Urban beauty gives good news, but does not mask the decline in real income。
In recent days, the urban elite (02298. Hk) has published a 2024 financial paper showing that companies have earned 3. 01 billion yuan, an increase of 9. 18 per cent over the same period, and a net profit of 126 million yuan, an increase of 197 per cent over the same period。
According to the dismantling, in 2024 the income of the urban beauty “close clothing products” amounted to 2,555 million yuan, a decrease of 3. 33 per cent from 2,643 million yuan in the same period the previous year. Of this, company sales amounted to 2,144 million yuan, an increase of 1. 2 per cent over the same period of the previous year of 2,119 million yuan, far below the growth in the number of shops。
This shows that the business of association of the urban beauty is becoming increasingly difficult。
In the secondary market, since may 2021, the urban beauty stock price has been below hk$ 1, a veritable “share” or “spam stock”。
It is not hard to see that urban investors are becoming less interested in companies。
Zheng yoo-nam, as the urban luminant's rudderman, gives a good news, and claims that in 2025 the company will continue to follow the strategy under the “big provinces and regions” line, targeting 5,000 businesses。
Ten billion in sales
Founded in 1998 as the country's first fast-fashion underwear brand, products such as bras, underwear, night clothes and household clothes, the company was listed in july 2014 at the hong kong office。
In 2012, zheng yoonan, president of the metropolitan reaper, publicly stated that the company would launch the "maritimes scheme" and that it was expected that by 2015 the number of shops would have expanded from nearly 4,000 to 8,000, sprinting hundreds of billion。
In the year in which the market was opened, the income of the urban beauty amounted to $4,008 million, an increase of 37. 4 per cent over the same year; the owner of the interest (known as “net profit”) should account for $425 million, an increase of 54. 8 per cent over the same year。
As at 31 december 2014, the urban retail network had about 7026 shops, of which 6049 were union and 977 were self-employed。
In 2015, zheng yoonan completed the “half” of the goal of the mansion plan. As at 31 december 2015, the urban distribution network included 8058 retail outlets, of which 6937 were affiliated and 1121 were self-employed (excluding distribution networks for brand acquisition)。
As a result, the expansion of the urban beauty shop has been as rapid as expected, but income varies considerably。
In 2015, urban beauty incomes amounted to $4,953 million, an increase of 23. 6 per cent over the same period; net profits amounted to $540 million, an increase of 27. 06 per cent over the same period。
Although the target was not fully achieved, 2015 was a historic year for the urban community, with the second highest corporate income and highest net profit。
In 2016, the urban elite closed down many damaged shops, and the net total number of businesses fell, with a distribution network of 7651, of which 1523 were self-employed and 6128 were affiliated。
During the same period, urban returns amounted to $4. 512 billion, a decrease of 8. 9 per cent over the same period; net profits amounted to $242 million, a decline of 55. 2 per cent over the same period, and the company's sales of 10 billion were in vain。
In the case of large-scale closures and a significant decline in performance, the urban beauty attributed it to “structural adjustments in the personal clothing industry in the interior of the country”。
At a time of weak performance, urban beauty began to introduce strategic investors。
In may 2017, the metropolis announced that the company would share a premium of hk$2. 5 million and hk$600 million at a premium of hk$9. 17 per cent with the full-capital subsidiary of restar international. After the transaction was completed, the re-star became the urban two shareholders and strategic shareholders。
At the same time, it has signed performance-to-play agreements with four major urban shareholders。
In 2017, the income and profits of the urban elites were 4,542 million yuan and 317 million yuan, respectively, representing increases of 0. 7 per cent and 31 per cent, respectively, of which the income increase fell short of the target。
In 2018, the income and profits of the urban elites were $5,096 million and $378 million, respectively, representing an increase of 12. 2 per cent and 19. 3 per cent, respectively, and the combined performance of the two years was achieved。
It is important to note that the income of the urban ladies in 2018 was at an all-time high。
According to the data, in 2017 and 2018, there were 7181 shops and 7305 shops, respectively, of which 1290 and 1406 were self-employed and 5891 and 5899 were affiliated。
The number of shopfronts in the city is still less than zheng yoonan's “treasure plan”。
It's been eight years
After the performance-to-performance bet, in 2019, the urban beauty achieved income of $4,082 million, a decline of 19. 91 per cent over the same period, and a net profit loss of $1,298 million。
The reason given by the urban beauty is that, due to the shift in the retail market and the practical difficulties of promoting the sale of old products in the second half of 2019, the company is making a provision for the impairment of inventory of about $738 million, based on a new strategy to sell old products at discounted prices through different channels。
In 2020 and 2021, the urban beauty income was 3,057 million yuan and 3,355 million yuan, respectively, with net profits of 118 million yuan and 494 million yuan, respectively。
As a result, the urban beauty has lost for three consecutive years, cumulatively amounting to $1. 91 billion, while the total net profit for all the years since the company was listed is $1. 902 billion, equivalent to eight years of “white dry”。
Moreover, by the end of 2021, the urban distribution network had declined to 5970 shops, of which 1269 were self-employed and 4701 were affiliated, with a sharp decline in the number of shops。
After 2021, the performance of the urban elite has been warmer but worse than before。
Since 2022, the urban beauty community has decided to return to the market of traditional superiority and to launch the “100-city games”。
Zheng yoonan is planning for the transition of the urban beauty: “base-building” was completed in 2022, “big-up” in 2023 and “big-up” in 2024。
In 2022 and 2023, respectively, the income of the urban elites was rmb 3,009 million and rmb 2,757 million, respectively, with net profits of rmb 3. 324 million and rmb 4,483 million。
In the 2022 financial statements, one of the major factors that urban women attribute to their performance losses is cost control. In 2022, company sales and marketing costs decreased by 21 per cent over the same period and general and administrative costs by 18. 8 per cent。
On the other hand, zheng yoonan indicated that he had gone through a turn of the market. “we did not find a truly appropriate way to grow up before 2021. Until i studied the country's cities, counties and streets, i found that the urban beauty was considered to be a price-friendly, good-quality brand. It gives me a great deal of success, and the urban beauty is going back to the market on the 3-4-5 line."
