Shares of China Lilang (HKG:1234) plummeted 5.15% during intraday trading on Tuesday, following the release of the company's first-half financial results for 2025. The significant drop came as investors reacted to the disappointing profit figures, despite a modest increase in revenue.

According to the report filed with the Hong Kong Stock Exchange, China Lilang's attributable profit for the first half of 2025 fell to 242.5 million yuan, representing a 13% decrease from the 280.1 million yuan recorded in the same period last year. This decline in profit occurred despite an 8% year-over-year increase in revenue, which reached 1.73 billion yuan for the six-month period.

The apparel company also announced a dividend of HK$0.11 per share, payable to shareholders in late September. However, this news did little to offset investor concerns about the company's profitability. The sharp decline in share price suggests that market participants are particularly worried about China Lilang's ability to maintain profit margins in the face of rising costs or increased competition in the retail sector.