Lilang Wang Dongxing Ensures Quality Improvement Without Raising Price

China Lilang recently released its 2013 fiscal year performance report. The report shows that although the performance is affected by the operating environment, the Lilang Group's financial position is still quite steady. As of December 31, 2013, the annual net profit amounted to 516 million yuan, the group achieved a net cash inflow of *** 655.1 million in operating cash, and the net cash balance at the end of the year increased to *** 1,664.8 million in net per share. The cash increased to ***1.37 yuan. The Board of Directors proposed to issue a final dividend of 16 HK cents per share and a special final dividend of 5 HK cents per share.

Director of Lilang Group Wang Dongxing stated that “As the Group's channel inventory returns to near-healthy level, we believe that the Group’s most difficult time has passed. The order meeting in the fall of 2014 has just ended. Compared with orders in the autumn 2013, Lilang’s order amount has a median increase. L2's order amount increased by 10%-15%, encouraging the situation.As one of the leading companies in the Chinese menswear industry, China Lilang will continue to focus on and consolidate its own competitive advantages. We adhere to a prudent and flexible approach and insist on brand positioning. In 2014, we will strengthen supplier management to ensure that quality is not increased."

In 2013, orderly inventory cleanup and optimized channel management were implemented

Li Lang said that as of the end of 2013, according to the business priorities set at the beginning of the year, inventory clearance for 2012 and before had been completed, and inventory in 2013 had also approached healthy levels. In 2013, the number of retail stores decreased by a net 47 to 3,180. In the second half of the year, the number of retail stores began to increase, and 750 stores have been rectified. The entire project is expected to be completed in 2015.

Strengthen Supplier Management in 2014 and Improve Quality without Price Increase

The report shows that Lilang will maintain a prudent and flexible business policy in 2014, and it is an important goal to strengthen supplier management to focus on development to improve quality without raising prices.

In order to ensure this goal, Lilang will continue to optimize existing suppliers and develop new high-quality suppliers at the same time; strengthen communication with suppliers, select and select high-quality raw materials; strictly control the quality of product production for consumers Provides comfortable and safe products that meet national and industry-related standards.

In terms of product R&D and design, Lilang Group has more than 100 interdisciplinary R&D teams and signed with renowned designers from international brands such as Giorgio Armani, Miyake Life, Tommy Hilfiger, Levi's, etc., in an effort to create a national brand from an international perspective. Comprehensively enhance brand innovation.

In terms of production and supply, the Group introduced advanced garment production equipment produced in the United States, Germany, Japan and other countries, adopted advanced equipment such as the world-class sets of suits and trousers production line dedicated machines, and also developed and selected high-quality external stickers. The external processing business enables Lilang garments to be guaranteed in design, quality and output.

In another report, according to the report released by the Shanghai Bureau of Quality and Technical Supervision in 2014, Lilang passed the quality inspection of leather garments in 2013, and all indicators are in line with or better than the national standards. In this regard, Lilang Group Wang Dongxing, director, said that despite the current poor retail market, Lilang will continue to invest in quality management to ensure that the quality does not increase prices, in order to maximize the consumer satisfaction for high-quality apparel products.