[Foreign language] Good afternoon, everyone. Thank you so much for your attendance to the 2022 annual performance meeting. Let me introduce the management. We will also have an online, offline too. Briefly, I've already received the PPT. There will be also an English line for the interpretation for you to listen. Now that please allow me to introduce the management. Mr. Wang Dong Xing, Chairman and Executive Director, Mr. Wang Liang Xing, Vice Chairman and CEO, Mr. Wang Congxing, Vice Chairman and Executive Director. Mr. Frankie Shum, CFO, Mr. Zhang Yufeng, Director of the Group Strategy and Development Department. This is today's agenda. To start with, Mr. Wang Liang Xing will share the performance highlights, followed by Mr. Frankie Shum for the financial status, and Mr. Zhang Yufeng's review of business and operations. Finally, the Chairman will share the group's reviews on future prospect and strategies. Lastly, there will be a Q&A session. Thank you. We'd like to invite Mr. Wang Liang Xing. [Foreign language] Thank you, moderator. Good afternoon. I'm Wang Liang Xing, the Vice Chairman. Let me brief you the annual performance highlights of 2022. In 2022, the apparel industry was affected by the pandemic resurgence, the successful lockdowns, and the slow economic development. Facing the challenging business environment, China Lilang was actively responding to market changes and continued for more new retail business. We're trying to do our best. There will be also 4.43. Group profit margin was 46%, representing an increase of 4.1 pp in 2021. For the inventory, it was unchanged. For the general inventories, approximately 2,262. With a lot of challenges, we are also trying to enhance facing the market change and to promote new retail business and promote sales, driving store efficiency and stable business development. Last year, the group developed its new retail business and successfully promoted an approach of selling new products through e-commerce, increasing gross profit through higher unit of new product. To increase our gross profit, it is generated. We already started with initially some profit, and the group will also from the previously for the original design products and to change it into also the launching the excellent value and increasing the original design. In the whole last year for the distributors last year. With also the franchise together with the distributors, it is much better to have also the good, better performance of the store efficiency. At the same time, we also approximately 2,600 stores comparing to 2021. It was 89 stores more. Much better in executing on the value for money products. Increasing our R&D and also new products with the quality item, hydrophobic down, and also engaging in the other sales with further control of the inventory, improving logistics and distribution. The inventory comparing to 2021 is approximately the same. Page five is the dividend payment. The board has resolved to pay. With the operating cash starting from 2021 up to HKD 620. The cash flow was increased with a lot of the. Together with the final dividend of HKD 0.09 per share and a special final dividend of HKD 0.05 per share, the total dividends for 2022 amounted to HKD 0.32 per share. This is also to maintain a stable dividend payout ratio. I will now pass to Mr. Shum Chi to present the financial and business details. Mr. Shum, thank you. [Foreign language] Thank you. Thank you, Vice Chairman. I'm the CFO of the company, Frankie Shum. I will now present you the financial situation of 2022 of the group. Page seven is the revenue and gross margin. The revenue is down 8.7%, down to RMB 3,086.2 million. Revenue from the core collection down by 7.5% mainly because of the high season and also with about 40% of the stores converted to consignment model and in Q1 and also on the off-season inventory. This was all offset by the April and May, and later October, also affected by the pandemic. We have provided distributors with a total of RMB 83.7 million. The Smart Casual revenue was down by 14.2%. Smart Casual retail unit price, following our optimized product design, increased from 15%-20% as proper design. The sales volume was affected by the plunging store foot traffic. The gross profit margin was up by 46%, with 4.1 bps year-on-year within inventory provision of about RMB 122 million in 2021, and the write back of RMB 22 million in 2022. Excluding the impact of the inventory provision and rebate, the GP margin was about 45.5%, up 1.2 PP year-on-year. Page eight is the information on selling distribution and administrative expenses. As shown on the left part of the chart, selling and distribution expenses amount to RMB 791.7 million, down by RMB 3.6 million from 2021. Part A is advertising and renovation expenses, accounting for 13% to revenue, up by RMB 59.7 million- RMB 401.7 million from 2021. The segment B is other selling and distribution expenses accounting for 5.2% of revenue, mainly for salaries and e-commerce platform fees. The segment C is smart casual operating expenses, which is 10.4% of revenue, down by RMB 85.5 million- RMB 9.3 million. The right chart shows the administrative expenses. The increase in expenses during the year was mainly an increase in the write back of accounts receivable with a provision of RMB 6 million in 2022 and a provision of RMB 12.7 million in 2022. Page nine is a sum of the earning margin. GP margin was about 46%, representing an increase