Financial Performance - For the year ended December 31, 2023, China Lilang reported revenue of RMB 3,543.8 million, representing a 14.8% increase from RMB 3,086.2 million in 2022[14]. - Gross profit for the same period was RMB 1,706.8 million, up 20.2% from RMB 1,420.2 million in 2022[14]. - Operating profit increased by 17.6% to RMB 610.6 million, compared to RMB 519.1 million in the previous year[14]. - The profit for the year reached RMB 530.4 million, an 18.4% rise from RMB 448.1 million in 2022[14]. - Basic and diluted earnings per share were both RMB 44.30, reflecting an 18.4% increase from RMB 37.42 in 2022[14]. - The gross profit margin improved to 48.2%, up from 46.0% in the previous year, indicating enhanced profitability[14]. - The operating profit margin also increased to 17.2%, compared to 16.8% in 2022[14]. - The net profit margin rose to 15.0%, up from 14.5% in the previous year[14]. Store Expansion and Retail Strategy - The total number of stores reached 2,695, with a net increase of 51 stores year-on-year, including 296 smart casual collection stores operated under a direct-to-retail model[27][29]. - The Group plans to net increase 100 to 200 stores in 2024, targeting prime locations in provincial capitals and prefecture-level cities, aiming for over 20% growth in new retail business and 15% growth in overall sales[37][41]. - The Group completed the renovation of 400 stores to enhance brand image and shopping environment, introducing innovative and differentiated new products[38]. - The Group's total number of stores reached 2,695 by the end of 2023, with a net increase of 51 stores year-on-year[51]. - The Group's smart casual collection stores increased by a net of 43 stores during the year[97]. E-commerce and Sales Growth - The Group's new retail sales grew by 17.6% year-on-year, driven by enhanced online and offline integration and promotional activities[26][28]. - The e-commerce business achieved a growth rate of 17.6% for the year, outperforming the overall growth rate, driven by interactive live-streaming sales models[50]. - E-commerce sales achieved a growth rate of 17.6%, outperforming overall sales growth[54]. Product Development and Innovation - The Group's investment in product research and development led to a 30% increase in sales of down products compared to the previous year, with the hydrophobic down 2.0 exceeding industry standards[32]. - The launch of the upgraded Hydrophobic Down 2.0 achieved a water resistance test of 10,000 minutes, exceeding industry standards by over 20 times, contributing to a 30.5% increase in overall down sales compared to last year[122]. - The proportion of products with original designs for sale was approximately 75%, with around 50% utilizing proprietary fabrics developed by the Group, highlighting a strong focus on innovation[113][116]. Financial Management and Dividends - A final dividend of HK 13 cents per share and a special final dividend of HK 5 cents per share were declared, maintaining a stable payout ratio[24]. - The Group maintained a stable financial position with sufficient cash flow and recommended a final dividend of HK13 cents per share and a special final dividend of HK5 cents per share[53]. - The proposed final dividend and special final dividend will be subject to shareholder approval at the 2024 AGM, with the register of members closing from May 8 to May 10, 2024[194]. Market Trends and Consumer Insights - The total retail sales of consumer goods in China increased by 7.2% year-on-year, with apparel retail sales growing by 12.9%, indicating a recovering apparel market[44][45]. - The central government's "Year of Consumption Promotion" in 2024 is expected to boost consumer confidence and support the Group's growth strategy[34]. - The core collection targets consumers aged 25 to 45 in third- and fourth-tier markets, while the smart casual collection focuses on urban youths aged 20 to 30 in first- and second-tier markets[121]. Logistics and Inventory Management - Average inventory turnover days decreased to 170 days from 195 days in 2022, indicating improved inventory management[16]. - The new logistics center and intelligent logistics system improved inventory control and delivery speed, contributing to better inventory management[31]. - The Group's intelligent logistics system improved delivery speed and inventory control, contributing to cost reduction and efficiency improvements[106][108]. Awards and Recognition - The Group's "Anping Bridge Show" was awarded the "Best Video Account Marketing Award" in the Tencent Social Media category, showcasing excellence in brand marketing[136]. - The Group received the "Secondary Award for Scientific and Technological Advancement" at the 2023 Science and Technology Awarding Ceremony of the China National Textile and Apparel Council[134]. - The Group's brand enhancement efforts earned multiple accolades, including the "Brand Enhancement Discovery Award of the Year" at the 2023 T-EDGE Global Innovation Conference[135].

