - The company's mature brand JNBY has the highest brand loyalty among China's top 10 women's clothing designer brands based on repeat purchase rate [4] - The company's market share in the women's clothing designer brand segment has been among the highest and has shown the most significant improvement over the past decade [4] - The company's FY23 dividend yield is expected to be 7.8%, ranking among the top in the women's clothing peer group [5] Channel and Membership Strategy - Online revenue has maintained positive growth over the past five years, with a CAGR of 21.3% from FY19 to FY23, accounting for 19.1% of total revenue in FY23 [4] - The number of active members and members with annual purchases exceeding HKD 5,000 increased significantly in FY23, with the latter contributing over 60% of offline sales [4] - The company's "JNBY+" multi-brand stores expanded by 850% from FY19 to FY23, contributing to a 9.1% increase in comparable store sales in FY23 [13] Industry Comparison - The company's gross margin of 65.3% in FY23 is higher than most peers in the industry [16] - The company's inventory turnover days of 188 in FY23 are the lowest among comparable peers [17] - The company's ROE has ranked first among comparable peers since 2018, with FY23 ROE at 33.9% [16]

证券研究报告 | 2024年02月29日 江南布衣（03306.HK） 买入 上半财年净利润增长 54%，各渠道均实现高质量增长 核心观点 公司研究·海外公司财报点评 上半财年业绩快速增长。公司是国内领先的设计师品牌集团，旗下拥有分别 纺织服饰·服装家纺 处于成熟期、成长期、新兴期三大阶段的多个品牌。截至2023/12/31的2024 证券分析师：丁诗洁 证券分析师：刘佳琪 上半财年，公司实现收入29.8亿元，同比+26.1%，实现归母净利润5.7亿 0755-81981391 010-88005446 dingshijie@guosen.com.cnliujiaqi@guosen.com.cn 元，同比+54.5%。公司收入增速较快主要基于多阶段品牌共同推动所带来的 S0980520040004 S0980523070003 线下可比同店增长、门店规模增长，以及线上渠道的同步增长。 基础数据 利润率稳步提升。FY2024H1毛利率同比提升0.8百分点至65.5%，反映公司 投资评级 买入(维持) 合理估值 17.50 - 19.20港元 零售折扣稳定、库存健康、以及坚持设计和品牌驱动下品牌溢价能力的提升； ...

Revenue and Profit Growth - Total revenue for the first half of fiscal year 2024 reached RMB 2,975.5 million, a 26.1% increase compared to RMB 2,360.0 million in the same period of fiscal year 2023[2] - Net profit for the first half of fiscal year 2024 was RMB 574.1 million, a 54.5% increase compared to RMB 371.7 million in the same period of fiscal year 2023[2] - Total revenue for the six months ended December 31, 2023, was RMB 2,975.5 million, a 26.1% increase compared to the same period in 2022[43] - Total revenue increased by 27.6% to RMB 1,947.7 million in the first half of 2024 compared to RMB 1,526.2 million in the same period of 2023[57] - Net profit grew by 54.5% to RMB 574.1 million in the first half of 2024, with a net profit margin increasing from 15.8% to 19.3%[60] - Profit for the period rose to RMB 574,121 thousand in the first half of 2023, compared to RMB 371,716 thousand in the first half of 2022[11] - Net profit attributable to shareholders rose to RMB 574,121 thousand, compared to RMB 371,716 thousand in the prior year[30] Gross Profit and Margin - Gross profit for the first half of fiscal year 2024 was RMB 1,947.7 million, up 27.6% from RMB 1,526.2 million in the first half of fiscal year 2023, with the gross profit margin increasing by 0.8 percentage points to 65.5%[2] - Gross profit increased by 27.6% to RMB 1,947.7 million, with the gross margin rising from 64.7% to 65.5% due to enhanced brand strength[56] Cash Flow and Financial Position - Net cash inflow from operating activities for the first half of fiscal year 2024 was RMB 1,059.7 million, a 173.5% increase compared to RMB 387.4 million in the same period of fiscal year 2023[2] - Net cash generated from operating activities increased to RMB 1,187,793 thousand in the first half of 2023, up from RMB 566,525 thousand in the same period of 2022[12] - Cash and cash equivalents at the end of the period stood at RMB 1,093,255 thousand, compared to RMB 657,787 thousand at the end of the same period in 2022[13] - Net cash used in financing activities was RMB 541,644 thousand in the first half of 2023, higher than RMB 338,227 thousand in the same period of 2022[13] - Net cash generated from investing activities was RMB 49,992 thousand in the first half of 2023, compared to RMB 13,124 thousand in the same period of 2022[12] - Cash and cash equivalents increased to RMB 1,093.3 million as of December 31, 2023, up from RMB 525.1 million as of June 30, 2023[63] Dividends and Shareholder Returns - The Board declared an interim dividend of HK$0.46 per ordinary share and a special interim dividend of HK$0.39 per ordinary share, totaling HK$0.85 per ordinary share, amounting to HK$440.9 million in total[2] - The company declared an interim dividend of HKD 0.46 per ordinary share (approximately RMB 0.42 per share) for the six months ended December 31, 2023, payable on April 19, 2024[71] - A special interim dividend of HKD 0.39 per ordinary share (approximately RMB 0.36 per share) was declared to celebrate the company's 30th anniversary, payable on April 19, 2024[72] - Dividends paid amounted to RMB 322,591 thousand in the first half of 2023, up from RMB 259,004 thousand in the same period of 2022[11][10] - The company paid a final dividend of RMB 322,591,350, up from RMB 259,004,000 in the previous year[31] Earnings Per Share (EPS) - Earnings per share (EPS) for the first half of fiscal