Good afternoon, investors. Thank you so much for your attendance to the China Lilang Limited 2024 interim results meeting. This is your MC, Angela from SPRG. This meeting is held with both telephone, online, and offline mode. Investors using the online should have received before the event, the PPT. If you have not received the slides, please contact the SPRG team. Please be reminded that the English channel is only for listening. If there's any question from the investors after me, please dial into the Chinese channel to ask your questions. Let me now introduce the management. Mr. Wang Cong Xing, Chairman and Non-Executive Director. Mr. Wang Liang Xing, Vice Chairman and CEO. Mr. Wang Cong Xing, Vice Chairman and Executive Director. Mr. Frankie Ko, CFO. Mr. Chen Song, Director of the Group Strategy and Development Department. And, the agenda is, first of all, Mr. Wang Cong Xing will share the result highlights, followed by Mr. Frankie Ko for the financial review, and Mr. Chen Song to review business and operation. And finally, the chairman will share the group's views on outlook and strategy, and then there will be a Q&A session. Thank you. Now, Mr. Wang Cong Xing? Thank you, moderator. Good afternoon. This is Wang Cong Xing, the Vice Chairman. Let me brief you the 2024 interim result highlights. On Slide 4, it is the group's long-term growth in H1 2024 by optimizing its pipeline, which remains healthy and has realized a long-term growth. The first half of 2024 was a challenging macroeconomy, with total retail sales of apparel growing by only 1.3% year-on-year. However, the group's revenue was up 7.3% year-on-year to RMB 1.6 billion. Net profit increased by 3.6% to RMB 280 million, with a gross profit margin of 50%. The core collection maintained a steady growth, with a year-on-year up 4.5%. Smart Casual has a faster growth and realizing 17.3% up. During the period, the group continued to promote its New Retail business with outstanding sales performance, with online store sales up by 37% year-on-year. The Core Collection has started the direct-to-consumer, DTC, model and terminated the cooperation with distributors in Heilongjiang, with a view to reform the DTC model in Core Collection to react better in the changing market and to realize the sustainable brand development. On Slide 5, the group remains committed to providing stable returns to its shareholders. During the period, the group has maintained a strong financial position with sufficient cash flow. The board has resolved to pay an Interim Dividend of HKD 0.13 per share and a special Interim Dividend of HKD 0.05 per share to maintain a stable dividend payout ratio. Now, Mr. Wang, please, we meet Frankie. Thank you, Mr. Wang. Good afternoon. I'm Frankie, the CFO of the company. I will brief you now the group's financial situation in the first half of the year. Slide 7 is the revenue and gross profit margin. The group revenue for the period up 73% to RMB 1.6 billion, which was mainly attributable to the e-commerce on the TikTok livestreams and outlets, a continuous growth of the Q4 2023, with 17.3% up for Smart Casual. The core collection was because of the new retail outlet, despite the termination of the Heilongjiang distributors, so causing some return and also deduction of the compensation for distributors participation agreement. So under this new retail outlet, the sales were still up 4.5%. At the same time, it was also 1.8% because of the product mix, which is because of the change in Heilongjiang, so also on the unit price. On Slide 8. Overall, during the period, it was RMB 68 million to RMB 466.4 million, mainly due to the increase in advertising and promotion expenses, and also the direct sales, and also salaries accounting for 29.1%. The light blue bar at the bottom of the left chart was advertising and decoration expenses, accounting 13.3% of the total revenue, comparing with the same period in 2023 was up by RMB 97 million to RMB 212.8 million. The yellow bar in the center is Smart Casual direct store expenses and e-commerce expenses, accounting for approximately 9.9% of the total revenue, representing up of CNY 25 million to CNY 158.1 million, because due to the increase in the average number of stores in 2023. The brown bar above is other selling and distribution expenses, including selling expenses such as salaries, accounting for 6% of total revenue. On the right is also administrative expenses, totaling CNY 10.9 million, up 5% of sales, mainly due to the increase of salaries and bonuses. Slide 9 summarizes the group's margins. GP margin down by 1.8% year-on-year, mainly due to the buyback compensation related to the termination of the Heilongjiang distributors and also lower average unit price due to changes in, product mix. Operating profit up by 2.8% to RMB 314 million, mainly due to the increased gross profit and government subsidies, while operating profit margin was down by 0.9% to 19.6%. During the period, the group reported a net profit of RMB 280 million, representing a year-on-year increase of 3.6%, while the net profit margin down by 6% to 17.5%. Slide 10 is the working capital turnovers. The group's average trade receivable turnover for the period was 39 days, comparing to 51 days in the middle of last year. The decrease was due to the increase of long outstanding receivables