Investment Rating - The investment rating for the company is "Outperform the Market" [5][10]. Core Views - The company achieved a revenue growth of 7.3% in the first half of 2024, with a total revenue of 1.6 billion yuan and a net profit of 280 million yuan, reflecting a year-on-year increase of 3.6% [1][2]. - The company is undergoing a channel transformation, optimizing inventory turnover, and has established a joint venture with Descente to expand into the sportswear segment [1][2]. - Despite a challenging consumption environment, the company maintains a high dividend payout ratio of 72% and aims for a retail growth target of 10% for the year [1][2]. Summary by Sections Financial Performance - Revenue for the first half of 2024 reached 1.6 billion yuan, with a main series revenue of 1.21 billion yuan and a light business series revenue of 390 million yuan, showing growth rates of 4.5% and 17.3% respectively [1][2]. - The gross margin decreased by 1.8 percentage points to 50.0%, influenced by channel reforms and product mix changes [1][2]. - The company plans to distribute an interim dividend of 0.13 HKD per share and a special dividend of 0.05 HKD per share [1]. Growth Prospects - The management has adjusted the retail growth target for 2024 from 15% to 10%, anticipating better performance in the second half of the year [1][2]. - The company aims to open 50-100 new stores and complete renovations for 400 stores to enhance brand image [1][2]. - Future growth is expected in the new retail and light business segments, with a projected net profit of 570 million yuan for 2024, reflecting a 7% increase [2][8]. Valuation - The target price has been slightly adjusted to 4.6-5.2 HKD, corresponding to a price-to-earnings ratio of 9-10x for 2024 [2][8]. - The company’s financial metrics indicate a stable outlook, with projected earnings per share of 0.47 yuan for 2024 and a net profit margin of 14.6% [9][12].

Investment Rating - The report maintains a BUY rating for China Lilang, primarily due to its attractive yield of 9% and valuation of 9x FY24E P/E, despite a cautious outlook for 2H24E [2][4]. Core Views - The company has revised down its FY24E retail sales growth target to 10% from 15%, reflecting macroeconomic uncertainties and company-specific challenges such as DTC transformation and increased operating expenses [2][6]. - Despite a robust new retail sales growth of 37% in 1H24E, the overall sales growth is expected to slow down due to a high base from the previous year and unclear momentum in retail sales [2][6]. - The partnership with Descente to develop the Munsingwear brand in China is seen as a positive move that could enhance growth in the golf wear segment [2][6]. Financial Summary - Revenue is projected to grow from RMB 3,544 million in FY23A to RMB 3,845 million in FY24E, representing an 8.5% year-on-year growth [3][10]. - Net profit is expected to decrease slightly from RMB 530.4 million in FY23A to RMB 528.1 million in FY24E, indicating a 0.4% decline [3][10]. - The company’s operating profit is forecasted to increase from RMB 610.6 million in FY23A to RMB 634 million in FY24E, reflecting a 3.9% growth [3][10]. Earnings Revision - FY24E net profit estimates have been revised down by 16% to RMB 528 million, primarily due to slower-than-expected sales growth and increased operating expenses [7][8]. - The gross profit margin is expected to decline to 46.7% in FY24E from 48.2% in FY23A, reflecting the impact of DTC transformation and a shift in sales mix [7][8]. Market Performance - The current market capitalization of China Lilang is approximately HK$ 4,897.7 million, with a target price of HK$ 4.85, indicating an upside potential of 18.6% from the current price of HK$ 4.09 [4][12]. - The stock has experienced a decline of 13.9% over the past three months, reflecting broader market challenges [4][12]. Strategic Initiatives - The company plans to open its first store in Malaysia as part of its overseas expansion strategy, leveraging its leadership in menswear and value-for-money products [6][12]. - The multi-brand strategy has been launched, with a focus on enhancing product and brand upgrades, which is expected to support long-term growth [2][6].