Urban Beauty's e-commerce GMV grew by 175% last year. The sub-brand "Pure Cotton Home" will become a key focus for overseas expansion this year | Financial Report Analysis

Financial Associated Press, March 28 (Reporter Fu Jing) Urban Beauty (02298.HK) released its 2025 annual report on the evening of the 27th. In the context of the consumer market returning to a focus on “value for money,” Urban Beauty, based on its positioning of “affordable national underwear,” has shown stable performance in its core business of intimate apparel, offsetting the revenue decline in its industrial projects and logistics business. Notably, its sub-brand “Pure Cotton Living” saw a 50% year-on-year increase in revenue, and e-commerce GMV also grew by 175% year-on-year.

Financial data shows that last year Urban Beauty achieved operating revenue of 2.954 billion yuan, a decrease of 1.86% year-on-year, with the core intimate apparel segment generating revenue of 2.659 billion yuan, an increase of 4.1% year-on-year; meanwhile, industrial projects and logistics business reported revenue of 295 million yuan, showing a decline. In terms of profit, the profit attributable to owners of the company was 123 million yuan, down 2.20% from the previous year’s 126 million yuan; gross profit was 1.382 billion yuan, with a gross margin of 46.8%.

It is reported that the company has three major brands: Urban Beauty, OUDIFEN, and Pure Cotton Living, with the main brand “Urban Beauty” accounting for 88% of revenue, and the sub-brand “Pure Cotton Living” generating 150 million yuan in revenue, a 50% year-on-year increase.

Last year, Pure Cotton Living actively expanded its retail network, adding about 150 stores during the year, further enhancing its presence in shopping centers in first- and second-tier cities. At the same time, Pure Cotton Living performed well in the Vietnamese market. The brand created pet-friendly shopping experiences and launched popular products like anti-fur loungewear and water-light liquid ammonia cotton series, entering the home lifestyle segment.

Urban Beauty’s Chairman Zheng Yao Nan introduced at the performance exchange meeting that Pure Cotton Living is positioned as a middle-class home lifestyle store, with a main pricing range of 200-400 yuan. This year, it will be a key brand for overseas development, aiming to expand the number of national stores to 200 and open about 8 stores in overseas markets, with a target of 200,000 yuan in monthly revenue per store, focusing on store efficiency rather than the speed of opening.

It is noteworthy that last year, the e-commerce business became the core engine of Urban Beauty’s performance growth, with annual GMV reaching 4.31 billion yuan, a year-on-year increase of 175%. The number of online stores exceeded 400, and its rankings on major e-commerce platforms steadily improved. Data shows that influencer live streaming has become an important growth driver for online sales, with annual live streaming GMV exceeding 1.1 billion yuan, of which influencer live streaming contributed about 200 million yuan. For 2026, the company has set a goal of reaching 7 billion yuan in e-commerce GMV.

In addition, Urban Beauty optimized its inventory structure, with total inventory at 658 million yuan at the end of 2025, a decrease of 59.75 million yuan year-on-year; the proportion of new goods increased to 64%, and inventory turnover efficiency improved.

Yesterday, Urban Beauty’s Executive Director and Vice President Zhang Shengfeng also discussed the company’s real estate disposal plans at the earnings meeting, stating, “The originally planned 56,000 square meters of secondary building intended for use as a warehouse will be gradually sold starting in the fourth quarter of 2025, with the board’s resolution. This part is valued at about 200-300 million yuan, and 1/3 has already been sold. In the future, we will consider renovations or selling other logistics park assets based on market conditions.”