year 2024 were RMB 1.14 (basic) and RMB 1.11 (diluted), compared to RMB 0.74 in the same period of fiscal year 2023[6] - The group's basic earnings per share were RMB 1.14, calculated based on a profit attributable to shareholders of RMB 574,121 thousand and a weighted average number of ordinary shares of 505,179 thousand[28] - Diluted earnings per share increased to RMB 1.11, up from RMB 0.74 in the previous year[30] - The weighted average number of ordinary shares for diluted EPS calculation increased to 515,700 thousand from 504,383 thousand[30] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 4,529.4 million, an increase from RMB 4,065.8 million as of June 30, 2023[7] - Total liabilities as of December 31, 2023, were RMB 2,257.5 million, compared to RMB 2,084.3 million as of June 30, 2023[8] - Net assets as of December 31, 2023, were RMB 2,271.9 million, up from RMB 1,981.5 million as of June 30, 2023[8] - Total equity increased to RMB 2,271,928 thousand as of December 31, 2023, from RMB 1,826,644 thousand as of December 31, 2022[10][11] Expenses and Costs - Sales and marketing expenses accounted for 31.1% of revenue in the first half of 2024, down from 34.6% in the same period of 2023 due to improved operational efficiency[59] - Administrative expenses decreased to 8.3% of revenue in the first half of 2024 from 9.0% in the same period of 2023[59] - Unallocated sales and marketing expenses, administrative expenses, and net impairment losses on financial assets amounted to RMB (324,757) thousand[19] - Employee headcount increased to 1,551 as of December 31, 2023, with total employee costs accounting for 7.8% of revenue[67] Brand and Revenue Breakdown - Total revenue for the group reached RMB 2,975,542 thousand, with mature brands contributing RMB 1,699,763 thousand, growth brands contributing RMB 1,227,805 thousand, and emerging brands contributing RMB 47,974 thousand[19] - The group's operating profit totaled RMB 803,080 thousand, with mature brands contributing RMB 716,858 thousand, growth brands contributing RMB 376,487 thousand, and emerging brands contributing RMB 2,885 thousand[19] - Total revenue for the first half of fiscal year 2024 increased by 26.1% to RMB 2,975.5 million, with mature brand JNBY growing by 24.0% and growth brands collectively increasing by 29.7%[50][51] - Revenue from mainland China accounted for 99.4% of total revenue, growing by 26.5%, while non-mainland revenue decreased by 23.4%[55] Retail and Channel Performance - Offline channel revenue grew by 26.5%, with self-operated stores increasing by 36.7% and distributor stores by 18.2%, while online channel revenue rose by 24.2%[53][54] - Offline channel revenue increased by 27.8% to RMB 1,615.7 million, with self-operated stores growing by 37.5% and distributor stores by 18.0%[58] - Online channel revenue rose by 27.0% to RMB 332.0 million in the first half of 2024[58] - Comparable same-store sales for offline retail stores increased by 23.9% in the first half of fiscal year 2024, driven by store image upgrades and the success of multi-brand collection stores[48] - The inventory sharing and allocation system contributed an incremental retail sales of RMB 596.8 million, a 48.7% increase compared to the first half of fiscal year 2023[48] Membership and Customer Engagement - The company's membership accounts exceeded 7.4 million as of December 31, 2023, with members contributing over 80% of total retail sales[49] - The number of active members increased to over 550,000 in 2023, up from 420,000 in 2022, with members spending over RMB 5,000 contributing RMB 4.33 billion in retail sales[49] Store and Geographic Expansion - The number of independent physical retail stores globally increased from 1,990 as of June 30, 2023, to 2,036 as of December 31, 2023[43] - JNBY brand stores increased from 921 to 935, while CROQUIS (速写) stores increased from 300 to 311 during the same period[44] - In mainland China, self-operated stores decreased from 564 to 549, while franchised stores increased from 1,402 to 1,464 as of December 31, 2023[46] - Over 50% of retail sales in mainland China were concentrated in first- and second-tier cities[46] Inventory and Accounts Receivable - The company's inventory of finished goods increased to RMB 1,204,721 thousand from RMB 1,179,752 thousand[34] - Inventory provision increased by RMB 28,569 thousand in the first half of 2023, compared to RMB 37,547 thousand in the same period of 2022[35] - Accounts receivable increased to RMB 242,521 thousand as of December 31, 2023, from RMB 144,721 thousand as of June 30, 2023[35] - 91.1% of accounts receivable were within 3 months as of December 31, 2023, compared to 85.0% as of June 30, 2023[36] - Accounts payable increased to RMB 334,611 thousand as of December 31, 2023, from RMB 232,094 thousand as of June 30, 2023[38] - Sales return provision increased to RMB 245,663 thousand as of December 31, 2023, from RMB 166,891 thousand as of June 30, 2023[41] Capital Expenditures and Investments - Capital expenditures decreased to RMB 48.0 million in the first half of 2024 from RMB 69.0 million in the same period of 2023[61] - The company invested RMB 6.0 million in a venture