LANCY(SZ:002612)2025-04-02 09:45Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 4 RMB per 10 shares to all shareholders, based on a total of 442,445,375 shares[4]. Risk Awareness and Forward-Looking Statements - The company emphasizes the importance of risk awareness regarding forward-looking statements in the annual report, highlighting potential risks in future development[3]. Business Operations and Investments - The company has established a chain brand "Jingfu Medical Beauty," which operates 30 medical beauty institutions and 5 beauty stores across various cities[9]. - The company holds a 10% stake in Guangzhou Ruoyuchen Technology Co., Ltd., which is publicly listed[9]. - The company has a 29.23% stake in Beijing Lanzi Hanya Asset Management Co., Ltd., a significant investment in asset management[9]. - The company is involved in multiple investment partnerships, including a 49.88% stake in Wuhu Bochen No. 5 Equity Investment Partnership[10]. - The company has a 46.91% stake in Wuhu Boheng No. 2 Venture Capital Partnership, indicating active participation in venture capital[10]. - The company has a 19.96% stake in Chengdu Lanzi Wufa Medical Beauty Industry Equity Investment Fund, showcasing its investment strategy in the medical beauty sector[10]. Financial Performance - The company's operating revenue for 2024 was CNY 5,690,786,090, a decrease of 0.24% compared to CNY 5,704,641,390 in 2023[17]. - The net profit attributable to shareholders for 2024 was CNY 257,202,654, reflecting an increase of 1.38% from CNY 253,693,995 in 2023[17]. - The net cash flow from operating activities decreased by 35.61% to CNY 566,585,643 in 2024, down from CNY 879,894,753 in 2023[17]. - Basic earnings per share for 2024 were CNY 0.5813, up 1.38% from CNY 0.5734 in 2023[17]. - Total assets at the end of 2024 were CNY 7,971,411,120, a decrease of 4.68% from CNY 8,362,546,130 at the end of 2023[18]. - The company reported a weighted average return on equity of 7.86% for 2024, an increase of 0.80% from 7.06% in 2023[17]. - The company recognized government subsidies of CNY 23,248,705.60 in 2024, compared to CNY 17,539,879.09 in 2023[23]. - The company disposed of non-current assets resulting in a loss of CNY 691,566.59 in 2024, down from a gain of CNY 13,796,216.90 in 2023[23]. - The net profit after deducting non-recurring gains and losses for 2024 was CNY 217,630,692, an increase of 11.30% compared to CNY 195,530,732 in 2023[17]. - The company experienced a significant decline in net assets attributable to shareholders, which decreased by 21.59% to CNY 2,787,342,997 at the end of 2024 from CNY 3,555,028,550 at the end of 2023[18]. Market Trends and Economic Indicators - In 2024, the retail sales of clothing in China reached CNY 1,071.62 billion, with a year-on-year growth of only 0.1%, indicating a slowdown in growth[30]. - Fixed asset investment in the clothing industry increased by 18.0% year-on-year in 2024, surpassing the overall growth rates of the textile and manufacturing sectors by 2.4 and 8.8 percentage points respectively[30]. - The per capita clothing consumption expenditure for residents in 2024 was CNY 1,521, reflecting a growth of 2.8% compared to the previous year[28]. - The contribution rate of domestic demand to economic growth in 2024 was 69.7%, highlighting its role as the main driver of economic growth[29]. - The number of newborns in China in 2024 was 9.54 million, an increase of 520,000 from 2023, marking the first rise since 2017[35]. - The online retail sales of physical goods in 2024 reached CNY 1,308.16 billion, growing by 6.5% year-on-year, accounting for 26.8% of total retail sales[27]. - The growth of per capita expenditure on other goods and services was 10.8% in 2024, with rural residents seeing a 12.8% increase[28]. - The government is implementing policies to boost consumption, including increasing pensions and improving employment opportunities, which are expected to enhance consumer spending[29]. - The clothing industry is experiencing a recovery in investment confidence, with a focus on smart production and brand development to improve supply chain efficiency[30]. - The rise of the "she economy" is changing consumer behavior, with women increasingly prioritizing personalized and quality consumption[33]. - The maternal and infant market in China reached a consumption scale of 4 trillion yuan in 2023, with an expected growth rate of around 7% in