Core Viewpoint - The report highlights Jiangnan Buyi as a leading designer brand in China, showcasing strong performance metrics such as high dividend yield and return on equity (ROE), while emphasizing the company's resilience in a mature market phase [1][3]. Group 1: Company Overview - Jiangnan Buyi is positioned as a domestic designer brand leader with a mid-to-high-end product range, featuring a multi-brand strategy that caters to diverse customer needs [1]. - The company has a highly educated management team and a concentrated family ownership structure, maintaining a stable dividend payout ratio of over 70% in recent years [1][2]. - The company's PE valuation has undergone two rounds of downward adjustments, recently stabilizing around 10X, indicating a potential undervaluation due to market misconceptions about its performance resilience and high ROE sustainability [1]. Group 2: Performance Resilience - Jiangnan Buyi's resilience is attributed to three key competitive advantages: design capability, fan economy, and multi-brand strategy [1]. - The design strength combines artistic creativity with commercial viability, enhancing product appeal and aligning with market trends [1]. - The fan economy leverages a comprehensive retail model to engage customers, utilizing refined membership services and digital upgrades to drive retail conversion [1]. - The multi-brand approach allows for balanced brand development and risk mitigation, with a diverse product range that enhances growth potential [1]. Group 3: High ROE Sustainability - The company's high ROE reflects strong operational capabilities and competitive advantages, supported by a DuPont analysis [2]. - High inventory turnover is achieved through a national inventory sharing system and a unique payment model with distributors, leading to faster cash recovery [2]. - The company maintains a relatively high gross margin due to brand premium and ongoing supply chain improvements, while effective cost management enhances profitability [2]. - A high equity multiplier is noted, with significant operating liabilities and a strong dividend policy reinforcing leverage effects [2]. Group 4: Future Projections - Forecasts for Jiangnan Buyi's net profit for FY2026-FY2028 are projected at 920 million, 960 million, and 990 million yuan, respectively, with corresponding PE ratios of 9X [3]. - Assuming a 75% dividend payout ratio, the expected dividend yield for FY2026 is estimated to reach 8%, highlighting the company's combination of high dividends and growth potential [3].

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [3][10][12]. Core Insights - Jiangnan Buyi, as a leading designer brand in China, showcases strong design capabilities, fan economy, and a multi-brand matrix that forms its competitive moat. The company demonstrates resilience in adverse conditions and flexibility in favorable ones, supported by its advanced omnichannel operations and a large, loyal membership system that continuously contributes to retail sales, laying a solid foundation for steady growth in performance [3][10]. Summary by Sections Company Overview - Jiangnan Buyi is recognized as a top designer brand in China, with a product positioning in the mid-to-high-end market. The company has a comprehensive multi-brand layout that meets diverse customer needs, with established brands, growth brands, and emerging brands contributing to its revenue [7][30]. Financial Performance - The company is projected to achieve a net profit attributable to shareholders of 9.2 billion, 9.6 billion, and 9.9 billion CNY for FY2026, FY2027, and FY2028, respectively, with a corresponding PE ratio of 9 for each year. Assuming a 75% dividend payout ratio, the dividend yield for FY2026 is expected to reach 8% [3][10]. Competitive Advantages - Jiangnan Buyi's competitive advantages stem from three main pillars: design strength, fan engagement, and a multi-brand strategy. The design aspect combines artistic creativity with commercial viability, while the fan economy leverages a comprehensive retail model to enhance customer engagement and retention [8][9][10]. ROE and Dividend Policy - The company maintains a high return on equity (ROE) of over 35% in recent years, supported by efficient inventory turnover and strong profit margins. The dividend payout ratio has consistently been above 70%, reinforcing its attractiveness as a high-dividend stock [7][9][50]. Market Position - Jiangnan Buyi holds a significant market share in the domestic designer brand segment, with a 9.6% share in 2016, and has shown steady revenue growth with a CAGR of 13% from FY2014 to FY2025 [26][30][31]. Future Outlook - The report highlights the company's potential for growth in the designer brand segment, which is expected to continue expanding at a CAGR of 17% over the next five years, significantly outpacing the overall apparel market [56][58].

