Group 1 - The core viewpoint of the news is the strategic cooperation and investment agreement between Winner Fashion and Derlin Holdings regarding the RWA tokenization plan, which has led to significant stock price increases for both companies [1][2] - Winner Fashion's stock rose by 20.88% to HKD 9.67, while Derlin Holdings' stock increased by 5.14% to HKD 3.68 following the announcement [1] - The agreement includes a conditional commitment from Derlin Holdings to subscribe for shares at a specified price, which will represent approximately 0.65% of Winner Fashion's existing issued share capital [1] Group 2 - The total amount raised from the subscription will be HKD 29.9 million, with a net amount of approximately HKD 29.6 million after deducting applicable costs and expenses [1] - Winner Fashion plans to use the net proceeds from the subscription for general working capital [1] - The framework for tokenization will be based on 10% of the audited revenue of Winner Fashion's main brand, NEXY.CO, for the fiscal year ending December 31, 2025 [2]

Core Viewpoint - The emergence of RWA (Real World Assets) in the fashion industry marks a significant shift, with Yinger Fashion becoming the first company in China's fashion sector to embrace RWA through a strategic partnership with Derlin Holdings, aiming to enhance brand value and financing channels [1][2]. Group 1: Financing Channels and Brand Value - RWA provides an innovative financing channel based on actual business revenue, utilizing blockchain technology to digitize and financialize assets, thereby enhancing liquidity and transaction efficiency [2]. - Yinger Fashion's partnership with Derlin Holdings allows for greater flexibility in expansion, supporting brand building and channel upgrades, crucial for maintaining its leading position in the light luxury market [2]. - Derlin Holdings, as a licensed broker with experience in RWA, strengthens the financing process for Yinger Fashion, facilitating a "brand elevation" through this collaboration [2]. Group 2: NEXY.CO Brand Potential - NEXY.CO, a light luxury women's wear brand under Yinger Fashion, has surpassed 1 billion in annual revenue and is positioned to become a leading brand in the Chinese light luxury sector [4][5]. - The brand focuses on stylish workplace attire and has a strong market presence, with 226 stores opened in high-end malls and a revenue contribution of 15.60% in the first half of the year [4][5]. - Yinger Fashion's multi-brand operational capability and strategic upgrades provide a solid foundation for NEXY.CO's growth and market expansion [5]. Group 3: Valuation Reassessment Catalyst - The capital market shows strong recognition and confidence in the value of the RWA sector, with companies actively engaging in RWA witnessing positive stock performance [6]. - Yinger Fashion, as the first RWA company in the fashion industry, solidifies its leading position and is expected to benefit from a scarcity premium and first-mover advantage in valuation [7]. - Currently, Yinger Fashion's valuation is low, with a price-to-earnings ratio of 10.75, significantly below the industry average of 23.09, indicating substantial room for valuation recovery [7][9].

Core Viewpoint - Derin Holdings (01709) and Winner Fashion (03709) have entered into a strategic cooperation and investment agreement, focusing on a tokenization plan for RWA [1] Group 1: Strategic Cooperation and Investment Agreement - The agreement was signed on September 12, 2025, with Derin Holdings conditionally agreeing to subscribe for shares at the subscription price upon completion [1] - Winner Fashion conditionally agrees to issue and allot subscription shares at the subscription price [1] - The subscription shares represent approximately 0.65% of Winner's existing issued share capital as of the date of the announcement [1] Group 2: Financial Details - The total amount raised from the subscription will be HKD 29.9 million, with the estimated net proceeds being HKD 29.6 million after deducting applicable costs and expenses [1] - Winner intends to use the net proceeds for general working capital [1] Group 3: Tokenization Framework - The strategic cooperation includes a framework for the tokenization of distributable profits intended for Winner's shareholders, calculated based on 10% of the audited revenue of Winner's main brand, NEXY.CO, for the fiscal year ending December 31, 2025 [1] - Final agreements will be negotiated, with further announcements to be made as necessary [1]

