After the close of trading on September 7th, Jiangnanbuyi (HK:03306) released its annual performance for the fiscal year 2023, ending on June 30, 2023. The results showed a year-on-year revenue growth of 9.3% to 4.47 billion RMB, and a year-on-year net profit attributable to shareholders increase of 11.2% to 379 million RMB, marking a turnaround from the loss in the 2022 fiscal year.
The group attributed the revenue growth to several factors, including comparable-store sales growth in physical stores, rapid growth in online channel sales, and the expansion of offline store locations.
- In terms of comparable-store sales: In the first half of the 2023 fiscal year, there was significant fluctuation due to pandemic control measures, but in the second half, offline foot traffic began to recover, resulting in a full-year comparable-store sales growth of 9.1%.
- In the online channel sales: Sales revenue increased by 24.5% compared to the 2022 fiscal year, with its revenue contribution rising from 16.7% in 2022 to 19.1% in the 2023 fiscal year.
- Regarding the growth of offline store locations: The group’s total number of physical retail stores worldwide increased from 1,956 at the end of the 2022 fiscal year to 1,990 at the end of the 2023 fiscal year. The retail network now covers all provinces, autonomous regions, and municipalities in mainland China, as well as nine other countries and regions globally.
The annual report also highlighted the group’s continued application of internet thinking and technology to empower sales, including the significant year-on-year increase of 70.4% in the GMV (Gross Merchandise Volume) of social retail channels, including “Not Just a Box,” micro-malls, and diversified social e-commerce, reaching 1.11 billion RMB. Additionally, the revenue from Jiangnan Cloth Group’s 19 multi-brand collection stores under the “Jiangnan Cloth +” brand increased by 53% to 180 million RMB.
*In August 2018, the group launched the “Not Just a Box” mini-program, providing consumers with styling recommendations. In December 2019, the group’s first Jiangnanbuyi+ store opened at Beijing’s China World Trade Center Mall.
Other highlights include:
- jnby by JNBY and LESS Shine
Jiangnanbuyi Group’s brand portfolio comprises multiple brands across three phases, including mature brands (JNBY), growth brands (CROQUIS, jnby by JNBY, LESS), and emerging brands (POMME DE TERRE, JNBYHOME). In this fiscal year, jnby by JNBY and LESS performed exceptionally well, with revenue growth of 12.2% and 14.0%, respectively.
- Members Spending Over 5000 RMB Contribute to Over 60% of Offline Retail Sales
As of the end of June 2023, there were more than 6.9 million unique member accounts (de-duplicated) (compared to over 5.9 million at the end of June 2022). The proportion of retail sales contributed by members continued to rise, reaching around 80%.
In the 2023 fiscal year, the number of member accounts with annual purchase amounts exceeding 5,000 RMB was nearly 260,000 (compared to over 210,000 in the 2022 fiscal year), and their retail spending amounted to 3.54 billion RMB (compared to 2.78 billion RMB in the 2022 fiscal year), contributing to over 60% of total offline channel retail sales.
Due to a black rainstorm warning, the Hong Kong Stock Exchange remained closed for the entire day. As of the close on September 8th, the group’s stock price was 8.29 Hong Kong dollars per share, with a market capitalization of 4.3 billion Hong Kong dollars.
| Source: Official financial report
| Image Credit: Jiangnanbuyi Group Official Website
| Editor: LeZhi
