According to the smart finance app, China Lilang (01234) released its six-month results ending on June 30, 2024, with a revenue of 1.6 billion yuan (RMB) compared to the same period last year, a growth of 7.3%; its profit for the period was 280 million yuan, up by 3.6%; basic earnings per share were 23.4 cents. It plans to distribute a mid-term dividend of 13 Hong Kong cents per share and a special mid-term dividend of 5 Hong Kong cents per share.

The announcement stated that the growth in revenue was mainly driven by the younger business in store operations and new retail in the first half of the year. It continued the growth momentum of the fourth quarter of last year and achieved a growth of 17.3%. As for the main series, the sales channels in Heilongjiang province were affected by the adjustment of the DTC model, which resulted in a decrease in sales of the distribution business. In addition, sales revenue needs to be deducted for stock buybacks from original distributors and for compensation paid to distributors for terminating cooperation. Nonetheless, the main series revenue still achieved a growth of 4.5%.

Currently, the main series has a total of 2,412 stores, of which 959, or 38.5%, are operated on a consignment basis. With the transformation of Northeast China's distribution to the DTC model, directly operated stores have increased to 15. The Group will continue to consolidate and establish a national sales network through long-term cooperation with distributors nationwide to provide services to Chinese consumers.

During the period, the Group continued to pragmatically optimize the distributor retail network, insisting on opening stores in superior locations in high-quality shopping malls, and attracting customers with the most distinctive brand personality decoration to enhance sales.

As for the younger business, there are 292 directly operated stores and 5 operated through a distribution model. The younger business continued to optimize store locations and improve store space utilization during the period.

At the end of June 2024, the Group had a total of 2,709 retail stores nationwide, with a net increase of 14 during the period, and a total store area of approximately 0.4424 million square meters (as of December 31, 2023: 0.4295 million square meters), an increase of 3.0% compared to the end of last year.

As of June 30, 2024, there were 885 shopping mall stores (as of December 31, 2023: 879), accounting for approximately 32.7% of the total number of stores and approximately 35.5% of the total store area. In addition, there were 81 outlet stores (as of December 31, 2023: 77).

Looking ahead to the second half of 2024, the international environment will remain complex, and although the mainland China is affected by multiple factors such as weakened export demand, economic data weakness, and declining real estate market, the demand for high-quality and cost-effective goods remains. The Group will therefore adopt a cautiously optimistic attitude in the medium and long term. The sluggish retail market has prompted the men's wear industry to enter the market consolidation phase. Brands with homogeneous products, single sales channels, and poor cash flow will be eliminated. China Lilang will seize the opportunity and actively expand its market share to further consolidate its position and strive to become a leading enterprise in the industry. The Group will focus on leveraging the advantages of the sales channel reform, continue to optimize its store network, accelerate the development of new retail business, and continue to launch innovative and differentiated new products to cater to consumer demand.