In a financial paper summarizing the 2022 performance, the urban libertarian executive said: “the stock of urban lilies has fallen to a new low of nearly five years, returning to the best business in the past. By 2020, there had been a 440 million decrease in the comparison of stocks. This is the healthiest level of inventory in the last five years.”
At the press conference, zheng yoonan said in his business review: “we now have 80 per cent single-season sales, which is equivalent to the peak of urban beauty.” the greatest result of this change is an increase in the māori rate, which makes the cash flow and business performance of enterprises healthier。
In march 2023, the urban beautyes opened over 100 shops, and in that year there were more than 4,000。
In 2024, income actually fell
Urban beauty performance continues to be good, but not always analysed carefully。
In recent days, the urban beauty newspaper published 2024, showing that companies had earned 3. 01 billion yuan, an increase of 9. 18 per cent over the same period, and a net profit of 126 million yuan, an increase of 197 per cent over the same period。
By the end of 2024, there were more than 4,500 urban lilies, of which 94 per cent were under the main brand, the “urban lilies”, 2. 5 per cent were under “pure cotton” and 3. 5 per cent were under “odivine”。
Faced with off-line market pressures over the past year, the urban ladies believe that the current pace of opening businesses is in line with corporate expectations。
Zheng yoonan revealed that in 2025, the company would continue to follow the strategy under the “big provinces” district. The number of door shops is targeted at 5,000, but the company's requirements for shop performance are higher than previously. “it is very important that only good shop performance allows for sustainable development.”
Apparently, from over 8,000 at its peak to 4,500 at its present time, the city's lilies opened, closed and turned around。
In terms of performance in 2024, the income of the urban beauty “close clothing products” amounted to 2,555 million yuan, a decrease of 3. 33 per cent compared to the previous year's equivalent of 2,643 million yuan。
This also means that the income from the main business of the urban beauty is declining。
According to the financial statements, in 2024, out of the city's “close clothing products”, the value of the offline sales amounted to 2,144 million yuan, an increase of 1. 2 per cent over the previous year's corresponding period of 2,119 million yuan。
In contrast to the growth of the doorshops, the income of the urban limo shop as a whole is declining and the business of joining the business is becoming increasingly difficult。
It should be noted that in 2024, the income from e-commerce amounted to 411 million yuan, a decrease of 21. 63 per cent from 524 million yuan in the same period of the previous year。
According to metropolis, this year's reduction in some of the low-efficiency self-operated electrician platforms led to a decline in related e-commerce revenues。
In 2024, the real income-generating growth of the urban elite was “industry and logistics”, with revenues of $455 million, nearly three times higher than the previous year's equivalent of $114 million. Of this amount, “logistics” revenues amounted to $132 million, an increase of 16. 09 per cent over the previous year; “industrial project sales” amounted to $328 million, which was not available in the previous year。
“industrial project sales” is known to be the old warehouse of the former china jade springs, located in the town of fengbong in guangdong, guangdong, in 2022, resulting in modern industrial plants and the storage of intelligent logistics, of which nearly 40 per cent are kept for their own use and about 60 per cent are sold abroad。
The urban beauty management revealed at the performance exchange that the urban beauty spring project covers approximately 42,000 square metres of land and a total building area of about 145,000 square metres. By the end of last year, the urban lilies had contracted approximately 74 per cent of the marketable area, amounting to approximately 490 million yuan (including taxes), of which some 320 million yuan had been paid in 2024 and the remaining units were to be paid and recognized at the end of 2025。
In fact, if this income of $320 million is eliminated, the income of the urban beauty fell in 2024。
The chief finance officer and company secretary of the metropolitan reaper reported that the recorded industrial projects, after withholding taxes, contributed about $60 million to the company, or 70 million, or half of the company's 2024 profits。
Underline businesses are growing, but average income is declining; online revenues are falling sharply, losing positions with development potential; and the main business is declining, relying on “sale house” revenue
In the secondary market, since may 2021, the urban beauty stock price has been below hk$ 1, a veritable “share” or “spam stock”。
