At midday on 17 August, Hong Kong-listed Chinese menswear group LILANZ (China Lilang Limited, stock code: HK1234) announced its interim results for 2026: total revenue for the first half rose 19.5% year-on-year to RMB2.0647 billion (USD306.3 million). Of this, revenue from the main “LILANZ” line increased 12.7% year-on-year to RMB1.3418 billion (USD199.1 million), while revenue from the light business and other lines, which include “LILANZ LESS IS MORE”, surged 34.7% to RMB722.9 million (USD107.3 million). Their share of the Group’s total revenue increased from 31.1% in the same period last year to 35.0%, further reinforcing the strong momentum of LILANZ’s “second growth curve“.
As of the end of June, the Group had total cash and bank balances of RMB2.6549 billion (USD393.9 million). In view of the Group’s sound financial position and ample cash flow, the Board resolved to declare an interim dividend of HKD0.10 per share and a special interim dividend of HKD0.04 per share, maintaining a stable dividend payout ratio.
Wang Dongxing, Chairman and Non-Executive Director of LILANZ Group, said that during the period, the Group adjusted its sales strategies in a timely manner while remaining committed to its brand positioning and product quality. It continued to enhance the brand competitiveness of both the main “LILANZ” line and the “LILANZ LESS IS MORE” light business line, while advancing its “multi-brand and internationalisation” strategy.
Based on the financial data, Luxe.CO observed that LILANZ’s enhanced “brand competitiveness” was clearly reflected in higher-quality operations – despite a net increase of just three stores, the Group delivered significant revenue growth. At the same time, overall profitability remained stable despite higher expenses associated with directly operated stores and a rising contribution from the DTC business, increased one-off strategic development expenditure, and continued investment in forward-looking initiatives including MUNSINGWEAR and overseas markets (gross profit for the first half increased 16.3% year-on-year to RMB1.0095 billion [USD149.8 million], while net profit attributable to shareholders declined 11.2% year-on-year to RMB215.4 million [USD32.0 million]).
Drawing on the latest financial results and management commentary, Luxe.CO examines the “higher-quality operations” demonstrated by LILANZ Group across the following five dimensions:
- Higher store productivity drives a 34.7% surge in revenue for “LILANZ LESS IS MORE”
- Wash-resistant Polo shirt upgraded to 4.0 as functional products become systematic bestsellers
- New retail surges 39% year-on-year as digital operating efficiency improves
- Store network optimisation and upgrades drive growing contributions from shopping malls and outlets
- R&D capabilities strengthened as the supply chain continues to advance
Dimension One: Higher Store Productivity Drives a 34.7% Surge in Revenue for “Lilanz Less Is More”
LILANZ Group’s two major lines have clearly differentiated positioning: the main “LILANZ” line is centred on “Minimalist Men’s Wear”, targeting core consumers aged 30 to 50 in third- and fourth-tier cities and county-level markets; the “LILANZ LESS IS MORE” light business line targets younger consumers aged 20 to 40 in first- and second-tier cities and economically developed cities, embracing the “less is more” design philosophy. The positioning of the two lines is consistent with LILANZ’s official brand descriptions.
Luxe.CO observed that the light business and other lines achieved 34.7% year-on-year revenue growth despite a net reduction of 16 stores, contributing more than half of the Group’s incremental revenue during the period – indicating that growth was driven by higher sales per store rather than expansion of the store network.
“LILANZ LESS IS MORE” operates under a fully directly operated model, with stores concentrated in high-quality shopping malls frequented by younger consumers. During the period, the Group replaced underperforming stores with larger stores in better locations. As of the end of June, the line operated 355 stores, representing a net closure of 16 stores, primarily in East China.
Since its launch and incubation began in 2016, “LILANZ LESS IS MORE” has undergone a decade of development and firmly established itself as the Group’s second core growth engine. Since 2023, annual sales have consistently recorded robust growth of around 30%. Full-year sales grew 28.4% year-on-year in 2025, while the line’s share of LILANZ Group’s total revenue increased from 16.8% in 2022 to 28.2% in 2025. During the current reporting period, it reached a new high in revenue growth.
Dimension Two: Wash-Resistant Polo Shirt Upgraded to 4.0 as Functional Products Become Systematic Bestsellers
On the product front, LILANZ has in recent years continued to develop individual products around specific consumer pain points, using hero products to drive growth across broader categories. The Group’s key functional products are concentrated across two main categories: tops and trousers, with tops including the “Wash-resistant Polo Shirt” and “Long-lasting White Non-iron Shirt”, and trousers represented by the “Four-way Stretch Functional Trousers” and “Xiao Bing Niu” denim series. LILANZ’s official materials also identify its wash-resistant Polo shirts and long-lasting white non-iron shirts among its key products.
