China Lilang (1234) H1 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 rose 19.5% year-over-year to RMB2,065 million, with profit attributable to equity shareholders at RMB215.4 million, down 11.2% year-over-year.

• Interim dividend of HK10 cents and special interim dividend of HK4 cents per share were declared, totaling about RMB145.4 million.

• Growth was driven by the core collection and smart casual segments, with significant contributions from new retail channels and international expansion in Southeast Asia.

• Online channels, especially TikTok, and DTC transformation contributed strongly to sales growth.

• Multi-brand and internationalization strategies advanced, with new stores in Malaysia and preparations for entry into the Philippines and Vietnam.

Financial highlights

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

• Net margin attributable to equity shareholders was 10.4% (down 3.6 ppt year-over-year); earnings per share were RMB18.0 cents, down 10.9%.

• Cash and bank balances stood at RMB2,814.3 million as of 30 June 2026.

• Interim and special dividends totaled HK14 cents per share, with total payout of approximately RMB145.4 million.

• Net finance income dropped by RMB14.8 million year-over-year, mainly from lower net interest income.

Outlook and guidance

• Targeting at least 20% revenue growth for new retail and no less than 10% overall retail value growth in 2026.

• Focus on consolidating DTC transformation, expanding high-quality shopping malls and outlets, and further internationalization in Southeast Asia.

• Continued emphasis on product innovation, operational efficiency, and ESG initiatives.