Financial Performance - Revenue for the first half of 2023 increased by 6.7% to RMB 1,491.1 million compared to RMB 1,397.8 million in the same period of 2022[5] - Gross profit rose by 13.4% to RMB 772.6 million, with a gross margin of 51.8%, up from 48.7%[4] - Operating profit increased by 3.9% to RMB 305.4 million, while the operating profit margin slightly decreased to 20.5%[5] - Net profit for the period was RMB 270.5 million, reflecting a 5.2% increase from RMB 257.0 million in the previous year[5] - Basic and diluted earnings per share were both RMB 22.6, representing a 5.1% increase from RMB 21.5[4] - Total comprehensive income for the period was RMB 273,268 thousand, compared to RMB 265,230 thousand, marking a growth of 3.9%[38] Inventory and Cash Management - The average inventory turnover days increased to 211 days, compared to 195 days in the previous year[6] - The inventory balance decreased during the period, with a provision of RMB 0.558 billion as of June 30, 2023, indicating improved inventory turnover efficiency[19] - The company has seen a decrease in inventory to RMB 792,839 thousand from RMB 885,142 thousand, a reduction of 10.4%[40] - Cash used in investing activities amounted to RMB 1,045,842 thousand, significantly higher than RMB 504,264 thousand in the prior year, indicating a 107.5% increase[49] - As of June 30, 2023, the total cash and bank balances amounted to RMB 2,896.1 million, an increase from RMB 1,891.3 million as of December 31, 2022, reflecting a significant growth in liquidity[29] Store Expansion and Market Performance - The company expanded its store network, with a total of 2,646 stores as of June 30, 2023, netting an increase of 2 stores during the period[9] - Sales in the North China region grew by 15.1%, while East China saw an 11.5% increase, driven by a higher proportion of light business operations and significant growth in e-commerce[10] - The apparel retail market in China showed signs of recovery, with a 12.8% year-on-year growth in clothing, footwear, and textile retail sales[8] - The company opened 114 new stores and closed 112 stores during the first half of 2023, resulting in a net increase of 2 stores[16] Dividends and Shareholder Returns - The company maintained a stable dividend policy, declaring an interim dividend of HKD 0.13 per share and a special interim dividend of HKD 0.05 per share[9] - The company declared an interim dividend of RMB 199,905,000 for the six months ended June 30, 2023, compared to RMB 184,260,000 for the same period in 2022, representing an increase of approximately 8.6%[79] Operational Efficiency and Cost Management - Sales and distribution expenses rose significantly to RMB 398.4 million, primarily due to increased advertising and promotional expenses[14] - The light business self-operated store expenses decreased to RMB 142.4 million, accounting for 9.6% of total revenue[14] - The average trade receivables turnover days improved to 51 days from 54 days in the previous interim period[31] - The average trade payables turnover days increased to 140 days from 91 days in the previous interim period, attributed to an increase in trade bills to be settled later[31] Future Outlook and Strategic Initiatives - The group aims to open 100 new stores in 2023, with a cautious approach to store openings, expecting to achieve this target in the second half of the year[26] - The group expects a 10% growth in total retail sales for the year 2023, driven by flexible sales strategies and improved brand image[26] - The group plans to launch more e-commerce special edition products ahead of the Double 11 shopping festival, enhancing online sales strategies[26] - The company continues to optimize its distribution network, focusing on enhancing store quality and increasing store sizes in prime locations[15] Employee and Management Information - Employee costs for the period totaled approximately RMB 177.0 million, slightly up from RMB 175.4 million in the first half of 2022[32] - The group had 3,549 employees as of June 30, 2023, reflecting the company's focus on recruiting and training high-quality talent[32] - The total remuneration for key management personnel for the six months ended June 30, 2023, was RMB 4,044,000, a slight decrease of 1.4% from RMB 4,102,000 in 2022[85] Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code as of June 30, 2023[102] - The audit committee consists of three independent non-executive directors, overseeing the financial reporting process and internal control systems[103] - The interim results for the six months ending June 30, 2023, have not been audited but have been reviewed by the company's auditor[103]