本报讯 （记者梁傲男）9月25日，江南布衣有限公司（以下简称"江南布衣"）旗下童装品牌jnby by JNBY携手BY ART MATTERS天目里美术馆，首次将"艺术课堂"带进四川广元青川县的乔庄小学校，让 孩子们以画笔为马，载着天马行空的想象，开启了一段"奇异的旅行"。 据悉，孩子的画作并不会止步于课堂，而将被收录进jnby by JNBY的艺术图库，有机会成为下一季童装 的灵感来源。将孩子们的画作"翻译"成衣服的语言，在设计师志愿者看来，是"一件无比荣幸且有意义 的事"。 这份守护，更体现在实实在在的行动中。活动当天，品牌还向乔庄小学校捐赠了精心准备的"美育包"， 内含丰富的专业画材与创意工具。据悉，品牌计划在今年向30所乡村小学捐赠此类美育物资，为更多偏 远地区的孩子打开一扇通往艺术的窗。 未来，jnby by JNBY会持续将"艺术课堂胶囊系列"的部分销售收入，用于支持乡村儿童的美育发展，让 艺术课堂走进更多的乡村小学，推动"让想象落地，让爱心远行"的可持续公益美育循环。 这并非一次偶然的相遇，而是一场双向奔赴的延续。今年8月份，jnby by JNBY便支持上海真爱梦想公 益基金会的"去远方"公益 ...

2024/25 環境、社會及管治報告 ENVIRONMENTAL , SOCIAL AND GOVERNANCE REPORT 江南布衣有限公司（股票代碼：03306） JNBY DESIGN LIMTED (Stock Code: 03306) 目錄 專題：可持續時尚 30 周年 關於本報告 01 ABOUT THIS REPORT REPORT SCOPE 報告範圍 01 匯報原則 01 REPORTING PRINCIPLES 董事會聲明 02 BOARD STATEMENT 董事長寄語 MESSAGE FROM THE CHAIRMAN ESG 關鍵績效 ESG KEY PERFORMANCE CAMPAIGN: 30TH ANNIVERSARY OF SUSTAINABLE FASHION | 關於江南布衣 | | | --- | --- | | About JNBY Group | | | 集團簡介 | 17 | | GROUP PROFILE | | | 我們的文化 | 17 | | OUR CULTURE | | | 我們的品牌 | 18 | | OUR BRANDS | | | 我們的榮譽 ...

