Core Viewpoint - The apparel industry is facing significant challenges in 2024, with weak consumer demand and intense competition leading to squeezed profit margins. However, Urban Beauty has managed to achieve double-digit growth in both revenue and net profit, indicating a successful turnaround and effective strategies under the leadership of Chairman Zheng Yaonan [1][2]. Group 1: Financial Performance - Urban Beauty reported a revenue of 3.01 billion yuan in 2024, representing a year-on-year growth of 9.18%. The net profit reached 126 million yuan, showing a remarkable increase of 196.96% [2]. - The company has achieved three consecutive years of positive profitability, with accelerating growth rates [2][9]. Group 2: Product Innovation - Urban Beauty has focused on innovative product development, creating new offerings that meet core consumer needs such as comfort, style, and functionality, while maintaining a strong price-performance ratio [3][7]. - The launch of the soft size invisible underwear exemplifies this innovation, featuring advanced materials and design processes that enhance comfort and fit [3][5]. - The company has also introduced the Peach Cup underwear, which combines multiple advantages for women's health and aesthetics [5]. Group 3: Brand Strategy and Marketing - Urban Beauty is evolving its brand strategy by diversifying its brand portfolio and engaging in sports and entertainment marketing to strengthen its market position [11][15]. - The partnership with the Chinese national synchronized swimming team and endorsements from sports champions are part of a broader strategy to enhance brand visibility and consumer trust [11][12]. - The company has also signed popular celebrities to promote its products, creating a deeper emotional connection with consumers [15][17]. Group 4: Channel Expansion - Urban Beauty has opened over 850 new stores in 2024, bringing the total to over 4,500, focusing on major population centers to capture market share [19][21]. - The company is expanding its online presence, achieving over 100% growth in e-commerce GMV, particularly in the fast-growing instant retail segment [22]. - Urban Beauty's flexible ordering and rapid replenishment systems are designed to reduce inventory risks and enhance profitability for franchisees [22]. Group 5: Market Outlook - With consumer spending expected to rebound in 2025, Urban Beauty's strategic transformation is likely to yield better results, positioning the company favorably in the recovering market [23]. - The capital market is showing increasing interest in the consumer sector, with Urban Beauty's improved fundamentals suggesting strong mid-to-long-term growth potential [23].