The company released a three-quarter report

The company's 24Q3 revenue was 0.25 billion, a decrease of 17%; net profit to mother was 0.013 billion yuan, up 2.1%; net profit after deducting non-return to mother was -0.006 billion, a decrease of 152%. This was due to a decrease in revenue compared to the same period last year and an increase in investment to enhance product, brand, channel, operation and organizational strength.

24Q1-3's revenue of 1.08 billion decreased by 6.5%, including revenue from the own-brand business of 0.61 billion yuan, a decrease of 8.90%; of which, revenue from Komaki direct-run stores was 9.42 million yuan, a decrease of 27%; revenue from Komaki franchisees was 0.05 billion yuan, up 6%; and 0.21 billion yuan on the Damaki line decreased by 15%; and 0.34 billion under Omaki offline decreased by 6%.

Looking at proprietary brands by channel, online revenue of 0.21 billion decreased by 16%; offline revenue of 0.4 billion decreased by 5%; as of 24Q3, there were 0 Damu stores, 219 Komu stores, and a net of 11 24Q1-3 stores.

OEM/ODM business revenue was 0.469 billion yuan, down 3.07% from the same period.

24Q1-3's net profit of 0.09 billion to mother decreased by 16%, while net profit of 0.07 billion was reduced by 34% after deduction. This was due to a decrease in revenue compared to the same period last year and increased investment to enhance product strength, brand power, channel power, operation power and organizational strength.

24Q1-3's gross profit margin of 28.59% increased by 0.28pct; of these, the gross profit margin of the own-brand business was 29.4%, of which the online gross profit margin was 35.1% and the offline gross profit margin was 26.4%;

24Q1-3's net profit margin was 8.56%, down 0.96pct.

Build a multi-dimensional marketing network to drive sustainable brand and business development. The company has the advantage of omni-channel development, and has built a multi-dimensional marketing network covering multiple online and offline channels. Through diversification of sales channels and exploration of terminal business needs, this multi-dimensional channel strategy not only enhances the brand's market penetration, but also enhances consumers' purchasing convenience.

The company actively promotes the DTC (Direct-to-Consumer) offline retail+community business model. This strategy will help enhance brand value and customer loyalty, and promote the sustainable development of the brand and business.

Launching the “Crossing the Wilderness” Plan: Beyond Borders and Shaping China's Hardcore Outdoor Brand Spirit The company released the “A Journey Beyond the Edge” plan (A Journey Beyond the Edge) to build a hardcore outdoor brand belonging to China based on the Hengduan Mountains in China, showcasing the company's deep outdoor brand genes.

“Beyond the Edge” here not only refers to the edge of a mountain in a geographical sense, but also a contract with a crossing, insisting on environmental friendliness and sustainability, participating in the protection of rare animals, supporting the protection of local culture, and supporting the development of hiking talents and sports. On the other hand, it also points to the inner world of self. It is an adventure that transcends oneself and breaks through inherent boundaries.

Adjust profit forecasts to maintain “buy” ratings

Based on 24Q1-3 performance, uncertainty in foreign trade manufacturing business, and uncertainties in domestic demand market demand; we adjusted the profit forecast. The company's net profit for 24-26 is 0.098, 0.113, and 0.134 billion yuan (original values were 0.101, 0.121, 0.144 billion yuan), EPS was 1.1, 1.2, 1.4 yuan (original values were 1.1, 1.3, 1.6 yuan), and PE was 20X, 18X, and 15X, respectively.

Risk warning: Single revenue structure; risk of expanding product capacity; increased market competition.