Listed Companies: Revenues Declined By - 14.13% Year On Year. What Information Does The Annual Report Of Annelle 2023 Give Us?

Before the festival, Shenzhen Annell Co., Ltd., a listed children's clothing company, released its 2023 annual report, which showed that in 2023, the company would achieve an operating revenue of 805.7303 million yuan, a decrease of -14.13% over the previous year's revenue, and the net amount of * * * - 99.5515 million yuan attributable to shareholders of the listed company. As of December 31, 2023, the total assets of the company were 1.389 billion yuan, and the net assets attributable to shareholders of the listed company were 821 million yuan.

Composition of operating income

Annell's business model

Annell has devoted 28 years to children's clothing, focusing on the healthy growth of children. The company re combs the love and understanding of children into the brand, puts forward a new value proposition of "To Be A Child Innocently and Comfortably", and is committed to providing super comfortable clothes for children aged 3-12 for multiple occasions. Annell implements the business model of combining independent design and procurement, outsourcing production, and direct marketing and franchise sales. In the middle and high-end children's clothing supply chain, it focuses on the core business links such as upstream product development and design, fabric development and procurement, as well as downstream independent brand operation, multi-channel management, and takes strict quality control on the intermediate links such as outsourcing processing.

Core competitiveness of Annell

Science and technology: in the face of the development trend of industry segmentation, functionalization and personalization, the company has accelerated the deepening of the scientific and technological attributes of products, increased R&D investment, and provided financial support for improving the company's scientific research capability. As a * * * high-tech enterprise, R&D and design company has been committed to the R&D and application of garment fabrics in recent years.

In addition, in order to continuously promote the development of the company's scientific research and innovation capability, the R&D and design company also established a research center with the Tianjin Institute of High end Equipment, Tsinghua University, to continue to conduct in-depth research on the electron beam grafted modified fabrics and the common technologies applied in the field of children's clothing.

Precipitation: Focusing on the children's wear industry for more than 20 years, he has in-depth and unique research and understanding of the children's wear industry. Actively participate in the discussion, drafting, revision and formulation of standards related to textiles, including the formulation of industry standards such as Knitted Children's Clothing, national standards such as Knitted Infant and Children's Clothing, and Knitted Infant Clothing. In 2018, the company was awarded the "Light of Textile" 2018 China Textile Industry Federation Knitted Underwear Innovation Contribution Award by the China Textile Industry Federation for participating in the formulation of the standard of "Washing and Finishing Knitted Garments".

In 2024, the company launched the "super comfortable clothing" series, which uses liquid ammonia treatment to modify the cotton fiber structure, giving the fabric a silky luster, lasting and really smooth; In 2024, SORONA elastic fiber was added to the neckline of the "super comfortable clothes" series of the mental category launched by the company, making the rib fabric like a spring, with good resilience and higher stability. The neckline does not deform after 1000 times of pulling. The details show that the company attaches importance to comfort and safety.

Fashion: After more than 20 years of development, "ANNIL" has won the favor of consumers by designing exquisite and simple children's clothes with the design style of keeping pace with the times, using the perspective of children's innocence and integrating current popular elements.

Distribution of physical stores

Top five stores in terms of operating revenue

Inventory

Prospects for future development

（1） Continuously optimize channel structure and improve operation quality

The company continued to adjust the store structure, closed some loss making and inefficient stores, and continued to expand in strong regions. Areas with too long management radius and weak * * * capability turned to cooperate with local affiliates with obvious advantages. In 2023, the actual sales of offline associated stores will increase by 54.14% year on year, and the efficiency of offline direct stores will increase by 25.50%.

（2） Traditional and emerging two-way deep cultivation online channels

With the rapid development of online business, channels are becoming more and more diversified. In addition to continuous efforts on three mainstream platforms, Taobao Tmall, Vipshop and JD, the company also runs in with social platforms such as Tiaoyin, Weibo and Xiaohongshu. In 2020, the company will open its own stores in Diaoyin and carry out live broadcast marketing activities. The company will further carry out in-depth cooperation with the e-commerce platform, improve its channel operation ability through products, user experience, community operation and other measures, comprehensively layout and develop new channels while promoting the growth of traditional e-commerce channels, and provide customers with more abundant shopping options and more convenient services.

（3） Linkage between public and private sectors promotes the construction of new retail channels

In order to better connect consumers with full contact, the company launched the official applet (Annell ANNIL+) and officially entered the new track of children's smart retail upgrading. The online official applet breaks the time and space restrictions, on the one hand, it can better connect customers and promote the whole scene transaction, on the other hand, it can empower offline stores, help them sell goods better and improve the efficiency of stores. In addition, the outlets with multi store warehouses can deliver goods flexibly, which improves the turnover speed of goods and internal operation efficiency. In the future, the company will increase the layout of channels such as large and small programs and circles of friends, and provide new growth points for enterprises through public and private domain linkage, small program stores and digital shopping guide operations.

（4） Create mental category and enhance brand power

The company has always focused on customer needs, and worked together to create mental categories through all channels. It is committed to deepening the intrinsic value and market positioning of the brand, clarifying and strengthening the core competitiveness of the brand, focusing on the unique selling points of "super comfort", building the brand mind of "super comfort", and enhancing the competitiveness and influence of Annell in the children's wear market.

（5） Intensify refined inventory management and effectively manage inventory

In order to respond to the market demand more timely and effectively, further improve the commodity inventory management ability and market response ability, the company has been committed to strengthening the refined inventory management, improving the ability of commodity management personnel and strengthening the construction of commodity teams, making production and procurement plans in a timely manner through monthly rolling sales forecast, improving the efficiency of goods, and accelerating the circulation of goods, Effectively reduce inventory.

（6） Continuously enhance R&D capability and promote the continuous upgrading of scientific and technological fabrics

The company has always been committed to improving its R&D capability and strengthening its R&D strength. In August 2022, R&D and design companies will cooperate with Shuimucili Grafting New Technology (Shenzhen) Co., Ltd. and Tianjin High end Equipment Research Institute of Tsinghua University to promote the application of electron beam grafting technology to develop anti-virus * * * functional textiles in children's clothing, and continue to conduct in-depth research on electron beam grafting modified fabrics and their common technologies applied in children's clothing. The company will also continue to actively cooperate with major universities and research institutions to carry out scientific research projects, strengthen the continuous output capacity of scientific research technology, continue to research and develop scientific and technological fabrics, continue to export more cutting-edge technology products to the market, and provide children with super comfortable and safe experience.

（7） Develop new big data business and enhance development momentum

In recent years, facing the increasingly fierce competitive environment, the company actively seeks new development opportunities. In 2023, the company decided to further extend its "technology" strategy and explore new business in big data industry to seek development opportunities on the basis of continuing to deepen its main business of children's clothing. In the future, the company will more prudently expand the big data industry, and enhance the company's development momentum and anti * * capability by optimizing the business structure.

Source of data and content: April 30, 2024, Annual Report 2023 of Annell (002875)