In The First Half Of The Year, Double-Digit Growth In Revenue And Net Profit Continued To Drive Market Expansion.

August 13th, China

The limited company issued its unaudited comprehensive performance report for six months as of June 30, 2018, and its Affiliated Companies (collectively known as the "Li Lang group").

The report shows that in the first half of the year, the group achieved double growth in revenue and net profit.

The report also pointed out that in the first half of the year, the retail channel of the group was further upgraded, the market expansion plan was in an orderly manner, and the total number of retail outlets increased by 102 in the first half.

For the second half of the development plan, the report points out that the group will continue to push ahead with the expansion of the market and push ahead with the goal of opening more than 200 stores a year according to the plan.

Revenue and net profit growth exceeded 25%

First half year

Group revenue reached 1 billion 293 million yuan, an increase of 26.5% over the same period, and net profit of 341 million yuan, an increase of 25.9% over the same period last year.

Among them, the income of "LILANZ" brand increased by 27% to 1 billion 280 million yuan, which mainly reflected the strong growth of orders in spring, summer and autumn in 2018. According to the report data, orders for orders in spring, summer and autumn in 2018 increased by 21% and 31% respectively.

At the same time, the report also pointed out that the sales volume of the shops sold by the distributors was good, and that the stores which had operated for more than 18 months increased the number of same store sales in the first half of the year, while the number of new stores and the retail area also increased, thereby driving sales growth.

By product category, tops are still the main source of income, accounting for 52.7% of LILANZ revenue and 18.3% of sales. Accessories sales account for more than 15% of LILANZ revenue, of which footwear and bottoming products account for more than 70% of accessories sales.

By region, the growth of North China is the most significant. In the first half of the year, revenue exceeded RMB 100 million yuan, increased by 53.7%; sales in the northwest region increased by 31.1%; sales growth in Northeast China, East China and southwest China were 28.8%, 27.1% and 24.6% respectively; while East China and central and southern China were still the largest areas of income contribution, accounting for 56.5% of total revenue.

Retail sales increased by 102 in the first half

In terms of market expansion,

The expansion plan is also in order.

On the one hand, in addition to optimizing the retail market of the existing market, it has opened up new markets.

The report pointed out that in the first half of the year, the total number of retail stores in the group increased by 102 in the first half of the year.

The main series has entered the Jiaodong Peninsula and South of Jiangsu new market through distributors, and the light fashion series has also entered Nanjing and Suzhou areas.

In addition, the light fashion series started in the first half of 2018 and began to adopt the consignment mode to promote the rapid expansion of the store network.

On the other hand, the Group continues to promote the upgrading of sales channels, help distributors to plan the distribution, location and quantity of stores, and effectively support distributors to optimize the retail network, and move the store to a better location as required to achieve higher store efficiency.

It includes promoting distributors to open large stores in the shopping malls of provincial capitals and prefecture level cities to meet new consumption patterns.

By the end of June 2018, "LILANZ" had 2512 retail outlets nationwide, with a total shop area of about 344 thousand and 900 square meters (the total shop area in December 31, 2017 was 309 thousand and 600 square meters), an increase of 11.4% over the end of last year.

Among them, there are 154 independent stores in light fashion series, an increase of 65, and the number of shopping mall stores has increased to over 430, accounting for over 17.1% of the total number of stores, and sales performance is in line with expectations.

In addition, in order to maintain a unified brand image in the distribution network, all shop decoration, including design and shop decoration materials, are provided by the group.

At present, all shops in "LILANZ" are decorated with sixth generations.

The report points out that in the second half of the year, China will continue to push forward.

Expand and push ahead with the goal of opening more than 200 stores a year according to plan, especially speeding up the opening of stores in shopping malls.

Apart from expanding the existing market, the main series will continue to open stores in new markets such as Jiaodong Peninsula, Dalian area and South of Jiangsu, so as to grasp the vigorous economic development trend in these regions.

The light fashion series will continue to use the consignment mode to promote distributors to open stores in Beijing, Tianjin, Shanghai and Zhejiang, as well as new markets in the first half of the year, such as Nanjing and Suzhou, and gradually develop potential first and second tier markets such as Zhengzhou, Hefei, Xi'an, Jiangxi and Jiangxi.

Light fashion series online shop began trial business

With the rapid development of China's online shopping market, the new retail preparations for the group are continuing.

The report points out that in the first half of the year, the group continued to push forward the development of new retail as one of the key points for future business development. The brand advantage and light fashion series of LILANZ are suitable for online positioning and good momentum. Online and offline, it sells products of light fashion series with the same price, and provides support for delivery to stores or stores.

At present, light

A series of online shops have begun trial operation.

On the other hand, the "LILANZ" main line "Tmall" flagship store also operates as usual, and continues to provide WeChat customers with VIP platform to buy products and send them to home service through WeChat platform's CRM system.

In order to enhance the product's personalized design and originality ratio, we can improve the product's performance price ratio and open up the difference with our competitors so as to enhance our competitiveness.

The original proportion of China's products sold in 2018 is expected to be close to 70%, of which the application of the product is unique to the development of the group.

The proportion of products will further increase to about 45%, and will also close to 50%.

The report points out that in the second half of the year, China will continue to think that consumers will provide products with high value for money, and work hard in design, product technology and materials, and continue to implement product structure reform and increase the proportion of non seasonal products in order to drive sales growth.

It is reported that at present, the new headquarters built by Jinjiang in Fujian province has been completed, and it is expected to be officially opened after the completion of renovation in the second half of 2019.

The light fashion design and operation center in Shanghai will be put into operation in the second half of 2018 as scheduled.