Core Viewpoint - Derlin Holdings (01709) and Winner Fashion (03709) have entered into a strategic cooperation and investment agreement, with a focus on a tokenization plan for RWA [1] Group 1: Strategic Cooperation and Investment Agreement - The agreement is set to be completed on September 12, 2025, where Derlin Holdings conditionally agrees to subscribe for shares at the subscription price, and Winner conditionally agrees to issue shares at the same price [1] - The subscribed shares will represent approximately 0.65% of Winner's existing issued share capital as of the announcement date, and will also represent about 0.65% of the enlarged issued share capital after the issuance [1] Group 2: Financial Details - The total amount raised from the subscription will be HKD 29.9 million, with the estimated net proceeds after costs being HKD 29.6 million [1] - Winner intends to use the net proceeds for general working capital [1] Group 3: Tokenization Framework - The strategic cooperation includes an agreement on a framework for the tokenization of a portion of distributable profits intended for Winner's shareholders, calculated based on 10% of the audited revenue of Winner's main brand, NEXY.CO, for the fiscal year ending December 31, 2025 [1] - Final agreements will be negotiated, with further announcements to be made as necessary [1]

Core Insights - Derlin Holdings (01709.HK) announced a strategic cooperation and investment agreement with Winner, which includes conditional agreements for share subscription and issuance [1] - The total amount raised from the subscription will be HKD 29.9 million, with a net amount of approximately HKD 29.6 million after costs [1] - The net proceeds will be used for general working capital, and a framework for tokenization of distributable profits has been established [1] Group 1 - The strategic cooperation involves Derlin Holdings agreeing to subscribe for shares equivalent to approximately 0.65% of Winner's existing issued share capital [1] - The subscription proceeds will be based on 10% of the audited revenue of Winner's main brand, NEXY.CO, for the fiscal year ending December 31, 2025 [1] - Further agreements will be negotiated, with additional announcements to be made as necessary [1]

Investment Rating - The investment rating for the company is "Outperform" (maintained) [3] Core Views - The company's mid-year performance for 2025 met expectations, with a revenue of 3.104 billion RMB, a year-on-year decrease of 6.1%, and a net profit attributable to shareholders of 289 million RMB, a year-on-year increase of 2.2% [7] - The company aims to build a Chinese luxury brand management group, showcasing strong multi-brand operational capabilities, and is expected to exhibit stronger growth momentum under new positioning and management upgrades [7] Financial Data and Profit Forecast - Revenue and profit forecasts for the company are as follows: - FY2023: Revenue 6,912 million RMB, Net Profit 838 million RMB - FY2024: Revenue 6,589 million RMB, Net Profit 469 million RMB - FY2025E: Revenue 6,360 million RMB, Net Profit 510 million RMB - FY2026E: Revenue 6,678 million RMB, Net Profit 550 million RMB - FY2027E: Revenue 6,999 million RMB, Net Profit 590 million RMB - The company’s revenue growth rates are projected to be -5% for FY2024 and -3% for FY2025E, with a recovery expected in FY2026 and FY2027 at 5% [7][20] Brand Performance - The performance of various brands showed divergence: - Koradior: Revenue of 1.04 billion RMB, down 1.2% year-on-year - NAERSI: Revenue of 655 million RMB, down 10.9% year-on-year - NEXY.CO: Revenue of 484 million RMB, down 4.0% year-on-year - La Koradior: Revenue of 280 million RMB, up 9.7% year-on-year [17] Channel Analysis - E-commerce maintained growth for 12 consecutive years, with online sales increasing by 8.9% to 595 million RMB, accounting for 19.2% of total revenue [7] - Offline store optimization led to a net closure of 74 stores, with a focus on shopping centers, resulting in a 7.7% decrease in direct retail revenue to 2.431 billion RMB [7] Cost Control and Profitability - The company achieved significant cost control, with a stable gross margin of 76.4% and a decrease in selling and administrative expenses [7] - The net cash flow from operating activities for the first half of 2025 was 896 million RMB, a substantial increase of 98.3% year-on-year [7] Valuation Comparison - The company is compared with peers such as Jiangnan Buyi and Jin Hong Group, with an expected PE ratio of 10 times for 2025, indicating a potential upside of 13% from the current market value [7][11]

