Brand Positioning and Customer Engagement - The company ranks first in the Chinese designer brand fashion industry based on retail sales as of 2020[23] - The mature brand JNBY has the highest brand loyalty among the top ten women's designer brands in China, based on repeat customer numbers[23] - The company aims to create a diverse and loyal customer base through a lifestyle ecosystem that meets different life stage needs[23] - The company targets middle to high-income customers who express their individuality through fashion[23] - The company emphasizes a unified brand philosophy of "Just Naturally Be Yourself" across its various brands[23] - The company has established a multi-channel interactive platform consisting of physical retail stores, online platforms, and social media marketing services[23] - The company has introduced new consumption scenarios and products, such as "Not Just a Box" and "JNBY+" multi-brand stores[23] - The company maintains a VIP database and engages with fans through various channels, including its website and social media, to enhance customer interaction and brand loyalty[79] - The company has adopted a "fan economy" strategy to build a lifestyle ecosystem around its brand, focusing on customer engagement through multiple channels[161] Financial Performance - For the fiscal year ending June 30, 2021, the company reported revenue of approximately RMB 4,126.2 million, an increase of 33.1% compared to RMB 3,099.4 million in the previous year[26] - Net profit for the same period reached approximately RMB 647.2 million, representing an 86.7% increase from RMB 346.7 million in the prior year[26] - The company's gross profit margin improved to 62.9%, up from 59.7% in the previous year, reflecting a 3.2% increase[26] - Operating profit for the fiscal year was RMB 883.9 million, an increase of 82.2% from RMB 485.0 million in the previous year[26] - The company achieved a net cash flow from operating activities of RMB 1,336.6 million, nearly doubling from RMB 668.8 million in the previous year, a 99.9% increase[26] - The accounts receivable turnover days improved to 9.6 days from 12.5 days, indicating better efficiency in collections[27] - Inventory turnover days decreased significantly to 192.3 days from 257.6 days, suggesting improved inventory management[27] - The company's total assets increased, with non-current assets rising to RMB 1,329.7 million from RMB 728.1 million year-on-year[28] - The adjusted net profit for the fiscal year, excluding pandemic-related non-comparable factors, was approximately RMB 623.9 million[30] Revenue Breakdown - Total revenue for the fiscal year 2021 reached RMB 4,126.2 million, an increase of 33.1% compared to RMB 3,099.4 million in fiscal year 2020[44] - Revenue from the mature brand JNBY rose by 30.5%, contributing RMB 2,298.8 million, accounting for 55.7% of total revenue[45] - The growth brand segment, including CROQUIS, jnby by JNBY, and LESS, saw a revenue increase of 37.8%, totaling RMB 1,740.3 million, representing 42.2% of total revenue[44] - Online channel revenue grew by 42.4%, increasing from RMB 464.1 million in 2020 to RMB 660.7 million in 2021, with its share rising from 15.0% to 16.0%[48] - Revenue from self-operated stores increased by 29.7% to RMB 1,755.9 million, representing 42.6% of total revenue[47] - The revenue from distributors rose by 33.9% to RMB 1,709.6 million, making up 41.4% of total revenue[47] - Revenue from the Chinese mainland accounted for 99.3% of total revenue, increasing by 33.1% to RMB 4,095.8 million[49] - The emerging brand segment, including POMME DE TERRE and JNBYHOME, accounted for 2.1% of total revenue, with significant growth in JNBYHOME's revenue by 319.4%[45] Operational Efficiency - In the fiscal year 2021, the sales and marketing expenses amounted to RMB 1,429.2 million, representing a 24.8% increase from RMB 1,145.0 million in fiscal year 2020, with the expense ratio decreasing to 34.6% from 36.9% due to overall revenue growth and improved operational efficiency[52] - The group's profit before tax increased to RMB 886.6 million in fiscal year 2021, up 82.3% from RMB 486.4 million in fiscal year 2020, primarily driven by increased operational efficiency[52] - The net profit margin for fiscal year 2021 was RMB 647.2 million, an increase of 86.7% from RMB 346.7 million in fiscal year 2020, with the net profit margin rising to 15.7% from 11.2%[52] - Cash and cash equivalents as of June 30, 2021, were RMB 549.0 million, up from RMB 336.7 million a year earlier, with a net cash inflow from operating activities of RMB 1,336.6 million, a 99.9% increase from RMB 668.8 million in fiscal year 2020[52] - The total employee cost for fiscal year 2021 was RMB 357.7 million, maintaining the same expense ratio of 8.7% as in fiscal year 2020, with the number of employees increasing to 1,397 from 1,128[53] Strategic Initiatives and Future Plans - The company plans to enhance its brand strength and optimize its retail network to adapt to changing consumer behaviors post-pandemic[30] - The company aims to enhance its brand power and design capabilities while expanding its retail network both domestically and internationally[31] - The company plans to create a lifestyle ecosystem centered around its brand, focusing