Financial Performance - Revenue for the six months ended June 30, 2023, increased by 6.7% to RMB 1,491.1 million compared to RMB 1,397.8 million in the same period of 2022[4]. - Gross profit rose by 13.4% to RMB 772.6 million, with a gross margin of 51.8%, up from 48.7%[3][4]. - Operating profit increased by 3.9% to RMB 305.4 million, while the operating profit margin slightly decreased to 20.5%[3][4]. - Net profit for the period was RMB 270.5 million, reflecting a 5.2% increase from RMB 257.0 million in the previous year[4]. - Basic and diluted earnings per share were both RMB 22.6, representing a 5.1% increase from RMB 21.5[3]. - Total comprehensive income for the period was RMB 273,268 thousand, compared to RMB 265,230 thousand in the same period last year, indicating a growth of 3.9%[33]. Store Network and Expansion - The company expanded its store network, with a total of 2,646 stores as of June 30, 2023, net adding 2 stores during the period[8]. - The company opened 114 new stores and closed 112 stores during the first half of 2023, resulting in a net increase of 2 stores[15]. - The number of retail stores increased to 2,646 by the end of June 2023, with a total retail area of approximately 410,231 square meters, a 1.6% increase from the end of 2022[14]. - The group aims to open 100 new stores in 2023, with a cautious store opening strategy continuing into the second half of the year[24]. Inventory and Receivables Management - The average inventory turnover days increased to 211 days from 195 days, while average trade receivables turnover days improved to 51 days[5]. - The inventory balance decreased during the period, with a provision of RMB 0.558 billion as of June 30, 2023, reflecting improved inventory turnover efficiency due to the opening of more outlet stores and online retail channels[18]. - The total inventory as of June 30, 2023, was RMB 792,839,000, a decrease from RMB 885,142,000 as of December 31, 2022, representing a decline of approximately 10.43%[55]. - Trade receivables, net of loss provisions, amounted to RMB 342,439,000 as of June 30, 2023, down from RMB 528,592,000 as of December 31, 2022, showing a decrease of about 35.24%[57]. Cash Flow and Financial Position - The net cash generated from operating activities was RMB 598.6 million, with a significant improvement in cash flow from distributors due to the easing of pandemic measures[27]. - As of June 30, 2023, LILANZ operated a total of 2,646 stores, with 252 self-operated stores, 65 first-level distributors, and 750 second-level distributors, marking an increase in second-level distributors from 735[16][17]. - The group reported a net cash outflow from investing activities of RMB 1,045.8 million, primarily due to deposits and fixed-term deposits totaling RMB 1,009.0 million[27]. - The company’s total assets decreased from RMB 842,625,000 as of December 31, 2022, to RMB 645,546,000 as of June 30, 2023, reflecting a decline of approximately 23.36%[58]. Dividends and Shareholder Returns - The company maintained a stable dividend policy, declaring an interim dividend of HKD 0.13 per share and a special interim dividend of HKD 0.05 per share[8]. - The company declared an interim dividend of RMB 199,905,000 for the six months ended June 30, 2023, compared to RMB 184,260,000 for the same period in 2022, marking an increase of approximately 8.6%[69]. Market and Product Strategy - The apparel retail market in China showed signs of recovery, with a 12.8% year-on-year growth in clothing, footwear, and textiles retail sales[7]. - The company continues to focus on product originality, with approximately 75% of products being original designs and 50% utilizing proprietary fabrics developed by the company[20]. - LILANZ launched durable shirts and Polo shirts featuring innovative technologies, such as DP wrinkle-free technology, which maintains fabric quality after 30 washes, and high-temperature seamless pressing technology for Polo shirts[20]. Corporate Governance and Social Responsibility - The company has complied with the Corporate Governance Code as per the listing rules for the six months ending June 30, 2023[88]. - LILANZ is committed to corporate social responsibility, collaborating with the Shanghai True Love Dream Public Welfare Foundation to promote cultural education in Guizhou province[23]. Employee and Management Information - The group had 3,549 employees as of June 30, 2023[29]. - Total remuneration for key management personnel for the six months ended June 30, 2023, was RMB 4,044,000, slightly down from RMB 4,102,000 in the same period of 2022[75].

