China Lilang Ltd. · HKEX:1234
China Lilang — FY2011 Earnings Presentation
22 slides from China Lilang's earnings presentation, March 2012
Slide 1: 2011 Annual Results
LILANZ mB China Lilang Limited Fp Be 7) BBA BR ZB] Stock Code: 1234 (Incorporated in the Cayman Islands with limited liability) LILANZ mlBE 2011 Annual Results March 2012
Slide 2: Disclaimer
The information contained in this presentation is intended solely for your personal reference. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning China Lilang Limited (the “Company”). The Company makes no re
Slide 3: Agenda
1.Financial Highlights 2.Business and Operational Review 3.Prospects and Strategies 4.Open Forum 3
Slide 4: 2011 Highlights
Turnover rose by 31.9% year- Profit attributable to equity on-year to RMB2,708.0 million. shareholders increased by Sub-brand “L2” reached 48.8% to RMB 623.1million. RMB129.0 million in turnover, Earnings per share is RMB51.90 and contributed 4.8% to the cents, up by 48.8% year-on- Group’s total tur
Slide 5: 1. Financial Highlights
LiLANZ mile China Lilang Limited FP [Bel #1) BE 44 BR ZS 1.Financial Highlights
Slide 6: Financial Highlights Summary Table
For the year ended 31 December 2011 2010 Change Turnover (RMB million) 2,708.0 2,053.0 31.9% Gross profit (RMB million) 1,055.5 778.0 35.7% Profit from operations (RMB million) 703.7 479.6 46.7% Profit attributable to equity shareholders (RMB million) 623.1 418.7 48.8% Basic EPS (RMB cents) 51.90 34
Slide 7: Turnover, Average Selling Price and Sales Volume
Turnover Average Selling Price (RMB million) (RMB) +13.6% 217 L2 2,708.0 LILANZ +31.9% 129.0 191 2,053.0 41.4 2010 2011 Total Sales Volume 2,579.0 (Volume ‘000) 2,011.9 +15.9% 12,483 10,772 2010 2011 2010 2011 7
Slide 8: COGS and SD&A
COGS SD&A (RMB million) (RMB million) 62.1% 14.8% 61.0% The Group 13.4% maintained 1,652.5 the original production scale during 1,275.0 844.1 the year, and (51.1%) more OEM purchases 221.5 497.3 were used to 181.2 274.4 (39.0%) support sales 224.0 growth 662.8 681.9 52.9 (52.0%) (41.3%) 42.8 80.9 88
Slide 9: Gross Profit, EBITDA, Operating and Net Profit Margins
Gross Profit and Gross Margin EBITDA and EBITDA Margin (RMB million) (RMB million) 26.7% 39.0% Contributed by 24.1% 722.8 37.9% successful enhancement 1,055.5 in brand image, 495.6 upgrade in 778.0 product mix, and effective control of costs 2010 2011 2010 2011 Operating Profit and Operating Margin
Slide 10: Working Capital Turnover Days
As at 31 Dec 2011 31 Dec 2010 30 June 2011 Average Inventory Turnover Days(1) 45 47 49 Average Trade and Bills Receivables Turnover Days(2) 63 65 70 Average Trade and Bills Payables Turnover Days(3) 65 86 96 Average Net Trade Working Capital Turnover Days 43 26 23 Average trade and bills payables tu
Slide 11: Cash and Bank Balance
Cash and Bank Balance (RMB million) 1,461.2 1,474.4 1,256.3 1,245.0 1H2010 2010 1H2011 2011 Cash and bank balance includes time deposits with maturity over 3 months and pledged bank deposits The Group does not have any interesting-bearing debt 11
Slide 12: Cash and Cash Equivalents
Cash and Cash Equivalents (RMB million) 1,600 1,400 299.6 461.8 1,200 2.3 1,000 233.6 800 600 1,241.0 400 847.5 200 0 Cash and cash Net cash from Net cash from Net cash used Effect of Cash and cash equivalents at operating investing in financing foreign equivalents at 1 January activities activities
Slide 13: 2. Business and Operational Review
LiLANZ mile China Lilang Limited FP [Bel #1) BE 44 BR ZS 2.Business and Operational Review
Slide 14: Retail Stores and Targeted Promotional Activities
Emphasis on retail stores as the core avenue for enhancing brand image • Continued to offer renovation subsidies to newly opened stores • Further upgrade to the first batch of renovated stores in 2011 to improve the display spacing Targeted Promotional Activities •In March 2011, “LILANZ” and “L2” pa
Slide 15: Stores and Turnover by Region
• There were 3,032 “LILANZ” stores and 236 “L2” stores as of 31 December 2011 • “LILANZ” added 227 new stores, total retail area amounted to 326,000m 2, an increase of 9% since year end of 2010 • “L2” added 156 new stores, total retail area amounted to 25,300m 2 Turnover by Region Number of Stores R
Slide 16: Improved Retail Management and Store Network
Improved retail management • Since late 2009, the Group has embarked on developing software systems with a plan to connect the sales and inventory records of all retail outlets on-line by the end of 2012 • As at the end of 2011, about 1,000 “LILANZ” stores has been connected online • All “L2” stores
Slide 17: Strong Product Design and Development Capability
Strong product design and development capability • Continued to design fashionable, individualised and creative styles which attract consumers and add value to the products • Expert teams to collaborate with suppliers on fabric and product development • The design and product development team for “L
Slide 18: Cost and Quality Control; Product Innovation
Cost and Quality Control • Worked within the existing production scale and balanced the proportion of self-production, OEM purchases and process outsourcing arrangement to achieve optimal quality and cost efficiency • Strengthened quality control and production scheduling by reducing average number
Slide 19: 3. Prospects and Strategies
LiLANZ mile China Lilang Limited FP [Bel #1) BE 44 BR ZS 3.Prospects and Strategies
Slide 20: Brand Management, Products, Supply Chain and Sales Network
Brand Management • To introduce next generation “LILANZ” store image to further enhance brand image • More advertising and promotion supports such as road side billboard and TV advertising to support regional expansion Products Production and Supply Chain • Continue to partner with sizable and • Per
Slide 21: 4. Open Forum
LiLANZ mile China Lilang Limited FP [Bel #1) BE 44 BR ZS 4.Open Forum
Slide 22: Order Amount and Delivery Schedule
Delivery of order Order amount started in 2011 Fall 28% June 2011 2011 Winter 34% August 2011 2012 Spring and Summer 28.5% January 2012 Delivery of order Order amount started in 2011 Autumn and Winter 135% June and August 2011 2012 Spring and Summer 100% January 2012 22