Brand Portfolio and Market Positioning - As of June 30, 2025, JNBY Group's brand portfolio includes the mature brand JNBY, three younger brands (CROQUIS, jnby by JNBY, and LESS), and various emerging brands such as POMME DE TERRE, JNBYHOME, onmygame, and B1OCK[25]. - The company targets middle- and upper-income customers, aiming to express individuality through fashionable products, creating a large and loyal customer base[26]. - JNBY Group expanded its brand portfolio significantly from 1994 to 2024, launching multiple brands and acquiring new ones to diversify its offerings and cater to various age groups[26]. - The brand portfolio includes established brands like JNBY and emerging brands such as POMME DE TERRE and JNBYHOME, with the addition of onmygame and B1OCK in 2024 through acquisition[34][36]. - The company aims to cover consumers across most age groups through its diversified and segmented product mix[34][36]. Customer Engagement and Marketing Strategies - The company has established an omni-channel interactive platform that includes physical retail stores, online platforms, and WeChat-based marketing services to enhance customer engagement[27]. - JNBY Group's philosophy is encapsulated in the slogan "Just Naturally Be Yourself," which guides its design identity across all brands[25]. - The company focuses on creating a "JNBY Fans Economy" system, leveraging community engagement to drive customer loyalty[27]. - The company has introduced new consumption scenarios and products, such as the "Box Project" and "JIANGNANBUYI+" multi-brand collection stores, to provide added value to consumers[26]. - The company aims to enhance fan experience through data-driven strategies and operational innovation in its retail network[145]. Financial Performance - For the fiscal year ended June 30, 2025, the company reported revenue of RMB 5,548,385, an increase of 4.6% from RMB 5,302,522 in 2024[45]. - Gross profit for the same period was RMB 3,638,941, reflecting a 4.1% increase from RMB 3,495,916 in 2024[45]. - Net profit increased by 6.0% to RMB 897,518 compared to RMB 846,549 in 2024[45]. - Basic earnings per share rose to RMB 1.74, up 4.2% from RMB 1.67 in 2024[45]. - The company's net cash flows from operating activities decreased by 29.2% to RMB 1,132,989 from RMB 1,600,139 in 2024[45]. Store Expansion and Retail Strategy - The number of standalone retail stores increased from 2,025 as of June 30, 2024, to 2,117 as of June 30, 2025, expanding the sales network globally[67]. - The total number of standalone retail stores for the mature brand JNBY increased from 924 to 961[68]. - As of June 30, 2025, the total number of standalone retail stores was 2,117, an increase from 2,025 in the previous year, with 491 self-operated stores in Mainland China[69]. - Retail sales from membership accounts with annual purchases over RMB 5,000 reached RMB 4.86 billion, accounting for over 60% of total retail sales from offline channels[76]. - Revenue from offline channels decreased by 1.4% to RMB 4,346.8 million, while revenue from online channels increased by 18.3% to RMB 1,201.6 million[87]. Operational and Strategic Initiatives - The company aims to enhance its brand strength and optimize its designer brand portfolio to support sustainable growth[57]. - The company is committed to developing a digital and intelligent retail network while expanding new consumption scenarios[57]. - The company plans to focus on "art exploration," "humanistic care," and "social responsibility" to promote sustainable development[60]. - The Group's strategic initiatives include enhancing investor relations and risk management practices to support sustainable growth[189]. - The Group aims to leverage technology for product development and operational improvements, aligning with market trends[197]. Management and Governance - The company emphasizes a mission of "Better Design, Better Life" and core values including reliability, diversity, and innovation[145]. - The board consists of 8 directors, including 3 executive directors, 1 non-executive director, and 4 independent non-executive directors[146]. - The Group's management team includes professionals with significant experience in multinational companies, enhancing strategic planning and execution capabilities[188]. - The management team is committed to maintaining high standards of corporate governance and financial oversight[188]. - The Group is actively exploring opportunities for market expansion and potential acquisitions to drive growth[192].

Core Viewpoint - The company is experiencing steady growth in its fiscal year 2025, with a focus on maintaining a high dividend payout ratio, supported by revenue growth from online channels and expansion of offline stores [1][2] Financial Performance - For the fiscal year ending June 30, 2025, the company's revenue increased by 4.6% year-on-year to 5.548 billion yuan, and net profit attributable to shareholders rose by 5.3% to 893 million yuan [1] - In the second half of the fiscal year, revenue grew by 4.2% year-on-year to 2.392 billion yuan, with net profit increasing by 6.6% to 293 million yuan [2] - The gross profit margin decreased by 0.3 percentage points to 65.6% due to a shift from a higher-margin self-operated model to a lower-margin distribution model [1] - Operating cash flow decreased by 29.2% to 1.133 billion yuan, primarily due to increased inventory [1] Channel and Brand Performance - Online revenue saw a significant increase of 18.3% year-on-year to 1.202 billion yuan, while offline self-operated and distribution revenues experienced a decline of 6.2% and an increase of 9.6%, respectively [2] - The main brand's revenue grew by 2.3%, accounting for 54.3% of total revenue, while emerging brands saw a remarkable growth of 107.4%, making up 6.5% of total revenue [2] Dividend Policy - The company maintains a high dividend payout ratio, with total dividends for the year amounting to 716 million Hong Kong dollars, representing over 75% of net profit [1]