Financial Performance - For the fiscal year ended December 31, 2022, China Lilang reported revenue of RMB 3,086.2 million, a decrease of 8.7% compared to RMB 3,379.5 million in 2021[8]. - Gross profit for 2022 was RMB 1,420.2 million, with a gross margin of 46.0%, slightly up from 41.9% in 2021[8]. - Operating profit decreased to RMB 519.1 million, representing a decline of 2.6% from RMB 532.8 million in the previous year[8]. - Net profit for the year was RMB 448.1 million, down 4.3% from RMB 468.1 million in 2021[8]. - Basic earnings per share for 2022 were RMB 37.42, a decrease of 4.3% compared to RMB 39.09 in 2021[8]. - The effective tax rate for 2022 was 18.1%, up from 10.1% in 2021, indicating a significant increase in tax obligations[8]. - The company's annual revenue for 2022 decreased by 8.7% to RMB 3,086.2 million, while net profit fell by 4.3% to RMB 448.1 million, primarily due to the impact of the pandemic on offline retail operations[15]. - The overall revenue decreased by 8.7% to RMB 3,086.2 million, with total retail sales down approximately 6.0% year-on-year[22]. - Net profit for the year was RMB 448.1 million, a decrease of 4.3%, with net profit margin improving by 0.6 percentage points to 14.5%[32]. - The company proposed a final dividend of HKD 0.09 per share, down from HKD 0.11 the previous year, totaling approximately HKD 167.6 million (about RMB 148.6 million)[33]. Inventory and Store Management - The average inventory turnover days increased to 195 days in 2022, compared to 145 days in 2021[9]. - The company closed several underperforming stores and slowed down its store opening plans, resulting in a net decrease of 89 stores, totaling 2,644 stores by the end of 2022[15]. - The company aims for a net increase of approximately 100 stores in the coming year, focusing on high-quality shopping malls in provincial capitals and increasing presence in outlet malls[17]. - The total retail store area as of December 31, 2022, was approximately 403,703 square meters, a slight decrease of 0.1% compared to the previous year[36]. - The company plans to optimize over 100 stores in 2023, following the optimization of about 50 stores in 2022, focusing on first and second-tier cities[36]. - The inventory balance remained similar to the previous year despite sales impacts from the pandemic, with improvements in inventory levels for light business self-operated stores[40]. - The total inventory balance decreased by RMB 8.6 million to RMB 885.1 million, with an increase in inventory for the main series due to early deliveries from suppliers[53]. Product Development and Sales Strategy - The company emphasized the promotion of new retail strategies and enhancing brand youthfulness to adapt to market changes[10]. - China Lilang aims to provide value-for-money products and focuses on original and personalized designs to improve brand competitiveness[10]. - The company actively developed its micro-mall business, leveraging social media interactions and promoting brand image through online sales, which helped improve store efficiency despite a 0.4% decline in retail sales[15]. - The company introduced innovative products such as water-repellent down jackets and self-developed fabric summer shirts, which received positive consumer feedback[15]. - The company plans to enhance e-commerce development by using online platforms as a launchpad for new products and increasing the proportion of e-commerce sales[17]. - The company achieved a gross profit increase despite a 0.4% decrease in retail sales due to higher sales of new products with elevated price points[40]. - The summer product, ice pineapple shirt, features self-developed fabric with cooling and antibacterial properties, gaining popularity among consumers[43]. Market Outlook and Growth Plans - The company is optimistic about the retail market in 2023, anticipating a cautious recovery in consumer demand due to government consumption promotion policies[17]. - The group aims for a total retail sales growth target of over 10% for the year 2023, primarily driven by an increase in sales volume[48]. - The company plans to enhance its digital marketing strategy, allocating an additional 10% of the marketing budget to online channels[150]. - The company has set a future outlook with a revenue target of 1.5 billion for 2023, indicating an expected growth of 25%[150]. - A strategic acquisition of