capital fund as of December 31, 2023[65] ESG and Corporate Governance - The company is building an ESG governance framework to promote ESG practices and achieve its 2025 ESG commitments[70] - The company has adopted the Corporate Governance Code under Appendix C1 of the Listing Rules and has complied with all applicable code provisions during the six months ended December 31, 2023[74] - The company has adopted the Model Code for Securities Transactions by Directors under Appendix C3 of the Listing Rules, and all directors confirmed compliance during the six months ended December 31, 2023[75] - The company did not purchase, sell, or redeem any of its listed securities during the six months ended December 31, 2023[76] Future Plans and Strategies - The company plans to optimize its designer brand and product portfolio through self-incubation or acquisitions, enhancing design and R&D capabilities[70] - The company aims to strengthen its domestic and international retail networks using internet thinking and technology, focusing on visual and image development for stores[70] - The company is committed to data-driven operations, technology as a carrier, and fan economy as the core, aiming to enhance the fan experience across its retail network[70] Other Financial Metrics - Total comprehensive income for the period increased to RMB 577,126 thousand in the first half of 2023, up from RMB 375,802 thousand in the first half of 2022[11][10] - Other income and gains net amounted to RMB 31,607 thousand, including government subsidies of RMB 28,227 thousand[23] - The group's financial income net amounted to RMB 24,951 thousand, with interest income from cash and cash equivalents and time deposits with initial terms exceeding three months contributing RMB 21,835 thousand[24] - The group's current income tax expense was RMB 217,507 thousand, with deferred income tax expense of RMB 16,194 thousand, totaling RMB 233,701 thousand[26] - Total property, plant, and equipment decreased to RMB 448,859 thousand from RMB 455,588 thousand[32] - Right-of-use assets decreased to RMB 698,749 thousand from RMB 797,254 thousand, with an increase of RMB 81,748 thousand in retail lease properties[33] - Intangible assets increased to RMB 21,552 thousand from RMB 19,307 thousand, with an addition of RMB 2,645 thousand in computer software[34] - Accumulated depreciation for property, plant, and equipment increased to RMB 309,888 thousand from RMB 254,678 thousand[32]

Brand Positioning and Market Presence - Jiangnan Buyi ranked first in the Chinese designer brand fashion industry based on retail sales in 2022, according to Zhi Shi Consulting[30]. - The brand portfolio includes multiple brands across three stages: mature brand JNBY, three growth brands (CROQUIS, jnby by JNBY, and LESS), and emerging brands like POMME DE TERRE and JNBYHOME[30]. - JNBY is recognized as the most unique and recognizable women's clothing designer brand in China, with the highest brand loyalty among the top ten women's designer brands based on repeat customer numbers[30]. - The company operates a retail network covering all provinces, autonomous regions, and municipalities in mainland China, as well as nine other countries and regions globally[40]. - The company has diversified its product offerings beyond women's wear, including men's and children's clothing, which have shown strong growth in recent years[79]. Financial Performance - For the fiscal year ending June 30, 2023, the company's revenue reached RMB 4,465,124, an increase of 9.3% compared to RMB 4,085,868 in the previous year[33]. - Gross profit for the same period was RMB 2,916,992, reflecting an 11.9% increase from RMB 2,607,370 in the prior year[33]. - Net profit increased by 11.2% to RMB 621,283, up from RMB 558,873 year-over-year[33]. - The company's operating profit rose to RMB 857,898, marking a 10.6% increase from RMB 775,852 in the previous year[33]. - The gross margin improved to 65.3%, up from 63.8% in the previous year, indicating enhanced profitability[35]. Customer Engagement and Marketing Strategies - The company has established a comprehensive omnichannel interactive platform consisting of physical retail stores, online platforms, and WeChat-based social media marketing services[30]. - New consumer scenarios and products, such as "Not Just a Box" and "Jiangnan Buyi+" multi-brand collection stores, have been launched to enhance customer experience and provide added value[30]. - The target customer demographic includes middle to high-income individuals who express their personality through fashion[30]. - The company aims to create a fan economy system that attracts and retains loyal customers through lifestyle advocacy[30]. - The company is focused on optimizing its fan-centric retail network to adapt to changing consumer behaviors and preferences[76]. Operational Efficiency and Innovations - The company continues to innovate in product offerings and marketing strategies to meet evolving consumer needs and preferences[30]. - The company plans to focus on enhancing brand power and optimizing its multi-brand retail network to adapt to changing consumer behaviors[37]. - The company is committed to