Senma Clothing Company Sen Releases 2024 Financial Report

On March 31, Zhejiang Sima Clothing Co., Ltd. (hereinafter referred to as "Sima Clothing"), a domestic fashion clothing listed company, released its 2024 annual report. The report shows that in 2024, Sima Garments will achieve a total revenue of 14.626 billion yuan, an increase of 7.06% over the previous year; The net profit attributable to shareholders of the listed company reached 1.137 billion yuan, up 1.42% year on year. During the reporting period, the total assets of Sima Garments Co., Ltd. were 19.101 billion yuan, and the net assets attributable to the owners of the parent company were 11.83 billion yuan.

Source of performance growth

By product: Sima Garments mainly relies on two core brands - "Sima" (mass casual wear) and "Balabala" (children's wear), which have become leaders in their respective fields. Among them, for children's clothing products, the total revenue in 2024 will be 10.268 billion yuan, up 9.55% year on year, which is the core of the revenue core of Sima Clothing.

In terms of sales channels, Sema Clothing accelerated the process of channel construction in 2024, focusing on improving the healthy channel structure, institutionalized customer governance and digital store management capabilities, of which the total revenue of online sales channels was 6.672 billion yuan, up 7.14% year on year, and the total revenue of direct sales channels was 1.548 billion yuan, up 12.64% year on year, The total revenue of franchise sales channels was 6.075 billion yuan, up 5.12% year on year.

In addition, Sima and Barabala are actively exploring overseas markets, and will open more than 30 stores in Singapore, Malaysia, Vietnam, Mongolia, Jordan and other markets in 2024. By the end of the reporting period, the brands of Sima and Barabala had successfully entered 15 countries and regions around the world, and the number of stores in Hong Kong and overseas exceeded 100.

Brands

Sima Garments has implemented the multi brand strategy of "2+N". In addition to the main "Sima" and "Balabala", its twin children's sports brands ASICS Kids and PUMA Kids have accelerated their development. In addition, it has incubated and developed VividBox, Shuku, and Mini Bala Marc O'Polo, Jason Wu and other brands have jointly formed a differentiated brand matrix to seek new growth points.

Store situation

By the end of 2024, the total number of stores under the company is 8325, including 980 direct stores, 7260 franchise stores and 85 associated stores. 1492 new stores were opened and 1104 were closed throughout the year (the report shows that this is mainly due to contract expiration or store adjustment). In addition, the total area of direct stores under Sima Clothing is 200706 square meters, and the average area of a single store is 204.8 square meters. The average average efficiency of the stores reaches 7711.15 yuan/square meter/year. Among them, the annual revenue of Sima's flagship store on Beijing Road, Guangzhou is above the threshold of 30 million yuan.

R&D investment

In 2024, there will be 214 garment designers and 17 garment designers signed by Sima Garments. The annual R&D investment was nearly 306 million yuan, up 8.91% year on year, accounting for 2.09% of the operating revenue. The R&D direction mainly includes functional technology product innovation, green sustainable product innovation and digital innovation projects, aiming to improve the market competitiveness and user experience of products.

Future direction

Looking forward to 2025, Sima will continue to deepen its layout around key capabilities, such as insight into consumers' capabilities, commodity operation capabilities, adhere to innovation driven development, and continue to optimize retail transformation strategies. For the leisure clothing business, the brand value will be further strengthened by optimizing the commodity development system and innovating the commodity management mechanism. In terms of children's clothing, Barabala plans to continue to refresh its products, increase marketing investment, enhance brand influence, and improve operational efficiency by deepening the 52 week MD plan. On the whole, Sima Garments is committed to long-term principle, constantly strengthening brand building, and providing consumers with better products and services.