中国利郎2024中期报告

Stock Code1234 CONTENTS目錄 Financial HighlightsManagement Discussion and AnalysisReview Report of the Auditor閱Condensed Consolidated Statement of Profit or Loss andOther Comprehensive IncomeCondensed Consolidated Statement of Financial PositionCondensed Consolidated Statement of Changes in EquityCondensed Consolidated Statement of Cash FlowsNotes to the Unaudited Interim Financial ReportOther Information2424262729303146 FINANCIAL HIGHLIGHTS財務摘要 FINANCIAL HIGHLIGHTS (CONTINUED)財務摘要（續） Notes: (1)(2)(3)(4) (1)Return on average shareholders’ equity is equal to profit for the period divided bythe average of the beginning and closing balances of total shareholders’ equity.(2)Average inventory turnover days is equal to the average of the beginning andclosing inventory balances divided by cost of sales and multiplied by the number ofdays in the relevant period.(3)Average trade receivables turnover days is equal to the average of the beginningand closing trade receivables balances divided by revenue (including value-addedtax) and multiplied by the number of days in the relevant period.(4)Average trade payables turnover days is equal to the average of the beginning andclosing trade and bills payables balance divided by cost of sales and multiplied bythe number of days in the relevant period. MANAGEMENT DISCUSSIONAND ANALYSIS 管理層討論及分析 INDUSTRY REVIEW During the period, the Group continuedto promote its new retail business byorganizing more promotional activitiesand introducing e-commerce productswhich were popular among consumersthrough vigorously developing itse-commerce live streaming, in order toinitiate round-the-clock interaction withconsumers. During the 618 E-commerceShopping Festival, the Group launchedhot pants products, which were wellreceived. This, combined with impressivesales of other items, resulted in theGroup ascending to the fourth best-selling brand in menswear in termsof total sales on Tmall for the festivalperiod. The Group also leveraged thecomplementary advantages of its onlineand offline business operations throughits WeChat Mall to promote consistentgrowth in store performance. In terms ofonline stores, its retail sales for the periodincreased by 37%. its e-commerce business, respondingto personalization needs of thenew generation of consumers andtheir preference to value-for-moneyproducts. This enabled the Group toachieve better performance than itscompetitors and enlarge its marketshares. In the first half of 2024, despite thecomplex and challenging internationalenvironment and the domestic impactcomprised of extreme weather, rainand waterlogging disasters and otherfactors, China’s GDP grew by 5% year-on-year, in line with the growth targetfor the year. On a quarterly basis, GDPgrew by 4.7% year-on-year in thesecond quarter, 0.6 percentage pointsslower than the first quarter. In termsof social consumer goods across thecountry, total retail sales increased by3.7% year-on-year in the first half of theyear, of which, retail sales of apparel,footwear, headwear and knitwearincreased by 1.3% year-on-year. Eventhough growth rates were lower thanthose of GDP and total retail sales,the market development remainedsteady. As the clothing consumershave adopted an increasingly cautiousattitude towards consumption, cost-effective products and promotionalactivities have become even morepopular. At the same time, the increasedcompetition among apparel brands hasled to their corresponding adjustmentsin terms of product pricing, promotionalstrategies and market positioning. Facing with the ever-evolving marketenvironment and the increasingdiversification of consumer demands,the Lilang Group has unwaveringlye m b r a c e d c h a n g e s o f i t s s a l e schannels, striving to achieve higher-quality and healthy growth. As apioneer in the Group's retail business,the “LESS IS MORE” smart casualcollection has not only achievedremarkable results after years ofcultivation, but also accumulatedvaluable direct-to-retail experiencefor the Group. Therefore, the Groupdecided to first implement theDTC model (hybrid operation ofdirect-to-retail stores and stores ofsub - distributors) of the LILANZcore collection in Heilongjiang sub-during the period to replace theprevious business model operatedby distributors and increased theproportion of DTC model adoptedby the Group. As of the end of June2024, the Group had a total of 2,709stores nationwide, including 959consignment stores and 15 direct-to-retail stores under the core collection. During the period, China Lilang Co.,Ltd. (the “Company” or “China Lilang”,together with its subsidiaries, the“Group”) differentiated its simple andstylish menswear design through itsdual collections - the “LILANZ” corecollection and the “LESS IS MORE”smart casual collection in response tothe challenging market environment.In promoting the collections, famousartists have been enlisted to serve asbrand ambassadors, and together withits diversified publicity strategies to leadfash