data-driven operations, focusing on fan economy to create value-added services and improve the fan experience across a diversified retail network[62]. - The company is actively expanding its retail presence and exploring new consumer scenarios through various social channels[62]. - The company emphasizes continuous innovation in operations to enhance the overall retail experience for fans[62]. Sustainability and ESG Initiatives - The company focuses on sustainable development across various areas, including sustainable materials, talent development, environmental sustainability, and community support[151]. - The company has a strong commitment to environmental, social, and governance (ESG) principles, ensuring accurate and traceable key performance indicators[151]. - The company aims to achieve a sustainable materials procurement ratio of 30% or more by the end of fiscal year 2025, with the current ratio at 16.6%[178]. - The company is committed to reducing chemical pollution through the use of organic cotton and linen, which adhere to organic farming standards[184]. - The company has established an ESG governance structure with the board of directors as the highest decision-making body[156]. Corporate Governance and Leadership - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors, ensuring diverse leadership[63]. - The company has adopted the Corporate Governance Code and has complied with all applicable provisions during the fiscal year 2023[113]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific areas of governance[115]. - The company emphasizes the importance of board diversity and has established measurable targets for selecting board candidates based on various diversity criteria[131]. - The company provides necessary training and updates to all newly appointed directors to ensure understanding of operations and responsibilities[116]. Risk Management and Compliance - The company has established a robust risk management and internal control system to ensure asset safety and protect shareholder interests[139]. - The company emphasizes effective communication with shareholders to enhance investor relations and ensure timely disclosure of information[144]. - The company has implemented a risk identification and assessment process to manage significant risks impacting its operations[140]. - The internal audit department collaborates with senior management to review and assess risks and address any significant internal control deficiencies[139]. - The company has a whistleblowing policy to allow employees to report concerns regarding financial reporting and internal controls confidentially[127]. Employee Engagement and Development - The company provides competitive compensation and training opportunities for employees to foster personal development and retain talent[84]. - The total employee cost for fiscal year 2023 was RMB 434.8 million, representing 9.7% of revenue, up from 9.0% in fiscal year 2022[60]. - The company has established a retirement and employee benefits plan detailed in the financial statements[90]. - The management team includes professionals with backgrounds in various sectors, including e-commerce and manufacturing, enhancing the company's operational capabilities[73][74]. - The company aims to attract and retain suitable personnel through the implementation of the Restricted Share Plan[98]. Product Quality and Safety - The company emphasizes the importance of product quality and safety, which is a key concern for stakeholders[165]. - The company has implemented a comprehensive quality control system, including third-party testing for fabric components, color fastness, and harmful substances, ensuring compliance with internal standards[171]. - The company has achieved STANDARD 100 by OEKO-TEX® certification for its baby products, ensuring they are free from 100 known toxic substances[173]. - The company has developed a product recall management system to address defective products and protect consumer rights[174]. - The company continues to integrate sustainable development concepts into its operations and regularly reviews its ESG strategies and goals[167].

Financial Performance - Total revenue for the fiscal year ended June 30, 2023, was RMB 4,465.1 million, an increase of 9.3% or RMB 379.2 million compared to RMB 4,085.9 million for the fiscal year ended June 30, 2022[2] - Net profit for the fiscal year ended June 30, 2023, was RMB 621.3 million, up 11.2% or RMB 62.4 million from RMB 558.9 million in the previous fiscal year[2] - The gross profit for the fiscal year was RMB 2,916.99 million, compared to RMB 2,607.37 million in the previous year[5] - Basic earnings per share for the fiscal year was RMB 1.24, an increase from RMB 1.12 in the previous year[6] - The company reported a total comprehensive income of RMB 642,388 thousand for the year ended June 30, 2023, up from RMB 555,484 thousand in the previous year, representing a growth of approximately 15.6%[10] - The operating profit for the year ended June 30, 2023, was RMB 857,898 thousand, compared to RMB 775,852 thousand in the previous year, indicating an increase of about 10.6%[17][18] - The company reported a profit