LILANZ told Luxe.CO that these products received an enthusiastic market response during the period, with each recording high double-digit year-on-year growth. This momentum was also reflected in the category data for the period: sales of tops increased 25.0% year-on-year in the first half, accounting for 65.0% of total sales, while sales of trousers rose 18.7%, representing 24.7% of sales.
The “wash-resistant” product segment pioneered by LILANZ delivered strong results during the reporting period. The “Wash-resistant Polo Shirt” series has undergone four iterations over four years, with version 4.0 launched this year. Its core technology lies in an innovative fabric that deeply integrates 40% cotton staple fibres with 60% synthetic filaments at the fibre level. This preserves the skin-friendly feel of cotton while improving dimensional stability and colour fastness, addressing common consumer pain points such as deformation and greying after repeated washing.
In April this year, LILANZ staged a “Not-New Clothing Unboxing” themed pop-up in Shanghai, publicly displaying sample garments that had undergone 30 standard machine washes, alongside third-party testing reports. The Group also took the lead in formulating the group standard Requirements and Grading for Wash Resistance Performance of Garments.
The functional product matrix continues to expand. The “Xiao Bing Niu” denim series incorporates features including a cool-touch sensation, breathability and skin-friendly comfort into denim trousers. Its “Glacier Denim” fabric has an instantaneous cool-touch coefficient of >=0.20, significantly exceeding the national standard. The “Zero-Boundary Ice Shell” air-conditioning jacket, meanwhile, combines three technologies – cooling properties built into the original yarn, UPF50+ sun protection and Level 4 water repellency – taking a technology-led approach to addressing the discomfort of wearing long sleeves in hot summer weather. The key winter water-repellent down range has also been upgraded to a new generation, while products made from recycled, environmentally friendly materials, including jeans made from recycled plastic bottles, are also on sale.
Dimension Three: New Retail Surges 39% Year-On-Year as Digital Operating Efficiency Improves
During the period, LILANZ Group’s new retail sales surged 39% year-on-year. The Group continued to deepen its presence on established sales platforms including Tmall, JD.com and Douyin, while expanding into emerging channels such as Pinduoduo, WeChat Channels and Dewu. It also strengthened content-driven e-commerce through social platforms including Xiaohongshu and Weibo to reach younger consumers.
The LILANZ team told Luxe.CO that the new retail business has introduced a more systematic and refined operating mechanism, establishing a management model with monthly caps and daily performance reviews to enable real-time optimisation and effectively improve conversion rates. More than 100 official LILANZ Douyin accounts, operated in coordination with the Group’s nationwide store network, contributed a significant portion of incremental online sales.
LILANZ’s new retail growth model is therefore gradually shifting towards daily operations centred on a matrix of official store accounts, with its digital channels as a whole entering a more mature and efficient stage of development.
Dimension Four: Store Network Optimisation and Upgrades Drive Growing Contributions From Shopping Malls and Outlets
As of the end of June, LILANZ Group operated 2,820 retail stores. During the first half, it opened 101 stores and closed 98, representing a net increase of three stores, with the closures primarily involving underperforming locations. Total retail floor area stood at approximately 494,145 square metres, up 1.3% from the end of last year.
LILANZ continues to replace smaller traditional stores or those that fall short of performance targets with new-format stores offering better locations, larger spaces and enhanced brand presentation.
Of the total, 1,130 stores were located in shopping malls and outlet centres, up 4.8% year-on-year and accounting for approximately 40.1% of the total store network. According to the financial report, the sales contribution from outlet channels increased significantly during the period, helping the Group meet consumers’ demand for value for money while accelerating inventory clearance and merchandise turnover.
LILANZ management told Luxe.CO that consumer segmentation in the domestic market is becoming increasingly pronounced, with mass-market spending clearly shifting towards outlets and value-oriented online channels, while premium consumption is becoming increasingly concentrated in leading shopping malls. The Group’s simultaneous investment at both ends of the market is a proactive response to this structural shift.
The Group is also accelerating the rollout of its seventh-generation store concept. According to the LILANZ team, more than 200 stores completed image upgrades in the first half of this year. The impact of these upgrades will be reflected in the Group’s results for the second half.
Dimension Five: R&D Capabilities Strengthened as the Supply Chain Continues to Advance
Behind the continuous iteration of its products and rigorous quality control is LILANZ’s ongoing investment in strengthening and upgrading its R&D and manufacturing capabilities. As of the end of June, LILANZ Group’s R&D department had 466 employees, accounting for 8.1% of its total workforce, a significant increase from 377 in the same period last year. R&D expenditure during the period amounted to RMB68.354 million (USD10.1 million), up 6.8% year-on-year.
