Lilang CEO Wang Liangxing revealed yesterday that the group plans to open 300-400 stores each year in the next three years and gradually expand its presence in first and second-tier cities to strengthen its brand image.
According to Hong Kong media reports, with the rapid development of the economy in the Mainland, consumer demand for designer clothes continues to rise, giving operators more opportunities to expand. Lilang (1234) chief executive officer Wang Liangxing disclosed yesterday that the group plans to open 300-400 new stores each year in the next three years and gradually expand into first and second-tier cities to strengthen its brand image.
Wang Liangxing said at the performance meeting yesterday that the group will further consolidate and expand its distribution network this year and expand its retail business coverage. He disclosed that the group is now actively deploying and launching a new brand “L2†targeting the young customers aged 20-30. It is planned to be launched in April of this year. Starting in July, it will successively open 100 stores in the Mainland, mainly distributed. In provincial capital cities and prefecture-level cities. However, the Group did not intend to open branches in Hong Kong for 1-2 years, mainly because it wanted to achieve greater success in the mainland market first.
Distribution provincial capital cities
The group’s chief financial officer Yu Yuzhi stated that this year’s capital expenditure is approximately RMB 200 million (RMB, the same below), of which marketing expenses will account for a large proportion. Zhang Yufeng, director of the marketing and marketing center, revealed that the same-store sales increase was 15% last year. The statistics for this year have not yet been counted, but they are confident to maintain a good level. In terms of selling prices, he said that inflation in the Mainland is only 3%, and the temporary pressure on prices is not too large.
Lilang announced its first post-listed final results on Monday. As of December 31, 2009, it recorded a profit attributable to shareholders of RMB 303 million, an increase of 96.6% over the same period of 2008, exceeding the earnings forecast of the IPO prospectus. Earnings per share were 30.87 points, and the final dividend was 11 points. Performance performance is expected when the offer, the stock price once made good, high 7.5 yuan, or 7.91%, a record high, but closed down gains, down 2.6% reported 6.77 yuan.
The results report shows that during the period, sales and sales prices have all increased, resulting in a significant increase in turnover and driving results. The average wholesale price of apparel and accessories rose by 12% to 159 yuan and 19% to 100 yuan, respectively, which drove the gross profit margin to increase by 5 percentage points to 35.3%.