Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. (Incorporated in the Cayman Islands with limited liability) (Stock Code: 1234) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 The Board of Directors (the “Board”) of China Lilang Limited (the “Company”) is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (together referred to as the “Group”) for the six months ended 30 June 2026. This announcement, containing the full text of the 2026 Interim Report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to information to accompany preliminary announcements of interim results.
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Financial Highlights ࠅ Management Discussion and Analysis ؓ Review Report of the Auditor ᄲቡజѓ Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income ڌ Condensed Consolidated Statement of Financial Position ڌرً Condensed Consolidated Statement of Changes in Equity ڌ Condensed Consolidated Statement of Cash Flows ڌ Notes to the Unaudited Interim Financial Report ൗ Other Information ࣘ 2 4 25 27 28 30 31 32 48 CONTENTS 目錄
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0202 CHINA LILANG LIMITED ʮ̡ FINANCIAL HIGHLIGHTS 財務摘要 Six months ended 30 June ˜ 2026 2025 Changes ɚཧɚʬϋ ɚཧɚʞϋ ᜊష (RMB million) (RMB million) (%) ɛ͏࿆ϵຬʩ ɛ͏࿆ϵຬʩ Revenue ϗɝ 2,064.7 1,727.2 +19.5 Gross profit ˣл 1,009.5 867.8 +16.3 Profit from operations ᐄлᆗ 232.8 260.1 -10.5 Profit attributable to equity shareholders for the period ᏐЦಂʫ лᆗ 215.4 242.5 -11.2 (RMB cents) (RMB cents) ɛ͏࿆ʱ ɛ͏࿆ʱ (%) Earnings per shareл { Basic { ਿ͉ 18.0 20.2 -10.9 { Diluted { ᛅᑛ 18.0 20.2 -10.9 Interim dividend per shareࢹٰHK10 cents 10 ಥ̀ HK11 cents 11 ಥ̀ -9.1 Special interim dividend per shareࢹٰHK4 cents 4 ಥ̀ HK5 cents 5 ಥ̀ -20.0 (% points) (%) (%) ϵʱᓃ Gross profit margin ˣлଟ 48.9 50.2 -1.3 Operating profit margin ᐄлᆗଟ 11.3 15.1 -3.8 Margin of profit attributable to equity shareholders ᏐЦлᆗଟ 10.4 14.0 -3.6 Return on average shareholders’ equity(1) ᛆूΫజ(1) 4.9 5.6 -0.7 Effective tax rateଟ 17.3 17.8 -0.5 Advertising, promotional and renovation expenses (as percentage of revenue) ࡌ ක˕ Цϗɝϵʱˢ 10.9 11.0 -0.1 Six months ended 30 June 2026 Year ended 31 December 2025 Six months ended 30 June 2025 ࿚Їɚཧɚʬϋ ʬ˜ɧɤ˚ ˜ ࿚Їɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ ܓ ࿚Їɚཧɚʞϋ ʬ˜ɧɤ˚ ˜ Average inventory turnover days(2) ̻ѩπᔷ˂ᅰ(2) 250 226 231 Average trade receivables turnover days(3) ሪಛ ᔷ˂ᅰ(3) 31 36 37 Average trade payables turnover days(4) ሪಛ ᔷ˂ᅰ(4) 180 184 179
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0303 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 FINANCIAL HIGHLIGHTS (CONTINUED) 財務摘要 （續） Notes: (1) Return on average shareholders’ equity is equal to the profit attributable to equity shareholders for the period divided by the average of the beginning and closing balances of total shareholders’ equity. (2) Average inventory turnover days is equal to the average of the beginning and closing inventory balances divided by cost of sales and multiplied by the number of days in the relevant period. (3) Average trade receivables turnover days is equal to the average of the beginning and closing trade receivables balances divided by revenue (including value-added tax) and multiplied by the number of days in the relevant period. (4) Average trade payables turnover days is equal to the average of the beginning and closing trade and bills payables balance divided by cost of sales and multiplied by the number of days in the relevant period. ൗj (1) ᏐЦಂʫлᆗ ࠇ ၑf (2) ʿಂ̻͋ѩπഐ ၑf (3) ʿಂ̻͋ d ၑf (4) ʿಂ̻͋ ሪಛʿᏐ˹ୃኽഐቱৰ˸ቖਯϓ ၑf