on diverse product offerings and a loyal fan base[31] - The company anticipates continued growth in the designer brand market, driven by consumer demand for personalized and fashionable products, particularly among younger consumers[56] - The company aims to optimize its designer brand portfolio through self-incubation or acquisitions, enhancing design and R&D capabilities[57] - The company is committed to data-driven operations and enhancing fan experience through innovative service offerings[57] - The company is implementing an ESG governance framework to ensure sustainable long-term development by 2025[57] Corporate Governance and Management - The management team includes experienced leaders with over 25 years in the fashion industry, ensuring strategic oversight and operational management[58][59] - The company has a robust management team with over 15 years of experience in auditing and finance, enhancing its financial oversight capabilities[67] - The company has established a remuneration committee to oversee the remuneration policies for directors and senior management[87] - The company has adopted a board diversity policy to enhance performance, considering factors such as age, cultural background, and professional experience[112] - The company has established a clear division of responsibilities between the chairman and the CEO to enhance corporate governance[114] - The company has established a risk management system and internal controls, which were reviewed by the board for effectiveness covering financial, operational, compliance, and risk management functions[129] - The company has implemented a disclosure system to manage potential insider information and ensure timely disclosure in accordance with listing rules[131] Sustainability and Environmental Initiatives - The company is committed to sustainability, believing it is crucial for long-term development, and encourages team members to focus on their passions in life and work[136] - The company aims for sustainable materials to account for at least 30% of total fabric procurement weight by the end of fiscal year 2024[139] - The company emphasizes reducing resource waste and maximizing fabric utilization as part of its sustainability goals[139] - The ESG governance structure includes a board of directors overseeing ESG matters and an ESG Working Group responsible for implementing sustainability strategies[140] - The company has identified 20 key ESG issues relevant to its operations through stakeholder engagement and prioritization[142] - The company actively engages with stakeholders, including government, investors, employees, and suppliers, to address their concerns and expectations regarding product quality and sustainability[148] - The company utilizes 100% recycled polyester yarn in its new fabric, significantly reducing plastic pollution and water usage during the printing process[155] - The company employs GOTS certified organic cotton in its products, enhancing sustainability through non-GMO seeds and organic farming practices[157] Quality Control and Customer Satisfaction - The company has implemented a comprehensive quality control system, including inspections at various production stages to maintain product quality standards[159] - The company has established a product recall mechanism to address quality and non-quality issues, ensuring consumer safety and rights protection[161] - The average score from the mystery shopper project conducted in May 2021 across 102 stores reached 85.45%, an increase of 2.25% year-on-year, indicating good service quality[163] - User satisfaction reached 94.30% in the fiscal year 2021, reflecting the effectiveness of the group's customer service initiatives[168] - The group received a total of 1,472 complaints through the 400 hotline by the end of the fiscal year 2021, achieving a complaint response and resolution rate of 100%[164] Employee Development and Workplace Safety - The company emphasizes employee development through diverse training programs, including external and internal training opportunities[191] - The employee training participation rate was 87.9%, with an average of 8.4 training hours per employee[194] - The company has implemented a series of safety management systems to ensure employee health and safety, including emergency response plans and safety training[187] - The company reported zero fatalities due to work-related incidents in the fiscal year 2021[189] - The total number of workdays lost due to injuries was 159 days in the fiscal year 2021[189] - The company has established a recruitment management system to enhance recruitment efficiency and transparency, utilizing various recruitment methods[178] Risk Management and Compliance - The company has established a risk management system and internal controls, which were reviewed by the board for effectiveness covering financial, operational, compliance, and risk management functions[129] - The company has implemented compliance training for employees to ensure understanding of anti-fraud policies, with no corruption lawsuits reported by the end of the fiscal year[197] - The company has a zero-tolerance policy towards corruption and fraud, with a comprehensive internal control system in place[195]
江南布衣(03306) - 2021 - 年度财报