of 4.1 pp year-on-year. Operating profit down by 2.6% to RMB 519.1 million, mainly due to the higher management expenses and decreased government subsidies. The operating profit margin was 16.8%, up 1 pp from the previous year. Excluding the provision for inventories, net profit for the year was RMB 448.1 million, up 46%, but the net profit margin was up 0.6 percentage points to 14.5%. On page 10, we can see that the working capital turnover days, the group's average turnover for accounts receivable was affected by the higher trade receivable balance in 2021. About 40% of the core collection stores have converted to consignment, resulted in an decrease in turnover days. In terms of inventory, the average term was approximately 195. The increase in average is mainly due to the higher sales cost and lower average inventory and balance in 2021. The total inventory balance down to RMB 8.6 million. The core collection inventory balance increased, and Smart Casual inventory balance continued to improve. As at 31 December 2021, a provision of RMB 115.5 million had been made for inventory. As for accounts payable, the average turnover days during the day was 111 days, mainly due to the increase in the use of trade bills that will be settled at a later stage. The balance of trade payable up to RMB 1.444 billion. On page 11 is the cash flow. Cash and cash equivalents at the end of year down by 6.11 billion RMB. Net cash generated from operating activities RMB to 653.7 million. The main reconciling item between the cash inflow from operation and net profit for the year was the increase in trade payables. In addition, depreciation was approximately RMB 225.3 million due to the new headquarters and logistics center. Net cash generated investing activities amounted to RMB 11.107 million, which mainly include CapEx amounted to RMB 378.5 million at the time deposit of RMB 850 million. Net of interest income of RMB 52.2 million. Net cash from financing activities amount to RMB 9,004.5 million. The total payment for final dividend for 2021 and interim dividend for 2022 was RMB 340.9 million and lease payment of RMB 900.5 million, less net bank borrowings of RMB 361.2 million. Page 12, we can see that the group's cash position remains healthy. As at 31st December 2022, we have the net cash of RMB 1.455 billion. I will now pass the time to Mr. Song and Mr. Song, please. [Foreign language] Thank you, Frankie. I'm Song Chen, Head of Group Strategy Development Department. Let me brief you the business operation for 2022. On this page, you can see the distribution of our sales by region and the store count. East China, Central and South China continue to be the regions with the largest sales contribution. Accounting for down a little bit, mainly because of the e-commerce in East China and better online sales than offline sales during the year. Sales in the central and southern region down, similar to the overall situation. In northwest China, there is a high concentration of core collection distribution design stores. Sales recorded and because of the geographical region for deferred recognition were also down. In North China, Northeast China, and Southwest China, which have a larger proportion of distribution stores, mainly from lower distribution deferred, recognition was less. The sales was less affected, 14.9%. As at the end of December 2022, there were 2,644 retail stores nationwide, with a net in-increase of 89 stores. The total store area was about 404,020 square meters, which is similar to the end of last year. On page 16, the group continue in 2022 engage its distributors to optimize the network by closing underperformed stores and continue to carefully select additional stores in quality shopping malls at suitable locations to continue enhancing its channels. At the end, the store count at shopping mall were 835, which is about 32% of the total stores and 34% of the total area. In terms of the smart casual collection, different stages to optimize its store location in various districts and to enhance the utilization of store space this year. The store location are moving closer to first and second-tier markets, and the optimization of about 50 stores has been completed in 2022. The core collection will continue to promote the seventh-generation store to existing stores this year and to adjust the decoration materials, and to complete the renovation about 300 existing stores during the year. As at December 31, 2022, there were 226,000.4 of Dines will be direct to retail, including on Dines, will be authorized by distributors and sub-distributors. Due to market adjustment, the number of Smart Casual had to be reauthorized during the year. The numbers of distributors down from 700. Terms of inventory management, the inventory balance was similar to last year, with Smart Casual inventory levels continue to decline. For the core collection, distributors channel inventories were higher level in spring and healthy in the rest of the year. On page 16, the group continued to focus on new retailing as a business development priority, actively combining online services, offline experience, and improved logistics to promote the LILANZ's core collection in the Smart Casual series enhanced. Online store sales were mainly for stock clearance, but the group started to increase the sales of seasonal products online in the first half of the year. It started to launch its quality product hydrophobic down before the