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]

Core Viewpoint - The company reported FY25 results that met expectations, with revenue of 5.55 billion yuan and a net profit of 890 million yuan, reflecting year-on-year growth of 4.6% and 5.3% respectively [1][2] Financial Performance - The company declared a final dividend of 0.93 HKD per share, alongside an interim dividend of 0.45 HKD per share, resulting in an annual payout ratio of approximately 75% [1] - FY25 gross margin decreased by 0.3 percentage points to 65.6%, primarily due to an increase in revenue contribution from distribution and online channels [2] - FY25 net profit margin increased by 0.1 percentage points to 16.1% [2] Membership and Sales Channels - The number of high-value members (those with purchases exceeding 5,000 yuan) increased by approximately 20,000 to over 330,000 [1] - Revenue from direct sales, distribution, and e-commerce channels for FY25 was 2.08 billion, 2.27 billion, and 1.20 billion yuan respectively, with year-on-year changes of -6%, +10%, and +18% [1] - The company reduced its direct store count by 24 to 492, while increasing its distribution stores by 116 to 1,625 [1] Brand Performance - Revenue from the JNBY, jnby by JNBY, LESS, and Su Xie brands for FY25 was 3.01 billion, 830 million, 620 million, and 720 million yuan respectively, with year-on-year changes of +2.3%, +2.9%, +0.2%, and -4.6% [1] - New emerging brands saw a revenue increase of 107.4% to 360 million yuan, driven by the consolidation of newly acquired brands onmygame and B1OCK [1] Future Outlook - The company reiterated its goal of achieving 10 billion yuan in retail sales for FY26, with expectations of better terminal sales performance compared to peers [2] - Plans to establish a logistics center are anticipated to reduce capital occupation and improve financial returns, leading to faster revenue growth than profit growth in FY26 [2] Earnings Forecast and Valuation - The FY26 profit forecast is maintained at 926 million yuan, with an introduction of FY27 profit forecast at 983 million yuan [2] - The current stock price corresponds to 10.1 and 9.7 times FY25 and FY26 price-to-earnings ratios, with an 18% increase in target price to 23.70 HKD, implying a 19% upside potential [2]

Core Viewpoint - The clothing industry in 2025 is experiencing a dichotomy, with outdoor sports brands thriving while traditional fashion apparel faces significant challenges. Jiangnan Buyi has reported a unique performance amidst this landscape, showcasing growth in revenue and net profit despite industry headwinds [2][3]. Financial Performance - Jiangnan Buyi's revenue for the fiscal year ending June 30, 2025, increased by 4.6% to 5.548 billion yuan, with net profit rising by 6.0% to 898 million yuan. The gross margin remained high at 65.6%, indicating strong brand premium and cost control capabilities [2][3]. - The mature brand JNBY saw a revenue increase of 2.3% to 3.013 billion yuan, accounting for 54.3% of total revenue. The growth brand segment experienced a slight decline of 0.5% to 2.174 billion yuan, representing 39.2% of total revenue. Newly acquired emerging brands reported a remarkable revenue increase of 107.4% to 361 million yuan, rising from 3.3% to 6.5% of total revenue [2][3]. Membership System - Jiangnan Buyi's core membership system is a key driver of high-quality growth, contributing over 80% of total retail sales. Active membership accounts increased to over 560,000, with those spending over 5,000 yuan exceeding 330,000 [3][6]. - The retail sales from members reached 4.86 billion yuan, contributing over 60% of offline retail sales [3]. Strategic Direction - The company aims to achieve a sales target of 10 billion yuan by 2026, aligning with its strategic planning despite the changing industry landscape [3][4]. - Jiangnan Buyi plans to continue optimizing its designer brand and product mix through self-incubation and acquisitions, enhancing design and R&D capabilities [3][4]. Channel Expansion - As of June 30, 2025, Jiangnan Buyi operated 2,117 independent retail stores globally, up from 2,025 the previous year, with the majority located in mainland China, Hong Kong, and Taiwan [4]. - The company has successfully established 22 multi-brand collection stores to increase brand exposure and provide more growth services [5]. Inventory Management - Inventory increased by 24.2% to 932.6 million yuan, attributed to supporting business growth and increased new product stocking, as well as the impact of last year's warm winter on sales [13][14]. Future Growth Engines - The company anticipates that the primary growth drivers over the next three years will stem from existing brands, particularly emerging brands, while maintaining a cautious approach to acquisitions [16][17].

