For the six month period, menswear player China Lilang’s sales revenue increased by 7.3 percent to 1,600 million Chinese yuan driven by strong demand for smart casual collections.

For 2024, the company’s revised plan includes opening 50 to 100 new stores instead of 100 to 200 mainly in shopping malls and outlets. The overall sales growth target has also been adjusted from 15 percent to 10 percent.

The company’s board of directors has approved an interim dividend of 13 Hong Kong cents per share and a special interim dividend of 5 Hong Kong cents per share, maintaining a stable payout ratio.

Commenting on the financial results, Wang Dong Xing, chairman and non-executive Director of China Lilang, said in a release: “In the first half of 2024, despite the complex and challenging international environment, total retail sales in terms of consumer goods across China increased by 3.7 percent, of which retail sales of apparel, footwear, headwear and knitwear increased by only 1.3 percent year-on-year.”

The company said net profit amounted to 280.1 million Chinese yuan, an increase of 3.6 percent, with a net profit margin of 17.5 percent. Gross profit margin was 50 percent, while earnings per share were 23.4 cents, an increase of 3.6 percent.

At the end of June 2024, the company operated a network of 2,709 stores, including 297 smart casual collection stores and 2,412 core collection stores, with a net increase of 14 stores from the end of last year.

China Lilang has entered into a joint venture agreement with its partners, contributing 150 million Chinese yuan in capital and holding a 54 percent equity interest to launch Musingwear brand products next year.

The company is also preparing to open its first international store in Malaysia to offer premium, value-for-money Chinese menswear in the overseas markets, while broadening its revenue sources.