the future[36]. - In the children's clothing sector, 70% of parents continue to invest in their children's outfits, indicating a strong consumer willingness across different family types[37]. Medical Beauty Industry Insights - The number of plastic surgeons in China has reached 3,000, ranking fourth globally, highlighting the rapid growth of the medical beauty industry[38]. - The genuine product rate of medical beauty injectables in the market is only 35%, emphasizing the need for improved consumer education and regulatory oversight[38]. - By 2025, Hangzhou aims for a revenue target of 5-8 billion yuan in the medical beauty industry, with a dual policy approach to support and regulate the sector[42]. - Chengdu has set a target for its medical beauty industry to exceed 100 billion yuan by 2025, with ongoing initiatives to enhance industry standards and consumer protection[42]. - The overall medical beauty market in China is projected to grow at a rate of approximately 10% in 2024, with a compound annual growth rate of 10-15% expected from 2024 to 2027[43]. - The current market penetration rate of medical beauty services in China is only 4-5%, indicating significant growth potential compared to countries like the US and South Korea[44]. - The introduction of 14 new Class III injectable products and over 60 optical medical devices in early 2024 reflects a rich supply-side growth in the medical beauty sector[44]. - The trend of "self-care" consumption is emerging, with consumers increasingly valuing the positive impacts of medical beauty on their well-being[44]. Women's Apparel Segment Performance - The women's apparel segment achieved revenue of 192,506.01 million yuan, a decrease of 2.97% compared to the previous year, with a gross profit of 122,153.83 million yuan and a gross margin of 63.45%[63]. - The total number of women's apparel stores at the end of the reporting period was 522, including 366 self-operated stores, 99 franchised stores, and 57 online stores, a decrease of 77 stores from the previous year[62]. - Online sales accounted for 39.94% of the women's apparel revenue, increasing from 37.25% in the previous year, while self-operated sales represented 55.08%[65]. - The LɅNCY brand generated 142,784.13 million yuan, making up 74.17% of the women's apparel revenue, showing a slight increase from 71.55% in the previous year[64]. - The LIME brand contributed 33,945.45 million yuan, accounting for 17.63% of the women's apparel revenue, down from 19.14% in the previous year[64]. - The company operates a dual business model for women's apparel, focusing on self-operated and franchised stores while expanding online channels[62]. - The company emphasizes a "sales-driven production" model, optimizing inventory levels and turnover times[63]. - The women's apparel segment's revenue from self-operated stores was 106,035.34 million yuan, representing 55.08% of total revenue[65]. - The company has established a multi-industry interconnected fashion ecosystem, focusing on women's fashion, medical beauty, and green children's products[63]. - The company aims to maintain its industry-leading position by enhancing its digital operations and marketing capabilities[63]. E-commerce and Digital Operations - The company's e-commerce payment amount for the entire year of 2024 increased by over 19% year-on-year, with Tmall channel payment amount growing by 7% and Douyin channel payment amount increasing by over 37%[76]. - During the 2024 Double 11 event, the total e-commerce payment exceeded 597 million, representing a 34% year-on-year growth, with Tmall's single store payment reaching 369 million, achieving a 49% year-on-year increase[76]. - The company participated in the WHO'S NEXT fashion exhibition in Paris, showcasing the unique charm of MADE IN CHINA to the global fashion industry[66]. - The company established a comprehensive customer management system integrating public and private domain operations, enhancing brand visibility on platforms like Xiaohongshu and Douyin[75]. - The company implemented RFID technology to enhance inventory management accuracy and operational efficiency across stores, achieving real-time alignment of accounts and inventory[72]. - The company launched a new product line targeting urban women's diverse scenarios, including business commuting, high-end social events, and outdoor activities, while prioritizing eco-friendly materials[68]. - The company