Stock Code ٰ΅˾ : 1234
2023
Annual Report 年報
About ᗫ
China Lilang ʕлࠛ
China Lilang is one of the leading PRC menswear enterprises. As an integrated fashion enterprise, the Group designs, sources and manufactures high-quality business and casual apparel for men and sells under the " лࠛ LILANZ" and " лࠛ LESS IS MORE" brands across an extensive retail and distribution network, covering 31 provinces, autonomous regions and municipalities in the PRC.
ʕлࠛ݊ʕჯٙӲༀΆุʘɓfЪމɓၝΥࣛༀΆุdණྠ ணࠇeમᒅe͛ପԨ˸ۜ˜лࠛ LILANZ™ʿ˜лࠛ LESS IS MORE™ቖਯ ᎴሯӲɻਠਕʿ;ඝༀfՉପۜཁбʕ 31 ࡈeІطਜʿٜᒍ ̹ٙᄿᒪཧਯʿʱቖၣഖቖਯf
Contents ͦ
Corporate Information 2 ʮ̡༟ࣘ
Financial Highlights 4 ৌਕࠅ
Chairman's Statement 6 ˴ࢩజѓ
Management Discussion and Analysis 11 ၍ଣᄴীሞʿʱؓ
Environmental, Social and Governance Report 34 ᐑྤeٟึʿ၍طజѓ
Corporate Governance Report 79
Άุ၍طజѓ
Biographical Details of Directors and 98
Senior Management ԫʿ৷ॴ၍ଣᄴᄵዝ
Report of the Directors 109 ԫึజѓ
Independent Auditor's Report 124 ዹͭࣨᅰࢪజѓ
Consolidated Statement of Profit or Loss and 133
Other Comprehensive Income ၝΥฦूʿՉ˼Όࠦϗूڌ
Consolidated Statement of Financial Position 134 ၝΥৌਕًرڌ
Consolidated Statement of Changes in Equity 136 ၝΥᛆूᜊਗڌ
Consolidated Statement of Cash Flows 137 ၝΥତږݴඎڌ
Notes to the Financial Statements 138 ৌਕజڌڝൗ
Five Years Summary 204 ʞϋ฿ࠅ
Corporate Information | |
ʮ̡༟ࣘ | |
BOARD OF DIRECTORS | ԫึ |
EXECUTIVE DIRECTORS | ੂБԫ |
Mr. Wang Liang Xing | ˮԄ͛ |
Mr. Wang Cong Xing | ˮᑋ͛ |
Mr. Pan Rong Bin | ᆙ͛ |
Mr. Wang Jun Hong | ˮڲ҃͛ |
(appointed on 5 February 2024) | €ɚཧɚ̬ϋɚ˜ʞ˚ᐏ։ |
Mr. Wang Zhi Yong | ˮ౽ۇ͛ |
(appointed on 5 February 2024) | €ɚཧɚ̬ϋɚ˜ʞ˚ᐏ։ |
NON-EXECUTIVE DIRECTORS | ڢੂБԫ |
Mr. Wang Dong Xing (Chairman) | ˮ̆͛€˴ࢩ |
Mr. Cai Rong Hua | ᇹശ͛ |
Mr. Hu Cheng Chu | ߡ༐ڋ͛ |
INDEPENDENT NON-EXECUTIVE DIRECTORS | ዹͭڢੂБԫ |
Mr. Lai Shixian | ፠˰ሬ͛ |
Mr. Zhang Shengman | ᳅ਟ͛ |
(appointed on 17 March 2023) | €ɚཧɚɧϋɧ˜ɤɖ˚ᐏ։ |
Prof. Liao Jianwen | ࿋ܔ˖બ |
(appointed on 5 February 2024) | €ɚཧɚ̬ϋɚ˜ʞ˚ᐏ։ |
Prof. Jiang Zhan | ᇸ࢝બ |
(appointed on 5 February 2024) | €ɚཧɚ̬ϋɚ˜ʞ˚ᐏ։ |
Dr. Lu Hong Te | ѐᒿᅃ௹ɻ |
(resigned on 5 February 2024) | €ɚཧɚ̬ϋɚ˜ʞ˚ᗘ |
Mr. Nie Xing (resigned on 1 June 2023) | ᔗ͛€ɚཧɚɧϋʬ˜ɓ˚ᗘ |
BOARD COMMITTEES | ԫ։ࡰึ |
AUDIT COMMITTEE | ᄲࣨ։ࡰึ |
Mr. Zhang Shengman (Chairman) | ᳅ਟ͛€˴ࢩ |
Mr. Lai Shixian | ፠˰ሬ͛ |