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0404 CHINA LILANG LIMITED ʮ̡ MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 In the first half of 2026, global geopolitical tensions remained high, regional conflicts intensified, supply chains were disrupted, leading to significant fluctuations in energy and commodity prices and increasing risk of global inflation, which threatened the pace of economic growth in various countries. Despite a complex external international environment, China’s economy maintained a stable growth momentum. During the period, gross domestic product (GDP) increased by 4.7% year on year, including 5.0% growth in the first quarter and a slowdown to 4.3% in the second quarter. The domestic consumer market experienced moderate growth, with the growth rate of services retail growing faster than goods retail. Consumers are becoming more rational in their purchasing decisions, and their sensitivity to price, functionality and practicality continuously increased. In the first half of 2026, total retail sales of consumer goods increased by 1.3% year on year, of which retail sales of apparel, footwear, headwear and knitwear increased by 6.7%, reflecting the resilience of consumption in the apparel category. Online retail sales remained robust, increasing by 4.8% year on year. China Lilang Limited (the “Company” or “China Lilang” , and together with its subsidiaries, the “Group”) adapted to market changes during the period to seize growth opportunities arising from the transformation of the consumption structure, and steadfastly implemented its “Multi-brands and Internationalization” development strategy. For the six months ended 30 June 2026, the Group’s growth continued to outperform the market, recording revenue of RMB2,064.7 million, representing a year-on-year increase of 19.5%. Profit attributable to Equity Shareholders was RMB215.4 million, earnings per share were RMB18.0 cents. Taking into account the Group’s solid financial position and sufficient cash flow, the Board of Directors has resolved to declare an interim dividend of HK10 cents per share and a special interim dividend of HK4 cents per share, thereby maintaining a stable payout ratio. China Lilang was committed to enhancing competitiveness of its brands – the core collection “LILANZ” and smart casual collection “LESS IS MORE” , so as to improve operational efficiency and increase market share. At the same time, the Group adjusted its sales strategies in a timely manner in response to changes in market conditions, achieving optimal sales performance while upholding its brand positioning and product quality. During the period, the Group strategically increased the supply of value for money products, especially outlet products, to reach the broader consumer base. After the “LILANZ” main series launched the Direct-to-Consumer (“DTC”) model in certain regions, operations showed improvement. Therefore, management extended the DTC model to Hubei Province in the first half of the year. The Group also continued to optimize its sales channels, opening new larger size stores with modern decoration in prime locations as planned, while closing non-performing stores. By the end of June 2026, the Group had a total of 2,820 stores with a net increase of three stores during the period, with total retail floor area up by 1.3% compared with the end of the previous year. The store network of the Group has continued to be its most important sales channel. New retail is the Group’s core growth engine, continuously achieving rapid growth. During the period, the Group targeted customers through its online stores on major platforms and other emerging channels, adopted precise promotional and marketing strategies, enhanced the sales capability of new online products, and simultaneously drove overall sales growth. The Group’s strategy was effective, with revenue from new retail business recording a significant year-on-year increase of 39.0% during the period, outperforming the Group’s overall sales performance. Progress continued in the Multi-brands and Internationalization strategies. The high-end golf brand MUNSINGWEAR, which specializes in the premium niche market, continued to advance its online and offline channel development and brand exposure in the first half of the year, opening 3 new stores. As for the development of its overseas business, the Group has opened 5 overseas stores in Malaysia starting last year. Since their opening, the market response has been positive, accumulating experience for long- term international development.