Core Viewpoint - Jiangnan Buyi aims to achieve a revenue target of 10 billion RMB by the fiscal year 2026, despite challenges in the current market environment [1] Financial Performance - For the fiscal year ending June 30, 2025, Jiangnan Buyi reported total revenue of 5.548 billion RMB, a year-on-year increase of 4.64%, and a profit of 898 million RMB, up 6.02% [1][3] - The growth rate of 4.6% for the fiscal year 2025 is lower than the 5% growth rate in the first half of the year, indicating a slight slowdown [3] Brand Performance - The main brand, JNBY, generated revenue of 3.012 billion RMB, accounting for 54.3% of total revenue, with a growth of 2.3% [2][3] - Growth brands, including Croquis, jnby by JNBY, and LESS, saw a slight decline in revenue, totaling 2.174 billion RMB, down 0.5% [2][3] - Emerging brands experienced significant growth, with revenue increasing by 107.4% to 361 million RMB, representing 6.5% of total revenue [2][3] Store Expansion - As of June 30, 2025, Jiangnan Buyi operated 2,117 stores, an increase of 92 stores from the previous year [4][5] - The number of JNBY stores reached 924, while growth brands had 961 stores, and emerging brands had 52 stores [4][5] Sales Channels - In the fiscal year 2025, 81% of Jiangnan Buyi's revenue, amounting to 2.554 billion RMB, came from offline retail stores [6][10] - Online sales grew by 18.3% to 1.202 billion RMB, accounting for 21.7% of total revenue [10] Membership and Customer Engagement - Membership contributed over 80% of retail revenue, with active member accounts increasing to over 560,000 [9][11] - High-value members, defined as those with annual purchases exceeding 50,000 RMB, contributed 48.6 billion RMB, accounting for over 60% of offline retail revenue [9][11] Strategic Direction - Jiangnan Buyi is exploring acquisition opportunities while maintaining a cautious approach, focusing on existing brands for growth in the next three to five years [8] - The company is enhancing its fan-centric retail network and leveraging data-driven strategies to improve customer engagement and loyalty [12]

Investment Rating - The investment rating for the company is "Outperform the Market" [3][5][31] Core Views - The company has demonstrated steady revenue growth of 4.6% year-on-year, reaching 5.548 billion CNY for the fiscal year 2025, with a net profit increase of 5.3% to 893 million CNY [1][3] - The growth in revenue is primarily attributed to the expansion of online channels and the increase in the number of physical stores [1] - The company maintains a high dividend payout ratio of over 75%, with total dividends amounting to 716 million HKD for the year [1][3] Financial Performance Summary - For the second half of the fiscal year, revenue grew by 4.2% to 2.392 billion CNY, while net profit increased by 6.6% to 293 million CNY [2] - Online sales saw a significant increase of 18.3% year-on-year, contributing to the overall revenue growth [2] - The gross profit margin slightly decreased by 0.7 percentage points to 66.2%, while the overall expense ratio improved marginally by 0.2 percentage points to 50.3% [2] Revenue and Profit Forecast - The company is projected to achieve revenues of 6.005 billion CNY in FY2026, with a growth rate of 8.2%, and net profits of 901 million CNY, reflecting a growth of 1.0% [4][31] - The earnings per share (EPS) is expected to be 1.74 CNY in FY2026, with a gradual increase to 1.95 CNY by FY2028 [4][31] Market Position and Valuation - The company is positioned as a leading designer brand group in China, with a strong brand presence and product innovation capabilities [3][31] - The current market price is 19.29 HKD, with a market capitalization of 10 billion HKD [5][31] - The company maintains a price-to-earnings (P/E) ratio of 10.5 for FY2025, indicating a relatively attractive valuation compared to peers [4][32]