attributable to shareholders of RMB 621,292 thousand for the year ended June 30, 2023, compared to RMB 558,880 thousand in the previous year, indicating an increase of about 11.2%[10] - The company’s profit attributable to shareholders for the year ended June 30, 2023, was RMB 621,292,000, an increase of 11.1% from RMB 558,880,000 in 2022[25] - The net profit for fiscal year 2023 was RMB 621,300,000, reflecting an 11.2% growth from RMB 558,900,000 in fiscal year 2022, with a net profit margin increase from 13.7% to 13.9%[58] Retail and Membership Growth - The total number of retail stores increased from 1,956 to 1,990, covering all provinces, autonomous regions, and municipalities in mainland China, as well as 9 other countries and regions globally[2] - The number of unique member accounts exceeded 6.9 million, with over 6.7 million being WeChat accounts, maintaining a stable electronic WeChat member ratio of over 90%[2] - Active member accounts contributing to retail sales accounted for approximately 80% of total retail sales, with nearly 510,000 active members and around 260,000 members spending over RMB 5,000[2] - Comparable store sales growth for physical retail stores was 9.1% in fiscal year 2023, driven by strategic investments in store image upgrades and the introduction of new retail concepts[45] - Active member accounts increased to over 510,000 in fiscal year 2023, up from over 420,000 in fiscal year 2022, contributing approximately 80% of total retail sales[46] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 4,065.83 million, compared to RMB 3,899.84 million in the previous year[7] - Total liabilities decreased from RMB 2,214.87 million to RMB 2,084.30 million[8] - As of June 30, 2023, the total equity amounted to RMB 1,981,523 thousand, an increase from RMB 1,684,965 thousand as of June 30, 2022, reflecting a growth of approximately 17.6%[10] - The company’s total liabilities decreased to RMB 1,000,000 thousand as of June 30, 2023, from RMB 1,200,000 thousand a year earlier, reflecting a reduction of approximately 16.7%[10] Cash Flow and Dividends - The net cash generated from operating activities for the year ended June 30, 2023, was RMB 939,119 thousand, compared to RMB 852,874 thousand for the previous year, indicating an increase of about 10.1%[11] - The company paid dividends totaling RMB 391,864 thousand during the year, a decrease from RMB 612,085 thousand in the previous year, reflecting a reduction of about 36%[11] - The board proposed a final dividend of HKD 0.67 per share, approximately RMB 0.63 per share[3] - The total dividends distributed and paid by the company for the year ended June 30, 2023, amounted to RMB 391,864,000, a decrease of 36% from RMB 612,085,000 in 2022[28] Expenses and Financial Management - Employee benefits expenses, including share-based payments, rose to RMB 434,792 thousand, compared to RMB 367,454 thousand in the previous year, marking an increase of about 18.3%[19] - Selling and marketing expenses for fiscal year 2023 amounted to RMB 1,695,100,000, representing 38.0% of total revenue, up from 37.0% in fiscal year 2022[56] - Administrative expenses for fiscal year 2023 were RMB 445,600,000, accounting for 10.0% of total revenue, compared to 9.2% in fiscal year 2022[56] Investments and Capital Expenditures - The company incurred a net cash outflow from investing activities of RMB 239,773 thousand for the year, compared to a net cash inflow of RMB 190,175 thousand in the previous year[11] - Capital expenditures for fiscal year 2023 totaled RMB 155,400,000, an increase from RMB 140,000,000 in fiscal year 2022[59] - The company’s investment in property, plant, and equipment amounted to RMB 148,734 thousand for the year, compared to RMB 134,439 thousand in the previous year, reflecting an increase of approximately 10.6%[11] Future Outlook and Strategy - The company anticipates continued economic recovery in China, creating new opportunities for high-quality development, driven by consumer demand for personalized and fashionable products[68] - The company plans to optimize its designer brand portfolio through self-incubation or acquisitions, enhancing design and R&D capabilities[68] - The company aims to strengthen its retail network using internet technology and enhance its marketing platform and supply chain capabilities[68] - The company is committed to implementing ESG practices and achieving its 2025 commitments for sustainable development[69] Audit and Compliance - The audit committee has reviewed the accounting principles and practices adopted by the company for the fiscal year 2023[74] - The external auditor, PwC, confirmed that the figures in the performance announcement align with the audited consolidated financial statements for the fiscal year 2023[74] - The annual performance announcement is available on the Hong Kong Stock Exchange website and the company's website[75]