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0505ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 ط݁ ̋ᄌdԶ ΪϾɽ উ ٙ ̻ᖢ GDPΝ ڗ4.7%މڗ5.0%d ᇠЇ 4.3%fʫऊ൬̹ ڗ Ъ̈ d࿁ᄆ ܓ ᚃʺfɚཧɚʬϋɪ̒ ཧਯᐼᕘΝ ڗ1.3%ༀeቨ ڗ މ6.7%ᗳऊ൬ ܵڭ ڗ4.8%f א d ᙮ʮ̡୕၈ ණ ಂʫනᏐ̹ఙᜊʷdҪऊ પ ഄଫ f ࿚Їɚཧɚʬϋʬ˜ɧɤ˚˟ɪ̒ ̹ఙd ɛ͏࿆ 2,064.7 ϵຬʩ dΝˢ ڗ19.5%ɛ ͏࿆ 215.4ɛ͏ ࿆ 18.0ᖢ dତ ٰ ٰ10ٰ4 ˢଟf ࠛLILANZ ࠛLESS IS MOREჀ ਠ ࣖ d ሜ Зʿପ ቖਯ ήᄣ̋৷ ۜ ऊ൬໊ ࠛLILANZ ˴ӻΐί΅ή DTCd ɪ ̒ϋҪ DTCf ྌί һอ f࿚Їɚ dණྠϞ 2,820 ̹dಂʫଋᄣ̋ 3ጐ ᄣ̋ 1.3%ၣഖᘱᚃ ቖਯಬ༸f ܵ fಂʫdණྠீཀ ၣᓃʿՉ˼อጳಬ༸d ෂપ ቖਯঐ fණྠ ಂʫ ڗ39.0%ණྠ ତf ၾყʷჯਹᘱᚃ՟ආ ৷၌৷ဧ ۾MUNSINGWEARd ɪ ணʿ ᖅΈdอකண 3ऎ ৵ԸГԭකண 5dකุ˸ Ⴣყʷ೯ ጐଢ଼᜕f
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0606 CHINA LILANG LIMITED ʮ̡ MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 ৌਕΫᚥ ϗɝ ɛ͏࿆ 2,064.7 ڗ19.5%fՉʕd˴ӻΐ ɛ͏࿆ 1,341.8 ϵຬʩdΝˢᄣ ڗ12.7%ۨDTCٙ ື༰፰dቖਯ ቖਯ Ԙ ̹ఙცӋdѩપਗə ତfჀਠਕʿՉ˼ӻ ΐϗɝɛ͏࿆ 722.9ڗ 34.7%ቖਯձอ ੭ਗf ϗɝj FINANCIAL REVIEW Revenue The Group’s total revenue amounted to RMB2,064.7 million for the period, representing a year-on-year increase of 19.5%. Of this, the core collection recorded revenue of RMB1,341.8 million, representing a year-on-year increase of 12.7%. This growth was primarily attributable to operational efficiency improvement from conversion to DTC model. In addition, the later Lunar New Year this year, which resulted in a longer peak sales season, thereby benefiting the sales performance of major year-end promotional activities. Concurrently, the rapid expansion of new retail channels, coupled with an increased supply of value for money products, effectively met the evolving market demand during the period, all of which contributed to the robust performance of the core collection business. The smart casual and other collections recorded revenue of RMB722.9 million, representing a year-on-year increase of 34.7%, which was primarily driven by the strong momentum of the smart casual in-store sales and new retail. Revenue by collection for the period is set out below: Six months ended 30 June ˜ First half of 2026 First half of 2025 ɚཧɚʬϋɪ̒ϋ ɚཧɚʞϋɪ̒ϋ Collections RMB million % of revenue RMB million % of revenue Change % ӻΐ ɛ͏࿆ϵຬʩ Цϗɝ% ɛ͏࿆ϵຬʩ Цϗɝ% ᜊਗ% Core collection ˴ӻΐ 1,341.8 65.0% 1,190.6 68.9% 12.7% Smart casual and other collections ჀਠਕʿՉ˼ ӻΐ 722.9 35.0% 536.6 31.1% 34.7% Totalࠇ2,064.7 100.0% 1,727.2 100.0% 19.5% By product category, tops accounted for 65.0% of sales, a year-on-year increase of 25.0%. Pants accounted for 24.7% of sales, representing a year- on-year increase of 18.7%. ቖਯᕘΝˢ ڗ25.0%ٙ65.0%ۜ ڗ18.7%dቖਯЦˢ 24.7%f
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0707 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 Revenue by Region In terms of regional sales performance, Eastern China was outstanding, with a year-on-year increase of 27.5%, primarily due to the positive impact of e-commerce being classified under Eastern China operating region. In addition, the later Lunar New Year this period extended the peak sales season and boosted sales performance for major year-end promotional activities. This was also attributable to the greater operational efficiency brought about by the DTC model in the businesses in Jiangsu and Shandong Provinces. North-Eastern China completed its DTC transition in the corresponding period last year, leading to enhanced operational efficiency, which was reflected in its sales performance for the period, with sales recording a significant year-on-year growth of 31.2%. Sales growth in Northern China, South-Western China and North-Western China was in line with the Group’s overall performance, primarily