Prof. Liao Jianwen | ࿋ܔ˖બ |
Prof. Jiang Zhan | ᇸ࢝બ |
REMUNERATION COMMITTEE | ᑚཇ։ࡰึ |
Mr. Lai Shixian (Chairman) | ፠˰ሬ͛€˴ࢩ |
Mr. Wang Cong Xing | ˮᑋ͛ |
Mr. Zhang Shengman | ᳅ਟ͛ |
NOMINATION COMMITTEE | Τ։ࡰึ |
Mr. Wang Dong Xing (Chairman) | ˮ̆͛€˴ࢩ |
Mr. Zhang Shengman | ᳅ਟ͛ |
Prof. Liao Jianwen | ࿋ܔ˖બ |
Prof. Jiang Zhan | ᇸ࢝બ |
RISK MANAGEMENT COMMITTEE | ࠬᎈ၍ଣ։ࡰึ |
Mr. Wang Dong Xing (Chairman) | ˮ̆͛€˴ࢩ |
Mr. Wang Cong Xing | ˮᑋ͛ |
Mr. Pan Rong Bin | ᆙ͛ |
COMPANY SECRETARY | ʮ̡।ࣣ |
Mr. Shum Chi Chung | Ҋෛ֚͛ |
Corporate Information (Continued)
ʮ̡༟ࣘ€ᚃ
AUTHORISED REPRESENTATIVES
Mr. Wang Dong Xing
Mr. Shum Chi Chung
REGISTERED OFFICE
Cricket Square, Hutchins Drive P.O. Box 2681
Grand Cayman, KY1-1111 Cayman Islands
PRINCIPAL PLACE OF BUSINESS IN HONG KONG
Suite 3402
34th Floor, Lippo Centre Tower One
No. 89 Queensway Hong Kong
HEAD OFFICE IN THE PRC
Lilang Industrial Park
200 Chang Xing Road Jinjiang City
Fujian Province The PRC
SHARE REGISTRARS AND TRANSFER OFFICES
SUNTERA (CAYMAN) LIMITED
Suite 3204, Unit 2A
Block 3, Building D P.O. Box 1586 Gardenia Court Camana Bay
Grand Cayman, KY1-1100 Cayman Islands
HONG KONG REGISTRAR
Computershare Hong Kong Investor Services Limited Shops 1712-1716
17th Floor, Hopewell Centre 183 Queen's Road East Wanchai
Hong Kong
AUDITOR
KPMG, Certified Public Accountants
(Public Interest Entity Auditor registered in accordance with the Accounting and Financial Reporting Council Ordinance)
PRINCIPAL BANKERS
Industrial Bank Co., Ltd.
China Minsheng Banking Corp., Ltd. Bank of China (Hong Kong) Limited
બᛆ˾ڌ
ˮ̆͛ Ҋෛ֚͛
ൗ̅፬ԫஈ
Cricket Square, Hutchins Drive P.O. Box 2681
Grand Cayman, KY1-1111 Cayman Islands
࠰ಥ˴ࠅᐄุήᓃ
࠰ಥ ږᙒ༸ 89 ɢᘒʕː ɓࢭ 34 ᅽ 3402 ܃
ʕᐼ፬ԫஈ
ʕ ၅ܔ ࣜϪ̹ ڗጳ༩ 200 лࠛʈุ
ٰ΅ཀ˒೮াஈ
SUNTERA CAYMAN LIMITED
Suite 3204, Unit 2A
Block 3, Building D P.O. Box 1586 Gardenia Court Camana Bay
Grand Cayman, KY1-1100 Cayman Islands
࠰ಥٰ΅೮াஈ
࠰ಥʕ̯ᗇՎ೮াϞࠢʮ̡ ࠰ಥ ᝄ˺ ެΧɽ༸؇ 183 Υձʕː 17 ᅽ 1712-1716 ⧕
ࣨᅰࢪ
ଭ৵۾ึࠇࢪԫਕהdੂุึࠇࢪ €ึࠇʿৌਕ䁩జ҅ૢԷ'ɨٙൗ̅ʮ лूྼࣨᅰࢪ
˴ࠅֻԸვБ
ጳุვБٰ΅Ϟࠢʮ̡ ʕ͏͛ვБٰ΅Ϟࠢʮ̡ ʕვБ€࠰ಥϞࠢʮ̡
Financial Highlights
ৌਕࠅ
Year ended 31 December
࿚Їɤɚ˜ɧɤɓ˚˟ϋܓ
2022 | ||||
ɚཧɚɧϋ | ɚཧɚɚϋ | |||
(RMB million) | (RMB million) | Changes(%) | ||
€ɛ͏࿆ϵຬʩ | €ɛ͏࿆ϵຬʩ | ᜊష (%) | ||
Revenue | ϗɝ | 3,543.8 | 3,086.2 | +14.8 |
