Good afternoon, investors. Thank you so much for your attendance to the China Lilang Limited 2023 interim performance meeting. My name is Sherry, and we are having the online, offline with the telephone participate investors, and prior to the event, we have already have a lot of questions, and those of you have not received, please also liaison with our public relations. The English interpretation telephone will provide the interpretation, and if you have any questions, please also dial the Chinese line. Let me now introduce to you the management. Mr. Wang Dong Xing, Chairman and Executive Director. Good afternoon. Mr. Wang Liang Xing, Vice Chairman and CEO. Good, good afternoon. Mr. Wang Cong Xing, Vice Chairman and Executive Director. Good afternoon. Mr. Frankie Shum, CFO. Good afternoon. This, today's agenda, to start with Mr. Wang Cong Xing will share with us the performance highlights, followed by Mr. Frankie Shum, what is the financial status, business review, and operation. Finally, the Chairman will share the group's views on future prospects and strategy. Lastly, there will be a Q&A session. Now, let me introduce Mr. Wang. Thank you, moderator. Thank you. My name is Wang Cong Xing, the Vice Chairman. Let me introduce you the 2023 interim performance highlights. In 2023, for the first half, the sales and social share reform have almost completed, and we're also pushing forward the brand strategy upgrading. Please check on slide four. In the first half of 2023, and the society has almost recovered fully, with also taking away also the COVID, the actual stores have already resumed normal operations, and the retail markets already come back for the first half of the year. We have also an increase of 6.7% up to RMB 1.491 billion. The net profit up 5.2% to RMB 2,070.5 million. The gross profit margin was actually 3.9%, up to 3.1, and the net margin was 5.2, up to RMB 275 million, and also it is RMB 22.56 cents per share, up 5.1%. It is mainly because of the core collection and also smart casual with all the normal operation, with also the last half of the year, there'll be also... and the higher sales will take, with also the inventories being much healthier. During this period, with the reduce of the inventory, with also on the distributors to have also reduce all of the channels and touch the core sales with a low single-digit growth. For the smart casual, it is also resumed the full normal operation with the retail shop, with a higher sell-through rate, and it was also a double-digit growth. Within this period, China Lilang, having this release of the lockdown with recovering on the social activities to promote also the brand strategies, upgrading with also what we call the Lilang Minimalist Menswear, with a multifunctional promotion to have also a personalized agent or the consumer to guide also the fashion. For those shops, and also the image with the renovation and also decoration, we are also increasing our steps to expedite of the new shop's image, to have a more fashionable, much younger brand image, to attract more consumers and their favorite products. On slide number five, the group has also making a kind of a dividend payout, so it is divided with the interim dividend of HKD 0.13 per share and special interim dividend of HKD 0.05 per share. We will maintain also a higher dividend payout. In terms of the finance and also of the other business, I will let Frankie to share with you. Thank you. Thank you, Mr. Wang. Good afternoon. My name is Frankie, the CFO. I will share with you also on the financial status for the first half of the year. The revenue raised about 6.7% to RMB 1.491 billion because of the core collection and also on the smart casual collections revenue increase, of which on the core collection, it was 3.2% up. With all the retail shops, with the normal operations over the first half of the year, resulting improved sales during the period. For the smart casual, it was up 21.5%. It was also operating normally with the collection, with higher sales throughout during the period and recording a double-digit sales growth. Of the GP margin was 51.8%, an increase of 3.1 p.p. YoY. It was because of the sales proportion of the smart casual collection with higher gross profit margin. For the first half, starting on the second half to the first half of the year, it was also increased mainly. In terms of the reversal of the inventory provision of RMB 59.7 million as a result of clearance of the off-season inventory. Slide eight. This is also on the selling distribution expenses amounted. As you can see on the blue bar, this is also on the decorations, which is approximately 13.6% comparing to 2022, it was approximately RMB 84.8 million to up to RMB 202 billion. Mainly because of the advertisement and also the plan of the decoration was postponed to second half of 2022 and also first half of this year. For the yellow part of this bar, these are the other distribution and expenses, including the expenses causing up to 3.5%. For the light green, this is also smart casual collection, direct-to-retail expenses of online platform, which is approximately 9.8%, down by RMB 4.2 million to RMB 142.4 million. This is also because of the COVID. We have already stopped some of the shops, and after the COVID, we have not increasing significantly on the. That is why for the