Financial Performance - Total revenue for the six months ended December 31, 2022, was RMB 2,360.0 million, a decrease of 5.0% compared to RMB 2,484.7 million for the same period in 2021[9]. - Gross profit for the same period was RMB 1,526.2 million, down 3.0% from RMB 1,573.8 million in 2021[10]. - Operating profit decreased by 15.7% to RMB 517.3 million from RMB 613.8 million year-on-year[10]. - Net profit for the six months was RMB 371.7 million, a decline of 16.2% compared to RMB 443.8 million in the previous year[10]. - The revenue from the mature brand JNBY decreased by 4.8% or RMB 68.7 million, while the growth brand segment saw a decline of 5.6%[21]. - The net profit for the first half of fiscal year 2023 was RMB 371.7 million, a decrease of 16.2% or RMB 72.1 million from RMB 443.8 million in the same period of fiscal year 2022, with a net profit margin dropping from 17.9% to 15.8%[26]. - The profit before tax decreased from RMB 614.6 million in the first half of fiscal year 2022 to RMB 514.5 million in the first half of fiscal year 2023, a decline of 16.3%[28]. - Basic earnings per share for the period were RMB 0.74, down from RMB 0.89 in the same period last year[63]. - The profit attributable to shareholders for the six months ended December 31, 2022, was RMB 371,716,000, a decrease of 16.3% compared to RMB 443,836,000 for the same period in 2021[94]. Margins and Ratios - The company maintained a gross profit margin of 64.7%, up from 63.3% in the previous year[12]. - Operating profit margin decreased to 21.9% from 24.7% year-on-year[12]. - Net profit margin also declined to 15.8% from 17.9% in the previous year[12]. - The company's asset-liability ratio improved to 56.1% from 58.9% year-on-year[12]. Cash Flow and Liquidity - Cash flow from operating activities decreased significantly by 49.9% to RMB 387.4 million from RMB 772.8 million[11]. - The net cash inflow from operating activities in the first half of fiscal year 2023 was RMB 387.4 million, a decrease of 49.9% from RMB 772.8 million in the first half of fiscal year 2022[29]. - The company incurred a net cash outflow from financing activities of RMB 338,227 thousand, compared to RMB 706,964 thousand in the previous year, indicating a reduction in financing costs[70]. - The total cash and cash equivalents at the end of the period was RMB 657,787 thousand, a decrease of 23% from RMB 853,180 thousand at the end of the previous year[70]. Store Expansion and Membership - The number of independent retail stores increased from 1,956 as of June 30, 2022, to 2,004 as of December 31, 2022[13]. - Membership accounts exceeded 6.4 million as of December 31, 2022, up from over 5.9 million on June 30, 2022, with active members contributing over 80% of total retail sales[20]. - As of December 31, 2022, the total number of independent retail stores globally reached 2,004, an increase from 1,956 on June 30, 2022, representing a growth of 2.4%[14]. Expenses - Sales and marketing expenses for the first half of fiscal year 2023 were RMB 817.5 million, representing 34.6% of total revenue, an increase from 32.1% in the previous year[25]. - Administrative expenses rose to RMB 211.7 million in the first half of fiscal year 2023, accounting for 9.0% of total revenue, compared to 7.7% in the previous year[25]. - The total employee cost for the first half of fiscal year 2023 was RMB 201.9 million, representing 8.6% of revenue, compared to 7.1% in the first half of fiscal year 2022[34]. Corporate Governance - The company adhered to all applicable provisions of the corporate governance code during the six months ended December 31, 2022[41]. - The company continues to review and monitor its corporate governance practices to ensure compliance with the corporate governance code[41]. - The company has established a standard code for securities trading by directors, which was adhered to during the reporting period[42]. Shareholder Information - The board declared an interim dividend of HKD 0.30 per share, approximately RMB 0.27 per share, expected to be paid on April 20, 2023[39]. - Directors and senior management held a total of 320,681,000 shares, representing 61.82% of the company[47]. - Credit Suisse Trust Limited holds 308,881,000 shares, representing 59.54% of the company's issued shares[50]. - Ninth Capital Limited owns 154,100,000 shares, equivalent to approximately 29.71% of the company's issued shares[50]. - The company paid dividends amounting to RMB 259,004 thousand, a decrease of 44% compared to RMB 459,613 thousand in the previous year[70]. Assets and Liabilities - As of December 31, 2022, the company's cash and cash equivalents amounted to RMB 657.8 million, an increase from RMB 591.7 million as of June 30, 2022[29]. - Total liabilities amounted to RMB 2,332,763 thousand, up from RMB 2,214,870 thousand, indicating a growth of 5.30%[64]. - The company’s lease liabilities increased to RMB 440,687 thousand, up from RMB 342,658 thousand, reflecting a growth of 28.60%[64]. - The total number of restricted shares granted under the restricted share plan is capped at 70,000,000 shares, valid until June 30, 2029[53]. Future Outlook - The company plans to optimize its designer brand portfolio through self-incubation or acquisitions, enhancing design and R&D capabilities[37]. - The company plans to continue its market expansion and product development strategies to enhance future growth prospects[71]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[97].