Double 11 shopping festival and launched a new trouser e-commerce special pattern in the online store on 618 e-commerce shopping festival. To cover the production of new production lines for the shopping festival, the group responded quickly by setting up its own factory and adding seven production lines to cope with the production. Which not only demonstrated the group's ability to produce small batches quickly but also started a new mode of selling new products through e-commerce. Also applies the WeChat platform to provide CRM services and set up stores in the WeChat mall to fully leverage the complementary advantages of online and offline services to drive the growth of store efficiency. Since the conversion of the group's online stores to direct retail, was able to launch flexibility promotion activities such as online promotions and live streaming of products. Moreover, starting this year, online store has transformed from a product clearance platform to a brand contact point for promoting brand image. Due to the high unit sales of the new product, the GP margin was greatly increased. The new retailing business has started to book new net profit. On page 10, the group continued to enhance the customized products and original design in order to improve the cost performance and differentiate it from the competitors. During the year, the proportion of original product sale was maintained at about 75%, with about 50% of the products using the Group's variety of fabrics, including Group's machine washable, quick-drying, and hydrophobic down jackets products and the ice pineapple shirts. It was greatly popular among consumers and had to be replenished only through online channels. After significant improvements in product design and supply chain management in the past few years, the Group's product have a cost advantage over its competitors. While the Smart Casual collections continues to gradually enhance the fashion and design of product, while the Group continues to implement its strategy of providing value-for-money products. The Group has increased the markup rates for individual product based on product design and market competitiveness, which has helped improve the gross margin of both the Core and the Smart Casual. In addition, to support the launch of fast-moving products in e-commerce, the group has developed new suppliers to provide fast-moving material two years ago. With the rapid small batch production capacity of the group's own factories, the group expects to launch more fast-moving products in e-commerce. The group's R&D department has a total of approximately 350 members who are engaged in all aspects of product design, material development, and sample production to enhance the competitiveness of the group's products. Page 18, let's take a look at the group's branding events. During the year, we continued to work with our brand spokesperson Han Han. Joining hands with China National Geographic. The group has also formed co-branding partnership with China National Geographic magazine, artist Cao Yu. Li Li is also to help us on the autumn-winter collections. For Smart Casual, LESS IS MORE as form of co-branding partnership with the science fiction Three-Body Universe for a store image. Now I'd like to invite the Chairman to present the outlook and strategy. Mr. Chairman. [Foreign language] Thank you, Mr. Song. Good afternoon. I'm the Chairman of the company, Wang Dongxin. Please allow me to present the group's development strategy for 2023. Looking ahead to 2023, the pandemic is stabilizing and social economic activities are recovering as people's mobility has increased significantly. Since the implementation of the Class B control measures, although uncertainties remain, the long-suppressed consumer demand is expected to be released gradually with the support of consumption. The group maintains a wait-and-see attitude on the retail market for the first half of 2023, is cautiously optimistic for the full year. In 2023, the group plans to continue to add stores in quality shopping malls in provincial capitals and prefecture-level cities, to open more stores in outlet malls. We will also strengthen our sales network with a prudent store opening strategy. In the quality shopping malls at the same time. We will also increase our outlets to have a default channel to clear inventories. We will strengthen our sales network with a prudent store opening strategy. The Gen 7 Core Collection stores image renovation, it's expected that about 400 stores will carry out similar renovation works this year, plan to optimize more than 100+ smart casual stores. In 2023, the group will target a net increase of approximately 400 stores and a target increase of more than 10% in total retail sales. On page 21, is to further promote the development of e-commerce. The group will use online stores as a bridgehead for the group to launch new products. In 2023, we'll continue to optimize the new product ratio for e-commerce and with precise online promotion, the group will strive to increase sales. E-commerce business, the group will further develop its sell online, ship offline model by additional services to provide customers with a better shopping experience and services. In terms of branding, the group will strengthen its promotion on platforms such as RED, Weibo, and TikTok. At the same time, apply rich and colorful content and bright store images to join a more fashionable, brighter, and more