Core Viewpoint - The report from CICC indicates that Jiangnan Buyi achieved a revenue of 5.55 billion yuan for the fiscal year ending June 2025, representing a year-on-year increase of 4.6%, and a net profit attributable to shareholders of 890 million yuan, up 5.3%, aligning with expectations [1] Group 1: Financial Performance - Jiangnan Buyi's revenue for the fiscal year ending June 2025 reached 5.55 billion yuan, marking a 4.6% increase year-on-year [1] - The company's net profit attributable to shareholders was 890 million yuan, reflecting a year-on-year growth of 5.3% [1] Group 2: Future Outlook - The company reiterated its retail target of 10 billion yuan for the fiscal year 2026 [1] - CICC anticipates that the company's terminal cash flow in July and August will outperform peers, driven by strong member loyalty and multi-brand cultivation capabilities [1] Group 3: Strategic Initiatives - Jiangnan Buyi plans to establish its own logistics center, which is expected to reduce financial income net of capital occupation, leading to a faster revenue growth rate compared to profit growth in fiscal year 2026 [1] Group 4: Valuation and Rating - CICC raised the target price for Jiangnan Buyi by 18% to 23.7 HKD, corresponding to a price-to-earnings ratio of 12 times for this year and 11.6 times for next year, indicating a 19% upside potential from the current price [1] - The rating of "outperforming the industry" is maintained [1]

Summary of Jiangnan Buyi Conference Call Company Overview - **Company**: Jiangnan Buyi - **Industry**: Fashion Retail Key Points Business Strategy - Jiangnan Buyi maintains a high dividend policy with a payout ratio of 75% [2][3] - The company operates on three core strategies: dual-driven design and branding, multi-brand scaling, and a high-engagement fan economy [2][4] - The gross margin for the fiscal year remains above 65%, with discounts narrowing by 2-3 percentage points [2][4] Financial Performance - For the fiscal year 2025, revenue exceeded 5.5 billion RMB, a year-on-year increase of 4.6%, while profit approached 900 million RMB, growing by 6% [3][4] - The company aims for a retail revenue target of 10 billion RMB by fiscal year 2026, with mature brand JNBY expected to grow in low to mid-single digits [6][4] - Growth brands are projected to achieve double-digit growth, while emerging brands focus on product refinement [6][4] Sales and Inventory Management - Strong sales performance in July and August, with high single-digit growth in July and over 10% growth in August [7][4] - Inventory increase attributed to business growth support and new brand acquisitions, with a future healthy inventory turnover expected to be between 150-200 days [7][8] - The company manages excess inventory through strict discount controls and channels for clearing out-of-season products [7][4] Membership and Customer Engagement - The number of high-value members (annual spending over 5,000 RMB) exceeded 337,000, contributing nearly 4.9 billion RMB in retail sales [5][4] - The company emphasizes maintaining core high-value members while also attracting new members through rich benefits and highly customized services [12][4] - A fan-centric operational system is established to enhance member loyalty and engagement [10][11] New Brand Development - The newly acquired brand On My Game saw a growth rate of approximately 70% and plans to open physical stores in Beijing and Hangzhou in fiscal year 2026 [13][4] - Another acquisition, Block, experienced nearly 50% growth, with a cautious approach to store expansion due to high space requirements [13][4] Future Outlook and Challenges - Despite a complex environment, the company achieved stable growth, with highlights including stable gross margins and active member growth [14][4] - Key future investments include the construction of a logistics center, with an estimated investment of 280 million RMB for land acquisition [14][4] - The company plans to maintain a dividend payout ratio of 75% despite ongoing investments [22][4] Online and Offline Sales Performance - Online sales surpassed 20% of total sales in fiscal year 2025, driven by the performance of On My Game [15][4] - Future online and offline sales ratios will be adjusted based on brand development stages [15][4] Pricing and ASP Trends - The average selling price (ASP) increased from 2,130 RMB to approximately 2,200 RMB in fiscal year 2025 [17][4] - High-value customers demonstrate strong purchasing power, with total spending nearing 4.9 billion RMB [17][4] AI and Technology Integration - The company has made systematic progress in AI applications across various operational aspects, enhancing efficiency and decision-making [18][19][4] Shareholder Returns - The company engages in annual share buybacks for employee stock incentives, maintaining a generous dividend policy [23][24][4] Market Position - Jiangnan Buyi's performance is noted as exceptional among apparel companies, with attractive dividend yields amidst market fluctuations [24][4]