Financial Data and Key Metrics Changes - The company continues to operate under online webcast and conference call formats due to the government's ongoing mask mandate, indicating a cautious approach to in-person interactions [1] Company Strategy and Development Direction and Industry Competition - The company expresses gratitude to investors and analysts for their participation, highlighting the importance of communication and engagement during the current operating environment [1] Other Important Information - The company welcomes face-to-face interactions during the post-conference roadshow, suggesting a commitment to maintaining relationships with stakeholders despite current restrictions [1] Q&A Session All Questions and Answers - No specific questions and answers were provided in the content [1]

Brand Positioning and Portfolio - Jiangnan Buyi ranked first in the Chinese designer brand fashion industry by retail sales in 2021 according to Zhi Shi Consulting[8] - The brand portfolio includes multiple brands across three stages: mature brand JNBY and three growth brands (CROQUIS, jnby by JNBY, and LESS), along with emerging brands like POMME DE TERRE and JNBYHOME[18] - JNBY is recognized as the most unique and identifiable women's designer brand in China, with the highest brand loyalty among the top ten women's designer brands based on repeat customer numbers[18] - The company has expanded its brand portfolio from 2005 to 2011 and launched several emerging brands from 2016 to 2019 to cater to a diverse consumer base[18] - The brand philosophy emphasizes "Just Naturally Be Yourself," appealing to consumers seeking unique and personalized fashion experiences[18] Financial Performance - For the fiscal year ending June 30, 2022, the company's revenue was RMB 4,085.87 million, a decrease of 1.0% compared to RMB 4,126.23 million in the previous year[21] - Gross profit for the same period was RMB 2,607.37 million, reflecting a slight increase of 0.4% from RMB 2,597.35 million[21] - Operating profit decreased by 12.2% to RMB 775.85 million from RMB 883.86 million year-on-year[21] - Net profit for the fiscal year was RMB 558.87 million, down 13.6% from RMB 647.20 million in the previous year[21] - The company's cash flow from operating activities was RMB 852.87 million, a significant decline of 36.2% compared to RMB 1,336.58 million[21] Retail and Membership Growth - The number of retail stores globally increased to 1,956 as of June 30, 2022, compared to 1,931 on June 30, 2021, representing a growth of 1.3%[28] - The number of active member accounts exceeded 590,000 as of June 30, 2022, up from over 490,000 a year earlier, indicating a growth of approximately 20.4%[34] - The contribution of retail sales from members remained stable at around 70% of total retail sales for the fiscal year 2022[34] - The retail sales from members who spent over RMB 5,000 reached RMB 2.78 billion, up from RMB 2.61 billion in the previous fiscal year[34] Strategic Initiatives and Future Plans - The company aims to enhance its brand power and expand its retail network to create a sustainable long-term growth model[26] - The company plans to optimize its designer brand and category mix through self-incubation or acquisitions, enhancing design and R&D capabilities to strengthen brand power[49] - The company aims to create a diversified retail network driven by data, technology, and fan economy, continuously providing value-added services to enhance fan experience[49] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[59] Sustainability and ESG Commitment - The company is committed to building an ESG governance framework to promote sustainable long-term high-quality business development[49] - Jiangnan Buyi aims to achieve a sustainable raw material procurement ratio of 30% or more by the end of the fiscal year 2025[139] - The company emphasizes a sustainable development philosophy that prioritizes people and nature, integrating sustainability into all aspects of its operations[137] - The company has established an ESG governance structure with the board of directors as the highest decision-making body to implement sustainable development strategies[141] Employee and Management Practices - The company provides competitive compensation and development opportunities for employees, including management skills and industry-related training[72] - The company emphasizes the importance of board diversity as a key factor in achieving strategic goals and sustainable development[121] - The company has implemented a comprehensive compensation management system to attract and retain talent, ensuring fair and compliant remuneration[193] - The company has launched online live recruitment, attracting over 1,000 candidates to support business development[190] Quality Control and Customer Engagement - The company implemented a quality control system to protect consumer rights and enhance service quality[147] - The "BOX+ Not Just a Box" service has served over 200,000 members and dispatched over 400,000 boxes, enhancing customer engagement through personalized styling services[168] - The company received a total of 15,490 customer complaints in FY2022, achieving a 100% response and resolution rate[170] - The company continuously optimizes customer feedback channels, including a 400 hotline and online platforms, to improve service quality[170] Supply Chain and Supplier Management - As of the end of fiscal year 2022, Jiangnan Buyi had a total of 2,940 suppliers, with 248 new suppliers added during the fiscal year[180] - The company emphasized data security and privacy protection, adhering to relevant laws and implementing strict data management protocols[178] - Jiangnan Buyi implemented strict supplier evaluation criteria, focusing on contract performance, innovation capability, and compliance with ESG indicators[180] - The company has established a Supplier Code of Conduct focusing on environmental and social indicators, requiring suppliers to comply with all relevant laws and regulations[183]