Gross profit | ˣл | 1,706.8 | 1,420.2 | +20.2 |
Profit from operations | ᐄлᆗ | 610.6 | 519.1 | +17.6 |
Profit for the year | ϋܓлᆗ | 530.4 | 448.1 | +18.4 |
(RMB cents) | (RMB cents) | Changes(%) | ||
€ɛ͏࿆ʱ | €ɛ͏࿆ʱ | ᜊష (%) | ||
Earnings per share | ӊٰޮл | |||
- Basic | - ਿ͉ | 44.30 | 37.42 | +18.4 |
- Diluted | - ᛅᑛ | 44.30 | 37.42 | +18.4 |
Shareholders' equity per share | ӊٰٰ؇ᛆू | 331.3 | 315.8 | +4.9 |
Interim dividend per share | ӊٰʕಂٰࢹ | HK13 cents ಥ̀ | HK13 cents ಥ̀ | 0 |
Special interim dividend per share | ӊٰतйʕಂٰࢹ | HK5 cents ಥ̀ | HK5 cents ಥ̀ | 0 |
Final dividend per share | ӊٰ͋ಂٰࢹ | HK13 cents ಥ̀ | HK9 cents ಥ̀ | +44.4 |
Special final dividend per share | ӊٰतй͋ಂٰࢹ | HK5 cents ಥ̀ | HK5 cents ಥ̀ | 0 |
(% points) | ||||
(%) | (%) | €ϵʱᓃ | ||
Gross profit margin | ˣлଟ | 48.2 | 46.0 | +2.2 |
Operating profit margin | ᐄлᆗଟ | 17.2 | 16.8 | +0.4 |
Net profit margin | ଋлᆗଟ | 15.0 | 14.5 | +0.5 |
Return on average | ̻ѩٰ؇ᛆू | |||
shareholders' equity(1) | Ϋజ (1) | 13.7 | 12.0 | +1.7 |
Effective tax rate | Ϟࣖଟ | 19.4 | 18.1 | +1.3 |
Advertising, promotional and | ᄿѓe܁ෂʿ | |||
renovation expenses | ༀࡌක˕ | |||
(as a percentage of revenue) | €Цϗɝϵʱˢ | 14.7 | 13.0 | +1.7 |
Financial Highlights (Continued)
ৌਕࠅ€ᚃ
Six months ended
30 June 2023
Year ended 31 December
࿚Їɤɚ˜ɧɤɓ˚˟ϋܓ
࿚Ї
ɚཧɚɧϋ
2023 | 2022 | ʬ˜ɧɤ˚ | ||
ɚཧɚɧϋ | ɚཧɚɚϋ | ˟ʬࡈ˜ | ||
Average inventory turnover days(2) | ̻ѩπᔷ˂ᅰ (2) | 170 | 195 | 211 |
Average trade receivables | ̻ѩᏐϗ൱ሪಛ | |||
turnover days(3) | ᔷ˂ᅰ (3) | 42 | 54 | 51 |
Average trade payables | ̻ѩᏐ˹൱ሪಛ | |||
turnover days(4) | ᔷ˂ᅰ (4) | 130 | 111 | 140 |
Notes: | ڝൗj |
(1) Return on average shareholders' equity is equal to the profit for the year divided by the average of the beginning and closing balance of total shareholders' equity.
(1) ̻ѩٰ؇ᛆूΫజ˸ϋܓлᆗৰ˸ٰ؇ᛆ ूᐼᕘٙϋڋʿϋ̻͋ѩഐቱࠇၑf
(2) Average inventory turnover days is equal to the average of the beginning and closing inventory balance divided by cost of sales and multiplied by the number of days in the year.
(2) ̻ѩπᔷ˂ᅰ˸ϋڋʿϋ̻͋ѩπ ഐቱৰ˸ቖਯϓ͉dΎ࠱˸ϋʫ˂ᅰࠇ ၑf
(3) Average trade receivables turnover days is equal to the average of the beginning and closing trade and bills receivables balance divided by revenue (including value-added tax) and multiplied by the number of days in the year.