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,600.0 million, representing a 7.3% increase from RMB 1,491.1 million in the same period of 2023[4]. - Gross profit for the same period was RMB 800.5 million, up 3.6% from RMB 772.6 million year-on-year[4]. - Profit for the period increased by 3.6% to RMB 280.1 million, compared to RMB 270.5 million in the prior year[4]. - Basic and diluted earnings per share rose to RMB 23.4 cents, a 3.6% increase from RMB 22.6 cents[3]. - Total comprehensive income for the period was RMB 282.4 million, compared to RMB 273.3 million in the prior year[60]. - Net profit for the period was RMB 280.1 million, an increase of 3.6% year-on-year, with a net profit margin of 17.5%, down by 0.6 percentage points[23]. - Profit from operations reached RMB 313.8 million, compared to RMB 305.4 million in the previous year, reflecting a stable operational performance[59]. - The Group's net finance income increased to RMB 27.8 million from RMB 22.3 million, indicating improved financial management[59]. Store Operations and Expansion - The Group had a total of 2,709 stores nationwide as of June 30, 2024, including 959 consignment stores and 15 direct-to-retail stores[9]. - The Group plans to launch the MUNSINGWEAR brand products next year and has registered a new company in Malaysia to open its first overseas store[14][18]. - The Group aims to achieve a net increase of 50-100 stores in 2024, adjusting its store opening strategy to focus on prime locations in provincial capitals and prefecture-level cities[46]. - The Group opened 4 additional outlet stores during the period to enhance inventory management and clearance[27]. Marketing and Sales Performance - During the 618 E-commerce Shopping Festival, the Group became the fourth best-selling menswear brand on Tmall, driven by successful product launches and promotional activities[10]. - The smart casual collection saw a significant revenue growth of 17.3%, while the core collection recorded a growth of 4.5% despite challenges in distribution operations due to the transition to a DTC model[15][17]. - The Group's online retail sales increased by 37% during the 6.18 shopping festival, achieving a ranking of fourth in the men's wear sales on Tmall[13]. - Tops accounted for 60.1% of total sales, increasing by 11.8% year-on-year, with down jackets being the standout performer; pants accounted for 25.2% of sales, representing a year-on-year increase of 12.7%[19]. Financial Position and Cash Flow - As of June 30, 2024, the Group's total cash and bank balance was RMB 3,075.5 million, a decrease from RMB 3,139.3 million as of December 31, 2023[49]. - Net cash generated from operating activities amounted to RMB 219.6 million, while net profit for the period was RMB 280.1 million, with a significant reconciling item being a decrease in trade and other payable balances by RMB 116.7 million[50]. - The Group experienced net cash outflows from investing activities of RMB 124.8 million, primarily due to fixed deposits totaling RMB 85.0 million[50]. - Average inventory turnover days increased to 189 days, a decrease of 22 days compared to the same period last year, with inventory balance rising to RMB 831.1 million[51]. Cost Management and Expenses - Selling and distribution expenses increased by RMB 68.1 million to RMB 466.4 million, accounting for 29.1% of total revenue, up by 2.4 percentage points from the previous year[22]. - Administrative expenses rose to RMB 79.9 million, an increase of RMB 6.5 million from the same period last year, with an expenses-to-sales ratio of 5.0%[22]. - Advertising, promotional, and renovation expenses accounted for 13.3% of revenue, a slight decrease from 13.6% in the prior year[3]. - The effective tax rate increased to 18.0%, compared to 17.5% in the previous year[3]. Strategic Initiatives and Future Outlook - The Group maintains a cautiously optimistic outlook for the medium to long term despite challenges such as weakened export demand and an unstable real estate market[44]. - The Group will focus on optimizing its store network and accelerating the development of new retail business to meet consumer demand[44]. - The Group has launched a "Multi-brands and Internationalization" strategy, including a joint venture to operate MUNSINGWEAR in the PRC market, expected to commence in 2025[47]. - The Group aims for a 30% or more growth in its new retail business for the year through innovative online promotions and e-commerce initiatives[46]. Research and Development - The Group's research and development department consists of approximately 357 staff members focused on product design, material development, and sample creation to enhance product competitiveness[39]. - Research and development costs increased to RMB 52,934,000 in 2024 from RMB 51,298,000 in 2023, reflecting a focus on innovation[79]. Shareholder Information and Corporate Governance - The interim dividend declared was HK 13 cents per ordinary share, consistent with the previous year, with a total payout of RMB 145,516 for the period ending June 30, 2024[123]. - The company has adopted a Share Option Scheme to provide incentives and rewards to eligible participants, with details available in the 2023 Annual Report[145]. - The company has complied with all code provisions of the Corporate Governance Code during the six months ended June 30, 2024[149]. - The board composition reflects a mix of executive and independent directors to ensure effective governance[156][157].

