Core Viewpoint - The company experienced a decline in revenue and net profit in 2024, primarily due to a decrease in its main children's clothing business, despite positive contributions from the adult clothing segment and licensing fees [1][3][4]. Financial Performance - In 2024, the company's revenue, net profit attributable to shareholders, net profit excluding non-recurring items, and operating cash flow were 1.099 billion, 171 million, 130 million, and 135 million yuan, respectively, showing year-on-year changes of -4.57%, -4.84%, 4.91%, and -16.64% [1]. - For Q4 2024, the revenue, net profit attributable to shareholders, and net profit excluding non-recurring items were 412 million, 67 million, and 62 million yuan, with year-on-year growth rates of -5.2%, 28.0%, and 23.5% [1]. - In Q1 2025, the revenue, net profit attributable to shareholders, and net profit excluding non-recurring items were 295 million, 45 million, and 38 million yuan, reflecting year-on-year growth of 2.7%, -16.1%, and -15.4% [2]. Business Segments - The children's clothing segment saw a revenue decline of 16.87%, totaling 957 million yuan, largely due to e-commerce discounting [3]. - Licensing fee revenue surged to 32 million yuan, while self-brand usage fees dropped by 55% to 6.42 million yuan [4]. - The adult clothing segment contributed 1.1 billion yuan in revenue, with a net profit margin of 13.6% [4]. Cost and Profitability - The company's gross margin for 2024 was 62.0%, an increase of 2.2 percentage points, while the net margin remained stable at 15.6% [5]. - The gross margins for children's and adult clothing were 60.73% and 80.47%, respectively [5]. - In Q1 2025, the gross margin was 64.1%, with a net margin of 15.1%, reflecting a year-on-year increase of 1.5 percentage points in gross margin but a decrease of 3.4 percentage points in net margin [6]. Inventory and Receivables - As of the end of 2024, inventory increased by 20% to 511 million yuan, with inventory turnover days rising to 403 days [6]. - Accounts receivable grew by 43.7% to 55 million yuan, with turnover days increasing to 15 days [6]. Future Outlook - The adult clothing segment is expected to have significant growth potential, with plans for accelerated store openings in 2025 [7]. - The company anticipates continued contributions from licensing fees, with a projected increase in spring/summer order amounts for 2025 [7]. - Revenue forecasts for 2025 and 2026 have been adjusted downward to 1.282 billion and 1.380 billion yuan, respectively, with net profit estimates also reduced [7].