recovered in retail sales of sales revenue during the period. As at the end of the year, the provision was approximately RMB 15.3 million. In terms of inventory, the inventory balance increased by CNY 5.5 million to CNY 831.1 million RMB during the period, which is mainly due to the increase in purchase of raw materials. The average inventory turnover days of the group was 189 days, representing a decrease of 42 days as compared to the interim period last year as of end June 2024. The provision of CNY 419 billion RMB has been made in accordance with the group's policy. For trade payables, the group's average trade and bills payables turnover days for the period was 162 days, comparing to 140 days in the interim. The increase was due to the increased use of trade bills to be repaid at a later stage. Slide 11 is the cash flow. Cash and cash equivalents at the end of the period decreased by RMB 171 million. The operating cash inflow for the period was RMB 220 million, with the main adjusting item compared to net profit being a decrease in trade and other payables of RMB 117 million. For investing activities, the net cash outflow was RMB 125 million, mainly comprising cash deposits and term deposits totaling RMB 85 million. For financing activities, the net cash outflow, RMB 266 million, was mainly due to the net repayment of bank loans of RMB 16.4 million, payment of final dividend for 2023 of RMB 197 million, and payment of rent and principal and interest of RMB 50.1 million. On Slide 12, you can see the bank and cash balance. The group's cash position remained healthy. As at June 30th, 2024, we had a net cash of RMB 1.938 billion. Now, Mr. Song. This is Chen Song, Director of Strategy and Development. I will give you an overview of the business operation for the middle 2024 period. Let's take a look at Slide 14, where you can see the distribution of sales by region and the change in the store numbers. Overall, Eastern China continues to be our largest contributor, with sales of RMB 760 million, a significantly increase from last year's RMB 633 million. Sales in the Central and Southeast region also increased RMB 365 million, from RMB 346 million last year. And in Southwest China, down slightly to RMB 205 million from RMB 213 million. For the Northwest and also North China, amounted to CNY 160 million from CNY 125. In terms of store numbers as of last year, end of this year, we have a total of one off write off, but in the whole Northeast China, it was also very good, especially for the overall region. It was not a very great influence. In terms of the store numbers as of June 30th, 2024, we have a total of 2,709 retail stores, with a total store of 442,417 square meters within the country, representing an increase of 3% from the end of last year. Overall, although there was slight fluctuations in sales and store numbers in some regions, we maintained a steady growth trend as a whole, especially in Eastern China, which was quite outstanding. On Slide 15, on this slide, I will show you also in details of the pipeline management, including on the maximization. In terms of the upgrade, we have two core measures. Number one is we are also deepening our maximization of sales pipelines and channels on the core circles and also locations, and there will be also new stores. And also on the core, there'll be also some adjustments and expansion to increase our core circles made for the main consumers. Number two, it is decided that in the first half of year in Heilongjiang, also promote a series of DTC, a hybrid operation of the direct sales to the second-tier distributors and cooperate with the first-tier. We believe that this kind of direct management stores and also on the direct management of second-tier distributors will bring a different kind of influence. First of all, we can also more guarantee on the growth, income, and also on the upgrade of the gross profit margin because of the stores, plus the local areas, second-tier supply, they will be very beneficial for our overall income, and also they upgrade our gross profit. They're also advantageous for our channels to expedite their transformation in the future. The core collection in those areas will also be more effective in the core cities and also in the shopping malls in the major areas to promote the core collections, to expedite their upgrades in the future on the brands. In the future, there will be also a very solid foundation. Number three, we believe that, the transformation will bring us also in the groups on the management of the products. So by using our logistics and warehousing, we have very, good system to realize from the general warehouse to the local stores, direct deliveries with our also nationwide, deliveries, that will also upgrade the local areas, also the circulation. Last but not least, is on the brand. We'll also have also a very good upgrade. Also, the channels and products and also sales on the strategies will also much better in reacting to each of the stores, reinforce also the stores, and also deepening their operation standards. In addition, one thing is that on the, like Lilang, after so many years, not only that, we have also, income, also with very, very, very good experience on the Smart Casuals based on this successful model, enabling also on the Heilongjiang to have a kind of, pilot. Now, in