China Lilang : Financial Statements - – INTERIM REPORT 2021

Stock Code: 1234

Report Interim 2021

CONTENTS

1. Financial Highlights
2. Management Discussion and Analysis

1. Review Report of the Auditor

1. Condensed Consolidated Statement of Profit or Loss and
2. • Other Comprehensive Income
3. Condensed Consolidated Statement of Financial Position

1. Condensed Consolidated Statement of Changes in Equity
2. Condensed Consolidated Statement of Cash Flows
3. Notes to the Unaudited Interim Financial Report

1. Other Information

FINANCIAL HIGHLIGHTS

			Six months ended 30 June
		2021	2020	Changes
		(RMB million)	(RMB million)	(%)
Revenue	1,354.3	1,093.3	+23.9
Gross profit	670.8	431.0	+55.6
Profit from operations	307.8	306.7	+0.4
Profit for the period	271.5	268.9	+0.9
		(RMB cents)	(RMB cents)	(%)
Earnings per share
	- Basic	22.7	22.5	+0.9
	- Diluted	22.6	22.5	+0.4
Interim dividend per share	HK13 cents	HK12 cents	+8.3
Special interim dividend per share	HK5 cents	HK5 cents	-
		(%)	(%)	(% points)
Gross profit margin	49.5	39.4	+10.1
Operating profit margin	22.7	28.1	-5.4
Net profit margin	20.0	24.6	-4.6
Return on average shareholders' equity(1)	7.4	7.5	-0.1
Effective tax rate	17.0	17.6	-0.6
Advertising and promotional expenses and
renovation subsidies (as percentage of revenue)	6.4	7.5	-1.1
		Six months		Six months
		ended	Year ended	ended
		30 June 2021 31 December 2020	30 June 2020
Average inventory turnover days(2)	208	168	185
Average trade receivables turnover days(3)	69	101	135
Average trade payables turnover days(4)	93	115	114

Notes:

1. Return on average shareholders' equity is equal to profit for the period divided by the average of the beginning and closing balance of total shareholders' equity.
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 relevant period.
3. Average trade receivables turnover days is equal to the average of the beginning and closing trade receivables balance divided by revenue (including value-added tax) and multiplied by the number of days in the relevant period.
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 relevant period.

02 China Lilang Limited

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY REVIEW

In the first half of 2021, the novel coronavirus pandemic ("COVID-19" or the "Pandemic") overseas had not yet been brought under control, and the tensions between China and the United States continued, bringing uncertainties to the macro environment. However, China's domestic economy showed a t r e n d o f s t e a d y a n d p o s i t i v e development. According to the National Bureau of Statistics of China, the GDP of the first half of 2021 increased by 12 . 7% year - on - year. With the strengthening recovery momentum in the consumer market and the effective prevention and control of the Pandemic nationwide, the consumer demand of residents gradually increased. On the other hand, the central government has implemented a series of policies to promote domestic demand and consumption, and to further invigorate the retail market. In the first half of 2021, the total retail sales of consumer goods increased by 23.0% year-on- year, of which the total retail sales of apparel, footwear, headwear and knitwear increased by 33.7% year-on- year, showing a recovery trend on the demand side of apparel retail.

INTERIM REPORT 2021

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