Leysen(SH:603900)2025-04-22 09:00Financial Performance - In 2024, Leysen Jewellery Inc. reported a revenue of CNY 1,222,395,622.04, representing a 66.81% increase compared to CNY 732,816,938.78 in 2023[30]. - The net profit attributable to shareholders was CNY -184,338,868.63 in 2024, a significant decline from CNY -76,198,098.23 in 2023[30]. - The company's net cash flow from operating activities was CNY -208,439,325.92, compared to CNY -89,127,548.24 in the previous year[30]. - As of the end of 2024, the total assets decreased by 4.96% to CNY 2,283,546,377.34 from CNY 2,402,811,992.51 in 2023[30]. - The net assets attributable to shareholders decreased by 10.16% to CNY 1,909,519,494.53 at the end of 2024[30]. - The basic earnings per share for 2024 was CNY -0.53, compared to CNY -0.22 in 2023[31]. - The weighted average return on equity decreased to -9.09% in 2024 from -3.51% in 2023, a drop of 5.58 percentage points[31]. - The company reported a net loss from non-recurring items totaling -6,948,558.38 RMB in 2024, compared to a gain of 4,964,561.65 RMB in 2023[34]. - The company reported a net loss attributable to shareholders of -184.34 million RMB, reflecting changes in product sales structure and a decline in overall gross margin[113]. Revenue and Sales Growth - In 2024, the company's total revenue reached 1.222 billion RMB, representing a year-on-year increase of 66.81%[44]. - The company focused on the "Chuan Shi Jin" brand, achieving a notable increase in gold product sales, which significantly contributed to revenue growth[44]. - The operating cash flow for Q3 2024 was 29,412,327.05 RMB, indicating a positive cash flow after previous negative quarters[33]. - The company has successfully increased new customer numbers for the first time after a continuous decline, with a rising proportion of member repurchases[44]. - The company upgraded 84 stores, resulting in an average sales growth rate of 51%, with several stores achieving monthly sales exceeding 1 million[52]. - Membership sales accounted for 76.55% of total sales, with a total sales amount of ¥127,579.88 million from members[145]. Market Trends and Challenges - The company reported a significant decline in gold consumption, with a 9.58% year-on-year decrease in total gold consumption in China[42]. - In 2024, China's retail sales of gold and silver jewelry decreased by 3.1% year-on-year, with a total retail value of 330 billion RMB, marking the largest decline among all product categories[70]. - The average price of gold in 2024 increased by 22.14% compared to the previous year, while the total gold consumption in China fell by 9.58%, with gold jewelry consumption down by 24.69%[71]. - The diamond product market contracted significantly, with a market size reduction from 60 billion RMB in 2023 to 43 billion RMB in 2024, a decline of 28.33%[72]. - The jewelry market in China is projected to reach ¥778.8 billion in 2024, with a year-on-year decline of 5.02%[150]. Product Development and Innovation - The company is expanding its product offerings, including pearls, jade, and colored gemstones, to meet diverse consumer demands[48]. - The company launched the "ART Series" and "Lucky Carriage Series" during the reporting period, showcasing unique jewelry designs that integrate classic Western art elements, with the "Iris Limited Series" featuring a diamond-encrusted design[50]. - The company aims to enhance brand differentiation and has launched the "Chuan Shi Jin 2.0" positioning, emphasizing "artistic gold worth collecting"[45]. - The "Blue Fire True Heart Diamond" series, featuring a patented heart-shaped cut, represents a breakthrough in diamond cutting technology and aims to resonate emotionally with consumers[99]. - The company launched several new product series, including the "ART Series" and "Lucky Carriage Series," which incorporate European artistic elements and modern aesthetics[81][83]. Marketing and Brand Strategy - A comprehensive marketing matrix was established, achieving nearly 396 million views through campaigns on platforms like Weibo and Douyin, significantly boosting brand exposure and sales[54]. - The company is focusing on a diversified marketing matrix targeting younger consumers through social media and influencer collaborations[109]. - The online business strategy includes expanding presence on platforms like Xiaohongshu and Douyin, aiming to boost both volume and profit through targeted marketing and live streaming[158]. - The company aims to enhance its brand positioning by integrating classic art with modern jewelry design, creating unique and collectible pieces[75]. Governance and Management - The company has maintained a reasonable governance structure, ensuring independence from its controlling shareholders in operations and financial matters[171]. - The total number of shares held by directors and senior management at the end of the reporting period was 102,532,100, reflecting a decrease of 360,000 shares due to stock buybacks[175]. - The company is committed to continuous improvement in governance practices to protect investors' rights and interests[171]. - The company has a clear remuneration policy aimed at improving organizational efficiency and aligning employee performance with business goals[194]. - The company has a diverse board with members holding various roles in other organizations, enhancing its governance and strategic oversight[178]. Future Plans and Strategic Initiatives - The company plans to establish at least 50 high-revenue stores, targeting a significant increase in sales performance through refined operational standards[157]. - The company intends to open 15 high-revenue franchise stores and 35 new franchise locations, focusing on developing quality franchise partners[160]. - The company has established a training plan for 2025 focusing on strategic collaboration and business growth, including five key initiatives[195]. - The company aims to enhance its market response speed and product pricing power to counteract raw material price volatility[165]. - The company recognizes the risk of slow macroeconomic growth impacting consumer spending on non-essential goods like gold jewelry and plans to adapt its strategies accordingly[161].