first half of the year, in average, it was a little bit less. On the right-hand side, this is administrative expenses than the RMB 3.4 million, accounting for a reduced sales proportion of 4.9%. June distributing decrease in administrative expense was mainly due to the reverse of provision for trade receivable and right of use, and also result of the number of losses. The receivables are also caused by this kind of reverse receivables. Slide nine, on the profit and margin, it was a 3.1% growth, up 51.8%, of which on the 3.1% YOY, and also the drop 0.5%-20.5% of the operating profit, mainly because of the selling and distribution expenses increased at a larger extent than the gross profit, and the net profit was 270.5 million RMB, and the net profit margin dropped by 0.3 to 18.1%. In slide 10, you can see the working capital cycle, the turnover, and also the average trade receivables turnover days are 51 days, and last year it was 57 days. Because of the receivable and also have increasing, so increasing also the smart casual as a larger proportion and the sub-portion as also the turnover there was there. At the end of June, the provision was approximately RMB 40 million. In terms of inventory, it was also reduced to RMB 92.3 million to RMB 793. Because of the management efficiency of the inventory and also to getting rid of the off-season, in average, the turnover day is 211 days. It was similar like last year. Comparing to the end of June, we have already have the provision and also a provision of RMB 55.8 million for the trade payables, and also it was the 140 days. Last year, at the same time, it was approximately a lot longer because... That was because the trade bills are using a lot. On slide 11, on the cash flows, at the end, it was equivalent to RMB 200,023.8 million. Now we're talking about RMB 599 million. It was because a reduce of the account receivable of RMB 186 billion. At the same time, because of the release of the COVID and also the resume of the social activities, so that the distributors' cash flow has been improved. There will be also on the overdue receivables have also improved in terms of the investment, or the cash outflow was RMB 1,046 million, mainly because of the collateral and also bank borrowings. Altogether, kind of, RMB 104 million. We're talking about mainly because of the net bank borrowing of RMB 632 million. Then at the end of 2022, we're talking about RMB 148.6 million totally. We're talking about also, five-- RMB 55.5 million totally, rental, and also the interest. Slide 12 is also on the total cash and bank balance. It is also a very healthy situation in 2023. At the end of June, we have also a net cash of RMB 1.823 billion RMB. Now, let me brief you on the business operation on the first half of 2023. As you can see that with the various regions and distribution and also number of shops, for the first half, Lilang's altogether, as you can see, it was 6.7% to RMB 149 million. There are different regions in the Northeastern China. There are also some shops increased with 15.1% growth. In Eastern China, there are also 11.5% growth, mainly benefited from the smart casual business. We have also the e-commerce, excluding the WeChat Mall. It was on the East China during this period, it was a significant growth. In addition, with also the custom business, it was also a growth. In central China, southwestern China, northwestern China, and northern China, because the distributors are also still clearing off their inventory from last year with less orders, there are different degrees of influence. In eastern China and also central and southern China, it is also the most contribution areas. Altogether, it is 65.10. The total chunk of numbers accounts for 54.7%. At the end of June 2023, Lilang have altogether 2,646 retail shops, with additional 2 shops within the period. Altogether, the floor areas is 410,231 square meters, which 1.6% increase. Coming to slide 15. Within this period, we'll also to be proactively to promote also on the retail networks and also to increase our shops. Also on the quality of the shops, we will also increase quality shops and also shopping malls and prime locations, larger floor areas. That will also increase also the decoration to move and also increase our shops to achieve also on the quality shops. At the end of June, altogether, we have 842 shops, which is approximately 31.8% of the total floor areas, and also the 34.3% of the total floor areas. For the smart casual, we will also reform and also on their networks to optimize their locations and upgrading also the utilization of the space. We have already completed on the Xi'an and Zhengzhou shop reform, and there will be also an obvious and significant upgrade of the sales. At the end of June 2023, Lilang's, out of the 2,646 shops, there were 252 were also direct-to-retail shops of the group. The other was also the distributors or the sub-distributors. Within the sphere, the distributors was maintained on 65. Sub-distributors has increased from 735 to 750. In terms of inventory management, we have also reduced our inventory because pre-previously, we have also more outlets, retail shops, and also the online retails of our normal, regular, cleaning off. With the logistic parks, together with also the turnover rates, they make core collection in the smart casual