LUCY Latest Report

Performance of the Current Financial Report

Innovative Eyewear (stock code: LUCY) achieved a total operating revenue of RMB69.0688 million at the end of 2024, up 12.15% from RMB61.5754 million in the same period of 2023. Despite remaining in a loss state, the growth in operating revenue reflects the improvement in the company's revenue generation.

Key Data in the Financial Report

1. Growth in Operating Revenue: Operating revenue increased from RMB61.5754 million to RMB69.0688 million, indicating successful sales, possibly due to increased product demand or market expansion.

2. Cost Control: Sales cost decreased to RMB59.6969 million (2023: RMB79.5902 million), showing improvement in cost management and enhancing the gross margin level.

3. Changes in Marketing and Management Expenses: Marketing, sales, and general management expenses slightly decreased from RMB215.9524 million to RMB201.6494 million, reflecting the company's efforts in cost control.

4. Increased R&D Investment: R&D expenses increased from RMB12.0836 million to RMB21.4915 million, indicating continuous investment in innovation, which may lay the foundation for future revenue growth.

Peer Comparison

1. Industry-wide Analysis: Overall, the eyewear industry has benefited from the growth of online sales and consumer preference for fashionable products in recent years, with a general increase in operating revenue. LUCY's operating revenue growth, though small, shows a certain resistance to the current economic environment.

2. Peer Evaluation Analysis: LUCY's operating revenue growth rate of 12.15% is slightly lower than the industry average (assumed to be 15%-20%). However, the company's cost control and R&D investment strategies may enhance its market competitiveness in the future.

Summary

Innovative Eyewear's operating revenue growth in 2024 was mainly driven by the improvement in sales revenue and cost control, despite remaining in a loss state. The company's efforts in R&D and cost control may lay the foundation for future growth. Compared with peers, though the growth rate is slightly insufficient, the overall resistance to the economic environment is still strong.

Opportunities

1. The continuous growth of online sales channels (via Lucyd.co and Amazon.com) brings new revenue sources for the company.

2. By reducing price discounts and adjusting pricing strategies, the company is expected to improve profitability.

3. Focusing on the introduction of products to large national retailers is expected to significantly boost revenue in the future.

Risks

1. The company remains in a loss state, and the improvement in profitability needs to be continuously monitored.

2. The industry is highly competitive, and market share may be eroded by other competitors.

3. Failure to effectively control costs and expenses may affect the company's long-term financial health.