Throughout the year, ZIBUYU (02420) has continued to achieve record highs in performance, unleashing strong growth potential through "brand building."

In 2025, it was undoubtedly an extraordinary year for enterprises engaging in cross-border business. This year, certainty became increasingly scarce. Faced with a more complex and ever-changing external economic and trade environment, as well as the reality of rapidly evolving artificial intelligence technology adding new variables to various industries, ZIBUYU (02420), while maintaining strategic composure and continuously refining product and organizational capabilities, further intensified its brand building efforts, ultimately delivering a highly valuable annual report. According to the 2025 annual performance announcement recently disclosed by ZIBUYU, the company achieved total revenue of 46.6 billion yuan for the year, a year-on-year increase of 40.2%; net profit attributable to shareholders was 2.7 billion yuan, a year-on-year increase of 78.6%; the corresponding net profit rate also increased by 1.3 percentage points year-on-year to 5.8%. Excluding share-based payment expenses of 14 million yuan during the period, ZIBUYU's adjusted net profit for the year reached 2.83 billion yuan. With all key financial data soaring, ZIBUYU clearly conveyed a strong value signal to the outside world: this domestic leading cross-border e-commerce platform for fashion brands, under the strategic foresight and efficient organizational execution of its management, has unleashed a more powerful brand momentum and growth potential. Brand building unleashes strong growth potential If one were to distill a set of keywords for ZIBUYU's performance in 2025, "exceeding expectations" and "brand building" would probably be the most appropriate. In this year, ZIBUYU officially completed a brand-oriented business organization restructuring, while all strategic initiatives fully landed, and the effective "brand building" ultimately helped unleash a strong brand momentum. Reflected in financial data, ZIBUYU's revenue and profits both hit record highs, exceeding market expectations. Upon review, GMTEight believes that ZIBUYU's brand building efforts have achieved rich results, with the core reason being the company's precise and targeted "combination punch". During the year, ZIBUYU completed the establishment of a brand system for the first time, iterating on ten core brands, clarifying user profiles through brand books, and completing visual upgrades to strengthen brand tone recognition with a more distinctive aesthetic language. At the same time, the company has deeply implemented brand building, focusing on driving high-end brand strategies. Among them, the high-end brand RQ, which ZIBUYU has focused on nurturing, performed well during the year, with annual revenue nearly doubling year-on-year and reaching a successful 80 million yuan, showcasing ZIBUYU's operational capabilities in the mid-to-high-end fashion market. Following the revitalization of the brand image, ZIBUYU then actively constructed an integrated marketing system in an organized manner to promote the full application of the brand. Online, the company leveraged social media platforms like Instagram and TikTok to collaborate with overseas Key Opinion Leaders (KOL), translating brand narratives into community assets to drive sales conversion; offline, ZIBUYU strengthened brand "high-end appeal" recognition by participating in New York and Paris Fashion Weeks and collaborating with top fashion magazines. With the official establishment of the New York studio, ZIBUYU's brand localization operations took a significant step forward, accelerating its path towards becoming a "global brand." Anchoring to drive stronger growth in new product performance targets, during the reporting period, ZIBUYU completed organizational and business restructuring around brand building strategies. On the design side, through refining the selection logic, ZIBUYU enhanced data-driven product selection and refined product development; on the operational side, the company completed full-link optimization from planning to marketing, allowing advertising resources to be accurately allocated in a brand-oriented manner. These effective measures greatly increased the success rate of ZIBUYU's blockbuster products in 2025 and successfully translated into effective growth in single product sales. 2025 was also a crucial year for ZIBUYU to strategically intensify its omnichannel development. Leveraging its advantages in operating a full range of products and a branched-out brand mechanism, ZIBUYU continued its strong growth performance on the Amazon channel throughout the year, with revenue from Amazon increasing by 37.9% annually; at the same time, the company's key focus on content commerce and self-operated websites also yielded remarkable results, with contributions from the TikTok platform and self-operated websites continuing to achieve rapid growth, leading to an increase in the non-Amazon revenue share to 8.5%. In the face of an uncertain business environment, ZIBUYU further enhanced its growth resilience and certainty by strengthening its global supply chain layout and actively engaging in the AI technology wave to push forward the deep integration of AI with its business. In 2025, ZIBUYU successively expanded production capacity in countries such as Myanmar, Malaysia, Cambodia, and Turkey, with overseas production capacity exceeding 10%; simultaneously, the company vigorously promoted the optimization and automation of the entire business process, while also increasing investment in AI technology research and scenario-based applications, embedding AI into trend forecasting, design development, product selection and pricing, advertising placement, and inventory management and significantly enhancing operational efficiency and management decision accuracy. Focusing on "structural adjustments" to navigate uncertainties towards certainty Reflecting on the present time, ZIBUYU's exceptional growth in 2025 was not accidental, but rather the inevitable result of strategic composure and efficient execution. However, in an era where uncertainty is bound to become the new normal, has ZIBUYU adequately prepared itself? On this issue, GMTEight believes the answer is affirmative. As judged by ZIBUYU's Executive Director and CEO Chen Caixiong, "A stable structure is needed to build a management system with error tolerance." Based on this understanding, ZIBUYU has already set its operational focus for 2026 as "structural adjustments". According to Chen Caixiong's prior public statements, the implementation of the "Five Major Strategies" and "Nine Major Structures" will be the main focus of ZIBUYU's work this year. Breaking it down, the "Five Major Strategies" include AI development, brand matrix, global supply chain, localization operation, and TikTok content commerce; while the "Nine Major Structures" correspond to business, capital, management, talent, brand, supply chain, market, product, and channel structures. From clarifying strategic frameworks to advancing structural adjustments, all of ZIBUYU's efforts point towards a clear direction: first building a sufficiently stable organizational and business system, and then striving to achieve growth certainty in a market subject to constant change. To achieve this goal, in the upcoming time, ZIBUYU will continue to deepen its layout of AI development, accelerate progress in brand localization, and further intensify its efforts in TikTok content commerce and self-operated website construction. With the implementation of these strategic initiatives one by one, it can be expected that ZIBUYU's pursuit of a "stable structure" will transform into a solid foundation for traversing cycles and achieving sustainable development. Lastly, it is worth mentioning that in its annual report, ZIBUYU announced a distribution of HK$0.23 per share dividend, totaling a staggering HK$1.15 billion; and this is also the second consecutive year that ZIBUYU's dividend ratio has exceeded 35%. Undoubtedly, in an uncertain period, it is the stable governance structure, healthy financial position, and clear growth visibility that enable ZIBUYU to have the capability to continuously reward investors. According to ZIBUYU's guidance for the 2026 performance, the company expects annual revenue and net profit to increase by 30% respectively on top of a high base this year. With the subsequent high-quality fulfillment of growth expectations by ZIBUYU, investors in the secondary market can naturally look forward to the company's future performance.