Core Viewpoint - CICC maintains the FY26 profit forecast for Jiangnan Buyi (03306) at 926 million yuan and introduces the FY27 profit forecast at 983 million yuan, with the current stock price corresponding to 10.1/9.7 times FY25/26 P/E ratio, maintaining an outperform rating for the industry [1] Financial Performance - The company reported FY25 (July 2024 - June 2025) performance: revenue of 5.55 billion yuan, up 4.6% year-on-year; net profit attributable to shareholders of 890 million yuan, up 5.3% year-on-year, in line with CICC's expectations [2] - The company declared a final dividend of 0.93 HKD per share, along with an interim dividend of 0.45 HKD per share, resulting in an annual payout ratio of approximately 75% [2] Membership and Brand Growth - The number of members with total purchases exceeding 5,000 yuan increased by about 20,000 to over 330,000 in FY25. Revenue from direct sales, distribution, and e-commerce channels grew by -6%/+10%/+18% to 2.08 billion, 2.27 billion, and 1.20 billion yuan respectively, with strong growth in online sales driven by onmygame [3] - The number of direct stores decreased by 24 to 492, while the number of distribution stores increased by 116 to 1,625, as the company converted some non-core city direct stores to distribution [3] - Revenue from brands JNBY, jnby by JNBY, LESS, and Su Xie grew by 2.3%/2.9%/0.2%/-4.6% to 3.01 billion, 830 million, 620 million, and 720 million yuan respectively, while revenue from emerging brands surged by 107.4% to 360 million yuan, mainly due to the consolidation and rapid growth of newly acquired brands onmygame and B1OCK [3] Profitability and Inventory Management - FY25 gross margin decreased by 0.3 percentage points to 65.6%, mainly due to the increased proportion of revenue from distribution and online channels [4] - FY25 selling expense ratio increased by 0.6 percentage points to 35.6%, primarily due to increased brand investment and expenses related to the 30th anniversary activities; management expense ratio rose by 0.1 percentage points to 9.6% [4] - The effective tax rate for FY25 decreased by 3.8 percentage points to 26.3%, mainly due to reduced withholding tax on dividends; overall, the net profit margin attributable to shareholders increased by 0.1 percentage points to 16.1% [4] - The inventory turnover days at the end of FY25 increased by 5 days to 161 days, mainly due to increased inventory and stocking for the 2024 autumn and winter seasons [4] Development Trends - The company reiterated its target of 10 billion yuan in retail sales for FY26, with expectations of better terminal sales in July-August compared to peers, driven by strong member loyalty and multi-brand cultivation capabilities [5] - The company plans to build its own logistics center, which is expected to reduce capital occupation and improve financial income net, leading to faster revenue growth than profit growth in FY26 [5]

Core Viewpoint - The report from CICC maintains the FY26 profit forecast for Jiangnan Buyi (03306) at 926 million yuan and introduces the FY27 profit forecast at 983 million yuan, with the current stock price corresponding to 10.1/9.7 times FY25/26 P/E ratio, maintaining an outperform rating for the industry [1] Group 1: Financial Performance - The company's FY25 (July 2024 - June 2025) performance met CICC's expectations, with revenue of 5.55 billion yuan, a year-on-year increase of 4.6%, and a net profit attributable to shareholders of 890 million yuan, up 5.3% year-on-year [2] - The company declared a final dividend of 0.93 HKD per share, along with an interim dividend of 0.45 HKD per share, resulting in an annual payout ratio of approximately 75% [2] Group 2: Membership and Brand Growth - The number of member accounts with total purchases exceeding 5,000 yuan increased by about 20,000 to over 330,000 in FY25 [3] - Revenue from direct sales, distribution, and e-commerce channels in FY25 showed a year-on-year change of -6%, +10%, and +18%, respectively, with online sales benefiting from strong growth in the onmygame brand [3] - The company reduced its direct stores by 24 to 492, while increasing distribution stores by 116 to 1,625, converting some non-core city direct stores to distribution [3] - Revenue from the JNBY, jnby by JNBY, LESS, and Su Xie brands in FY25 showed year-on-year changes of +2.3%, +2.9%, +0.2%, and -4.6%, respectively, while new brands' revenue increased by 107.4% to 360 million yuan, mainly due to the consolidation and rapid growth of newly acquired brands onmygame and B1OCK [3] Group 3: Profitability and Inventory Management - The gross profit margin in FY25 decreased by 0.3 percentage points to 65.6%, primarily due to the increased proportion of revenue from distribution and online channels [4] - The selling expense ratio increased by 0.6 percentage points to 35.6% due to increased brand investment and expenses related to the 30th anniversary activities; the management expense ratio rose by 0.1 percentage points to 9.6% [4] - The effective tax rate decreased by 3.8 percentage points to 26.3% due to reduced withholding tax on dividends, resulting in a net profit margin attributable to shareholders increasing by 0.1 percentage points to 16.1% [4] - The inventory turnover days at the end of FY25 increased by 5 days to 161 days, mainly due to increased inventory and stocking for the 2024 autumn and winter seasons [4] Group 4: Future Development Trends - The company reiterated its goal of achieving 10 billion yuan in retail sales for FY26, with expectations of better terminal sales performance than peers in July and August [5] - The company is optimistic about its strong member loyalty and multi-brand cultivation capabilities, which are expected to lead to stable growth in performance [5] - The company plans to build its own logistics center, which is expected to reduce capital occupation and improve financial income net, leading to a faster revenue growth rate than profit growth in FY26 [5]