terms of the inventory optimization, most inventory we purchase from our former distributors in Heilongjiang during the first half of the year have been sold. Some of the original, inventory, but it's up to now, most of the inventory have been already, settled. In addition, four new outlet stores were open to sell, mainly from the first half of the year, the overall outlet and also on the e-commerce. All these important, clearance are having a very good, growth. Number three, through the new, logistic parts to expedite also the market into time, time to market. There will be also bring from also a very, very good, return date. As of end of June, the group's total number of stores was 7,109, of which the number of directs increased by from 10 to 307. The reseller increased by 23 to 9,959. The number of distribution stores increased by 19 to a total of 4,043. Slide number 6 is the highlight development of our new retail business. First of all, in the first half of, it was 13% down year on year, grew during the 618 e-commerce. First of all, we were number four in the men's apparel industry, with our TikTok stores showing outstanding sales growth. Secondly, in the live streaming, that was strong performance. We have also continued to promote the live streaming sales through high quality, high interactive online to launch more e-commerce, products. We also set our efforts in e-commerce platforms such as PDD.... further enhance the brand's online sales capacity and interaction. Finally, in terms of system upgrades and optimization, the group has also upgraded its retail management system to achieve seamless connectivity and real-time data sharing. With the help of WeChat and other tech apps, we realize the interconnection in the operation. So please turn also Slide 17. The latest development in product design development. The group has also launched its strategy to continue supply also quality products. We have also the first Perfect Press White Shirt, utilizing two pattern long-lasting white technology with DP 3.5 level of non-ironing, and also ultra-high whiteness of value of under 50+. In response to the heated market feedback on the wash resistant polo shirts, we have also promoted this year the Polo shirt version 2.0. The new Polo shirt remains smooth and colorfast after 30 machine wash, further enhancing product durability and also user experience. In addition, the group also launched a Smart Lilang Collection of suits, demonstrating the minimalist style of the China Lilang brand and embody exquisite details of the design, aiming to attract the Gen Z consumers. On page Slide 18, you can see the latest development in the group's brand management and promotion. The group has appointed Xu Kai as the brand ambassador and incorporated elements of China's intangible cultural heritage in product design. At the same time, we collaborate with renowned designers to further enhance the brand's influence. The Young Business Partners the Lilang Group sponsored a short film, also in the cooperating with him, the group's ambassador with Zhengzhou Sunshine Outlet. By leveraging the synergy between celebrities and brand, we have also enhanced our brand penetration, also strengthened the consumers' awareness. We also sponsor a short film called Best Wishes with the best director of the Beijing Film Festival, conveying the brand philosophy of simplicity but not simple, and the brand concept of creating a better life for China Lilang and person brand awareness. Now, I would like to ask Chairman Wang for the development strategy. Thank you, Mr. Song. Good afternoon. My name is Wang Cong Xing, Chairman of the company. I will bring you some of the 2024 development in the second half of the year. Looking ahead to 2024, international environment will continue to be complex and domestic consumer market will be volatile to a certain extent. Nevertheless, the group maintains, are optimistic about the medium to long-term development of the huge mainland Chinese market, where demand for high quality and cost performance products remain strong and we remain also positive. Now, we're driving also to have dimension for industry, for period of market consolidation, in which brands with homogenized products, limited sales channel and poor flow management may not be able to weather the storm. The Lilang Group will capitalize on this opportunity by leveraging its strength and actively expanding its market share in an effort to become a leading player in the industry. In the second half of 2024, we will have a tight control on cost. We prudently adjust our store opening plan, aiming for a net increase of 50-100 stores by 2024. At the same time, the group will continue to adopt a pragmatic store opening strategy, prioritizing the opening of stores in provincial capitals and premium shopping centers, and closing inefficient stores to achieve a better store efficiency. The group will also continue to expand the scale of outlet opening of outstanding outlets, with a view of the resources aiming at the target consumers and maximizing profits. In addition, the group will capitalize on the market downturn and terminate its cooperation with the first-tier distributors in Liaoning and Jilin provinces to implement the overall Northeast region, the DTC model, with a view to improving in-app revenue and