(3) ̻ѩᏐϗ൱ሪಛᔷ˂ᅰ˸ϋڋʿϋ͋ ̻ѩᏐϗ൱ሪಛʿᏐϗୃኽഐቱৰ˸ϗ ɝ€ўᄣ࠽dΎ࠱˸ϋʫ˂ᅰࠇၑf
(4) Average trade payables turnover days is equal to the average of the beginning and closing trade and bills payables balance divided by cost of sales and multiplied by the number of days in the year.
(4) ̻ѩᏐ˹൱ሪಛᔷ˂ᅰ˸ϋڋʿϋ͋ ̻ѩᏐ˹൱ሪಛʿᏐ˹ୃኽഐቱৰ˸ቖ ਯϓ͉dΎ࠱˸ϋʫ˂ᅰࠇၑf
Chairman's Statement ˴ࢩజѓ
Operating in such a challenging business environment, China Lilang actively responded to the changing market by continuously facilitating new retail business, promoting sales and driving store efficiency. By launching quality and iconic items as well as rejuvenating the brands, it enhanced the competitiveness of the Group's brands.
ࠦ࿁̂တܿٙᐄਠᐑྤdʕлࠛጐᏐ࿁̹ఙᜊʷdܵᚃપਗอ ཧਯุਕdપᄿڮቖe੭ਗֳࣖfપ̈ߧఊۜdԨ̋੶ۜϋڡ ʷdʺණྠۜٙᘩنɢf
To all shareholders,
In 2023, China welcomed its first year of recovery after three years of pandemic. Despite the continued complex and ever-changing global situation, the economy in mainland demonstrated resilience. Under the guidance of the encourage consumption policy by the central government, the retail market has gradually recovered and achieved a moderate growth in the second half of the year. During the year, China Lilang Limited (the "Company" or "China Lilang", together with its subsidiaries, collectively known as the "Group") pushed forward the Lilang brand's strategic upgrade and achieved both revenue and profit growth, laying a solid foundation for future sustainable development.
ߧЗٰ؇j
ɚཧɚɧϋdʕዝཀɧϋޥઋܝdڎ Ըూᘽٙୋɓϋfᒱ್Όଢ҅ැԱᔚልᕏ εᜊdШʫή࢝ତදdίʕִ̯݁ ڮऊ൬݁ഄˏኬɨdཧਯ̹ఙနΫาd ɨ̒ϋܓྼତձᄣڗfʕлࠛϞࠢ ʮ̡€˸ɨᔊ၈˜͉ʮ̡™א˜ʕлࠛ™d ˸ʿՉڝ᙮ʮ̡୕၈˜ණྠ™ϋʫપආл ࠛۜଫٙʺॴʈЪdԨ՟ϗɝeл ᆗᕐᄣڗdމ͊Ը̙ܵᚃ೯࢝ఢ֛ྼٙ ਿᓾf
As of 31 December 2023, the Group's revenue for the year increased by 14.8% year-on-year to RMB3,543.8 million. Profit for the year increased by 18.4% year-on-year to RMB530.4 million.
࿚Їɚཧɚɧϋɤɚ˜ɧɤɓ˚dණྠϋ ܓϗɝΝˢᄣڗ 14.8% Їɛ͏࿆ 3,543.8 ϵ ຬʩiϋܓлᆗΝˢɪʺ 18.4%dЇɛ͏࿆ 530.4 ϵຬʩf
Chairman's Statement (Continued) | |
˴ࢩజѓ€ᚃ | |
During the year, the Group maintained a healthy financial position with | ණྠϋʫڭܵৌ݁ᖢdତږݴ̂ԑd |
sufficient cash flow. The Board of Directors has resolved to pay a final | ԫึӔᙄݼ˹͋ಂٰࢹӊٰ 13 ಥ̀€ɚ |
dividend of HK13cents (2022: HK9 cents) per share and a special final | ཧɚɚϋj9 ಥ̀ʿतй͋ಂٰࢹӊٰ 5 |
dividend of HK5 cents (2022: HK5 cents) per share, thus maintaining a stable | ಥ̀€ɚཧɚɚϋj5 ಥ̀dΌϋᘱᚃၪ |
payout ratio throughout the year. | ܵᖢ֛ٙݼࢹˢଟf |
During the year, the Group continued to strengthen the development | ϋʫdණྠܵᚃ੶ʷอཧਯุਕٙ೯࢝d |
of the new retail business. It optimised the integration of online and | ʔᓙᎴʷᇞɪᇞɨፄΥٙБቖᅼόdᘱ |
offline models and continued investment in new product research and | ᚃҳɝอପۜ೯d˸ቇᏐ̹ఙცӋٙᜊ |
development capacity to adapt to changes in market demand and | ʷdપਗ˜лࠛᔊߒӲༀ™ۜଫٙʺ |