vibrant brand image online, offline to attract greater customer traffic. Over the past years, the group has been working together and working hard to successfully cope with the impact of the pandemic, and has relentlessly moved forward with various innovations and reforms. To sum up, the group has made a series of reforms and achievement. Externally, in terms of channel reform, we have changed from a pure distribution model to four channels: distribution agencies, direct sales, and e-marketing. This has helped the group to understand much better and respond more directly to consumers demand and to reduce receivables, enhance cash flow. Internally, we have established a creative park and logistic park to elevate automated production, which will help to strengthen brand-building, inventory management and logistic distribution, and better cope with the recruitment issues. Looking ahead, the extent of our environment presents both opportunities and challenges. Although the pandemic scene in the past few years has brought many challenges to industry, reducing foot traffic and market demand, coupled with the slowdown in China's economy and the low market threshold, competition is fierce. At the same time, we are seeing a shift from an export and investment-led economy to a consumption-led one. With the rise of the middle class, there is a growing demand for qualities products from domestic consumers, which offers great potential for the group's future growth. China Lilang is determined to establish a quality brand menswear, through more direct contact with customers, seizing the needs of the middle class. To stand out after the pandemic and become the benchmark brand of menswear in China and promote a long-term sustainable development of the group. This is the end of my presentation. I will now pass the time to the MC for the Q&A session. [Foreign language] Thank you for the management's introduction. The following is a question and answer period. You are invited to ask questions online, and you're welcome to ask the questions. Question number one, please. [Foreign language] Management and chairman, I'm so glad to share with you in Hong Kong. Hopefully, this kind of information will help also the menswear in China. Also a very nice performance from last year. It's not a very typical, if easy performance or the performance in terms of the sales. For example, retail, consignment, and direct to sales. Can you also explain a little bit more details? My second question is also on the gross GP margin. It seems that it's quite favorable. Having this at 1.2% up for the smart casual versus the other e-commerce. Also they will increase our gross profit margin. This year on the smart casual, the unit price is going up. Is there any improvement for that to increase on the GP margin? Number three is also on the retail for this year. Can you achieve your set-up target compared to last year? It was not so favorable causing in every six months. Can you also share with us some of your viewpoints? Last month, at least, you want to have this benchmark of the men's wear industry. It's very important to have your own style and fashion. Will there be any special patterns for the e-commerce to sell? Can you also explain? In making the products, how many years is it gonna take? The GP margin is mainly contributed on the smart casual, the unit price. However, the smart casual on the sales is hopefully trying to get this part of the gross profit. In the past, the e-commerce. In 2022, we have dedicated for the e-commerce, especially sales idea, the concept. The gross profit margin was affected. Taking this opportunity, I like to tell you a little bit, very important change of the smart casual. Previously, the smart casual was starting from bottom-up. What the customer needs, they would make, we're doing produce. Now that the Smart Casual, the main concept is that Smart Casual has its own spirit and characteristics. In other words, it has its own style. For example, it would be suitable for some of the major cities consumers. Forming a very unique personality, possessing Not as a kind of a similarity with the others, but will be very, very unique style. Having this idea. This is to build up also the unit product is what I was telling you. This is also involved in our general design, starting with the Smart Casual. With every 6 months, we have to check. In January, February, it's going up. For the first 2 months, it will be very favorable. In March up to April was down. [Foreign language] We wish that hopefully you can bring some prospect. Possibly starting from March, April, because the pandemic driving the Zhejiang and Anhui, they have all changed. In October, November of these 2 quarters, there are also some inventory, and that's why we have to take this growth. For the autumn collection was a little bit conservative, and most likely we're not fully ready working together in the winter session and winter time of the e-commerce. What about the consignment? 