Financial Performance - Revenue for the six months ended December 31, 2021, was RMB 2,484,680 thousand, representing a 7.3% increase from RMB 2,314,663 thousand in 2020[8] - Gross profit increased by 10.4% to RMB 1,573,804 thousand, with a gross margin of 63.3%, up from 61.6% in the previous year[8] - Operating profit decreased by 4.4% to RMB 613,759 thousand, resulting in an operating margin of 24.7%, down from 27.7%[8] - Net profit for the period was RMB 443,833 thousand, a decrease of 4.2% compared to RMB 463,533 thousand in 2020, with a net profit margin of 17.9%[8] - Basic earnings per share were RMB 0.89, while diluted earnings per share were RMB 0.88, both slightly lower than RMB 0.93 in the previous year[8] - Total revenue for the first half of 2022 increased by 7.3% to RMB 2,484.68 million compared to RMB 2,314.66 million in the first half of 2021[23] - Gross profit rose by 10.4% to RMB 1,573.8 million, with a gross margin improvement from 61.6% to 63.3%[25] - Net profit for the first half of 2022 decreased by 4.2% to RMB 443.8 million, with a net profit margin decline from 20.0% to 17.9%[29] - Pre-tax profit decreased by 4.4% to RMB 614.6 million from RMB 642.6 million in the first half of 2021[31] - The company reported a total comprehensive income of RMB 434,200 thousand for the period, slightly up from RMB 431,160 thousand in the prior year[68] - The company reported a net profit attributable to shareholders of RMB 463,536 thousand for the six months ended December 31, 2021, compared to RMB 443,836 thousand for the same period in 2020, representing an increase of approximately 4.0%[70] - The company reported a total comprehensive income for the period was RMB 431,163 thousand, down from RMB 434,203 thousand in the previous year, reflecting a decrease of about 0.9%[71] Cash Flow and Investments - Net cash flow from operating activities was RMB 772,820 thousand, a significant decrease of 30.6% from RMB 1,114,352 thousand in the prior year[8] - Cash generated from operating activities was RMB 855,134 thousand, a decrease of 24.6% from RMB 1,134,523 thousand in the prior year[72] - The company reported a net cash inflow from investing activities of RMB 239,345 thousand, compared to a net cash outflow of RMB 178,682 thousand in the previous year[72] - The total cash and cash equivalents at the end of the period stood at RMB 853,180 thousand, down from RMB 893,304 thousand at the end of the previous year[72] - The company made investments in short-term financial products totaling RMB 70 million during the reporting period[33] - The group made additional capital contributions of RMB 41,036,000 during the six months ended December 31, 2021[107] Retail and Market Presence - The company has established a diversified retail network consisting of physical stores, online platforms, and social retail marketing services primarily through WeChat[5] - The brand portfolio includes multiple brands targeting specific customer segments, enhancing the company's market presence and customer loyalty[5] - The company aims to expand its product offerings and consumer engagement through new consumption scenarios and value-added services[5] - The number of independent retail stores increased from 1,931 as of June 30, 2021, to 1,996 as of December 31, 2021, covering all provinces and regions in mainland China and 10 other countries[11] - The number of active member accounts exceeded 5.3 million as of December 31, 2021, up from over 4.9 million as of June 30, 2021, with over 90% being electronic WeChat members[19] - The revenue contribution from members with total purchases exceeding RMB 5,000 reached RMB 2.64 billion in 2021, compared to RMB 2.20 billion in 2020, contributing over 40% of total retail revenue[19] - The revenue from the mature brand JNBY increased by 9.2% or RMB 121.3 million, while the growth brands collectively saw a revenue growth rate of 5.4%[20] - The gross merchandise value (GMV) from social retail channels reached RMB 380.0 million, more than doubling compared to the previous year[18] Expenses and Liabilities - Selling and marketing expenses increased to RMB 797.9 million, representing 32.1% of total revenue, up from 29.0% in the previous year[28] - Administrative expenses rose to RMB 190.6 million, accounting for 7.7% of total revenue, compared to 6.0% in the first half of 2021[28] - The company recorded a decline of 3.0% in comparable store sales due to the impact of the pandemic on customer traffic[18] - The debt-to-asset ratio increased to 58.9% in 2021 from 56.1% in 2020, indicating a higher level of leverage[9] - The total liabilities increased to RMB 2,428,560 thousand from RMB 2,102,392 thousand as of June 30, 2021[69] - The total lease liabilities increased to RMB 322,921,000 as of December 31, 2021, from RMB 247,336,000 as of June 30, 2021, representing a growth of 30.5%[125] Shareholder Information - Wu Jian and Li Lin each hold 318,681,000 shares, representing 61.43% of the company[49] - Wu Huating holds 8,020,000 shares, accounting for 1.55% of the company[49] - Ninth Capital Limited owns 152,100,000 shares, equivalent to 29.32% of the issued shares[54] - Ninth Investment Limited holds 154,781,000 shares, representing 29.84% of the issued shares[55] - Credit Suisse Trust Limited, as a trustee, holds 306,881,000 shares, which is 59.16% of the company[53] - The total shares held by major shareholders indicate a significant concentration of ownership within the company[52] - The company has adopted a restricted share plan with a total of up to 40,000,000 shares, valid until June 30, 2029, with approximately 7 years and 3 months remaining[57] - As of December 31, 2021, a total of 11,980,000 restricted shares were granted during the six-month period, with 12,000 shares being forfeited or cancelled[60] Corporate Governance and Compliance - The company aims to create a sustainable business model by implementing an ESG governance framework and achieving its 2025 commitments[39] - The company has maintained compliance with corporate governance codes and will continue to review its practices[43] - No significant contingent liabilities were reported as of December 31, 2021[37] Employee Information - The total number of employees increased to 1,450 as of December 31, 2021, compared to 1,397 on June 30, 2021[36] - Total employee costs for the first half of the fiscal year 2022 amounted to RMB 175.5 million, representing 7.1% of revenue, up from 6.9% in the same period of 2021[36] - The total remuneration for key management personnel increased from RMB 33,123 thousand in June 2020 to RMB 33,750 thousand in December 2021, reflecting a growth of approximately 1.9%[131] Financial Risks and Management - The company faced multiple financial risks, including market risk, credit risk, and liquidity risk, which were not fully disclosed in the interim financial data[77] - The financial risk management policies have not changed since June 30, 2021, suggesting stability in the company's approach to risk[78]