promoted the strategic upgrade of "Lilang's Minimalist Men's Fashion". By | ॴdீཀࠠอணࠇٙᅺᏏeΌอٙۜҖ |
redesigned logo, revitalizing its brand image and diversified promotional | ձεʩʷٙ܁ෂપᄿdΫᏐอࣛ˾ऊ൬ |
campaigns to respond to the personalised needs of the new generation of | ٫ٙࡈʷცӋdˏჯʕӲༀࣛ֠ᆓ |
consumers and leading the fashion trend for Chinese menswear. | ݴf |
To ride on the growing popularity of e-commerce, the Group continued | ϞԈཥɿਠ൱һᒈ౷ʿdණྠϋʫܵᚃ |
to expand its new retail business during the year and intensified the | ן࢝อཧਯุਕd̋ɽҥࠪഃ̨̻ɪٙ܁ |
promotion on Tiktok and leverage the e-commerce live streaming to drive | ෂɢܓdлٜ͜ᅧ੭މᚨਗุਕٙᄣڗ |
business growth. Prior to the "Double 11 Shopping Festival", the Group | ᓃfί˜ᕐ 11 ™ۃɼdණྠீཀҥࠪᅧ׳ |
broadcasted the highlights from "LESS IS MORE Grand Anping Bridge | ί၅ܔࣜϪ˰፲̚༦τ̻ᑘ፬ٙ˜LESS |
Show: Knowledge and Practice of the Youth" ("Anping Bridge Show") held | IS MORE τ̻ڡϋٝБϋܓɽӸ™€˸ɨᔊ |
at Anping Bridge, a world heritage site in Jinjiang, Fujian through TikTok to | ၈˜τ̻ɽӸ™ʘၚശ˪ݬd࢝ତʕ |
showcase the minimalist fashion style of China's Lilang's menswear and laid | лࠛӲༀᔊߒࣛ֠ٙ߈ഹࠬࣸdމ˜ᕐ 11™ |
a good foundation for the sales during the Double 11 Shopping Festival. | ٙቖਯЪྦfණྠ͵೯౨ίᇞ̨̻ၾᇞ |
The Group also leveraged complementary advantages of its online platform | ɨژֳٙʝᎴැd੭ਗֳࣖᄣڗfϋʫ |
and the offline in-stores to foster the growth of the store performance. | อཧਯቖਯΝˢᄣڗ 17.6%f |
During the year, the new retail sales grew by 17.6%. year-on-year. | |
The Group pragmatically developed its own retail network and supported | ණྠਕྼή೯࢝Չཧਯၣഖʿપਗʱቖਠ |
distributors in optimising the retail network. As of the end of 2023, the | Ꮄʷཧਯၣ༩d࿚Їɚཧɚɧϋϋֵdණ |
Group had a total of 2,695 stores, including 296 smart casual collection | ྠІᐄٙჀਠਕژֳ 296 d Ⴠ ਠ ਕ ʱ |
stores operated under the direct-to-retail model, 6 smart casual collection | ቖژֳ 6 d˴ӻΐֳ⧕ 2,393 dΥ |
stores operated by distributors and a total of 2,393 core collection stores, | ࠇ 2,695 dΝˢଋᄣ̋ 51 fϾණྠ |
representing a net year on year increase of 51 stores. The Group has | પਗٙቖਯಬ༸ҷࠧdཀɧϋрɢϋ |
completed the sales channel reform during the year after three years of | ʫҁϓdהܔ̬ͭٙࡈቖਯಬ༸j˴ӻΐ |
hard work, and the four main sales channels established were as follow: | ٙʱቖʿ˾ቖᅼόeჀਠਕٙІᐄᅼόe |
The distribution and consignment models of the core collection, the direct- | Іᐄٙཥਠ̨̻dІѩޮлdԨϓ |
to-retail stores of the smart casual collection and the direct-to-retail stores | ̌ʺֳࣖdʺණྠٙޮлঐɢf |
under the e-commerce sales model has recorded profits respectively, and | |
successfully enhanced store efficiency and profitability of the Group. |
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China Lilang Limited published this content on 25 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2024 09:40:10 UTC.