25% and about 25%-20% off. [Foreign language] Thank you all management. The next question, please. [Foreign language] My name is Li Jie. I'd like to ask a question. You had some adjustment on the store design. Can you explain to us the transformation? What kind of channels structure will be much better in your adjustment on your like, you know, Smart Casual? [Foreign language] For the consignment. There's a lot of changes. In other words, most of the provincial capitals and the prefecture city levels was only 2 streets apart, a few streets apart. In the general consignment of distributors, if you do not have the storage, you have to open 20, 30 stores in one city, then you don't have enough inventory for this kind of approach. It will have the product sales and also the branding affection. In this way, it will also bring to us a. If it is a prime location, a good provincial capital, and then there will be also some recruitment of the distributors, it would be much better. That's why starting from last year and this year. In some of the, some of the index, maybe some of the small tier-4 cities, it might have to take into consideration not having more stores. The consignment is approximately 40% and the contribution is about 54% for the consignment. The model is quite successful. In particular, as I said earlier, Originally, in a store in a province. Now, there is a turnover, a very good turnover, but you have to make sure of the consignment of a good, better turnover. If you have very good, strong sales, and then of course you can have a much better and higher performance. For the consignment plus what we said on the other advantages, we've been thinking that it's gonna be another one or two year observation, then we'll decide for the sales channel together with also the direct sales going forward at the same time. On the online sales and offline deliver, you don't have to rent out your store for the inventory. In this way, it will have the new products to have more popular attraction. Secondly, for the apparel industry, a very important thing is that we believe consignment is still one of our main operations. [Foreign language] Thank you, management. Another question, please. [Foreign language] Thank you. On the operation strategies, two questions. What kind of online, offline? The other question is, you mentioned about this year. I don't know if including on the product reservation. How much would that be? Lastly, please also explain on the inventory. Thank you. [Foreign language] Okay. Thanks. Last year, we have increased the gross profit. What is the level of the GP last year? GP margin, because it includes some of the clearance of the inventory of the off-season, it was slightly down. Currently, we are also increase our new products. In the future, it will adjust slowly. In other words, the inventory, together with the new developed products, are counted together. The other calculation is that with offline, they are also deducting your operation costs, OpEx, and also with the store rent, together with the other expenses. They are different calculation anyway. For the e-commerce personnel. During the pandemic, it was a great influence. Starting from the e-commerce, it was composed of a team. We have to train our in-house people on the e-commerce. This is something we are preparing. In 2023, we expect to increase more hands. We'll also authorize other people. It is expected in three years' time that it will be a full operation. [Foreign language] Thank you. Any other question from the meeting? [Foreign language] I have two questions. Number one, I can see that for the channel sales after investment, it's about 2-3 years' time. I can see that in this year, the sales process with the new sales channel. My second question is, on the cash flow situation, are we considering through the branding or to initiate also some of the other media approach? [Foreign language] Thank you for your question. Let me ask you the inventories on the turnover days. We have already started for the consignment to distributors if 40% target is to reach to have a consignment. It's very naturally that in the consignment all the way to the end users and consumers for our inventory. That was different from the past because in the old days, as long as we put the inventory to the stores, frankly speaking, each of the inventories turnover days are different at low and high. For this year, it was a little bit higher than last year because the sales cost, as I mentioned earlier, that in 2021, we have a kind of a writeback provision for the inventory, so relatively it was a little bit higher. That is why the turnover days is likely low. This year there will be also not a very high writeback provision for the inventory. Relatively, the turnover days will be higher. In fact, previously, affected by the inventory was quite high. There was not enough growth, but starting in 2022, in other words, from the e-commerce to adjust to the WeChat more, including with outlets to have also on the other outlet stores. The overall growth of the inventory is quite positive. For the cash flow, I feel that for the cash flow, if we are doing the slight cash flow now, in 2023, 2024 it will be the best period. If we can achieve a better target, then it will be much better favorable for our future M&As possibilities, or if there will be good opportunities. Most likely we would develop the M&As in the future. [Foreign language] Thank you. Is there any other question? [Foreign language] I have two, three questions. One is of the 40% or market for the consignment, and then you can also have the distributors, what kind of growth? Second question is that starting from this year, January, February, there is also a kind of single-digit growth and in the Q1 there'll be also double-digit. What is performance of per each of the quarters? [Foreign language] As it was mentioned, 40% of the stores. It was approximately, say