organized over three high-frequency offline store activities monthly to enhance customer engagement and improve in-store conversion rates[69]. - The company's video account on Douyin achieved over 13.45 million views and 340,000 interactions in 2024, while Xiaohongshu garnered 3.63 million views and added 18,000 new followers[75]. - The company is focusing on enhancing brand perception through a multi-dimensional visual material output system, significantly increasing the frequency of brand content delivery[67]. - The company is optimizing its product development and ordering systems to improve efficiency and reduce costs, ensuring accurate and consistent product information across all channels[73]. Medical Beauty Business Expansion - The company has successfully expanded its medical beauty business, acquiring 41 medical beauty institutions, including 12 comprehensive hospitals and 29 clinics, as of the end of the reporting period[77]. - In 2024, the company continued its expansion by acquiring Zhengzhou Jimei, Beijing Milan, and Hunan Yamei, further enhancing its market presence[77]. - The company has achieved TUV-SQS medical quality service system certification for 8 medical beauty institutions and 5A hospital qualification for 5 institutions, including Xi'an Milan and Beijing Milan[78]. - The company’s flagship brand, Milan Baiyu, has transitioned to a nationwide chain model, with significant upgrades in locations such as Shenzhen and Beijing[79]. - The company’s subsidiary, Jingfu Medical Beauty, has established 30 hospitals and clinics, focusing on community-based services and lifestyle beauty solutions[91]. - The company’s Kunming Hanchen hospital, established in 2015, spans approximately 12,000 square meters and features 20 hotel-standard patient rooms and 11 advanced operating rooms[93]. - Wuhan Hanchen, established in 2015, has over 6,000 square meters of renovated space and has passed the TUV-SQS certification in 2023[95]. - The company emphasizes a dual-driven model of external expansion and internal growth, enhancing its operational efficiency and market reach[77]. - The company aims to become a benchmark for standardized and healthy development in the medical beauty industry in China[79]. - The company has implemented strict operational standards, including a seven-day cooling-off period and real-time video monitoring, to protect customer rights[91]. Medical Beauty Segment Financials - The medical beauty business segment achieved revenue of 2,783.87 million yuan, a year-on-year increase of 3.47%[109]. - The gross profit for the medical beauty segment was 1,514.87 million yuan, with a gross margin of 54.42%[109]. - The main revenue sources by brand include Milan Baiyu at 1,265.26 million yuan (45.44%), Crystal Skin Medical Beauty at 470.95 million yuan (16.92%), and Han Chen Medical Beauty at 369.37 million yuan (13.27%) for the year 2024[112]. - Non-surgical medical beauty services accounted for 85.58% of total medical beauty revenue, while surgical services made up 14.42%[113]. - The company has established seven medical beauty acquisition funds with a total scale of 2.837 billion yuan to enhance its market position[114]. - The company aims to integrate and absorb high-quality domestic medical beauty resources to rapidly capture market share through brand promotion and chain operations[114]. Certifications and Standards - The company has received multiple certifications and awards, including "AAAAA Level Medical Beauty Institution" and "5A Level Medical Beauty Hospital"[100][102]. - The company is committed to the principles of "safe medical beauty, quality medical beauty, and reputable medical beauty" to ensure compliance and enhance industry standards[114]. - The company plans to continue developing its strategic planning to support the long-term growth of its medical beauty business[114]. Safety and Quality Initiatives - In 2024, the company organized 305 emergency drills, including 253 major event drills and 52 CPR drills, covering a total of 4,885 participants[116]. - The company launched 35 new quality standards for medical aesthetics services, focusing on customer feedback and service quality improvement[120]. - The company's digital platform integrates various modules, enhancing customer experience and operational efficiency through data analysis and management[119]. - The company continues to enhance its medical safety standards, conducting