China Lilang Limited (“China Lilang” or the “Company”, together with its subsidiaries, the “Group”; stock code: 1234) today revealed its interim outcomes for the 6 months ended 30 June 2025.
Mr. Wang Dong Xing, Chairman and Non-Executive Director of China Lilang, stated: “In the very first half of 2025, worldwide trade environment ended up being progressively extreme and complex. Throughout the duration, customer costs in the mainland slowly recuperated, however customers stayed mindful about investing in non-essential items. China Lilang prides a well-differentiated brand name matrix that has actually allowed it to permeate and have a strong grip in the menswear market. It interested its target consumer base through accurate item placing and channel methods, and introduced a variety of ‘LILANZ’ and ‘LESS IS MORE’ brand name items to satisfy the requirements of the customer market. In addition, the Group actively released omni-channel marketing to improve the appeal of the Lilang brand names and enhance the effectiveness of online and offline sales channels to enhance general sales and functional skills.”
For the 6 months ended 30 June 2025, the Group’s profits increased by 7.9% to RMB1,727 million. Amongst this, income of the clever causal collection and other collections prompted 31.8%, primarily driven by strong efficiency in in-store sales of the clever casual collection and brand-new retail service. The core collection taped a minor reduction of 0.2%, mainly due to one-off income reduction arising from the promo of DTC organization design in Shandong Province and Chongqing City.
Gross earnings margin increased by 0.2 portion points year-on-year to 50.2%, generally due to the boost in typical system rate as an outcome of greater percentage of the direct-to-retail operation in sales earnings. Revenue attributable to equity investors for the duration was RMB242.5 million (2024 Interim: RMB280.1 million). Earnings margin attributable to equity investors was 14.0%. Revenues per share were RMB20.2 cents.
Throughout the duration, the Group preserved a healthy monetary position with enough capital. The Board of Directors has actually advised payment of an interim dividend of HK11 cents (2024 Interim: HK13 cents) per common share and an unique interim dividend of HK5 cents (2024 Interim: HK5 cents) per regular share, thus keeping a steady payment ratio.
The Group vigilantly advanced its tactical change throughout the duration, plus continued to execute its “Multi-brands and Internationalization” advancement technique to broaden company. The core collection “LILANZ” has actually continued to combine its competitive benefit in the conventional menswear market and effectively magnified its brand name awareness and market share. The repurchase and improvement of circulation and company rights in North-Eastern China and Jiangsu Province were finished in 2015. Throughout the duration, the Group has actually bought the operating rights from suppliers in the whole Shandong province and Chongqing city and embraced the DTC design. The “LESS IS MORE” wise casual collection that targets more youthful customers continued to run in a completely direct-to-retail mode. The recently opened shops of the wise casual collection were generally in South-Western China and Central and Southern China. As at 30 June 2025, there were 2,443 shops for the core collection and 331 shops for the clever casual collection.
Throughout the duration, the Group continued to enhance its sales channels, opening brand-new shops in mall and outlet shops in prime places as prepared. By integrating tech-savvy visual aesthetic appeals and younger, trendy designs, the Group has actually brought the brand name’s”Simplicity however not Simple” approach to life, thus improving its brand name image and driving sales. As at June 30, 2025, the variety of shops situated in mall increased to 957 (31 December 2024: 933), the shop count of outlet shops increased to 121 (31 December 2024: 103), with an overall of 2,774 stores.
The Group finished tactical change of its brand-new retail service, updating it from a stock clearance channel into a significant brand-new item sales platform, which reported an impressive 24.6% boost in income for the duration. While continuing to reinforce its existence on recognized sales platforms like Tmall, JD.com and TikTok, the Group has actually likewise broadened into emerging channels such as Pinduoduo, Wechat Channels and Poizon, producing varied online sales network completely. It has actually kept improving its e-commerce method and leveraged social networks platforms such as Xiaohongshu and Weibo to keep launching premium material. This technique has actually deepened its psychological connection with customers and provided it with brand-new organization chances.
In regards to”Multi-brands and Internationalization” advancement method, business of “MUNSINGWEAR” was effectively turned over to the Group in the very first half of the year. The Group prepares to open its very first batch of physical shops in the 2nd half of the year. The Group has actually opened its very first shop in Malaysia, which began trial operation in May, marking a considerable action in abroad growth.
