China Lilang (1234) H2 2025 earnings summary

Executive summary

• Annual revenue reached RMB 4,070 million, up 11.5% year-over-year, with profit attributable to equity shareholders at RMB 502 million and gross profit margin rising to 49.6% (up 1.9 p.p.).

• The core collection benefited from the DTC model transition, while smart casual and other collections achieved 28.4% revenue growth.

• E-commerce and new retail channels outperformed, with online sales and TikTok revenue up 39% year-over-year.

• Continued multi-brand and international expansion, including new stores in Malaysia and growth of the MUNSINGWEAR golf brand.

• ESG rating upgraded to BB, with enhanced governance and sustainability initiatives.

Financial highlights

• Revenue increased by 11.5% year-over-year to RMB 4,070 million; gross profit margin improved to 49.6%.

• Operating profit margin slightly decreased to 13.6%; net profit margin declined to 12.3%.

• Earnings per share (basic) rose from 38.5 to 42.0 RMB cents; total dividends paid reached HK$191.6 million.

• Net cash generated from operating activities was RMB 538 million; cash balance increased to RMB 1,117 million.

• Debt-to-equity ratio improved from 30% to 19%.

Outlook and guidance

• Targeting net opening of 50–100 stores and 15% overall growth for the year.

• Plans to expand DTC transformation to more markets and deepen integration of online and offline channels.

• Multi-brand and internationalization strategy to continue, with further expansion in Southeast Asia and mainland China.