direct-to-sales retails. Inventory has also improved. In addition, we're also going through with the ERP system to monitor on time on the sales and also inventories of the retail shops, and then so that the distributors' channels will also maintain to a healthy level. On slide 16, we also have the new retail business development as a focus, going through with the online-only sales model and also direct-to-retail online stores and ordering online while picking up offline to promote also Lilang's core collection and smart casual collection. For the new retail, we also have new retail to have the promotions, with also on the 618 E-commerce Shopping Festival, with also online promotion activities to drive those sales. It was an increase of 24% year-on-year, approximately, and also the profit margin was also further increased. The group will continue using also our satellite social platforms to offer to the customers some also the customer management to have the social platforms to take advantage of the complimentary advantage of the online/offline service, so that we can also with reducing also on the inventory of the season. This is also being improved on the turnover. Altogether, it is 2.8% on the general group. However, the retail sales group margin was significant of 24%. On slide 17, we are also based on the cost performance and quality products and personal relations or original design to upgrade also the cost performance to make a difference with our competitors within this period. We have also maintained as of 25% of original designs, with also the unique fabrics, with around 50%. It is expected that we'll also launch washable shirts and washable polo shirts during this period. For the washable shirts, in fact, even if you use it for 30 times on the washing machine, you can maintain. It is a very firm and wrinkle-less. You don't have to iron. For the washable polos, it will not deform, with a high quality also on the sunproof, which is also very good to stop the body temperature and also ultraviolet. Especially with these two products, it was immediately with the Little Red Book and also the TikTok for the major promotions in those networks. In addition, in order to have this kind of quick products, starting from last year, we have also have new suppliers of the new design and materials with our own factories to have a small batch, quick production. Hopefully, we can have more kinds of fresh products for the e-commerce. We have all together, approximately 350 people in our R&D, with the product design, material, and also the sampling with all kinds of linkages, so that we can upgrade also our competitiveness of the products of the group. Slide 18, you can see that also the marketing and promotions within this period, we are also promoting also on the lead our minimalist wear to have also our design on the leading of the minimalist e menswear. In terms of the business casual, for example, Kido Gao has become the brand ambassador to interpret simple menswear design philosophy of the Lilang. There are also actors, Duan Yihong, and also Raymond Lam, Feng, Guan Yipeng, and Hao Qin, also watching the story-based video shooting for the polo, for the TNR Chinese version, and also the Men of Rock report, and also some of the magazines from their... the minimalist and fashionable feel. Within this period, the original design promotion has effectively to insist on our new products to have a minimalist and comfortable brand spirit. In addition, we have also the seventh-generation retail shops decorations to promote to the current shops. We have already completed 156 shops decoration. Now, let me invite the Chairman to brief us also on the prospects and also the strategy. I will pass the podium to the Chairman. Thank you. Good afternoon. My name is Wang Dongxin, the company's group's Chairman. I will brief you also on the outlook and strategy of the second half of 2023. Looking into the second half of 2023, we have very complicated international situation with reducing the export. The property market was also going down. The central government also promote economy and to encourage consumption for the retail to have a positive help. The group will also be very prudent and optimistic for the Chinese retail market for the second half of the year. In terms of the reduced upgrading of the brand, we will also put a series of brand promotion activities. Lilang has just promote the new famous LILANZ. This will be also to promote our new image-. In terms of the shops and online, we'll also continue to have Jiangsu, and Qingdao, and Wuhan's reform to improve also their retail networks, and we will continue this work. We'll also increase on the provincial capitals and the local prefecture cities to have the quality shopping malls shops. Part of the original shops will also move to even more premium location and a larger shopping, shop areas to upgrade our quality. We will also further elaborate our exchange of our inventory to have optimization of channels to improve our network and also our sales rate. We will continue to open shops in outlets so that they will become a regular channel for getting rid of the off-season products. For the second half of the year, we also have a very prudent open shop strategy. It is expected that it will be remain unchanged of 100 more new shops, expected to the