JNBY Design (3306) H2 2025 earnings summary

Executive summary

• Revenue for the year ended June 30, 2025, rose 4.6% year-over-year to RMB5,548.4 million, driven by growth in online sales and expansion of offline stores.

• Net profit increased 6.0% to RMB897.5 million, with net profit margin improving to 16.2%.

• The retail network expanded to 2,117 standalone stores globally, with strong coverage in Mainland China and ten other countries.

• Membership-driven sales remained robust, with over 80% of retail sales contributed by members and 330,000+ accounts with annual purchases over RMB5,000.

Financial highlights

• Gross profit increased 4.1% to RMB3,638.9 million; gross margin slightly decreased to 65.6%.

• Net cash inflow from operating activities was RMB1,133.0 million, down 29.2% year-over-year due to higher inventory levels.

• Capital expenditure rose to RMB457.7 million, reflecting investments in new stores, land use rights, and business combinations.

• Final dividend proposed at HK$0.93 per share, totaling HK$715.9 million for the year, representing 75% payout of net profit.

Outlook and guidance

• Management remains confident in long-term growth, citing resilience in China's economy and rising demand for designer brands.

• Strategic focus includes optimizing brand portfolio, enhancing omni-channel retail, and investing in digital and supply chain capabilities.

• Plans to construct a new modern park in Hangzhou to support future growth.