Core Viewpoint - Despite a macroeconomic recovery in retail, the apparel industry shows weak growth, with clothing retail sales increasing only 2.5% compared to a 5.0% growth in overall retail sales. High-end apparel consumption is particularly sluggish, with Bain predicting a global luxury goods consumption decline of 2% to 5% and a six-quarter negative growth in the Chinese market. However, the company Yinger Fashion (03709.HK) reported strong mid-year results, demonstrating resilience through a multi-brand strategy and digital transformation [1][2]. Financial Performance - The company achieved revenue of 3.104 billion yuan and a profit of 289 million yuan in the first half of the year, marking a 2.17% year-on-year increase. The overall gross margin improved by 0.11 percentage points to 76.41%, and basic earnings per share rose by 5.2% to 0.426 yuan [1][2]. Brand Strategy - The company's multi-brand strategy features eight brands with differentiated positioning, effectively covering a wide range of consumer needs. High-end brand La Koradior saw a revenue increase of 9.65% to approximately 280 million yuan, while the main brand Koradior experienced a slight decline of 1.22% in revenue, contributing over 30% to total revenue. Other brands maintained stable revenue levels despite market pressures [2]. Product Development - The company focuses on enhancing the quality-to-price ratio by increasing the use of high-quality materials like wool and silk while reducing synthetic fiber usage. This aligns with consumer preferences for quality and sustainability, resulting in improved member repurchase rates and an increase in popular product launches [2]. Channel Strategy - Yinger Fashion has adopted a dual growth strategy of enhancing offline stores while expanding online sales. The company has shifted from blind expansion to a strategy of opening larger stores and improving store efficiency, with significant year-on-year increases in store performance. Online sales grew by 8.88% to 595 million yuan, with notable growth in platforms like Douyin and WeChat [3][4]. Digital Transformation - The company is enhancing its digital infrastructure to improve internal management efficiency. This includes developing predictive models for financial and operational metrics and upgrading its business intelligence systems for smarter inventory management. These digital reforms are expected to boost efficiency across the entire value chain [4]. Market Positioning - As of the mid-year financial report, the company's stock price was 7.34 HKD, corresponding to a TTM P/E ratio of 9.87, significantly lower than the industry average of 23.71. The company is viewed as having a favorable valuation with potential for growth, supported by its multi-brand strategy and digital capabilities [5].

Investment Rating - The investment rating for the company is "Buy" [1][6] Core Views - The company experienced a decline in revenue due to store closures and weak terminal demand, but profit elasticity is expected to improve in the future [2][5] - The company has a strong growth potential in its brands, particularly La Koradior, which has shown significant growth due to its positioning and new store openings [3][5] - The company maintains a positive outlook for revenue stabilization in the second half of the year, supported by cost control and reduced store closures [5][6] Financial Performance Summary - For the first half of 2025, the company reported revenue of 3.104 billion, net profit of 289 million, and operating cash flow of 896 million, with year-on-year changes of -6.12%, +2.17%, and +98.3% respectively [2] - The company closed 74 stores in the first half of 2025, with a total of 147 fewer stores year-on-year [3] - The company's gross margin for the first half of 2025 was 76.4%, a slight increase of 0.1 percentage points year-on-year, while the net profit margin increased by 0.8 percentage points to 9.3% [4] Growth Potential - The company has significant room for expansion with its growth brands, which currently have fewer than 200 stores [5] - The company forecasts revenue growth for 2025-2027, with projected revenues of 6.98 billion, 7.94 billion, and 8.89 billion respectively [8][10] - The earnings per share (EPS) is expected to increase from 0.89 in 2025 to 1.23 in 2027, indicating a positive growth trajectory [8][10]