For the research study, advancement and development and brand name marketing, the Group is dedicated to attaining advancements in materials, workmanship and innovations by pursuing exclusive research study and advancement throughout its commercial chain, with the objective of improving the brand name’s core competitive benefits. Throughout the duration, the Group’s initial long lasting white non-iron t-shirts, “Water Repellent Down 3.0” and the wash-resistant golf shirt have actually acquired several accreditations for their anti-wrinkle, quick-drying, and wash-resistant functions, effectively driving sales development. To step up brand name improvement targeting at youth customers, the Group has actually utilized star impact, teamed up with cultural IPs, and used immersive marketing strategies to engage customers throughout numerous age and city tiers.
Expecting the 2nd half of 2025, the advancement of domestic customer market continues to be tough. As a market leader, China Lilang will continue with using its strengths, following shifts in the customer market and technological development, to promote improvement and to boost brand name impact, attaining sustainable sales and earnings development.
In the 2nd half year, the Group will continue to press forward with change. It will continue to profit from the functional benefits of the DTC design in North- Eastern China, Jiangsu Province, Shandong Province and Chongqing City to accomplish healthy growth, customizing execution taking into consideration the particular conditions of each market to additional attain ideal functional efficiency. For the wise casual collection, which is run totally in the direct-to-retail mode, will have its advancement structure reinforced to assist preserve its strong advancement momentum. The Group anticipates the DTC design to release its possible additional in the 2nd half year and add to sales development.
On the other hand, the Group will continue to utilize the benefits of its sales channel reform, concentrating on opening shops in prime places in premium shopping center in provincial capitals and prefecture-level cities, and closing the underperforming shops to accomplish much better total shop efficiency. At the very same time, the Group will wisely broaden the design of outlet shops and increase the variety of shops to accelerate stock clearance. The Group intends to attain a net boost of 50-100 shops in 2025.
To attain both the online and offline advancement, the Group will accelerate its brand-new retails service by leveraging different platforms to engage young client groups and enhance brand name market penetration. By increasing brand name direct exposure through multi-dimensional efforts, the Group intends to increase online sales of brand-new items, anticipating an increase to 80% of overall e-commerce sales. It will work on enhancing the respond time of its supply chain to satisfy clients’ requirements, by means of consisting of constantly updating its the wise logistics.
With a strong domestic structure, the Group is positive of speeding up execution of its “Multi-brands and Internationalization” advancement method. As a crucial task of its multi-brand method, “MUNSINGWEAR” will continue to concentrate on item advancement in the 2nd half year to fulfill the requirements of the brand-new middle class for individualized, practical and sustainable style. For its abroad service, the Group will open more shops in Malaysia in the 2nd half year to much better tap the Malaysian market, in addition to actively deploy strategies to broaden organization protection to other Southeast Asian markets. The Group will promote its brand name appeal through partnership with IPs, as well as improving interaction with customers through exact social media marketing and subscription programs to cultivate consumer commitment and capture larger market share.
Mr. Wang Dong Xing, Chairman of China Lilang, concluded: “While China’s customer market stays tough, the Group keeps careful optimism towards the retail sector offered the federal government’s application of numerous consumption-stimulus procedures. The ‘LILANZ’ core collection and the ‘LESS IS MORE’ wise casual collection have actually both gone through ingenious improvement, emerging with clearer positioning. This will allow the Group to improve accuracy and performance in item advancement, style, marketing promo and sales, and eventually drive the long-lasting development. On the other hand, as an unfaltering professional of sustainable advancement, the Group has deeply ingrained ESG concepts into its business technique, regularly driving green development and social shared worth. Throughout the duration, we released our very first individually assembled ESG report entitled “Creat a Better Life Together” and officially developed an ESG Management Committee, incorporating ESG governance into tactical preparation and core worths– showing our dedication to long-lasting worth production. Especially, the Group attained an MSCI ESG score upgrade to BB, ranking amongst China’s leading menswear market peers. Looking ahead, the Group will continue to enhance its management in the domestic menswear sector and make every effort to accomplish sustainable development through carrying out versatile marketing technique and constant development, to the supreme end of producing higher worth for investors, its staff members and clients.”
About China Lilang
China Lilang is among the leading PRC menswear business. As an integrated style business, the Group styles, sources and makes top quality organization and casual clothing for guys and offers under brand names of ‘LILANZ’ and ‘LESS IS MORE’ throughout a comprehensive circulation network, primarily covering 31 provinces, self-governing areas and towns in the PRC.
Subject: Press release summary
