Cosmo Lady, one of China's largest intimate wear enterprises based in Dongguan, Guangdong province, witnessed a significant increase in its gross profit margin in 2022 as well as its memberships, according to the company's annual financial report.

The increases were mainly due to the company's innovative research and development of high-quality intimate wear and expansion of outlets in the domestic market, according to the report.

The annual revenue of the Hong Kong-listed company reached 3.01 billion yuan ($437.55 million) in 2022, with its gross profit margin increasing 46.4 percent year-on-year and its member rolls expanding to 62 million. The net profit attributable to the parent company reached 33.02 million yuan in 2022.

With the upgrading of the underwear market, the needs of female users have become increasingly diverse, with more paying attention to personal experiences and pursuing healthy and comfortable intimate wear, according to a nationwide underwear industry report which was released in July last year.

Based on its huge pool of users, Cosmo Lady has adjusted its strategy in product research and development by integrating resources to develop professional intimate wear which meets the multiple needs of customers, the company said.

Cosmo Lady has also established an industrial alliance of suppliers ranging from raw materials, fabrics, lace and other upstream and downstream links to strengthen production efficiency, the company said.