The year 2025 proved to be an extraordinary period for companies engaged in cross-border business. During this time, certainty became increasingly scarce. Amid a more complex and volatile external trade environment, as well as the rapid evolution of artificial intelligence introducing new variables across industries, ZIBUYU (02420) maintained strategic focus while continuously refining product capabilities and organizational strength. By further emphasizing brand-building initiatives, the company delivered a highly impressive annual report. According to the recently disclosed 2025 performance announcement, ZIBUYU achieved total annual revenue of 4.66 billion yuan, representing a 40.2% year-on-year increase. Net profit attributable to shareholders rose by 78.6% to 270 million yuan, while the corresponding net profit margin increased by 1.3 percentage points to 5.8%. Excluding share-based payment expenses of 14 million yuan during the period, ZIBUYU's adjusted net profit for the full year reached 283 million yuan. With core financial indicators showing comprehensive upward breakthroughs, ZIBUYU clearly communicated a strong value proposition to the market: this leading Chinese cross-border e-commerce platform for footwear and apparel is unleashing powerful brand momentum and sustainable growth potential under management's strategic foresight and efficient execution.

If one were to summarize ZIBUYU's performance in 2025 with key phrases, "exceeding expectations" and "brand orientation" would be most fitting. During the year, the company completed a brand-oriented restructuring of its business organization while fully implementing various strategic initiatives. Effective brand-building efforts ultimately enabled the release of robust brand energy. This was reflected in financial results, with both revenue and profit hitting record highs and surpassing market expectations. Analysis indicates that ZIBUYU's brand-building achievements stem from a well-coordinated set of strategic measures. Throughout the year, the company established its brand system for the first time, iterated ten core brands, and defined user profiles through brand book development while completing visual upgrades. These efforts strengthened brand identity recognition through more distinctive aesthetic language. Simultaneously, the company deepened brand construction by advancing its premium brand strategy. Notably, the premium brand RQ, which ZIBUYU focused on cultivating, delivered outstanding performance with annual revenue surging nearly 190% to 80 million yuan, demonstrating the company's operational capabilities in the mid-to-high-end fashion market.

Following the brand image renewal, ZIBUYU systematically built an integrated marketing system to enable full-scenario brand application. Online, the company collaborated with overseas key opinion leaders on social media platforms such as Instagram and TikTok, transforming brand narratives into community assets to drive sales conversions. Offline, ZIBUYU enhanced premium brand perception through participation in New York and Paris Fashion Weeks, along with partnerships with top fashion magazines. The establishment of a New York studio marked a critical step in localizing brand operations, accelerating ZIBUYU's progression toward becoming a global brand. Aiming to drive stronger performance from new products, the company restructured its organization and operations around brand strategy during the reporting period. On the design front, ZIBUYU strengthened data-driven product selection and refined development processes by systematizing style selection logic. Operationally, the company optimized end-to-end processes from planning to marketing, enabling brand-oriented precision in advertising resource allocation. These effective measures significantly increased the success rate of hit products in 2025, translating into meaningful growth in per-item sales revenue.

The year 2025 also marked a crucial period for ZIBUYU's strategic emphasis on omnichannel development. Leveraging its full-category operational advantages and brand-focused division of labor, the company maintained strong growth on Amazon with revenue from the platform increasing 37.9% annually. Meanwhile, content e-commerce and self-operated websites—key focus areas for the company—also delivered remarkable results. Revenue contributions from TikTok and self-operated websites continued rapid growth, driving the proportion of non-Amazon revenue to 8.5%. Operating in an uncertain business environment, ZIBUYU enhanced growth resilience and predictability by strengthening its global supply chain footprint and actively embracing AI technology integration. In 2025, the company expanded production capacity in Myanmar, Malaysia, Cambodia, and Turkey, successfully raising overseas production share above 10%. Concurrently, ZIBUYU advanced optimization and automation across business processes while increasing investment in AI technology development and scenario-based applications. By embedding AI into core operations such as trend forecasting, design development, product selection and pricing, advertising placement, and inventory management, the company significantly improved operational efficiency and management decision-making accuracy.

Looking back from the current perspective, ZIBUYU's above-expectation growth in 2025 was not accidental but rather the inevitable outcome of strategic consistency and execution efficiency. However, in an era where uncertainty is destined to become the new normal, has ZIBUYU prepared adequately? Analysis suggests the answer is affirmative. As articulated by the company's Executive Director and CEO, "Only a stable structure can build a management system with error tolerance." Based on this understanding, ZIBUYU has designated "structural adjustment" as its operational theme for 2026. According to previous public statements, implementing the "Five Strategies" and "Nine Structures" will constitute key work items this year. The Five Strategies encompass AI development, brand matrix, global supply chain, localized operations, and TikTok content e-commerce. The Nine Structures correspond to business structure, capital structure, management structure, talent structure, brand structure, supply chain structure, market structure, product structure, and channel structure. From clarifying strategic frameworks to advancing structural adjustments, ZIBUYU's efforts point toward a clear direction: first establishing a sufficiently stable organizational and business system, then striving for predictable growth within a dynamic market.

To achieve this objective, ZIBUYU will continue deep AI deployment, accelerate brand localization, and further strengthen TikTok content e-commerce and self-operated website development throughout the year. As these strategic measures are implemented, the "stable structure" pursued by ZIBUYU is expected to transform into a solid foundation enabling the company to navigate cycles and achieve sustainable development. Notably, the annual report also announced a dividend distribution of 0.23 Hong Kong dollars per share, totaling 115 million Hong Kong dollars. This marks the second consecutive year with a dividend payout ratio exceeding 35%. Undoubtedly, stable governance, healthy financial conditions, and clear growth visibility have endowed ZIBUYU with the capacity to consistently reward investors amid uncertain cycles. According to the company's 2026 performance guidance, ZIBUYU expects both revenue and net profit to grow 30% year-on-year from a high base. As the company continues to deliver high-quality growth, investors in the secondary market can reasonably anticipate strong future performance.