second year, that it will maintain the total retail remake, the target of the 10% target for 2023. In terms of the new retail, we will continue to promote for the e-commerce and also the online stores as one of the very important platforms for launching new products. For the second half of the year, the online shops will launch more e-commerce special edition products. We will also launch quality and iconic items with very precise promotion online. For example, on the special characters, and to upgrade the ex- the wearing experience, so that there will be a loyalty for the consumers with our gross profit, and we also a new growing growth. So for the second half of the year, the group will also continue to invest on the online promotion activities and through the various parts, through TikTok, to have also other online sales to promote also the growth. In terms of the retail mention, we will also reinforce the Lilang membership, and we will promote all rich member activities to offer specialized and prioritized, and also discounts. We'll also fully reinforce, consolidate also on the retail information system, and through this micro shopping malls or the small apps, to extend to the space of the resale, retails, and also to go through with also online, offline platforms to realize also the real-time data sharing. We're also at the second half of the year to sponsor the Chinese National Geography for the scenic projects, so that we can, together with the consumers, to visit on some of the inland petals, deserts, valleys, and mountains with this kind of rich for landscaping. The Lilang cultural significance will be carried to the visions of the consumers. As a very solid menswear care industry, China Lilang will, based on the strategy of a kind of a cost performance, valuable products to increase our product competitiveness, to upgrade also our sales efficiency, profit margin. In terms of the long run, we will also further consolidate China Lilang in the leading position of the menswear in China, to realize a sustainable long-term growth, to return the interest to the shareholders, the staff, and also the support of the customers. Thank you very much. Thank you for the management. Now it is the Q&A session. We also welcome people, investors from online, offline. Please press asterisk and 41, and then we will also open the Chinese line for your questions. Okay, question number 1. Good afternoon, management. I'm still talking about your business environment. It seems like you are having a good, good performance. My question is that, number 1, regarding also on the retail, comparing to the other menswear, it seems like you have a very much level. For the second half of the year, will it be also expedited so that we believe?... that there should be a very high growth%. However, in terms of the channels, the smart casual is quite favorable with, 20% growth. So what about your core collection, especially on the online? It seems as it was a little bit weak, this is the situation now. It seems that of course, the performance is not fully recovered, but the consumption desire is not fully grown. How do we achieve this kind of real growth? Maybe you can explain a little bit more. Instead of discounts, instead of also on the outlets. Question number 2, your GP growth has a lot of growth. Can you also tell us the percentage, the proportion of the core and also on the smart casual? If we can see on the 2nd half of the year or 2024, what would be the reasonable level? I can see that. Yeah. Of course, you're having offering huge discounts on other brands, so how does it affect your business? Also on the brand target, and also when it's going to resume as a normal operation. Number 3, how do you look at the mid to long term? Because as we can see, the macro environment is still unfavorable. Maybe in 2 years' time, what kind of strategy you can adjust? Can you also explain a little bit? Thank you. Probably on the core collection, the sales of which is not favorable. The main reason is because on the franchise or the distributors, it has dropped a little bit because currently on the distributors or the franchise distributors, it is quite common. In other words, it is comparable. They are hesitate in opening new shops, and that is why... This is 1 of the reasons. If we're talking about smart casual, it is becoming better and better because a lot of them also have the kind of direct re- sale, the retail, and there are also some kind of consignment sales. In many of the large cities, such as Shanghai, Qingdao. In those large cities, the sales performance are quite obvious. Comparing to the other districts, it's much better. In terms of the GP this year, we have also the franchise and also distributors, with also some price increase. The main point is that starting from this year, the sales in each of the shops are also selling also the current year's product and the discount. Together with the channels, why there is not a big discount? We are quite stable, but this year, in, June and July, the retail economy in China was also affected. During this period, the discount has dropped a little bit. It's approximately between 7-8. That is why we didn't have a huge growth. In terms of whether we will increase our price again, we hope that we will maintain a stable and healthy situation. The main point is