\n<\/p>\n
\n Revenue at RMB2,681 Million Net Profit at RMB557 Million Total Dividend for the Year at HK44 Cents Per Share <\/p>\n
HONG
Mr. Wang Dong Xing, Chairman and Executive Director of
“In face of the complex and
\u00a0<\/p>\n For the year ended 31 December 2020, revenue of
\u00a0<\/p>\n The Group maintained a healthy financial
Combating the challenges the pandemic
\u00a0<\/p>\n During the year, the Group actively
\u00a0<\/p>\n As for brand management and promotion, the Group increased promotion activities
\u00a0<\/p>\n In 2021, China Lilang will adopt a prudent strategy
\u00a0<\/p>\n In order to
\u00a0<\/p>\n Regarding new
\u00a0<\/p>\n As for brand promotion, the Group will
\u00a0<\/p>\n The Group’s new headquarters in Fujian
\u00a0<\/p>\n Mr. Wang <\/b>concluded,
\n<\/p>\n “At the Chinese government’s
Revenue at RMB2,681 Million Net Profit at RMB557 Million Total Dividend for the Year at HK44 Cents Per Share HONG
KONG SAR – Media OutReach – 18
March 2021 – China Lilang
Limited (“China
Lilang” or the “Company”, together with its subsidiaries, known as the “Group”;
stock code: 1234) today announced its 2020 annual results. …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/13291"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=13291"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/13291\/revisions"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=13291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=13291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=13291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nKONG SAR – Media OutReach<\/a> – 18
\nMarch 2021 – China Lilang
\nLimited <\/b>(“China
\nLilang” or the “Company”, together with its subsidiaries, known as the “Group”;
\nstock code: 1234) today announced its 2020 annual results. <\/p>\n
\nChina Lil<\/b>an<\/b>g, <\/b>said,<\/p>\n
\nvolatile retail market, China Lilang adopted flexible strategies <\/i>and promote<\/i>d the <\/i>new retail business<\/i> to give full play
\nto complementary advantages of online and offline<\/i>. The Group also str<\/i>ived to keep the channel healthy and decisively cancelled <\/i>some
\nof the spring and summer <\/i>orders while
\nstrictly controlling <\/i>pre-orders for <\/i>the fall and winter<\/i>
\ncollections. The total retail sales of LILANZ products
\nresumed growth <\/i>in the second half of the year, and total retail sales growth in the fourth
\nquarter reached 10-15%, primarily benefiting from the nationwide cold weather.<\/i> Both the inventory<\/i> level and its ageing have improved.<\/i> During the year,<\/i> the Group launched a <\/i>number of brand promotional
\ncampaigns, which won multiple
\nawards from the advertising industry, further enhancing LILANZ’s brand awareness
\nand reputation.<\/i>” <\/i><\/p>\n
\nthe Group decreased year-on-year by 26.7% to RMB2,681 million. The
\namount was after the provision of HK$390 million made for inventory buy-back in
\nrespect of the conversion of some of the core collection
\nstores to consignment model starting spring and summer 2021. Profit from operations decreased by 33.5% to
\nRMB651 million. Operating
\nprofit margin was down by 2.5 percentage points to 24.3%. Net profit was
\nRMB557 million, down by 31.4%. Earnings per share declined 31.4% to RMB46.53
\ncents. <\/p>\n
\nposition with sufficient cash flows. The Board of Directors recommended payment
\nof a final dividend of HK19 cents per share and a special final dividend of HK8
\ncents per share. Together with the interim dividends already paid, total
\ndividend for the year amounted to HK44 cents, maintaining a relatively high payout
\nratio.<\/p>\n
\nbrought to its business, China Lilang speeded up the development of its new
\nretail business during the year. By mounting different promotional and
\nmarketing activities online, the Group attracted more customer traffic to its
\nonline stores, as such, online store sales increased by more than 1.2 times
\nyear-on-year. In addition to online stores, the Group had set up stores on
\nWeMall Mall for its smart casual collection and core collection, a move to
\npromote its brand via the social media platform and also enlarge the virtual
\ninventories of physical stores, resulting in higher sales efficiency per store and
\nenabling more effective inventory control. <\/p>\n
\nenhanced management of its sales channels. After the conversion of the smart
\ncasual collection from consignment model to direct-retailing in the second half
\nyear of 2020, the inventory control of the collection has improved and
\ninventory balance reduced. The Group also pragmatically optimized its retail
\nnetwork by closing underperforming stores and opening stores in carefully
\nselected quality shopping malls to enhance the efficiency of stores. In
\naddition, the Group encouraged distributors to open stores in outlet malls in
\nthe second half of the year as a recurring channel for inventory clearance. At
\nthe year end, LILANZ had a total of 2,761 retail stores, representing a net
\ndecrease of 54 stores. The number of stores in shopping malls was 807,
\naccounting for 29% of the total store count and approximately 32% of total
\nretail floor area. <\/p>\n
\nduring the
\nyear to showcase LILANZ’s young product positioning. In
\nthe fourth quarter, the Group engaged Han Han and Li Dan as brand ambassadors and carried out a series of
