The Zhitong Finance App learned that on March 11, Edwin (09919) announced the results for the year ended December 31, 2023. According to the data, the company's revenue was about 967.2 million yuan (RMB, same below), up 39.2% year on year; net profit was about 118 million yuan, up 319.9% year on year; profit attributable to parent company owners was about 108 million yuan, up 356.97% year on year. Notably, all three key metrics hit record highs for the company.

At present, the company has served more than 550 world-famous brand customers, including famous high-end fashion brands such as CARTIER, CHANEL Chanel, DIOR Dior, LOUIS Vuitton, and Gucci Gucci, as well as high-end Chinese local brands.

According to market news, a number of luxury brands have collectively risen in recent times. Specifically, the price of the full range of LV bags increased by 4% to 6%; the Estée Lauder Group raised the prices of its 1500 products; L'Oréal Group and LVMH Group all increased prices to varying degrees; Louis Vuitton has made the first round of price adjustments in 2024 for some handbags; and the price of Gucci's popular handbag, the Marmont Supermini, rose by 1,100 yuan, or 12.6%.

What you can know is that rising luxury prices usually mean that brands can obtain higher profits, and the increased profits may be partially or fully re-invested in marketing activities. At the same time, in order to make full use of marketing resources and increase brand influence and market share, these luxury brands may seek to establish long-term and stable partnerships with marketing service providers with more powerful and professional experience. As the largest experiential marketing service provider for mid-range and high-end fashion brands in Greater China, Edwin may be the first to enjoy the benefits brought by the price increase of luxury goods.

At the same time, the “2023 China Luxury Market Report” released by Bain indicates that China will further strengthen its position as the preferred destination for global luxury goods consumption, and this is of strategic significance to the sales layout of global luxury brands. By 2030, China is expected to become the world's leading luxury market. Chinese consumers will account for 35-40% of the global market share, while the Chinese market share will also increase to 24-26%, surpassing the US and Western Europe. This development is believed to attract major luxury brands to further increase their marketing efforts in Greater China, which in turn will bring more market opportunities to the company's one-stop marketing business.

In 2023, Edwin announced that Louis Vuitton hosted the “2024 Early Autumn Menswear Collection Show” for LOUIS Vuitton at Hong Kong's Tsim Sha Tsui Walk of Fame and the “2023 Early Autumn Women's Collection Show” at the Han River Submersible Bridge in Korea, successfully taking an important first step in the Korean market. The success of these events reflects the recognition of the company's one-stop marketing service capabilities by major brands.

According to a research report by Zhuoshi Industry Consulting Co., Ltd., the company once again ranked as the largest high-end fashion brand experience marketing service provider in Greater China in 2023, increasing its market share from 6.3% in 2019 to 12.7% in 2023.

Mr. Lau Kam Yew, Co-Chairman of the Board of Directors and CEO of Edwin Group, said, “In the future, we will continue to strengthen our leading position in high-end brand marketing.” He also mentioned that alcohol and beauty brands currently only account for 5.3% of our revenue, but both fields have huge room for market expansion. In the future, the company will step up efforts to explore potential customers in these industries to diversify and grow revenue. Furthermore, the company is confident about the future of sports and cultural IP expansion.