store efficiency. Those initially will contribute to the group's healthy growth in the Northeast region and provide greater contribution to the group in the long run. In terms of the product positioning, the group will accurately master the growing consumers' demand for cost performance products. On one hand, we will continue to deepen its core strategy of quality at a competitive price, and launch innovative, differentiating new products to provide consumers with an ultra cost performance shopping experience, which will in turn enhance the loyalty and trust in the brand. On the other hand, the group meets the needs of online consumers by launching e-commerce products with more affordable pricing, which has enhanced the market reach of LILANZ products and boosted the sellout rate of the products, thereby creating higher stock efficiency. On Slide 21, in terms of a new retail development, the group will continue to step up online promotion and drive development through innovation. We will make use of popular social media platforms such as TikTok and Xiaohongshu to reach out to consumers across the country through product live streaming. In preparation for the upcoming Double Eleven e-commerce festival, the group will launch a series of eco-friendly e-commerce special edition products in the second half of the year, before as well as iconic items to satisfy the e-commerce consumers' due pursuit for environmental protection and fashion. It is believed that through, and hope that through the implementation of this, a series of new retail initiatives, aiming to achieve a growth of 30% or more in the new retail business in the second half of the year. Meanwhile, taking into account the current market situation, we have carefully set our overall sales target for the second half of the year, hoping to achieve a growth of 10%. During the year, the group implemented its new multi-brands and internationalization development strategy. During the period, the group acquired the operation right of Munsingwear in China, and it is expected to commence the business in 2025. In terms of developing the Southeast Asian market, the group has already prepared a company in Malaysia, and is planned to open our first overseas store in the country to bring China's quality and affordable men's apparel products to the overseas market, as well as to broaden the group's sources of income and embrace more market opportunities. As a strong menswear enterprise, China Lilang will adhere to the strategy of simplicity, design, superior quality, in line with its new development strategy of multi-brand internationalization, with a view to enhancing product competitiveness, improving market efficiency, and stripping profitability. In the long run, the group is committed to further consolidating China Lilang's leading position in the men's apparel industry and realizing sustainable long-term growth so as to reward our shareholders, employees, and customers for their support to the group. Thank you all. Thank you for the management's presentation. Now is the Q&A. We will take the questions from the floor, and then open the questions, online. We'll take the first question from the floor. Management? I first have to appreciate fiscal income. A few questions here. Number one, regarding the retail sales. Previously, it was 10% down. My question is, what was the reason? The, what was the individual reason? It is only a 10%, and think of the second half of the year, it will be higher. So where does the confidence come from? We've also observed that on the offline sales, so in terms of the channels and also online, what will be the other works to be involved in terms of the product and also other factors? These are the second question. The other question was the profit margin. It was down a little bit. There was a repurchase of the Heilongjiang distributors on the inventory. Thinking about this one, what will the normal gross profit margin? So will there be other termination of the distributors for the second half affecting our overall gross profit margins? Just think of the target up to the June and July this year, we felt that it was a little bit flat, the market, but we have our health products, especially in the autumn and winter are more confident in the second half of the year, the growth will be much better and faster. The other one is on the Smart Casuals, with a few years experience in innovation, with working together with the other suppliers and brands. So they were quite confident, most likely, for the Smart Casual. I think it would be even much faster in terms than Core Collection. Let me comment on the first half of the year, especially the retail group. Facing this kind of volatile situation for the second half of the year, there were some things. First of all, from the separation of the products on the Smart Casual. This environment was quite similar. So for the second half of the year, the Smart Casual, indeed, from product feedbacks, it was quite satisfied, favorable. So in terms of the stores, the overall were approximately 50 to 100 stores. So the number increase of the stores will also have a certain contribution. Number three, also on the e-commerce, which is, of course, different than the stores. It's a little bit volatile and down, but in the outlets, in the online deployment. So for the