CHINA LILANG (01234) has announced its interim results for the six months ended June 30, 2026.

The company reported total revenue of RMB 2.065 billion, representing a 19.5% year-on-year increase. However, profit attributable to equity shareholders was RMB 215 million, down 11.2% from the same period last year. Basic earnings per share stood at 18 cents. The board has proposed an interim dividend of 10 HK cents per share and a special interim dividend of 4 HK cents per share.

During the reporting period, the group's total revenue reached RMB 2.065 billion, up 19.5% year-on-year. The main series generated RMB 1.342 billion in revenue, a 12.7% increase. This growth was primarily driven by improved operational efficiency from the DTC (Direct-to-Consumer) transformation, as well as a delayed Chinese New Year, which extended the peak sales season and boosted year-end promotional activities. Additionally, the rapid expansion of new retail channels and an increased supply of cost-effective products effectively met evolving market demand, supporting the stable performance of the main series.

The light business and other series achieved revenue of RMB 723 million, a 34.7% increase, fueled by strong momentum in store sales and new retail channels. The company will continue to implement its channel upgrade and high-quality development strategy, aiming to enhance overall store operational efficiency and profitability.

Following the completion of the DTC model transformation in Hubei Province, the group will focus on consolidating and developing operations in transformed regions during the second half of the year. This will allow it to leverage the management efficiency and market responsiveness gained from channel reforms. Based on local market conditions and operational results, the company will prudently assess the potential expansion of the DTC model to other regions, further refining its sales network.

In terms of overall store layout, the group will continue to target high-potential locations such as premium shopping malls and outlet centers. It aims to drive store image upgrades and enhance per-store efficiency, strengthening brand competitiveness at the point of sale and improving the consumer experience, all while striving toward the goal of increasing the total number of stores by year-end.