Four Indicators in LILANZ’s Latest Financial Report Display a Robust Transition

March 19,2022

On March 18, Chinese menswear LILANZ (China Lilang Ltd.,HK1234) issued its 2021 annual report, which showed an annual revenue of 3.38 billion yuan with a 26.1% growth.

Founded in 1987, LILANZ was the first Chinese menswear brand that announced its initial public offering (IPO) in Hong Kong on September 25, 2009. The core collection LILANZ and smart casual collection LESS IS MORE constitutes the group’s two main product lines.

As a leading Chinese menswear brand, LILANZ is under a comprehensive renovation and transition of sales model concerning product, channel and branding.

The following four key indicators attest to LILANZ’s robust transformation:

Indicator One: Average trade receivable turnover days jumped from 101 to 57

Main driving forces: The Group introduced a consignment model for 40% of the core collection LILANZ stores; the smart casual collection stores were switched to a direct-to-retail model.

Indicator Two: Average inventory turnover days decreased from 168 to 145

Indicator Three: Quarterly sell-through rate rose from 65% to 73%

Main driving forces: Improved store portfolio; emphasis on original design and product rejuvenation.

On one hand, new stores mainly consisted of direct-to-retail stores, stores in shopping malls and outlets, which enhanced their economic benefits. On the other hand, a few stores with unpleasant operating performance were shut down.

The ratio of originally designed products increased to around 77% in 2021. 50% of them adopted fabrics exclusively developed by the group. The gross margin of LESS IS MORE grew.

About 440 employees now work in the R&D department located in the new Fujian headquarter put in use at the beginning of 2021. Designers can have a better platform for creation and communication working in the new headquarters.

Teamed up with emerging designers Dianlin Lv and Fang Fang, LESS IS MORE drew inspiration from the unique charm of Quanzhou, the ancient city, for its SS 2022 collection under the theme “City of Light.” This collection was unveiled in the closing runway show of the Shanghai Fashion Week.

Indicator Four: Online sales volume increased by 20% to around 500 million yuan

Main driving forces: During the 6.18 E-commerce Shopping Festival, LILANZ presented a brand-new e-commerce exclusive edition trousers for its online platform, initiating the form of selling new products on e-commerce platform. Furthermore, the group has launched WeChat stores for the LILANZ and LESS IS MORE respectively, and offered customer relationship management (CRM) services through WeChat.

| Photo Credit: LILANZ

| Writer: Jiaqi Wang


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