SYG(SZ:300740) Xin Lang Zheng Quan·2025-05-14 08:54Core Insights - In 2024, Shuiyang Co. reported disappointing financial results, with total revenue of 4.237 billion yuan, a year-on-year decline of 5.69%, and a net profit attributable to shareholders of only 110 million yuan, down 62.63% year-on-year [1][2] - The company's challenges stem from ineffective execution of its high-end strategy and insufficient market adaptability, leading to a significant gap between expected and actual performance of high-end brands [1][2] Financial Performance - Revenue for 2024 was 4.237 billion yuan, down 5.69% from the previous year [1] - Net profit attributable to shareholders was 110 million yuan, a decrease of 62.63% year-on-year [1] - Gross margin improved, but increased sales expenses and tight cash flow highlighted operational inefficiencies [1] Strategic Challenges - The high-end strategy has not been effectively executed, with brands like EDB and PA failing to meet market expectations [1] - The disconnect between high pricing strategies and consumer demand for value has hindered sales growth [1] - R&D investment reached 82.1755 million yuan, up 7.32% year-on-year, but the market conversion of this investment has been unsatisfactory [1][2] Sales and Marketing Issues - Sales expenses surged to 2.079 billion yuan, an increase of 11.9%, accounting for 47% of total revenue, significantly higher than the industry average [2] - Despite increased marketing efforts on platforms like Douyin and Xiaohongshu, the marginal returns on marketing investments have diminished, failing to boost sales effectively [2] Long-term Outlook - The company faces systemic risks in its transition to high-end markets and must optimize inventory structure, control sales expenses, and manage accounts receivable risks to stabilize short-term performance [2] - A long-term strategy should focus on redefining brand value, targeting niche markets, and enhancing product competitiveness to improve market conversion efficiency [2]