that, as I mentioned earlier, that we will continue to upgrade our design, including the original design, to, elevate our competitiveness and product, also to, increase the, loyalty of the consumers. At the same time, to maintain, competitiveness and also on the, net profit level. This is, very confident for us. On the other hand, this year, and the turnover rate is coming into a very heavy, healthy level with the inventory. Why most of the shops are selling the new products? The main point is that we are going through with the 40% of the off-season products, and currently, the 40% of the inventory are also 20% of the sales, and that is why the discount together with the GP, we can be consistent to maintain on the same level. Number 3. In terms of the, on the macro environment is getting improved, the group's development is quite confident because we, we have a indicator, our focus is getting better and better, and the performance, in other words, from the bottoms up operation model so far, we would like to also start with top down. In other words, the brands would have to, to differentiate its own, brand personality, you know, including most likely for the second half of this year, with the overall brand promotion, most likely, it will be even more reinforced. That is why we're focused on the, clear and clear development of the strategy. Let me add some points. Talking about the core collections, policy, the, the strategy, it was a low increase, growth. One of the main reason was because of the COVID last year. There was also a lot of, changing factors, and that is why we have to guide. During this kind of customize, the order was reduced, but this year, so that we can clean all the inventory. This has already achieved a very good result, as I said about. This is a very healthy rate. In addition, let me tell you that for the overall reduce of the orders, the company, the group, is also organizing 2024 spring fair. The overall ordering condition has already resumed to the normal growth. This is my addition, comment on that. Thank you. The next question, please. Any other question from the floor? Let me see if you have any other questions from the online. For the English line, it is only for the translation only. If you have any questions, please also press asterisk and 1, and direct your questions to the Chinese number. Please also press asterisk and 1, and now we're open for the first question online. Management, my question is, for the last 2 years, I can see that for the direct-to-retail, some of them have been changed to the franchise or distributors. What is your consideration of this adjustment? Now that what is the reason? Is it more appropriate for this kind of distributors? What will be the pros and cons for that to achieve the models that we want to achieve? Previously, in approximately in the year 2000, was also some e-commerce, and previously, anyone can operate a shop with a very small rent, but the annual sales can even up to RMB 500,000, RMB 1 million. Now, with the increase of the rent and also... we're talking about also 12 of other small shops and outlets, and it's unable to operate. For example, on the smart casual, in average, the annual rent is costing RMB 1 million times 4. We're talking about more than tens of those shops, and will cost RMB millions, and the owners will have the ample supply of the products. For example, on the distributors right there, so good is because, in other words, it's a collective order, and then, and then the more they sells, the more they have, so they, they can reach the sales with increasing sales, and the overall inventory will also reduced. In this way, the direct-to-retail versus the distributors is getting better, and that is why it is even more expertised and also more professional, and that is why having the support of the at the back. Thank you. I understand you, that because we cannot locate a better and more solid distributors, and that is why we are limited in doing this. Yes, that is the reason. Thank you, Sir Wong. Okay, the next question, please. [Foreign language] Good afternoon. If you can hear me? Yes, loud and clear. I have two questions here. First of all, on the second half of the performance in particular, on the smart casual, are we going to have, maintain another 20% growth? Second question is regarding on the during this period, on the first half of the year, the smart casual on the online operation, there is a very good performance on the GP. What about the difference of the GP for the first half of the year? Can you also maintain the level of the GP versus on the platform? This is quite closer to the online platform. How do you, I think, in the outlook of these two, profitability of the second half of the year? These are my two questions. In fact, Q1 and Q2, we are still having a good result, but starting from July, the national retail market has some change. The core collection, comparing to last year, dropped a little bit. For the smart casual, it was maintained for a double-digit. Whether we can continue this growth, starting from our product and also the other aspects, we are quite confident, but that depends also on the environment and also the consumer's confidence, the situation which that we can also have a more precise verification. Number two, for 2023's profitability, as I said, on the