Core Viewpoint - The article discusses the investment pitfalls in the booming hair care industry, particularly focusing on the case of JolieJolie, a brand that initially attracted many middle-class consumers but has now turned into a nightmare for its investors due to alleged fraudulent practices [1][3]. Group 1: Company Overview - JolieJolie, founded in 2019, aimed to serve one hundred million women with quality lifestyle services and opened over 20 physical stores in high-end shopping malls in Shanghai [2][17]. - The brand's business model promised high returns, with claims of a rapid payback period of 6 to 10 months and a monthly revenue of 150,000 yuan per store, leading to a net profit margin of 26.3% across its 18 stores [13][14]. Group 2: Investment Experience - Since 2020, over 20 investors contributed between 300,000 to 2 million yuan to JolieJolie, totaling more than 10 million yuan, but many are now facing significant losses [4][15]. - Investors were initially attracted by the brand's consumer appeal and the promise of substantial profits, often based on their experiences as customers [10][11]. Group 3: Allegations and Legal Issues - In July 2024, it was revealed that JolieJolie was involved in fraudulent activities, including "selling" the same store to multiple investors, leading to a police investigation for illegal fundraising [5][20]. - By late July 2024, all 20 stores closed suddenly, and employees reported unpaid wages, while the brand's management cited operational difficulties and financial issues [21][24]. Group 4: Investor Reactions - Many investors reported not receiving the promised returns, with some claiming that the brand's management provided misleading financial reports to cover up losses [25][27]. - Legal experts noted that cases of illegal fundraising are complex and challenging to resolve, emphasizing the need for investors to conduct thorough due diligence before committing funds [28][29].

Core Viewpoint - The financial performance of the company has shown significant volatility, with a notable decline in revenue and mixed profit results across different reporting periods [2][11][13]. Financial Performance Summary - In 2024, the company reported an operating revenue of 1.085 billion yuan, a year-on-year decrease of 14.88%, while achieving a net profit attributable to shareholders of 10.25 million yuan, marking a return to profitability [2]. - The first quarter of 2025 saw a further decline in operating revenue to 197 million yuan, down 32.83% year-on-year, with a net loss of 1.83 million yuan, a 111.74% decrease compared to the previous year [3][11]. Cost Management and Profitability - The company implemented cost-cutting measures to improve profitability, resulting in a reduction of operating costs to 428 million yuan, down 18.72% year-on-year [4]. - Sales expenses decreased to 544 million yuan, a decline of 19.96%, while R&D expenses slightly decreased to 58.35 million yuan, down 0.27% [5]. Revenue Breakdown by Product and Sector - The health smart hardware sector generated 1.083 billion yuan in revenue, a decrease of 14.95%, but with a gross margin increase to 60.51%, up 1.83 percentage points [8]. - Shoulder products accounted for the highest revenue at 354 million yuan, down 26.69%, while scalp and head products saw a revenue increase of 43.65% to 238 million yuan, with a gross margin of 67.37%, up 7.21 percentage points [9]. Cash Flow and Financial Health - The company reported a net cash flow from operating activities of 83.52 million yuan, a year-on-year increase of 2.24% [6]. - However, cash and cash equivalents decreased to 253 million yuan, down 33.91% from the previous year, indicating potential liquidity challenges [12]. Strategic Channel Adjustments - The company has shifted its sales strategy from offline to online channels, with significant growth in sales through platforms like Douyin, which saw a year-on-year increase of 271.9% in Q4 2023 [17]. - The revenue from offline franchise stores reached 144 million yuan in 2024, a year-on-year increase of 29.52%, driven by new customer acquisitions [19]. Seasonal Revenue Fluctuations - The company's revenue is significantly influenced by seasonal shopping events, with over 60% of revenue coming from online sales, leading to seasonal volatility in overall income [19].