driven by strong growth in the smart casual and new retail business. In Central and Southern China, due to Hubei Province’s transition to DTC during the period, one-off expenses were incurred, including the repurchase of inventory from original distributors and compensation to distributors. These expenses were deducted from current sales revenue, and offset revenue growth, resulting in a gentle sales revenue increase of only 1.4%. ਜਹྌʱϗɝ ߉ ڗ27.5%աՑཥਠᓥᗳՑ ື Ԩ੭ਗϋ͋ɽ ତfΎ̋ɪ DTCᅼό ה f ̏ήਜ̘ϋΝಂʊҁϓ DTCʈ Ցಂʫቖਯ ତdቖਯΝˢ 31.2%f ၾණྠ աՑჀਠਕ˸ʿอཧਯุਕ ੭ਗf ಂʫΣ DTCdପ πʿ࿁ʱቖਠЪ ಂቖਯ ቖਯϗɝ ڗ1.4%f
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0808 CHINA LILANG LIMITED ʮ̡ MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 Revenue by region for the period is set out below: Six months ended 30 June ˜ First half of 2026 First half of 2025 ɚཧɚʬϋɪ̒ϋ ɚཧɚʞϋɪ̒ϋ Region RMB million % of revenue RMB million % of revenue Changes % ਜਹ ɛ͏࿆ϵຬʩ Цϗɝ% ɛ͏࿆ϵຬʩ Цϗɝ% ᜊਗ% Northern China(1) ശ̏(1) 151.2 7.3% 127.1 7.4% 19.0% North-Eastern China(2)̏(2) 105.2 5.1% 80.2 4.6% 31.2% Eastern China(3)؇3) 976.5 47.3% 766.0 44.3% 27.5% Central and Southern China(4)ی4) 394.8 19.1% 389.5 22.6% 1.4% South-Western China(5)ی5) 218.1 10.6% 181.9 10.5% 19.9% North-Western China(6) Г̏(6) 213.0 10.3% 182.0 10.5% 17.0% Overseas(7) ऎ̮(7) 5.9 0.3% 0.5 0.1% 1,080.0% Totalࠇ2,064.7 100.0% 1,727.2 100.0% 19.5% (1) Northern China includes Beijing, Hebei, Shanxi, Tianjin and Inner Mongolia. (2) North-Eastern China includes Heilongjiang, Jilin and Liaoning. (3) Eastern China includes Jiangsu, Zhejiang, Shanghai, Anhui, Fujian, Shandong and Jiangxi. (4) Central and Southern China includes Henan, Hubei, Hunan, Guangdong, Guangxi and Hainan. (5) South-Western China includes Chongqing, Sichuan, Guizhou, Yunnan and Xizang. (6) North-Western China includes Shaanxi, Gansu, Qinghai, Ningxia and Xinjiang. (7) Overseas includes Malaysia. Cost of Sales and Gross Profit Margin Cost of sales increased by 22.8% year on year to RMB1,055.2 million. Gross profit margin was 48.9%, representing a year-on-year decrease of 1.3 percentage points, primarily due to an increase in sales of value for money products and a higher proportion of sales of products from large-scale year- end promotional activities, which led to a decrease in average unit price. Other net income Other net income amounted to RMB48.5 million (first half of 2025: RMB50.2 million), which included China’s local government grants of RMB47.0 million (first half of 2025: RMB48.2 million). These grants are unconditional and awarded at the discretion of relevant authorities. ϗɝj (1) ձʫႆ̚f (2) e፱ྐྵf (3) e ձϪГf (4) eᄿГʿ f (5) ձГᔛf (6) ձอᖛf (7) ৵ԸГԭf ቖਯϓ͉ʿˣлଟ ቖਯϓ͉Νˢᄣ̋ 22.8% Їɛ͏࿆ 1,055.2 މ48.9%ࠥ1.3ࡈ ቖਯᄣ̋ ቖਯЦˢɪ f Չ˼ϗɝଋᕘ ɛ͏࿆ 48.5 ϵຬʩ ɚཧ ɚʞϋɪ̒ϋjɛ͏࿆ 50.2 ϵຬʩ dՉʕ пɛ͏࿆ 47.0 ϵຬʩ ɚཧɚʞɪ̒ϋjɛ͏࿆ 48.2 ϵຬʩ f ೌૢબʚd͟Ϟᗫ f
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0909 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 ቖਯʿʱቖක˕ ණྠಂʫቖਯʿʱቖක˕ᄣ̋ɛ͏࿆ 140.9 ϵຬʩЇɛ͏࿆ 687.2͟ dЦᐼϗɝ 33.3%d༰̘ϋΝಂᄣ̋ 1.6ϵʱᓃf ൬͜ᄣ̋ɛ͏࿆ 36.1 ϵຬʩЇɛ͏࿆ 225.3 ϵຬʩdЦᐼϗ ɝ 10.9%ɚཧɚʞϋɪ̒ϋj 11.0%ٜ ʿཥਠ൬͜ᄣ̋ɛ͏࿆ 67.3 ϵຬʩЇ ɛ͏࿆ 300.5 ϵຬʩdЦᐼϗɝ 14.6%ɚཧ ɚʞϋɪ̒ϋj 13.5%ಂʫ̻ ה f ක˕ ක˕ɛ͏࿆ 131.1 ϵຬʩd༰̘ϋΝಂ ᄣ̋ɛ͏࿆ 19.5 ϵຬʩdЦϗɝ 6.4%ɚཧ ɚʞϋɪ̒ϋj6.4%ʈ ʈϓ͉ɪʺf Չ˼ᐄක˕ Չ˼ᐄක˕ɛ͏࿆ 7.0 ϵຬʩ ɚཧɚʞ ϋɪ̒ϋj0ಛᄣ̋ f ᐄлᆗ ᐄлᆗɨൻ10.5%Їɛ͏࿆232.8ϵຬʩd ʿཥਠ൬͜ᄣ̋fᐄл ࠥ3.8ϵʱᓃЇ 11.3%f ፄ༟ϗɝଋᕘ ɛ͏࿆ 17.1 ϵຬʩd༰̘ ϋΝಂಯˇɛ͏࿆ 14.8ࠅ ϗɝɨൻf Selling and distribution expenses The Group’s selling and distribution expenses increased by RMB140.9 million to RMB687.2 million during the period. The increase was primarily attributable to