Core Viewpoint - The apparel industry is facing significant challenges in 2024, with weak consumer demand and intense competition leading to squeezed profit margins. However, Urban Beauty has managed to achieve double-digit growth in both revenue and net profit, indicating a successful turnaround and effective strategies under the leadership of Chairman Zheng Yaonan [1][2]. Group 1: Financial Performance - Urban Beauty reported a revenue of 3.01 billion yuan in 2024, representing a year-on-year growth of 9.18%. The net profit reached 126 million yuan, showing a remarkable increase of 196.96% [2]. - The company has achieved three consecutive years of positive profitability, with accelerating growth rates [2][9]. Group 2: Product Innovation - Urban Beauty has focused on innovative product development, creating new offerings that meet core consumer needs such as comfort, style, and functionality, while maintaining a strong price-performance ratio [3][7]. - The launch of the soft size invisible underwear exemplifies this innovation, featuring advanced materials and design processes that enhance comfort and fit [3][5]. - The company has also introduced the Peach Cup underwear, which combines multiple advantages for women's health and aesthetics [5]. Group 3: Brand Strategy and Marketing - Urban Beauty is evolving its brand strategy by diversifying its brand portfolio and engaging in sports and entertainment marketing to strengthen its market position [11][15]. - The partnership with the Chinese national synchronized swimming team and endorsements from sports champions are part of a broader strategy to enhance brand visibility and consumer trust [11][12]. - The company has also signed popular celebrities to promote its products, creating a deeper emotional connection with consumers [15][17]. Group 4: Channel Expansion - Urban Beauty has opened over 850 new stores in 2024, bringing the total to over 4,500, focusing on major population centers to capture market share [19][21]. - The company is expanding its online presence, achieving over 100% growth in e-commerce GMV, particularly in the fast-growing instant retail segment [22]. - Urban Beauty's flexible ordering and rapid replenishment systems are designed to reduce inventory risks and enhance profitability for franchisees [22]. Group 5: Market Outlook - With consumer spending expected to rebound in 2025, Urban Beauty's strategic transformation is likely to yield better results, positioning the company favorably in the recovering market [23]. - The capital market is showing increasing interest in the consumer sector, with Urban Beauty's improved fundamentals suggesting strong mid-to-long-term growth potential [23].

Core Viewpoint - The company, Urban Beauty (02298), reported unexpectedly strong financial results amidst a challenging macroeconomic environment, showcasing its robust recovery in profitability and significant growth in e-commerce sales [1][2]. Financial Performance - In 2024, Urban Beauty achieved revenue of RMB 3.01 billion, a year-on-year increase of 9.18% [1] - The profit attributable to the company's owners reached RMB 126 million, reflecting a remarkable year-on-year growth of 196.96% [1]. E-commerce Growth - The company's e-commerce GMV surpassed RMB 1.5 billion, with a year-on-year growth exceeding 100% [1] - The innovative "joint venture e-commerce" model has effectively reduced channel costs and improved overall business gross margins [1]. Store Expansion Strategy - Urban Beauty opened 850 new stores, bringing the total to over 4,500, focusing on third and fourth-tier cities and county markets [2] - The company aims to enhance its market share in key provinces such as Henan, Shandong, and Sichuan through a "strong county" strategy [2]. International Expansion - The company is exploring cross-border e-commerce opportunities in Southeast Asia rather than opening physical stores abroad [3]. R&D and Product Innovation - Urban Beauty has accumulated 561 patents, focusing on innovative products like invisible bras and lightweight down jackets [3]. - The brand positions itself as "good yet affordable," integrating deeply with sports and entertainment sectors for enhanced brand recognition [3]. Marketing and Supply Chain Optimization - The company has optimized its supply chain management, introducing flexible ordering and rapid replenishment systems, leading to a 200% year-on-year increase in instant sales [4]. - Urban Beauty's marketing strategy includes extensive high-speed rail media coverage across over 29 provinces and 160 cities [4]. Future Revenue Streams - The industrial park project completed in 2024 is expected to contribute to revenue in 2025, enhancing profitability and cash flow [5]. Shareholder Returns - Urban Beauty has shown commitment to shareholder returns with a total dividend payout of HKD 11.24 million, maintaining a dividend payout ratio of approximately 30% since the pandemic [5].

Group 1 - The core viewpoint of the article highlights the significant growth in revenue and profit for the company, with a revenue of 3.01 billion yuan in 2024, representing a 9.18% increase year-on-year, and a net profit attributable to shareholders of 126 million yuan, up 196.96% [2] - The company's revenue growth is primarily attributed to the expansion of its e-commerce business, which has significantly improved its market share in China [2] - The company has made strides in brand building, product development, channel expansion, and supply chain management, contributing to overall performance improvement [2] Group 2 - The company reported that its e-commerce GMV exceeded 1.5 billion yuan, with a year-on-year growth of over 100% [2] - The company opened more than 850 new stores, bringing the total to over 4,500, with the number of pure cotton home brand stores exceeding 100 for the first time [2] - The company has accumulated 561 patents as of 2024, including products like soft size invisible underwear and black gold lightweight down clothing [2] Group 3 - The company optimized its supply chain management by introducing a flexible ordering system and rapid replenishment mechanism, effectively reducing inventory risk and improving cash flow turnover efficiency [3] - Instant sales for the company grew by over 200% year-on-year in 2024, addressing consumer demand for quick shopping [3] - The company plans to continue deepening its presence in the Chinese market, particularly in shopping centers and e-commerce channels, with expectations of doubling the number of pure cotton home brand stores and performance by the end of 2025 [3]