JNBY Design (3306) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended December 31, 2024, rose 5.0% year-over-year to RMB3,156.4 million, driven by growth in online sales and expansion of offline stores.

• Net profit increased 5.5% to RMB604.0 million, with net profit margin slightly up to 19.1%.

• Gross profit grew 5.0% to RMB2,056.2 million, while gross margin edged down by 0.1 percentage point to 65.1%.

• The number of standalone retail stores grew to 2,126 globally, with coverage across all provinces in Mainland China and eight other countries/regions.

• Membership accounts with annual purchases over RMB5,000 increased, contributing over 60% of offline retail sales.

Financial highlights

• Operating profit reached RMB826.3 million, up 3.1% year-over-year.

• Basic and diluted EPS were RMB1.17 and RMB1.16, respectively.

• Net cash flows from operating activities decreased 22.2% to RMB822.6 million.

• Capital expenditure increased to RMB102.6 million from RMB49.2 million.

• Cash and cash equivalents at period end: RMB739.7 million, up from RMB699.2 million.

Outlook and guidance

• The company remains confident in future growth, focusing on optimizing its designer brand portfolio, enhancing omni-channel retail, and investing in digital and ESG initiatives.

• Interim dividend of HK$0.45 per share (approx. RMB0.43) declared, payable April 17, 2025, totaling HK$233.4 million.

• Chinese apparel market expected to remain competitive, with growth in digital and diversified consumption scenarios.