E-commerce surge, branding segmentation, speeding up going abroad: COSMO LADY(02298) 2025 performance meeting, a structural transformation in the intimate apparel industry.

At the COSMO LADY 2025 performance briefing held at the Unified Centre in Golden Bauhinia, the spotlight was on Chairman and CEO Zheng Yaonan, Executive Director and Vice President Zhang Shengfeng, and Chief Financial Officer Cai Weixuan sitting side by side. On March 27, at the COSMO LADY 2025 performance briefing, there was no excessive nostalgia for the old-fashioned national goods brand. Instead, there were dynamic data and a modern brand narrative. In response to investors' inquiries about how an old brand can rejuvenate itself, Chairman Zheng Yaonan gave an answer that integrated "extreme efficiency" and "emotional resonance." "In 2025, we made a profit of 123 million RMB, with an e-commerce GMV of 4.31 billion RMB, a year-on-year increase of 175%," said Executive Director and Vice President Zhang Shengfeng in his report. One set of interesting data is that while the company's overall revenue remained relatively stable compared to last year at around 2.95 billion RMB, the core intimate apparel business revenue increased by 4.1% to 2.659 billion RMB, and its branch performance surged by 54.8% to reach 137 million RMB. Looking back two years, COSMO LADY made a crucial decision to shift its e-commerce to an affiliate model, focusing on brand, product, and supply chain. The effects of this transformation fully erupted in 2025. "E-commerce GMV has jumped from the previous level of hundreds of millions to 43 billion," Zheng Yaonan pointed out the essence when addressing investors' concerns about the balance of benefits of Wuxi Online Offline Communication Information Technology Co., Ltd. "This not only represents a growth in numbers, but also propels the entire supply chain of the company to upgrade. We even replaced about one-third of suppliers and material providers." Online has become a forefront in market insight, incubating popular products, and driving supply chain upgrades. In 2025, e-commerce service fees alone brought the company over 100 million RMB in profit, becoming a core driver of growth. The significance of this revolution is that COSMO LADY is breaking free from the shackles of traditional retail companies with "heavy assets and high inventory," relying instead on brand and product power to achieve lighter, more predictable returns. Addressing market concerns about conflicts with Wuxi Online Offline Communication Information Technology Co., Ltd., Zheng Yaonan provided a clear solution on-site: product differentiation, tiered pricing system, and empowered supply chain. E-commerce growth compelled the company to replace about one-third of suppliers, improve the speed of new product iterations and quality standards, and in turn drive offline Q1 2026 growth, creating a virtuous cycle of "online attracting new customers, offline experiencing, and holistic conversions." With the 70 billion RMB e-commerce GMV target set for 2026, COSMO LADY management displayed strong confidence, backed by the manifestation of the synergistic effect of the affiliate ecosystem and direct validation of its business model evolution. If e-commerce is the main channel of expansion, then the sub-brand "Pure Cotton Home Living" represents COSMO LADY's successful foray into new growth curves. In 2025, this brand focused on "family home living" saw a year-on-year revenue growth of about 47%, reaching 150 million RMB. More notably, it demonstrated a strong single-store model and overseas potential, successfully entering new markets such as Northwest China and Inner Mongolia. Vietnam has become a litmus test for international expansion. "In January 2026, we opened stores in Hanoi and Hue, Vietnam." The management revealed that Pure Cotton Home Living's scenario-based store concept, pet-friendly positioning, and design-oriented products precisely catered to the needs of overseas middle-class families, and its replicable high store efficiency business model received preliminary validation. The goal for 2026 is around 8 overseas stores, not pursuing speed but requiring each store to achieve monthly sales exceeding 200,000 RMB. Behind the formation of new growth curves and the initial success of international expansion is the reflection of COSMO LADY moving away from a reliance on a single brand and constructing a three-tier brand ladder of mass, mid-range, and high-end: the main brand COSMO LADY accounts for 88%-89%, maintaining a stable base; OUDIFEN holds the high-end price range of 300-800 RMB; Pure Cotton Home Living is positioned in the mid-range of 200-400 RMB, becoming the fastest-growing emerging force. In an uncertain market environment, COSMO LADY also presented a highly "defensive" financial statement. While the overall revenue of 29.54 billion RMB remained largely flat compared to last year, the operating cash flow and profit quality improved. The company maintained a positive net cash position, with a bank balance and cash of up to 614 million RMB. At the performance briefing, when investors pointed out that the company's stock price was far below its net asset value per share, Zhang Shengfeng admitted, "The company is valued at around 700 million HK dollars, with profits exceeding 120 million RMB, the valuation is indeed low." The management also indicated that they currently prefer to return value to all shareholders through dividends (1.6 Hong Kong cents distributed in 2025), while shareholders may consider individual increases at the current price.