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].
中国利郎(01234) - 2023 - 中期业绩