Since establishing its fabric R&D centre in 2015, LILANZ has built a full-chain R&D ecosystem dedicated to translating technological innovation into tangible improvements in the consumer wearing experience. As of 2025, the Group had secured more than 430 patents in total, while proprietary fabrics consistently accounted for 60% of its products.
The Wuli Smart Factory operated by LILANZ’s manufacturing division has introduced advanced garment production equipment from the US, Germany, Japan and other countries. Powered by the Internet of Things, big data and cloud computing, the factory combines rigorous quality control with smart technologies across the entire production process, from fabric cutting and sewing to finished-product inspection. Located in the Quanzhou Export Processing Zone, the LILANZ Smart Logistics Park covers 90 mu and forms a core part of LILANZ’s integrated logistics system. By connecting cloud warehouses, factories, stores and warehouses into a networked logistics system, it enables rapid merchandise turnover and has an annual throughput capacity of 40 million to 60 million items.
LILANZ’s commitment to investing in the future has also encouraged its core supplier partners to develop smart factories and introduce AI-powered digital tools to improve production efficiency, setting a positive example for the wider industry.
Continuing Channel Reform While Steadily Expanding Into Regional Markets
In the first half of this year, revenue from LILANZ Group’s main line increased 12.7% year-on-year to RMB1.3418 billion (USD199.1 million), benefiting from improved operating efficiency following its DTC transformation, an extended peak sales season due to the later timing of Chinese New Year this year, the rapid expansion of new retail channels, and an increased supply of value-for-money products.
Following the transformation of Northeast China, Jiangsu Province, Shandong Province and Chongqing over the previous two years, the Group further repurchased operating rights from its primary distributor in Hubei Province during the first half of this year, bringing the regional sales network under direct operation. As of the end of June, 367 stores under the main line were operating under the DTC model, an increase of 83 from 284 at the end of 2025, accounting for 13.0% of the total store network.
LILANZ told Luxe.CO that the Group focused on developing markets in Southwest and Northwest China during the first half, prioritising provincial capitals while steadily expanding its distribution network in Sichuan, Yunnan and Xinjiang.
Multi-Brand and Internationalisation Strategies Advance Steadily
The classic American golf brand MUNSINGWEAR, which is invested in and operated by LILANZ Group in the Chinese market, opened three new stores in the first half, including a flagship store at Deji Plaza in Nanjing (pictured below), which has recorded a positive sales response since opening. Since fully relaunching its business in the Chinese Mainland with a refreshed brand proposition in summer 2025, MUNSINGWEAR has opened a total of nine stores.
On the international front, LILANZ continued to expand its retail network in Malaysia, reaching a total of five stores as of the end of June, while also preparing to enter additional Southeast Asian markets.
Full-Year Outlook: Retail Sales Growth of at Least 10%
LILANZ management summarised the evolution of the company’s strategic priorities over the past decade to Luxe.CO as follows: first, strengthening product capabilities; second, optimising channels; and finally, refining its talent and operating systems. The results for the current reporting period reflect the progress achieved through this comprehensive strategic approach.
In the second half, LILANZ Group will focus on consolidating the operating results of regions that have already undergone transformation. Going forward, the Group will prudently assess the expansion of the DTC model into other regions based on local market conditions and operating performance. In terms of its store network, the Group will continue to focus on prime shopping malls, outlet centres and other high-quality locations, while advancing store image upgrades and improving store productivity.
For the full year of 2026, the Group expects revenue from its new retail business to grow by 20% or more, exceeding the target of more than 15% set out in its 2025 annual report, while overall retail sales are expected to grow by at least 10%.
In terms of its multi-brand and internationalisation strategies, the Group will continue to enrich MUNSINGWEAR’s product portfolio and expand its retail network. Overseas, it will gradually expand its local retail network in Malaysia while building operational experience in international markets.
Chairman Wang Dongxing said that “Looking ahead to the second half, China’s economy will continue to face an imbalance between strong supply and weak demand, which will continue to weigh on consumer confidence in the short term, while the recovery of the consumer market will remain challenging. Against a complex and rapidly changing operating environment, China Lilang will continue to leverage its solid brand foundation and market-leading position, maintain a prudent approach to operations, and continuously enhance the competitiveness of its products, channels and operations.”
| Source: China Lilang financial report
| Image Credit: China Lilang, Luxe.CO
| Editor: Luxeplace