GP growth, we have upgraded going through our structure. Number 2, currently, the new, the new products versus the best-selling products are having much, larger and larger proportions starting from second half of last year, especially on the first half of the year on the online sales have already had some contribution, and in this case, it will also be more helpful for our GP and also net profit. In the long run, the GP will still maintain a stable growth. We wish that in terms of the product, with the overall channel upgrading, it will also enable our market share versus on the single shop efficiency to be even more elevated. In other words, our GP can be maintained and elevated to our competitors. My other question is that for the two channels and also on the, direct sales and also on the distributors, put it this way, if the same sales is almost, the same, but currently on the smart casual, it was a ledge in edge and cost-wise is higher. For the smart casual sales upgrades, the contribution is gradually being realized in a much larger ratio. Currently, the GP is quite good. Do you mean that the smart casual, the GP contribution is less because of the inventory? Well, it's also very balanced, and currently, this year is gonna be equalized. Thank you. Any other question? Please press the asterisk and 1 before you ask your question. Thank you. Mr. Lin Xiang, please. Good morning. Good afternoon, management. Can I ask the question? Yes, please go ahead. Starting to 2021, the market was having a very huge and fast growth. I can see that there are also some market change. Some of the other menswear brands, they also are quite competitive. It seems that the voice quality is not very good. My question is that before 2011, it was a fast growth, followed by that, there wasn't any fast growth. For the other menswear, they also maintain this kind of very, very low growth. Now I can hear you loud and clear. I want to find out, what about the industry's ideas, any kind of explanation? I do have 2 kind of guess. Number 1, after 2011, on the menswear market is even more on a kind of convenient product, commodity, especially on the online sales, online shopping. Probably also there are also other new products to be taking over. My second guess is that it's also a menswear, they are becoming more sporty. In many occasions, the men are using, having their sportswear, and the sports brands have also promoted some of the leisurewears for other brands, and that is why they have also occupied a certain percentage of the men's male, menswear's market. Traditional menswear percentage or so of the Chinese economy lately, the menswear, the sporting is growing, but not for the traditional. These are the two reasons that I guess. I don't know whether it is right or not. Would that be the reasons? For the overall menswear in China, the... This is also more on a masculine approach. We have a lot of distributors, and for the overall, the other brands, they also focus on the kind of other made to orders or more on a masculine approach. In terms of the Smart Casual, we are also having some transformation from the masculine approach to the retail, to direct-to-retail or on our original design and R&D. We are starting with top, top downs, so that this is what the consumers need, and we'll do some market research, and then we'll start. This is why the overall strategies are each of the brands depends on its own claims and also some kind of differentiated personalities and also convenience. That is why we are more confident. For example, international brands like Armani, like Under Armour, they have also starting with the growth of transformation, and that is why for the menswear, as long as your transformation is being upgraded to the right position, there is a lot of room for development. Thank you, Mr. Wang. I'm also concerned about the sales channels. Currently, online, offline, we have the same products, same styles. Are they having the same price online, offline? In fact, we have also having dedicated products, and the prices are different on the online, offline, which is 70% for the online. For the online, offline, some similarity is that part of the inventory on the off-season, off-season will be converted to the offline. Yes, I understand. What about the online profitability versus on the offline? Do you have a comparison, online, offline? The average, if talking about per style on the net profit is about the same, but the average profit is a little bit more on the offline. As Mr. Wang said, that we have also developed, especially on the best sellers, and this part, the net profit is similar, but overall, on the online sales, on the net profit, I suppose, are higher. For the new products, it's about the same in average. The overall net profit is low. Do you believe that on the net profit, deducting on the sales expenses and the promotion, is that what you're saying? Yes. There are also other costs, relatively, is lower. Yes, I understand. Thank you. Please press asterisk and one before you ask your question. Do we have any question from the floor, please? Any other additional question? No question at all. Right. This is the end of the meeting. Thank you for your participation. This is the end of the investor meeting. Thank you once again for your support. Thank you very much. Thank you all. Thank you.