China Lilang (1234) investor relations material

Executive summary

• Interim revenue reached RMB 2,065 million, up 19.5% year-over-year, with profit attributable to equity shareholders at RMB 215 million, down 11.2%, and EPS at RMB18.0 cents, down 10.9%.

• Gross profit margin was 48.9%, down 1.3 percentage points year-over-year, while operating profit margin fell to 11.3%, down 3.8 percentage points.

• Channel reform, DTC transformation, and new retail channels, especially smart casual and "LESS IS MORE" lines, drove significant revenue growth.

• Online channels, particularly TikTok, contributed strongly to sales growth, with online revenue proportion rising by 3 percentage points.

• Multi-brand and internationalization strategies advanced, with five new stores opened in Malaysia and expansion into the Philippines and Vietnam.

Financial highlights

• Revenue increased by 19.5% year-over-year to RMB 2,065 million.

• Gross profit margin was 48.9%, down from 50.2% in the prior year.

• Operating profit margin was 11.3%, down from 15.1% year-over-year; operating profit fell 10.5% to RMB232.8 million.

• Net profit margin attributable to equity shareholders was 10.4%.

• Interim and special dividends totaled HK14 cents per share, with total dividend payment of about RMB145.4 million.

Outlook and guidance

• Targeting over 10% year-over-year retail sales growth and at least 20% full-year revenue growth for new retail.

• Focus on enhancing store network efficiency, consolidating DTC transformation, and expanding high-quality shopping malls and outlets.

• Continued international expansion, especially in Southeast Asia, and further development of the MUNSINGWEAR brand.