overall year of 2024, for these two channels, they will probably make up some of the stores. And for the past week, we also emphasize on the adjustment of the stores, either for the stocking malls, performance, but will greatly improve it. Believe that plus the last one is, of course, we put the same percent. Last, for second half year, will be also the overall, will approximately 30% growth. So we can achieve those factors will be also 10%. That would be beyond the question. On the gross profit margin. Gross profit margin, if we can also take away the Heilongjiang factor, comparing to last year's gross profit, it's almost the same. For the second half of the year, following our DTC's progress, it will be expedited. Plus, we expect that on the Smart Casual performance, it will be even better than the core. On the Smart Casual, with the higher gross profit margin, so that will be also very helpful for our GP. What about this discount and also the repurchase? It's already completed that? Yes, it's already been completed. Most likely, there might be some kind of improving on also the, the overall sales. So we're still full of confidence on that. What about the repurchase? What about the inventory this year? On the inventory, we have already distributed in the online. In fact, the inventory is not an issue anymore. Basically, for the current year's inventory, we can have them sold, mostly. Number one, for the, the measure is because of the market is more volatile. This opportunity, we also aggressively work with the others, and we believe this is a very good investment, and the group is endeavor to have the Smart Casual with the direct retail development. So offer us a lot of support on our raw materials and also in the system in the future. We expect that what we call the DTC mode, we'll place number three on the repurchase of the inventory for the second half of the year. The 2 other provinces in Northeast China will complete this DTC, but in our. This is in our slide, you can see the overall Northeast China, the sales has taken a very strong position. Even if it's a repurchase, the volume is not that big. So this is much less influential in China. Okay. Our first question from the online. We also take questions from online. Please remind, be reminded that the English channel is only for listening. Any question would have to be asked in the Chinese channel. Pressing asterisk and one, the operator will put into your question online. Queueing. Waiting. Please press one and wait on your Chinese channel, and we'll do it for you. Thank you. Any questions, one- please press one. Okay, first question from the online. Thank you. Can you hear me? Yes. Thank you for your presentation, and congratulate a very, very successful and stable operation with this kind of bad economy. I have two questions. Number one, from the net profit versus on the core and Smart Casual, whether there will be a difference, or which one is higher? Number two is on the facing the overall macroeconomy, in terms of the e-commerce efforts, including also on your, the Tencent, would you have any other measures in the future for e-commerce? For the net profit profitability for the core is better, versus Smart Casual, will have to bear some kind of cost. For the Smart Casual, in the past, there are also some inventory. In fact, the Smart Casual is also not a much fewer product, but we believe that the profitability will be even more to be released from the Smart Casual. Thank you very much. Even for the general environment, it's not so favorable. At the same time, it means there will be a lot of other brands going down. There will be also other shops closing down. So this will offer us more opportunities. In other words, as I said earlier, could be also a good. We're talking about many, many posts. We're pouring the water in one or two buckets, so it's even more favorable an opportunity in operation. At the same time, we also have a current advantage and competitiveness in terms of the product and also optimize. In terms of the product, the cost performance and also specialties and features, comparing to our competitor, we are not homogenized. This will also let us to have operation fields to be more improved, especially on the store efficiency with a bad environment like that. We can still have a certain kind of growth. In other words, comparing to last year, going through our resale, we have also a lot of losses. Put it this way, including the... So that we can realize our certain on the R&D of the product, and also not only on the profitability, secondly, but also on the channels. Through the free adjustments, a lot of the premium prefectures and cities and also provincial capitals, our competitors have already boldly vanished. So we have a pre-deployment in advance with this kind of transformation. So we have a kind of transformation of our better channels. It is only the beginning, as Song introduced, briefing you, that we're trying to promote number three, regardless of brands or core or Smart Casual. In terms of resale to the sales model, there are a lot of improvements from the Smart Casual loss. But starting from last year, we have reached some profit. So the growth in terms of the Smart Casual, its maturity and also its advantages, will have gradually a very good contribution. That is why, even for