Leysen(SH:603900) Xin Lang Zheng Quan·2025-05-29 07:52Core Viewpoint - The company is experiencing significant revenue growth while simultaneously deepening its losses, indicating a fundamental operational and strategic imbalance [1][2]. Revenue and Profitability - In 2024, the company achieved a revenue of approximately 1.22 billion yuan, representing a year-on-year increase of 66.81% [1]. - The net profit attributable to shareholders was approximately -184 million yuan, indicating an increase in losses [1]. Strategic Shift and Challenges - The company's strategic focus has shifted entirely towards the gold business, which has not yielded the expected results and has instead become a liability for profitability [2]. - The low gross margin of the gold business and the volatility of industry prices have led to a significant divergence between revenue growth and profit levels [2]. - The rapid growth of the gold segment has diluted the overall gross margin, while traditional high-margin businesses like diamonds continue to decline, further complicating profit recovery [2]. Operational Efficiency and Management Issues - The company's operational management is misaligned with its aggressive expansion strategy, resulting in inventory turnover efficiency significantly below the industry average [3]. - Excessive inventory of gold and diamonds not only ties up cash flow but also poses a risk of impairment due to price declines [3]. - Accounts receivable are growing at a rate far exceeding revenue growth, indicating a heavy reliance on credit sales, which exacerbates cash flow pressures and raises doubts about revenue authenticity [3]. Governance and Market Confidence - Governance issues, such as share reductions by major shareholders and the founder's exit from management, have shaken investor confidence in the continuity of the company's strategy [3]. - The management has failed to propose effective solutions to core issues like inventory buildup and cash flow depletion, instead revealing strategic inconsistency through repeated adjustments in store expansion and contraction [3]. Conclusion and Implications - The case of the company illustrates a typical dilemma: during a period of industry decline, relying solely on trending product categories while neglecting internal capability development can lead to a "false prosperity" trap [4]. - The rapid scale of the gold business is overshadowed by a collapse in profitability logic and operational foundations [4]. - For investors, the lesson is clear: revenue growth disconnected from efficiency improvements is merely a numerical game, and building a differentiated value moat is essential to navigate cyclical fluctuations [4].