an increase in direct-to-retail store and e-commerce expenses, accounting for 33.3% of total revenue, up by 1.6 percentage points against the same period of the previous year. Advertising and renovation expenses increased by RMB36.1 million to RMB225.3 million during the period, accounting for 10.9% (first half of 2025: 11.0%) of total revenue. Direct-to-retail store and e-commerce expenses increased by RMB67.3 million to RMB300.5 million, accounting for 14.6% (first half of 2025: 13.5%) of total revenue, mainly due to the increase in average scale of the direct-to-retail and e-commerce business during the period as compared with the previous same period. Administrative expenses Administrative expenses amounted to RMB131.1 million, up by RMB19.5 million relative to the same period last year, accounting for 6.4% of revenue (first half of 2025: 6.4%), primarily due to the increase in staff costs owing to increase in number of staff in the period. Other operating expenses Other operating expenses amounted to RMB7.0 million (first half of 2025: Nil), primarily due to increased charitable donations. Profit from operations Profit from operations decreased by 10.5% to RMB232.8 million, mainly from the increase in direct-to-retail store and e-commerce expenses. Operating profit margin narrowed by 3.8 percentage points to 11.3%. Net finance income Net finance income was RMB17.1 million, a decrease of RMB14.8 million compared with the same period last year. The decrease was mainly due to a fall in net interest income.
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1010 CHINA LILANG LIMITED ʮ̡ MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 INCOME TAX The effective income tax rate for the period was 17.3%, representing a decrease of 0.5 percentage point compared with the corresponding period last year. One of the Group’s Chinese subsidiaries qualified as a high-tech enterprise, and therefore enjoys a preferential tax rate of 15%. The other three subsidiaries of the Group registered in Xizang also enjoy the local preferential tax rate of 15%. PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS Profit attributable to equity shareholders for the period was RMB215.4 million, a 11.2% decrease year on year. The profit margin attributable to equity shareholders declined by 3.6 percentage points to 10.4%. EARNINGS PER SHARE Earnings per share was RMB18.0 cents, a decrease of 10.9% year on year. Interim Dividend The Board has recommended payment of an interim dividend of HK10 cents (2025: HK11 cents) per ordinary share and a special interim dividend of HK4 cents (2025: HK5 cents) per ordinary share in respect of this financial year, with total dividend payment reaching approximately HK$167.6 million (equivalent to approximately RMB145.4 million). The interim dividend and special dividend will be paid in cash on or around 23 September 2026 to shareholders whose names appear on the Company’s register of members on 4 September 2026. BUSINESS REVIEW During the review period, the consumer market was complex and ever- changing, and consumers’ demand for functional and value for money products continued to rise. The Group actively adjusted its product portfolio in response to market changes, continuously increased investment in research and development, and constantly launched patented fabric products, while also increasing the supply of value for money products, particularly outlet products, thereby capturing a larger market share and achieving better overall sales growth. މ17.3%d༰̘ϋΝಂ ࠥ0.5ʕɿʮ dԮϞᎴଟ 15%ɿʮ̡ Ꮄଟ 15%f ᏐЦлᆗ ɛ͏࿆ 215.4 ϵຬ ʩdΝˢɨൻ 11.2%ᏐЦлᆗଟ ࠥ3.6ϵʱᓃЇ 10.4%f л ɛ͏࿆18.0ʱdΝˢɨൻ10.9%f ࢹٰ ӊ ٰ10 ಥ̀ ɚཧɚʞϋj11 ಥ̀ ʿ ٰ4 ಥ̀ ɚཧɚʞ ϋj5ಥ࿆ 167.6 ϵ ɛ͏࿆145.4 ϵຬʩ fʕಂ ɚཧɚʬϋɘ˜ ɚཧɚʬ f ุਕΫᚥ ࿁ ᚃɪʺf ଡ଼Υd ପ ෳतഺ ԶഗdวЦһɽ̹ఙ΅ᕘdྼତ༰ f