unfavorable environment like that, we will have to do a better job in our competitiveness to maintain the growth. And that is why we have the confidence to say that there will be a 10% growth. If the environment is good and with less competitors, we'll be running a much faster ahead of the competitors. It's been a lot of talk for so many years of multi-brands plan. It's, so and that is why this year, with the Japanese Munsingwear, we our operation and also, share, and also including the, R&D and also stores, starting from 2025, we can realize this from Munsingwear. So the other one is, as I said, in Southeast Asian market, in 2025 in Malaysia, there will be our first shop or store. Thank you. My other follow-up question is, in Malaysia, will you start with the local partners? What about the stores itself, or is it just kind of core or Smart Casual? I'm sorry. I can hear that. In the Southeast Asian market, or the South Asian market, we are very, very careful whether it's a product or a kind of operation in this market. So we start with Malaysia, and that is why we have some preparation company in Malaysia. Hopefully, we can open the store as soon as possible. In terms of the store strategy, it is not for us to decide. But this is all a kind of consideration for the like Smart Casual and the supply chain. And also the team will also follow up on the Smart Casual operation, whether it's big or small store. The details of which are still to be developed and studied. Once the real store is opened, we'll have more details for you. Thank you for your shares. Let's take a look. Any questions, any more questions from the floor? Do I have a small question to follow up? On staff numbers, we have increased. So which department and what kind of, whether there's a team, if I remember correctly, wholesale for the resale has already been completed two years. For this year, we ourselves in Jinjiang operation, and also in Shanghai. If we are able to attract high-end talents in Jinjiang, this will also put into our competitiveness, including part of our upgrades. First of all, they will give them a kind of, kind of, satisfaction. At the end of last year, and employees, there will be also adjustment of the salaries. The range is approximately 10%. So we believe in the future for the human talents and also the future, we feel, we're quite confident. In other words, we will upgrade our ratio of the human resources for the latest, or if they encounter any, some issues during work, there will be a much better protection and reward for those employees. What about the employment growth rate? Well, with this kind of environment, this is quite a satisfying thing. In terms of the team and also the human resource, would there be any kind of optimization in terms of R&D and also the business operation? Well, for the HR in Shanghai, originally, we should, we have already a very good team, because there might be some kind of more, you know, some kind of high-end with simplified procedures. So for the high-end talents, we are coming to a more pragmatic approach with the talents in terms of the production, in terms of the retail. We will also adopt from Jinjiang more, much lower requirements. Thank you very much for your explanation. Thank you so much. Thank you, investors. Any other questions from the floor, please? We also accept any questions from online. Please press one and wait for your turn. Thank you. If you have any question, please press one and wait for your turn to ask your question. My name is Mark. What about the sales situation in Munsingwear in China? What will be your ratio of in the next one or two years that's planned in Munsingwear? Well, for the Munsingwear, first of all, for this cooperation, this is kind of a joint venture. Lilang has a share, and then we will invest CNY 150 million. Not only the brand mentioned, right, but also the IP right in China. This is one. In terms of the future development, the brand for us is quite intervention. Number one, it's an international brand. Secondly, we understand that, we have invested CNY 150 million, which is a very small investment. Number three, to build quite with a Japanese company in China, also other case successful. So we hope that in the future, Munsingwear positioning is in China. First of all, the group is Smart Casual brand. There will be a differentiating. Number two, hopefully, in terms of resources, especially we believe that on the partnership will bring us some kind of overseas resources and also some complement in terms of technology and knowledge. Number three, the brand, not only in men's apparel, but also in the women's apparel. So this is also our general situation. Overall, we feel that based on the future development, we are quite confident and based on this year, and we have experienced from the Smart Casuals process. So for the Munsingwear, we are not going to do it in one night, but we have to follow. We have to be more patient to target the core consumers. And then after polishing this brand, we're also going into the next step of fast growth. We expect, in the next two to three years, there won't be a very large scale involvement. Thank you very much, investment and management. This is the end of our Q&A, and this is the end of the investment meeting for today. Thank you so much for your attendance. Thank you.