China Lilang (01234) announced its 2023 results, with revenue of approximately RMB 3,544 billion (same unit), up 14.8% year on year; gross profit of approximately RMB 1,707 billion, up 20.2% year on year; annual profit of about $530 million, up 18.4% year on year; profit per share of 44.3 points, proposed final dividend of HK13 cents per share and special final dividend of HK5 cents per share.
According to the announcement, the increase in sales was mainly due to the resumption of normal business in all stores as social activities resumed. On the light business side, with the number of newly opened stores and the increase in the share of high-end series sales, the sales volume of the light business increased sharply by 35.2%; the main series distributors needed to absorb 2022 inventory during the year, so order growth in 2023 was suppressed; however, the group did not provide rebates to distributors during the year (2022: RMB 83.7 million), and the main series's turnover increased 10.7%.
During the year, the Group continued to strengthen the development of new retail businesses, continuously optimize the online and offline marketing model, continue to invest in new product research and development to adapt to changes in market demand, promote the upgrading of the “Lilang Simple Menswear” brand strategy, respond to the individual needs of consumers in the new era through a redesigned logo, a new brand image and diversified promotion, and lead the Chinese menswear fashion trend.
The Group pragmatically developed its retail network and promoted distributors to optimize its retail network. By the end of 2023, the Group had 296 light commercial stores, 6 light commercial distribution stores, and 2,393 main series stores, totaling 2,695, a net increase of 51 over the previous year. The sales channel reform promoted by the Group was completed within the year after three years of hard work. The four sales channels established: the main series of distribution and consignment sales models, the light commercial self-operated model, and the self-operated e-commerce platform, each achieved profits, and successfully improved store efficiency and enhanced the Group's profitability.
In terms of inventory management, the Group established an inventory management system with greater consumption capacity, opened 22 additional outlet stores during the year, and sold seasonal products not sold in other stores. The sell-out rate of main series and light commercial stores increased. The new logistics park was put into operation, with an intelligent logistics system to effectively speed up the pace of delivery, improve the efficiency of inventory control, and achieve cost reduction and efficiency.
Looking ahead to 224, the Group plans a net increase of 100-200 stores to expand retail scale and improve operational efficiency. High-quality shopping malls in provincial capitals and prefecture-level cities are still the first choice for new store locations, and additional outlets will also be opened as a channel to clean up inventory. The Group also plans to provide customers with a personalized shopping experience through new retail businesses such as Douyin live streaming, combining the complementary advantages of online and offline stores, and strive to increase the new retail business by more than 20% year-on-year in 2024, and overall sales by 15%.