Investment Rating - The report assigns a "Buy" rating to the company [2][14]. Core Insights - The company reported a strong performance in Q1 2024, with a high single-digit growth in retail sales compared to the same period in 2023, continuing the growth trend from 2023 [2][14]. - The company achieved a revenue of 3.54 billion RMB in 2023, representing a year-over-year increase of 14.8%, with net profit reaching 530 million RMB, up 18.4% [2][14]. - The company plans to open 100-200 new stores in 2024, aiming for a total of 2,795 stores by the end of the year [2][14]. - The company expects to achieve a 20% growth in new retail business through platforms like Douyin live streaming [2][14]. - The projected earnings per share for 2024-2026 are 0.50, 0.55, and 0.61 RMB respectively, with a target price of 5.47 HKD per share based on a 10x PE ratio [2][14]. Financial Performance - The company’s revenue is projected to grow from 3.96 billion RMB in 2024 to 4.79 billion RMB in 2026, with year-over-year growth rates of 11.8%, 10.1%, and 9.7% respectively [4][14]. - The gross profit margin is expected to improve slightly, reaching 48.4% in 2024 and 48.9% by 2026 [12][14]. - The company’s net profit is forecasted to increase from 594 million RMB in 2024 to 732 million RMB in 2026, with growth rates of 12.1%, 11.3%, and 10.6% respectively [12][14]. Industry Overview - The men's clothing market in China is experiencing a recovery, with a retail sales growth of 3.8% in 2023 compared to 2022 [5][7]. - The market concentration is increasing, with the top 10 brands' market share rising from 16.9% in 2015 to 23.4% in 2023, indicating potential for further growth [5][7]. - The company is positioned as a leading player in the men's apparel sector, focusing on high-quality business and casual wear [7][9].

Investment Rating - The report maintains a rating of "Add" for the company [4][6]. Core Insights - The company reported a revenue increase of 14.8% year-on-year to 3.54 billion yuan in 2023, with a net profit growth of 18.4% to 530 million yuan. The second half of the year saw a revenue increase of 21.6% to 2.05 billion yuan and a net profit increase of 36.1% to 260 million yuan [5][6]. - The men's wear segment showed strong performance, particularly in the light business category, which led to a significant revenue increase. The company aims to maintain a revenue growth target of 15% for 2024 [5][6]. - The company has successfully improved its gross margin by 2.2 percentage points to 48.2% due to the increased contribution from the light business segment [5][6]. Financial Summary - For 2023, the company achieved a revenue of 3.54 billion yuan, with a year-on-year growth of 14.8%. The projected revenues for 2024, 2025, and 2026 are 4.02 billion yuan, 4.42 billion yuan, and 4.87 billion yuan, respectively, with growth rates of 13.5%, 10.0%, and 10.0% [6][7]. - The net profit for 2023 was 530 million yuan, with projections of 588 million yuan, 658 million yuan, and 736 million yuan for the following years, reflecting growth rates of 10.8% and 11.9% [6][7]. - The gross margin is expected to slightly improve to 48.3% in 2024 and reach 48.7% by 2026 [6][7]. Operational Highlights - The company opened a net of 51 new stores in 2023, with 8 in the main series and 43 in the light business segment. The total number of self-operated, consignment, and distribution stores at year-end was 297, 936, and 1462, respectively [5][6]. - The company has enhanced its e-commerce capabilities, resulting in a 17.6% year-on-year increase in new retail sales, significantly improving profit margins [5][6]. - Inventory management has been effective, with a 6.7% year-on-year decrease in inventory to 830 million yuan and an average inventory turnover period reduced by 25 days to 170 days [5][6].

Financial Performance - Revenue for 2023 increased by 14.8% to RMB 3,543.8 million compared to RMB 3,086.2 million in 2022[6]. - Gross profit rose by 20.2% to RMB 1,706.8 million, with a gross profit margin of 48.2%, up from 46.0%[6][8]. - Operating profit increased by 17.6% to RMB 610.6 million, resulting in an operating profit margin of 17.2%[6][8]. - Profit for the year grew by 18.4% to RMB 530.4 million, with a net profit margin of 15.0%[6][8]. - Basic and diluted earnings per share increased by 18.4% to HKD 44.30[7]. - Shareholders' equity per share rose by 4.9% to HKD 331.3[7]. - Final dividend per share increased by 44.4% to HKD 13 cents, compared to HKD 9 cents in 2022[7]. - For the year ended December 31, 2023, the Group's annual revenue increased by 14.8% year-on-year to RMB3,543.8 million, with net profit rising to RMB530.4 million, representing an 18.4% increase[25][24]. Retail and Store Expansion - The total number of stores reached 2,695, representing a net increase of 51 stores year-on-year, including 296 smart casual collection stores and 2,393 core collection stores[16]. - The Group plans to increase its retail scale by adding 100 to 200 new stores, targeting prime locations in provincial capitals and prefecture-level cities[19]. - The Group had a total of 2,695 retail stores nationwide, a net increase of 51 stores during the year[42]. - The total retail store floor area increased by 6.4% to approximately 429,543 square meters compared to the end of the previous year[42]. - The smart casual collection stores increased by a net of 43 stores, focusing on Eastern and Northwestern China[42]. Sales and Marketing Strategies - The Group's new retail sales grew by 17.6% year-on-year, reflecting the successful integration of online and offline sales strategies[16]. - The Group leveraged e-commerce platforms, particularly Tiktok, to enhance promotional efforts and drive business growth, especially during the "Double 11 Shopping Festival"[16]. - The integration of online and offline models has been optimized to foster