Breo(SH:688793) Zheng Quan Zhi Xing·2025-07-04 16:34Core Viewpoint - The company reported a decline in revenue for 2024 but achieved profitability in net profit, indicating a shift in financial performance despite challenges in sales [1][2]. Group 1: Financial Performance - In 2024, the company achieved operating revenue of 1.085 billion yuan, a year-on-year decrease of 14.88%, while net profit attributable to shareholders was 10.2532 million yuan, marking a turnaround from losses [1][2]. - The gross profit margin for 2024 was 60.51%, an increase of 1.83 percentage points compared to the previous year [1][2]. - In Q1 2025, revenue fell by 32.83%, with both net profit and non-recurring net profit being negative [1][2]. Group 2: Cost and Expense Analysis - The total operating costs for 2024 were 1.105 billion yuan, down 16.83% from the previous year, with a significant reduction in sales expenses [2][3]. - Sales expenses decreased primarily due to lower promotional and advertising costs, with promotional expenses amounting to 192.378 million yuan, accounting for 35.34% of total sales expenses [3][4]. - The company reported an increase in other income, including a VAT software tax refund of 25.8921 million yuan in 2024, up from 12.8320 million yuan in 2023 [3][4]. Group 3: Product and Market Strategy - The company maintained a high gross profit margin due to brand and technology advantages, centralized procurement, and a strong market positioning strategy [6][7]. - The sales model analysis showed that all channels experienced an increase in gross profit margins, with offline direct sales achieving a margin of 73.80% [7]. - The company focused on high-margin products and adjusted its sales strategy to enhance operational efficiency and reduce costs [12][13]. Group 4: International Revenue - The company reported overseas revenue of 79.8705 million yuan in 2024, a year-on-year increase of 9.49%, with a gross profit margin of 60.72% [13][14]. - The increase in overseas revenue was primarily driven by growth in online direct sales, which rose by 9.8009 million yuan [14][15]. - The company emphasized the importance of maintaining effective internal controls for overseas operations to ensure revenue recognition aligns with cash receipts [13][14].