it was 40% of the contribution of the total revenue. Going through the consignment. Offering to those stores also some benefits, and they have more rooms to grow. For the exact figures. I do not have the exact figures now. We don't have any statistics on that, but based on the chairman said. On the overall sale, on the consignment model, their inventories are interchangeable. For the distributors, they only are one-sided distributor. They will have to bear for their own if they have to take the orders. It is impossible for them to change with us. With this kind of consignment model, it will be very easier for them to interchange. Under this consignment, their inventory, b ased on the sales, we can also arrange in the next future and t hey will increase their inventory. Now that they're online sales and not offline shipping, for the consignment stores, regardless of locations, it will be shipped. In terms of efficiency. It should be very favorable for the whole operation. [Foreign language] Thank you, management. For the English channel, it is only for the interpretation. For the questions, please press Chinese channel for the question and we'll pass your questions. You can also press three to ask your questions. If you want to ask a question, please press star and then one to ask your question. Thank you. Is there any question from the floor? [Foreign language] Very appreciate that I have this opportunity to ask my two small questions. One, is that is coming, economies back the trend on the sales cost, for example, advertisement. Are we going to have more investment? Question number two: After the three years pandemic, do you feel that the menswear has any other trends or different? What about the smart casual? Would it be better? What about other, you know, emphasize on the smart casual. [Foreign language] For the pandemic, put it this way. For the SMEs, a lot of them are closed. Some of the customized, small operations are also closed. For the smart casual, if there will be some brands that are comparable. Each, of course, the brands will have its own brands. For the commercials, it will be 30% of the advertisement. It will be around also 10%-13% this year for the advertisement. We have the confidence to be more confident, so we'll maintain this level instead of decreasing. For the promotion, in the past it was more on the large media. Now, in this year, the focus is to differentiate each of the markets to promote in different markets. There are two, of course, markets that we like to think about. Some of the major products. This will be the two focuses. There'll be some new conception approach. How do we rebuild the recognition from the consumers? The other promotions, we're also doing together with the local and provincial level, most likely. For the second half of the year, there will be a much larger promotion events to the local markets. This is also our brand promotion. [Foreign language] Thank you, management. We can take now the last question from the floor. Any other question? Question from the floor. [Foreign language] Taking this opportunity to ask you some questions. One question on the smart casual. I'd like to ask on the smart casuals, on the unit price. If in the future, the smart casual will create its own personality and style. With the elevated design, t here is of course, a very favorable income or the revenue of the smart casual. How are we going to take a future outlook of the smart casual? [Foreign language] Price-wise, I will ask Mr. Zhang to explain. [Foreign language] For the smart casual, the retail price and also the whole collection is very similar to the core. It is about 15%-20%. The unit price is quite similar. Let's say if it takes about RMB 1,000 for the hydrophobic, for the down, and we're talking about RMB 600 for the smart casual. There is a price difference. Most likely, people are taking care of the market trend of the people, of the consumers. [Foreign language] Thank you, management. I can see there's another investor who would like to ask a question. [Foreign language] I'd like to ask about also the smart casual. On the smart casual style and also the price, what will be the other items that you will take into consideration other than the product and the smart casual? What is the reason? It would be the same. Now, with 100 new stores, how many will engage in the smart casual? In the future, how long does it take to establish the operation? [Foreign language] We're now focused on the smart casual to several provinces. This very important several provinces, they will be also cross and interchangeable. In other words o n the smart casual, this year is going to be to have some kind of quarterly design. It's going to be a high ratio for this new product development. Yeah, it's about the same. For the light smart casual and also on the core, it's different calculation. Mainly, the target of which is that there will be also a price increase. In other words... On the tier one city, there will be at least a room for the next couple of years for growth. Of course, the higher the growth, the higher the margin. If a single store and the store efficiency drops, also the gross profit margin will also drop. [Foreign language] Thank you, management. If there's no any other question, this is the end of the Q&A. Thank you, management, and thank you for your participating. This is the end of the investors conference. Thank you so much. Once again, thank you.