Core Insights - The core viewpoint of the article highlights that despite a fashion show showcasing the brand, Biyin Lefen is experiencing a decline in profits while achieving revenue growth [1][2]. Financial Performance - In Q3, Biyin Lefen reported a revenue increase of 3.2% year-on-year to 1.1 billion yuan, while net profit attributable to shareholders fell by 27.4% to 210 million yuan [1]. - For the first three quarters, the company's revenue grew by 6.7% year-on-year to 3.2 billion yuan, but net profit attributable to shareholders decreased by 18.7% to 620 million yuan [1]. Business Strategy - The revenue growth and profit decline reflect Biyin Lefen's business model, which focuses on the high-end market while incurring higher marketing expenses [2]. - Sales expenses increased by 27.8% year-on-year, driven by investments in brand youthfulness, new brand initiatives, and e-commerce [2]. - The company has acquired two international brands, CERRUTI1881 and KENT&CURWEN, which are currently in the investment phase, leading to projected losses for their operating subsidiary [2]. Inventory and Receivables Management - The inventory turnover period increased by 55 days, likely due to new brand incubation and early preparations for the e-commerce peak season [2]. - Accounts receivable turnover days decreased by 2.5 days, while accounts payable turnover days increased by 23.5 days [2]. Market Outlook - The founder of a leading menswear brand noted that domestic high-end brands are gaining opportunities as overseas luxury goods lose their allure, providing a cost-effective alternative for high-end consumers [2]. - Despite the potential, the founder acknowledged that growth is becoming increasingly challenging [2]. - Biyin Lefen's willingness to increase market investment indicates a hopeful outlook for the future [3].