Revenue Up 3.2% to RMB1,398 Million Net Profit Amounts to RMB257 MillionInterim Dividends of HK18 Cents Per Share HONG KONG SAR - Media OutReach - 19 August 2022 - China Lilang Limited ("China Lilang" or the "Company", together with its subsidiaries the "Group"; stock code: 1234) has today announced its 2022 interim results. Results Highlights

• Revenue increased by 3.2% to RMB1,398 million

• Net profit was RMB257 million

• Earnings per share was RMB21.5 cents

• Interim dividends totalled HK18 cents per share

• During the first half of the year, the total retail sales of the Group's products achieved low single-digit growth year-on-year

Mr. Wang Dong Xing, Chairman and Executive Director of China Lilang, said, "In the first half of the year, the international environment was complex and severe, with frequent domestic outbreaks of the novel coronavirus pandemic (the "Pandemic"). This put pressure on consumer market operations. However, as the Pandemic prevention and control situation improved and the policies to promote consumption took effect, consumer demand was gradually released and the consumer market gradually recovered, with the domestic economy as a whole showing a steady recovery. In the first half of 2022, China Lilang actively responded to the challenges posed by the Pandemic, and steadily implemented a series of reform initiatives. During the period, the total retail sales of the Group's products maintained positive growth, achieving low single-digit growth year-on-year." For the six months ended 30 June 2022, the Group's revenue increased by 3.2% year-on-year to RMB1,398 million. Profit from operations was RMB294 million. Due to the impact of the delayed recognition of sales resulting from the shift from the core collection distribution model to the consignment model, which has a higher proportion of total retail sales with a lower gross profit margin, and the rise in raw material prices during the period, the overall gross profit margin decreased by 0.8 percentage points year-on-year to 48.7%. Net profit decreased by 5.3% to RMB257 million. The net profit margin declined by 1.6 percentage points to 18.4%. Earnings per share was RMB21.5 cents. During the period, the Group maintained a healthy financial position with sufficient cash flow. The Board of Directors has resolved to pay an interim dividend of HK13 cents per share (2021 Interim: HK13 cents) and a special interim dividend of HK5 cents per share (2021 Interim: HK5 cents), continuing to maintain a stable payout ratio. During the period, the Group steadily implemented a series of reform initiatives. Last year, the Group converted stores from the core collection to the consignment model for operation. Thus far, nearly 40% of core collection stores are operating under the consignment model. The Group continued to pragmatically support distributors in optimising the retail network by closing certain underperforming stores while opening stores in carefully selected quality shopping malls and prime shop locations. The Group also promoted the increased use of the WeChat platform in physical stores to achieve higher store efficiency. To further enhance the efficiency of the smart casual collection stores, the Group revamped its store network, optimised the store locations by moving closer to first- and second-tier markets, and enhanced the space layout of stores during the period. The Group had a total of 2,627 retail stores nationwide, representing a net decrease of 106 stores during the period. Among them, the number of stores in shopping malls amounted to 818, accounting for 31.1% of the total store count and 33.3% of the total retail area; and the number of outlet stores reached 48. New retail remains one of the Group's top priorities for business development. The Group strives to promote the business of its LILANZ core collection and smart casual collection by actively integrating online services with offline in-store experiences and comprehensive logistics services. Following the shift of the e-commerce online store operations to the direct-to-retail model, the Group can organise sales promotion and e-commerce live streaming in a more flexible manner, and e-commerce was used more effectively for inventory clearance. On the other hand, logistics was hampered by the Pandemic, and the retail sales value of online stores for the period slightly increased by 1% year-on-year. While sales acceleration in the past two years mainly focused on inventory clearance, the Group is increasing the proportion of seasonal product sales during the period. In addition to gradually adding more new products to its online sales channels and launching new products during the 618 shopping festival, the Group reorganised its in-house production plant in a prompt manner and added seven production lines. This demonstrated the Group's ability to replenish orders in a swift manner, marking the continuous development of the new model of...