growth in store performance and overall profitability[16]. - 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[24][25]. Product Development and Innovation - The Group continued to invest in new product research and development to adapt to market demand, focusing on the strategic upgrade of "Lilang's Minimalist Men's Fashion"[16]. - Sales of down products increased by 30% compared to the same period last year, driven by the successful launch of hydrophobic down 2.0[17]. - The Group's investment in research and development and product upgrades aims to enhance product quality and value for customers[17]. - Approximately 75% of the products sold during the year featured original designs, with about 50% utilizing unique fabrics developed by the Group[56]. - The Hydrophobic Down 2.0 was certified by the World Record Certification Authority as "the world's outstanding down with ultra warm technology" and "the down with the best hydrophobic performance"[59]. Financial Management and Position - The Group maintained a healthy financial position with sufficient cash flow throughout the year[16]. - As of December 31, 2023, total cash and bank balance increased to RMB3,139.3 million, up from RMB1,891.3 million in 2022, reflecting a significant growth of 66.0%[68]. - The Group's net cash generated from operating activities was RMB1,100.7 million, while net cash used in investing activities amounted to RMB1,212.0 million, indicating a cash outflow in investments[70][71]. - The Group's effective income tax rate was 19.4%, an increase of 1.3 percentage points compared to last year[38]. Sustainability and Environmental Initiatives - The Group is committed to environmental sustainability, with detailed policies and performance outlined in the Environmental, Social and Governance Report[80]. - The Group's environmental management system complies with ISO14001, covering Lilang Creative Park, Lilang Industrial Park, and all employees[103]. - The Group invested RMB5.03 million in 2023 to construct a solar photovoltaic power generation system, expected to achieve an electricity output of 2.15 GWh/year, reducing carbon emissions by 214 tonnes[106]. - The Group's eco-friendly jeans collection launched in 2020 uses blended fabrics from recycled plastic bottles, promoting sustainable fashion[127]. - The Group has implemented measures to reduce raw material consumption and carbon emissions, including the use of eco-friendly fibre materials and clean energy[131]. Employee Management and Welfare - As of December 31, 2023, the Group had a total of 4,032 employees, with total staff costs amounting to approximately RMB 393.3 million, an increase from RMB 347.4 million in 2022[81]. - The Group emphasizes corporate social responsibility and provides a decent working environment, ensuring compliance with national labor laws[134]. - Competitive remuneration and benefits are provided to employees, with regular salary inspections and adjustments based on performance and market conditions[138]. - The Group has achieved zero work-related fatalities and injuries in 2023, with no lost days due to work injuries[146]. - The Group provides a range of benefits for employees, including housing subsidies, wedding subsidies, and local education for employees' children[139]. Corporate Governance and Compliance - The company is committed to compliance with corporate governance standards and has adhered to all code provisions of the Corporate Governance Code during the year ended December 31, 2023[190]. - The Board consists of five Executive Directors, three Non-executive Directors, and four Independent Non-executive Directors[196]. - The Group has established preventive measures and whistle-blowing procedures to combat corruption[186]. - The Group emphasizes customer satisfaction and has implemented a nationwide customer service management mechanism[160]. - The Group's charitable donations totaled RMB12.023 million during the reporting period, including RMB7 million to Jinjiang Charitable Foundation and RMB5 million to Jinjiang Love in the Heart Charitable Foundation[164].

Investment Rating - The report maintains a "BUY" rating for China Lilang with a target price raised to HK$5.75, reflecting a 29.2% upside from the current price of HK$4.45 [2][4]. Core Insights - China Lilang is expected to outperform in FY24E due to operational efficiency improvements and product quality upgrades, with a robust retail sales growth target of 15%, including 20% growth for e-commerce [2][6]. - The company reported FY23 results that slightly beat expectations, with sales and net profit increasing by 15% and 18% year-over-year, respectively [2][9]. - The report highlights a significant improvement in working capital, with inventory and receivable days reduced to 170 and 42 days, respectively [2][9]. Financial Performance - FY23 revenue was RMB 3,544 million, with a gross profit margin of 48.2% and a net profit of RMB 530 million, reflecting a year-over-year growth of 15% and 18% [3][9]. - For FY24E, revenue is projected to reach RMB 4,047 million, with a net profit of RMB 626 million, indicating a year-over-year growth of 14% [6][9]. - The company declared a dividend per share (DPS) of HK$0.36 for FY23, resulting in a payout ratio of 74% and an 8% yield based on the current market capitalization [2][4]. Segment Performance - Sales growth rates for key segments in FY23 were 10% for the core brand, 35% for smart casual, and 18% for e-commerce [2][9]. - The smart casual segment is expected to continue its rapid growth, with sales per store already exceeding that of the core brand [2][6]. Valuation Metrics - The report indicates a P/E ratio of 8x for FY24E, which is considered attractive compared to the target P/E of 10x [2][4]. - The projected sales and net profit CAGR for FY23-26E is 11% and 14%, respectively, supporting the valuation [2][6].