\npromotional campaign featured by the brand-new duo, which attracted tremendous attention from the market and customers, and were included among
\nthe “2020 Top 15 Best
\nCommented Cases” by the Advertising Gate APP. During
\nthe year, the Group launched LILANZ crossover products with China Daily<\/i>, Chinese comic “Under
\nOne Person”, Japanese cartoon “Doraemon”, 80s US graffiti artist
\nJean Michel Basquiat and emerging artist Nick etc., respectively. The
\npromotional campaign for LILANZ X CHINA DAILY products won the “Gold Case
\nAward” and was accredited among the “Top 100 Branding Cases of the
\nYear” at the ADMEN International Award Presentation Ceremony. In addition, the in-depth interactive communication in
\ncolleges in respect of the promotion of LILANZ as the business wear brand of
\nthe new generation won the “Brand Rejuvenation Award” and the “Top 10 Brand Rejuvenation Cases Award” at the ADMEN International Award
\nPresentation Ceremony.<\/p>\n
\nfor store openings which will focus on optimizing the existing store network,
\nand will further strengthen the management of the retail network. The Group
\nwill continue to add more stores in quality shopping malls in provincial
\ncapitals and prefectural level cities and will also add stores in outlets as a
\nrecurring channel for inventory clearance. The plan for the year is to add 100
\nto 150 stores and the target for total retail sales growth is 10% or more. <\/p>\n
\nmore closely control the retail stores and reduce inventory risk, the Group
\nwill reform the operation model of the core collection in 2021 by converting
\nselected distributors with higher management capability to the consignment
\noperation model starting from the 2021 spring and summer collections. Under the
\nconsignment model, the Group would be able to manage inventory more effectively
\nas product transfers will be more flexible. The consignment model would also enable
\nthe virtual inventory of individual stores to expand, and thus help improve
\nstore efficiency. Furthermore, the consignment model will allow the Group to
\ncontinue to leverage the retail management talents of distributors while using
\nthe Group’s financial resources to accelerate channel upgrade in any particular
\nregions by adding stores in quality shopping malls in provincial capitals and
\nprefecture level cities. As part
\nof the change to the consignment model, the Group would buy-back from these stores past-season
\nproducts totalling about RMB390 million as at 28 February 2021.
\nProvision for such inventory buy-back was made in 2020 and deducted from the revenue.\u00a0 <\/p>\n
\nretail business, the Group has turned its online stores into self-operating,
\ninstead of distributor-operated stores, since January 2021. This could improve
\nthe management and control of online stores and facilitate the launch of
\nspecial edition products online. Online stores have been set up on the WeChat Mall
\nfor both the core collection and the smart casual collection. It is expected
\nthat the customer base of the WeChat store will continue to expand,
\ncomplementing the physical retail stores with virtual inventory to increase
\nsales efficiency. <\/p>\n
\ncontinue to organize a range of activities through online and offline channels
\nto promote its brand, and launch crossover products with China Daily<\/i> or other parties. The Group also plans to use new store images to attract more
\ncustomers. The
\nseventh-generation store image renovation of the core collection will
\ngradually roll out to existing stores, with a plan to cover about 500 existing stores
\nin 2021. It also plans to launch a new store image for the smart casual
\ncollection in the second half of 2021. <\/p>\n
\nofficially commenced operation in February 2021. Phase I of the new logistics
\npark is expected to open in the second half of 2021, which will facilitate
\nbetter inventory management within the Group.<\/p>\n
\neffective epidemic control measures, the mainland economy has been recovering quickly.
\nWith that plus the new structure of dual circulation as proposed by the central
\ngovernment which encourages residents to expand consumption, and in turn drive
\neconomic growth, the Group is cautiously optimistic about development of the
\nretail market. Looking ahead to 2021, building on its solid brand foundation,
\nChina Lilang will adopt a prudent approach towards market development, focus on
\noptimizing its existing store network and strengthening management of its retail
\nnetwork. Apart from stepping up growing the new retail business, it will also
\nenhance sales and marketing and inventory management to boost its stores efficiency.
\nT<\/i>he Group will
\ncontinu<\/i>e to adhere to the
\nstrategy of providing products that represent excellent value for money<\/i>. After the
\nefforts made in the past few years in upgrading research and development and supply
\nchain management, the Group now affords products that stand out in original
\ndesign with great value-for-money. The Group
\nis confident that its business will continue to outperform those of its peers. We
\nwill continue endeavoring to enhance the competitiveness and value-for-money of
\nour products over the long run so as to further consolidate our leading
\nposition in the menswear industry in China and realize sustainable long-term
\ngrowth”<\/i><\/p>\n<\/div>\n\n
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