Core Insights - The "ribs down jacket" has become a trending fashion item this winter, transforming from a previously considered "ugly" style to a must-have for fashion enthusiasts [1][5] - The popularity of the "ribs down jacket" has led to significant social media engagement, with over 130 million views on related topics and a sales increase of over 600% compared to last year [3][10] Industry Trends - The "ribs down jacket" has seen a tenfold increase in social media presence since October 2025, indicating a massive surge in consumer interest [3] - The overall sales of "ribs down jackets" have increased by over 600% year-on-year, with some single items achieving sales in the millions [3][12] Market Dynamics - The rise of the "ribs down jacket" is attributed to its lightweight and slim-fit design, which aligns with current fashion trends and consumer preferences for practicality [5][8] - The production process for "ribs down jackets" is simpler and faster compared to more complex designs, making it a safer choice for manufacturers amid rising raw material costs [10][12] Consumer Behavior - The target demographic for the "ribs down jacket" includes young consumers, particularly university students, with pricing strategies designed to appeal to this group [11][14] - Brands have successfully leveraged social media and influencer marketing to boost the visibility and desirability of the "ribs down jacket" [8][11] Brand Strategies - Companies like Lemanism and alright then have capitalized on the trend by launching their "ribs down jackets" early, resulting in significant sales growth [11][14] - The effective integration of trend forecasting and supply chain management has allowed brands to respond quickly to market demands, enhancing their chances of success [16][17]

Financial Data and Key Metrics Changes - In 2024, the company recorded revenue of RMB 3.65 billion, with a profit attributable to shareholders of RMB 0.4611 billion and a gross profit margin of 47.7% [5][9] - The overall turnover growth was 27.2%, driven by strong sales per store and the success of the new retail pipeline [5][9] - Profit attributable to shareholders decreased by 13.1%, and profit margin attributable to shareholders fell by 2.4 percentage points to 12.6% [11] Business Line Data and Key Metrics Changes - Revenue from the Smart Casual segment grew by 27.2%, while revenue from the core collection declined by 3% due to the transition to a direct-to-customer (DDC) model [9][11] - The company implemented a new retail strategy, achieving a rapid sales growth of 24% [6][9] Market Data and Key Metrics Changes - Eastern China contributed significantly to sales, totaling RMB 1.563 billion, while the Northeast region saw a decline due to one-off deductions from distributor compensation [18][19] - The total number of retail stores increased to 2,773, representing a year-on-year increase of 7.1% [19] Company Strategy and Development Direction - The company plans to focus on the core collection and Smart Casual collections, enhancing product quality and design to meet consumer needs [27][28] - A net increase of 100 stores is expected in 2025, with a continued emphasis on online sales and social media marketing [29][30] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in achieving growth targets despite external uncertainties, emphasizing the importance of consumer confidence and market conditions [34][36] - The company aims for a growth of 15% or more in its new retail business for 2025 [30] Other Important Information - The company has resolved to pay a final dividend of HKD 9 per share and a special final dividend of HKD 3 per share, resulting in a stable dividend payout ratio of 73.1% [7] - The group has recovered operating rights from distributors in several provinces, transitioning to a DDC model which is expected to improve operational efficiency [6][19] Q&A Session Summary Question: What strategies will be implemented for online and offline sales? - Management indicated that the overall environment remains promising and strategies will focus on healthy financial operations and product shipping [34][35] Question: What is the confidence level in achieving growth targets? - Management acknowledged challenges due to weather conditions but remains optimistic about achieving sales targets [34][36] Question: How does the company define its e-commerce performance? - E-commerce sales are expected to contribute significantly, with traditional retail and e-commerce combined accounting for a substantial portion of total sales [37][38] Question: What are the implications of recovering distributor rights? - Management believes recovering distributor rights will enhance operational efficiency and provide multiple sales channels, leading to improved profitability in the long term [41][43] Question: What are the expectations for future expenses? - Future expenses are expected to be reasonable, with a focus on maintaining store efficiency and supporting growth in the Smart Casual segment [51][53]