CHINA LILANG (01234) released its interim results, with a profit attributable to shareholders of 215 million yuan, a year-on-year decrease of 11.2%.

CHINA LILANG (01234) announced its interim results for the six months ending June 30, 2026, with revenue of RMB 2.065 billion, representing a year-on-year increase of 19.5%. The profit attributable to equity shareholders for the period was RMB 215 million, a decrease of 11.2% compared to the previous year; basic earnings per share were 18 cents. It is proposed to declare an interim dividend of 10 Hong Kong cents per share and a special interim dividend of 4 Hong Kong cents per share. According to the announcement, the groups total revenue during the reporting period was RMB 2.065 billion, up 19.5% year-on-year. Among this, the main series generated revenue of RMB 1.342 billion, an increase of 12.7% year-on-year. This growth was primarily attributed to the operational efficiency gained from the transition to a Direct-to-Consumer (DTC) model. Additionally, this years Chinese New Year was relatively late, extending the peak sales season compared to previous years, which benefitted sales performance during the year-end promotional events. The rapid expansion of new retail channels and the increase in the supply of high-cost-performance products effectively met the changing market demands, driving steady performance in the main series business. The light business and other series achieved a revenue of RMB 723 million, representing a year-on-year increase of 34.7%, driven mainly by strong sales momentum in stores and new retail for the light business. The group will continue to implement channel upgrades and high-quality development strategies to enhance the overall operational efficiency and profitability of its stores. With Hubei Province completing the transition to the DTC model, the group will focus in the second half of the year on consolidating and developing operations in the areas that have been transformed, fully leveraging the management efficiencies and market response advantages brought by channel reforms. Additionally, the group will prudently assess the expansion of the DTC model in other regions based on local market conditions and operational effectiveness, while continuously improving its sales network layout. Regarding overall store layout, the group will continue to focus on high-quality shopping centers and outlet locations with potential, promoting store image upgrades and improving store efficiency, enhancing brand competitiveness at the endpoint and consumer experience, and moving towards the goal of increasing the number of stores throughout the year.