a local competitor is in progress, expected to enhance market share by 10%[150]. Corporate Governance and Compliance - The board of directors consists of six executive directors and three independent non-executive directors, ensuring accountability and governance standards[114]. - The company has complied with all code provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules of the Hong Kong Stock Exchange as of December 31, 2022[112]. - The board has established a structured process for annual self-evaluation of its performance and contributions, confirming satisfactory performance for the year ending December 31, 2022[124]. - The company has a clear distinction between the roles of the chairman and the CEO to ensure better checks and balances for corporate governance[119]. - The company has established a formal and transparent process for determining the remuneration of directors and senior management[127]. - The company has integrated anti-corruption clauses into procurement contracts to mitigate risks of bribery and fraud[98]. Environmental, Social, and Governance (ESG) Initiatives - The company established a comprehensive ESG governance framework to assist the board in overseeing ESG-related matters and ensuring ESG is integrated into daily operations[65]. - The company emphasizes resource conservation and environmental optimization, despite not causing significant pollution, and actively invests in measures to reduce emissions[65]. - The company has implemented an ISO14001 environmental management system across its facilities, ensuring compliance with environmental regulations[72]. - The company promotes a paperless office environment, utilizing ERP and mobile applications to minimize paper usage[74]. - The company has trained workers to improve skills and reduce fabric waste during production[75]. - The company has invested in advanced energy-saving technologies to enhance production processes and reduce environmental impact[72]. Employee Engagement and Welfare - The total number of employees as of December 31, 2022, is 3,689, with a turnover rate of 16%[84]. - Employee wellness initiatives include free health check-ups and mental health support during the pandemic[89]. - The company emphasizes a safe working environment with regular safety training and emergency drills conducted annually[89]. - Total training hours for employees reached 28,006 in 2022[92]. - The company provides competitive compensation and benefits, ensuring timely payment of salaries and compliance with local social insurance standards[85]. Community Engagement and Corporate Social Responsibility - The group made charitable donations totaling RMB 2.139 million during the reporting period, including RMB 1.634 million to the Shanghai True Love Dream Foundation and RMB 500,000 to the Jinjiang Charity Foundation for pandemic relief efforts[99]. - The group has established a zero-tolerance policy towards corruption and fraud, with no reported cases of corruption or fraud during the reporting period[98]. - The group actively engages in community investment, enhancing local tax revenue and employment while supporting education, healthcare, and elderly care initiatives[99]. - The group has collaborated with the Shanghai True Love Dream Foundation to promote children's education through the Youth Aesthetic Education Program[101]. Risk Management and Internal Controls - The company has implemented a risk management and internal control system to manage risks associated with achieving strategic objectives[138]. - The board and audit committee found no significant issues during the review of the internal control system, although areas for improvement were identified[141]. - The independent auditor's report emphasizes the importance of identifying and assessing risks of material misstatement in the financial statements due to fraud or error[199]. Revenue Recognition and Accounting Practices - The company recognizes revenue upon delivery of products to the designated location of the distributor, indicating a clear transfer of control[194]. - Significant manual adjustments to revenue generated during the reporting period are examined to ensure compliance with accounting standards[194]. - The audit identified revenue recognition from sales to distributors and agents as a key audit matter due to the inherent risk of management manipulating revenue recognition timing[194].