China Lilang released its 2026 interim results for the six months ended 30 June 2026.

Revenue and Profit • Group revenue rose 19.5% year on year to RMB 2.06 billion, outpacing China’s apparel market. • Profit attributable to equity shareholders fell 11.2% to RMB 215.40 million as higher selling expenses compressed earnings. • Basic and diluted EPS were RMB 18.0 cents, down 10.9%.

Margin and Cost Dynamics • Gross profit climbed 16.3% to RMB 1.01 billion; gross margin narrowed 1.3 percentage points to 48.9% due to a greater mix of value-priced and year-end promotional products. • Operating profit fell 10.5% to RMB 232.79 million; operating margin declined 3.8 percentage points to 11.3%. • Selling and distribution costs increased 25.8% to RMB 687.15 million, reflecting expansion of direct-to-consumer (DTC) and e-commerce channels. • Net finance income slipped to RMB 17.05 million (-46.4%) on lower interest income.

Segment Performance • Core “LILANZ” collection revenue grew 12.7% to RMB 1.34 billion, representing 65.0% of sales. • “LESS IS MORE” smart-casual and other collections surged 34.7% to RMB 722.90 million, lifting their contribution to 35.0% of total revenue. • New retail (e-commerce and emerging online channels) sales advanced 39.0%, outpacing overall growth.

Channel and Store Network • Total stores rose by a net three to 2,820, with retail floor area up 1.3% to 494,145 sq m. • The DTC model was rolled out to Hubei after earlier adoption in Northeast China, Jiangsu, Shandong and Chongqing; DTC stores reached 367, 13.0% of the core network. • Shopping-mall and outlet locations accounted for 40.1% of store count and 44.9% of retail area.

Cash Flow and Balance Sheet • Cash and bank balances stood at RMB 2.65 billion; bank loans due within one year totalled RMB 768.37 million. • Net cash from operating activities was RMB 127.70 million; free cash flow benefitted from RMB 425.30 million of fixed-deposit maturities. • Inventory turnover lengthened to 250 days (1H 2025: 231 days); trade receivable days improved to 31 (1H 2025: 37).

Dividends • Board declared an interim dividend of HK 10 cents and a special interim dividend of HK 4 cents per share, totalling HK 14 cents (2025: HK 16 cents), payable on or about 23 September 2026 to shareholders on record as of 4 September 2026.

Strategic Progress and Outlook • Management highlighted robust online momentum, continued DTC expansion and steady growth from the “LESS IS MORE” line. • Overseas presence grew to five Malaysian stores; internationalisation and multi-brand strategy (including “MUNSINGWEAR”) remain priorities. • For the second half, the Group targets retail sales growth of at least 10% and new-retail revenue growth of 20% or more, while maintaining focus on channel optimisation, product innovation and cost discipline.