Investment Rating - Buy rating maintained for China Lilang (01234 HK) with a target price range of HKD 5 20-5 50 [1][12] Core Views - China Lilang achieved 15% revenue growth and 18% net profit growth in 2023, with a slight increase in net profit margin [1] - The company's main series/light business revenue grew by 11%/35% respectively in 2023 [1] - Gross margin increased by 2 2 percentage points to 48 2% due to inventory provision reversal and no distributor rebates [1] - Operating cash flow surged 68% to RMB 1 10 billion in 2023, with a net cash ratio of 2 1 [1] - Dividend payout ratio remained high at 74%, consistently above 70% over the past 5 years [1] - H2 2023 saw accelerated growth with revenue up 21 6% and net profit up 36 1% [1] Channel Transformation and Product Competitiveness - Channel reform: Light business transitioned to self-operated and main series to consignment, improving inventory management and operational efficiency [1] - Light business achieved profitability with 35% revenue growth and 17% net store openings in 2023 [1] - Product competitiveness: 75% original design ratio, with upgraded water-repellent down jacket 2 0 driving 30% growth in down jacket sales [1] 2024 Operating Targets - Total retail sales growth target of 15% for 2024 [2] - Plan to open 100-200 new offline stores and achieve 20% growth in new retail business [2] Financial Projections - Revenue forecast: RMB 4 035/4 542/5 002 million for 2024E/2025E/2026E, representing 13 9%/12 6%/10 1% growth [3][13] - Net profit forecast: RMB 594/676/754 million for 2024E/2025E/2026E, representing 12 0%/13 7%/11 6% growth [3][13] - Net margin expected to remain stable at around 15% [3][13] - ROE projected to increase from 13 4% in 2023 to 16 6% in 2026 [3][13] Valuation Metrics - 2024E PE: 9 5-10x [12] - 2024E PB: 1 11x [3] - 2024E EV/EBITDA: 9 2x [3]

Core Viewpoint - China Lilang (01234) reported a revenue of approximately RMB 3.544 billion for 2023, reflecting a year-on-year growth of 14.8% [1] Financial Performance - Gross profit reached approximately RMB 1.707 billion, up 20.2% year-on-year [1] - Annual profit was around RMB 530 million, marking an 18.4% increase year-on-year [1] - Earnings per share stood at 44.3 cents, with a proposed final dividend of 13 Hong Kong cents and a special final dividend of 5 Hong Kong cents [1] Sales Growth Drivers - Sales growth was primarily driven by the resumption of normal operations in all stores as social activities returned [1] - The light business segment saw a significant revenue increase of 35.2% due to the opening of new stores and a higher proportion of high-end series sales [1] - The main series revenue growth was constrained at 10.7% as distributors needed to digest inventory from 2022, with no rebates provided to distributors during the year [1] Retail Network and Distribution - The company continued to enhance its new retail business, optimizing the integration of online and offline marketing models [1] - As of the end of 2023, the company operated 296 self-managed light business stores and 2,393 main series stores, totaling 2,695 stores, a net increase of 51 stores year-on-year [1] - The company successfully established four profitable sales channels, enhancing store efficiency and overall profitability [1] Inventory Management - The company implemented a more robust inventory management system, opening 22 outlet stores and selling unsold seasonal products from other stores [1] - The sell-through rates for both main series and light business stores improved [1] - The new logistics park and smart logistics system effectively accelerated the distribution pace and improved inventory control efficiency [1] Future Outlook - For 2024, the company plans to add 100-200 new stores to expand retail scale and improve operational efficiency [1] - New store locations will focus on high-quality shopping centers in provincial capitals and prefecture-level cities, with an increase in outlet stores to clear inventory [1] - The company aims for a 20% year-on-year growth in new retail business through initiatives like Douyin live streaming, leveraging the complementary advantages of online and offline stores [1] - Overall sales growth is targeted at 15% for 2024 [1]

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].