Venture(US:VEMLY) Sou Hu Cai Jing·2025-10-15 06:21Core Insights - Urban Beauty (2298.HK) reported a revenue of 1.436 billion yuan for the first half of 2025, a year-on-year increase of 5%, and a net profit of 57.796 million yuan, up 15.6% [2] - In 2024, Urban Beauty achieved an annual revenue of 3.010 billion yuan, a growth of 9.18%, and a net profit of 126 million yuan, marking a significant increase of 196.96% [4] Company Performance - The company has shown consistent growth in revenue and net profit over the years, indicating a positive trend in its financial performance [2][4] - The substantial increase in net profit in 2024 suggests effective cost management and operational efficiency [4] Founder Background - Zheng Yaonan, the founder of Urban Beauty, has a compelling personal story, having transitioned from a security guard at Walmart to a successful entrepreneur [6][9] - His early experiences in retail and keen observation of customer behavior laid the foundation for his future business strategies [9][10] Business Strategy - Urban Beauty initially focused on selling high-cost performance cosmetics before pivoting to the lingerie market, identifying a gap for affordable yet quality products [13][15] - The company expanded aggressively during market downturns, such as during the SARS outbreak and the 2009 financial crisis, demonstrating a strategic approach to growth [15][16] Brand Development - The decision to hire Lin Zhiling as a spokesperson was pivotal in elevating Urban Beauty's brand recognition, transitioning it from a local brand to a nationally recognized name [16] - The brand's expansion from 5,000 to 6,272 stores and a revenue surge to nearly 3 billion yuan in 2013 highlights its successful marketing strategies [16] Recent Challenges and Recovery - Urban Beauty faced significant challenges starting in 2016, with declining sales and profitability, leading to store closures and a substantial net loss in 2019 [17][20] - Zheng Yaonan's return as CEO marked a turnaround strategy, focusing on modernizing product offerings and enhancing customer engagement [20][21] Future Outlook - The company aims to maintain its focus on providing quality lingerie at affordable prices while exploring international markets, particularly in Southeast Asia [24] - Urban Beauty's commitment to understanding customer needs and adapting to market trends positions it well for future growth [24][26]