Summary of Jiangnan Buyi Conference Call Company Overview - Company: Jiangnan Buyi - Industry: Fashion Retail Key Points Business Strategy - Jiangnan Buyi maintains a high dividend policy with a payout ratio of 75% [2][3] - The company operates on three core strategies: dual-driven design and branding, multi-brand scaling, and a high-engagement fan economy [2][4] - The gross margin for the fiscal year remains above 65%, with discounts narrowing by 2-3 percentage points [2][4] Financial Performance - For the fiscal year 2025, revenue exceeded 5.5 billion RMB, a year-on-year increase of 4.6%, while profit approached 900 million RMB, growing by 6% [3][4] - The company aims for a retail revenue target of 10 billion RMB by fiscal year 2026, with mature brand JNBY expected to grow in low to mid-single digits [6][4] - Growth brands are projected to achieve double-digit growth, while emerging brands focus on product refinement [6][4] Sales and Inventory Management - Strong sales performance in July and August, with high single-digit growth in July and over 10% growth in August [7][4] - Inventory increase attributed to business growth support and new brand acquisitions, with a future healthy inventory turnover expected to be between 150-200 days [7][8] - The company manages excess inventory through strict discount controls and channels for clearing out-of-season products [7][4] Membership and Customer Engagement - The number of high-value members (annual spending over 5,000 RMB) exceeded 337,000, contributing nearly 4.9 billion RMB in retail sales [5][4] - The company emphasizes maintaining core high-value members while also attracting new members through rich benefits and highly customized services [12][4] - A fan-centric operational system is established to enhance member loyalty and engagement [10][11] New Brand Development - The newly acquired brand On My Game saw a growth rate of approximately 70% and plans to open physical stores in Beijing and Hangzhou in fiscal year 2026 [13][4] - Another acquisition, Block, experienced nearly 50% growth, with a cautious approach to store expansion due to high space requirements [13][4] Future Outlook and Challenges - Despite a complex environment, the company achieved stable growth, with highlights including stable gross margins and active member growth [14][4] - Key future investments include the construction of a logistics center, with an estimated investment of 280 million RMB for land acquisition [14][4] - The company plans to maintain a dividend payout ratio of 75% despite ongoing investments [22][4] Online and Offline Sales Performance - Online sales surpassed 20% of total sales in fiscal year 2025, driven by the performance of On My Game [15][4] - Future online and offline sales ratios will be adjusted based on brand development stages [15][4] Pricing and ASP Trends - The average selling price (ASP) increased from 2,130 RMB to approximately 2,200 RMB in fiscal year 2025 [17][4] - High-value customers demonstrate strong purchasing power, with total spending nearing 4.9 billion RMB [17][4] AI and Technology Integration - The company has made systematic progress in AI applications across various operational aspects, enhancing efficiency and decision-making [18][19][4] Shareholder Returns - The company engages in annual share buybacks for employee stock incentives, maintaining a generous dividend policy [23][24][4] Market Position - Jiangnan Buyi's performance is noted as exceptional among apparel companies, with attractive dividend yields amidst market fluctuations [24][4]
江南布衣20250912