Summary of the Conference Call for Ruoyuchen Company Overview - Ruoyuchen focuses on the operation of e-commerce and brand management, particularly in the health and maternal-infant sectors, establishing a leading position since its inception in 2011 [3][5] Key Financial Metrics - Current revenue from agency operations is approximately 700 million, accounting for 40% of total revenue, with a future growth rate expected to be within 5% [2][5] - Free brand management business is projected to grow at a double-digit rate, potentially exceeding 20% in optimistic scenarios, with expected revenue surpassing 600 million by 2025, representing about 20% of total revenue [2][5] - Projected revenue for 2025 is over 3 billion, a year-on-year increase of over 70%, with net profit around 170 million [4][17] - For 2026, revenue is expected to exceed 4 billion, with a growth rate of over 35% and net profit around 250 million, reflecting a year-on-year increase of 45% to 50% [4][18] Brand Performance - **Zhanjia Brand**: Acquired high-end home fragrance brand, projected revenue of nearly 500 million in 2024, expected to double to 1 billion in 2025, with a gross margin of over 65% and net margin around 15% [2][9] - **Feicui Brand**: Launched as a health supplement brand, expected to achieve a GMV of 800 million in 2025, with a gross margin of approximately 80% [2][11] - **Vita Ocean**: Focuses on ruby oil, with plans to replicate the rapid growth of Feicui in 2026 despite current supply constraints [12][14] - **Niuyibei Brand**: Launched in May 2025, expected GMV to exceed 100 million, targeting the budget market with plans for mid-to-high-end product launches [4][15] Growth Strategies - Multi-brand strategy allows Ruoyuchen to capture opportunities in various segments of the health supplement market [12][16] - Strong brand incubation capabilities demonstrated through successful launches and rapid growth of multiple brands [6][8] Market Dynamics - The company has established a robust operational experience in e-commerce, which is crucial for the success of its free brand initiatives [7][21] - The agency and brand management segments are expected to contribute over 1.5 billion in revenue, maintaining stable growth [19] Stock Price Catalysts - Factors that may drive stock price increases include continuous GMV exceeding expectations, new product launches, and overcoming supply constraints [20][21] Valuation Perspective - Traditional valuation methods may not fully capture Ruoyuchen's potential due to its rapid market penetration capabilities; a long-term growth potential assessment is recommended [21]

Core Insights - Jiangnan Buyi Limited reported a total revenue increase of approximately 4.6% to 5.548 billion yuan for the fiscal year ending June 30, 2025, driven by growth in online sales and expansion of offline stores [2] - The company's net profit rose by 6.0% to 899 million yuan, indicating that nearly 80% of brand revenue still comes from offline stores [2] - The overall gross margin remained at 65.6%, a slight decrease of 0.3 percentage points from the previous fiscal year [2] Revenue Breakdown - Online channel revenue grew by 18.3% to 1.201 billion yuan, marking a significant contribution to the overall revenue [2] - The JNBY brand, with over 30 years of history, accounted for 54.3% of total revenue, with a revenue increase of 2.3% [3] - Emerging brands, including POMMEl DE TERRE, JNBYHOME, onmygame, and B1OCK, generated revenue of 361 million yuan, a substantial increase of 107.4% year-on-year, contributing 6.5% to total revenue [4] Membership and Customer Engagement - Brand members contributed over 80% of retail revenue, with active member accounts exceeding 560,000 [4] - Members with total purchases exceeding 5,000 yuan accounted for over 60% of offline retail revenue, totaling 4.86 billion yuan [4] Strategic Focus - The company aims to maintain its retail target of 10 billion yuan for the fiscal year 2026, focusing on domestic market growth despite current challenges [5] - The strategy includes a dual approach for emerging brands, emphasizing product strength and brand foundation while leveraging existing mature brands for growth [5] - The total number of independent retail stores increased from 2,025 to 2,117, covering all provinces in mainland China and 10 other countries and regions [5] Market Dynamics - The company experienced positive growth in both online and offline channels, with online sales surpassing 20% of total revenue for the first time [5] - The gross margin for both online and direct sales channels improved, reflecting stable pricing and discount strategies [6] - The retail scale in first- and second-tier cities remains dominant, with over 40% of offline store numbers and more than half of retail revenue coming from these areas [6]