quarterly assessments and training sessions to ensure compliance with safety regulations[116]. Green Baby and Children's Business Performance - The company's green baby and children’s business generated revenue of 921.49 million yuan, a decrease of 5.53% year-over-year, with a gross profit of 569.08 million yuan and a gross margin of 61.76%[128]. - The total revenue from the infant and child business reached ¥92,149.35 million, a decrease of 5.4% from ¥97,545.53 million in 2023[129]. - Agabang accounted for 51.53% of the infant and child business revenue in 2024, down from 48.81% in 2023, while Ettoi represented 32.68%, slightly decreasing from 33.15%[129]. - The company added 14 new stores in the infant and child business during the reporting period, bringing the total to 545 stores[130]. - Self-operated sales contributed ¥72,308.99 million, representing 78.47% of the total infant and child revenue in 2024, compared to 75.94% in 2023[131]. - The company is focusing on enhancing its high-end brand "ETTOI" in the domestic market, aiming to increase sales and brand influence through various promotional activities[132]. Research and Development - The company has established a strong digital operation capability, utilizing AI, RFID, and BI tools to enhance efficiency across product development, sales strategies, and inventory management[138]. - The R&D center has obtained 7 invention patents and 24 software copyrights, indicating a strong commitment to product innovation and development[140]. - The company has a strategic focus on building a "pan-fashion industry interconnected ecosystem," targeting the fashion women's, medical beauty, and green infant and child sectors[133]. - The company is leveraging its digital platform to improve customer relationship management and operational efficiency in the medical beauty sector[139]. Cash Flow and Financial Management - Operating cash inflow decreased by 1.19% to ¥5,815,099,390.05, while cash outflow increased by 4.87% to ¥5,248,513,746.51, resulting in a net cash flow decrease of 35.61%[187]. - Investment cash inflow surged by 216.67% to ¥1,156,970,660.01, primarily due to increased recovery of financial products[188]. - Investment cash outflow rose by 107.92% to ¥1,573,791,282.37, attributed to higher acquisition payments and financial product transactions[188]. - Financing cash inflow increased by 11.51% to ¥1,984,045,753.78, while outflow decreased by 9.98% to ¥2,050,554,092.87, leading to a net cash flow improvement of 86.66%[188]. - The net increase in cash and cash equivalents rose significantly by 686.91% to ¥61,612,958.96, driven by improved financing cash flow[189]. Product Development and Innovation - The company aims to enhance product functionality and competitiveness through new patent applications, including a detachable sleeve for protective jackets[184]. - The company is focusing on expanding its product line with innovative designs, such as a high-neck sweater and a women's garment with an adjustable waist[184]. - The company is committed to improving the practicality and aesthetics of its clothing products, thereby increasing market competitiveness[184]. Investment and Acquisitions - The company reported a significant increase in total investments during the reporting period, totaling 1,573,791,282.37, a 107.92% increase compared to the previous year's investment of 756,929,474.75[197]. - The company completed a significant acquisition of a medical beauty hospital for a total investment of 920 million, representing a 100% ownership stake[198]. - The company also acquired another medical beauty hospital for 330 million, maintaining a 100% ownership stake[198]. - A third acquisition involved a medical beauty hospital for 252 million, also achieving 100% ownership[198]. - The total amount of equity investments made during the reporting period reached 751.92 million[198]. Financial Assets and Liabilities - The company’s total financial assets at the end of the reporting period were valued at 632.05 million[200]. - The company has ongoing non-equity investments, although specific details were not disclosed[199]. - The company’s securities investments included a public fund with a cost of 186 million and a fair value of 119.7 million, resulting in a loss of 19.98 million[200]. - The company reported a fair value change of 37.52 million for its financial asset investments, with a total investment of 792.25 million[200].