Seven Wolves' net profit in 2025 is 333 million yuan, with non-recurring net profit losses for three consecutive quarters, totaling 9.62 million yuan for the year.

Recently, Septwolves (002029.SZ) released its 2025 annual report. If you look purely at profit figures, Septwolves looks more like an investment company.

In 2025, Septwolves’ net profit attributable to the parent company was RMB 333 million, up 16.91%; however, its non-recurring profit attributable to the parent company was only RMB 9.62 million, down sharply by 86.91%. Starting from the second quarter, the company’s non-recurring net profit attributable to the parent company has been in losses for three consecutive quarters.

After the annual report was released, as of the close on April 3, Septwolves’ share price was RMB 9.43 per share, down 9.41%.

Screenshot from Septwolves’ official website

Non-recurring net profit last year was RMB 9.62 million

“Playing the stock market” to raise a family; investment income exceeded RMB 80 million

Septwolves’ 2025 annual report shows that the company’s revenue was RMB 3.0 billion, down 4.3% year over year.

In addition to the decline in revenue, the company’s main business contribution to net profit also fell significantly. In 2025, Septwolves’ net profit attributable to the parent company was RMB 333 million, up 16.91%; non-recurring net profit attributable to the parent company was RMB 9.6153 million, down 86.91% year over year.

This is already the second consecutive year that Septwolves’ non-recurring net profit has fallen sharply. In 2024, the company’s non-recurring net profit was RMB 73.4696 million, down 60.86% year over year.

In 2025, Septwolves’ gains and losses generated from holding and disposing of financial assets and liabilities by non-financial enterprises were RMB 374 million, mainly fair value changes in wealth management products and stocks, as well as investment income.

Breaking it down in more detail, investment income was RMB 85.42M and fair value changes in profit and loss were RMB 304 million; together, the two accounted for more than 95% of total profit.

In fact, Septwolves’ push into the investment space can be traced back more than 10 years. In 2015, based on its original business scope, the company added “investment in manufacturing, wholesale and retail businesses.”

But until 2022, the combined proportion of investment income and fair value changes from holding wealth management products was still less than 8% of the company’s total profit; however, by 2024, that proportion exceeded 70%.

By the end of 2025, the book value of trading financial assets such as stocks held by Septwolves, both domestic and overseas, reached RMB 1.76B. The companies it invested in include Tencent Holdings (00700.HK), Alibaba (09988.HK), CATL (300750.SZ), and others.

Main business is “weak”

Subsidiary luxury-casual brands are incurring losses

Compared with the company’s investment income, its main business appears weak for a “jacket expert.”

In 2025, its apparel business contributed 96.28% of revenue, reaching RMB 2.89B. Jackets and trousers products were still its core offerings. However, only shirt and T-shirt categories saw revenue increases, up 0.39% and 12.65% respectively; revenues for the other product categories, including jackets, knitwear, suits, and trousers, all declined.

In terms of sales model, both its online and offline sales declined; offline sales remained its main sales model, accounting for 64.6%. As of the end of 2025, the total number of Septwolves stores was 1,706. During the reporting period, the company opened 145 new stores and closed 243 stores. The reasons for store closures were the expiration of store lease terms, performance not meeting expectations, and the company’s channel adjustment that converted some franchise stores into directly-operated joint-venture stores.

At the same time, the company’s inventory turnover days also increased from 205.6 days in 2024 to 220.1 days in 2025; accounts receivable turnover days increased from 44.08 days in 2024 to 45.17 days in 2025.

By brand, Septwolves’ own brands include Septwolves, Karl Lagerfeld, and Septwolves menswear/knitwear.

Among them, Karl Lagerfeld, handled by Zhou Liyuan, the son of Zhou Shaoxiong—one of the controlling individuals—has drawn the most attention. Zhou Liyuan is 30 years old. In 2024, he married Ding Jiamin, the second daughter of Ding Shuibo, the founder of Xtep.

Karl Lagerfeld is the French luxury-casual brand that Septwolves bought in 2017 for RMB 320 million. Its price range is RMB 2,599 to RMB 15,990, and its target customer base is urban elites.

But in 2025, among the company’s three major subsidiaries, the Karl Lagerfeld company became the only one incurring losses. Its net profit was -RMB 66.4918 million. The main reason was that during the reporting period, the company accrued losses from impairment of intangible assets of RMB 82.7925 million; as of the end of the reporting period, the company’s net assets were -RMB 160 million.

In recent years, with weakness in the main business, not only Septwolves—there are men’s apparel brands that make money by “doing not their proper business.”

In the first three quarters of 2025, the net profit attributable to the parent company of Jomoo King (601566.SH) was RMB 310 million, up 129.63%; non-recurring net profit was RMB 84.6453 million, down 17.38% year over year. Among them, the non-recurring net profit in the third quarter was -RMB 24.3396 million, and the growth in net profit was mainly due to investment.

In the first three quarters of 2025, Jomoo King’s gains and losses from holding and disposing of financial assets and liabilities were RMB 191 million; of this, the third quarter was RMB 146 million.

Yagor (600177.SH) has also been called the “Buffett of the apparel industry.” From 2013 to 2015, more than half of Yagor’s profits came from the investment segment.

But relying on investment to boost profits also faces risks. In 2022, Jomoo King had a net loss of RMB 93.42 million—precisely because its investments failed. In that year, Jomoo King’s stocks and funds together lost more than RMB 120 million.

Edited by Tao Yueyang, Xiao Ziqi; compiled from company announcements, public information, poster news, etc.

Reviewed by Ren Zhijiang