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1111 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 The Group continues to deepen the differentiation of its brand matrix, yielding positive results. During the period, business grew steadily, driven by the dual core collections: the core collection “LILANZ” and the smart casual collection “LESS IS MORE” , with the smart casual collection maintaining strong growth momentum. The premium golf brand “MUNSINGWEAR” , which specializes in premium niche markets, is progressing in an orderly manner as planned, and the expansion into overseas markets is gradually developing. Channel reform and upgrade continues to drive the healthy development of the business, with its new retail business maintaining a high growth momentum. The reform of the DTC channel for its core collection demonstrated operational efficiency, and Hubei Province was formally incorporated into the DTC model during the first half of the year. “LILANZ” CORE COLLECTION The “LILANZ” core collection continues to leverage its core positioning of “Minimalist Menswear” , focusing on the mainstream consumer group aged 30-50 in third- and fourth-tier cities and county-level markets, perfectly meeting their demand for daily wear that combines comfort and taste. During the period, the Group enhanced the brand’s influence and penetration among its core customer base by optimizing its product portfolio and steadfastly advancing its strategic transformation towards a DTC model, further solidifying the leading position of "LILANZ" in the traditional menswear market. Following the successful implementation of channel reforms in previous years, the Group further repurchased the operating rights from its first-tier distributors in Hubei Province in the first half of this year, thereby enhancing the brand management capability over the terminal retail network, while optimizing operational efficiency and market responsiveness. The Group also continues to optimize the physical network layout of its core collection by consolidating and closing some stores with smaller areas or that were underperforming, while opening larger flagship stores with a better image in prime locations. As at 30 June 2026, there were 2,465 stores for the core collection, with a net increase of 19 stores. There were 367 stores for the core collection operating under the DTC model (31 December 2025: 284 stores), accounting for 13.0% of the total. d л ࠛLILANZࠛLESS IS MORE ːᚨਗಂʫุਕᖢӉᄣ ැ᎘fਖ਼Ҹ ۾ MUNSINGWEARྌϞҏપආdऎ̮̹ ʺॴᘱᚃપ ڗ ٙDTCࣖ ͍όॶɝ DTC ӻf ࠛLILANZ ˴ӻΐ ࠛLILANZӲༀ ̹ʿጤॴ̹ఙ ʕ 30 Ї 50ʲΥՉ࿁ബ ˚੬ഹༀცӋfಂʫdණ પආ DTCᅼό ᅂ ࠛLILANZ ᅰϋ ʦϋɪ̒ϋ ɓॴʱቖਠΫᒅᐄ ၍ଣ f ྼၣഖб҅d ू͊ ጐһ f࿚Їɚཧɚʬϋ 2,465dଋ ֳ19f˸ DTCֳژ Ϟ 367ɚཧɚʞϋɤɚ˜ɧɤɓ˚j 284ᐼᅰ13.0%f
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1212 CHINA LILANG LIMITED ʮ̡ MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 The smart casual collection “LESS IS MORE” Adhering to the core philosophy of “Less is More” , the “LESS IS MORE” smart casual collection targets younger consumers aged 20-40 in first- and second-tier and economically strong cities to fulfill their essential business commuting needs while meeting their pursuit of quality-oriented attire. During the period, the Group continued to increase its research and development investment in the smart casual collection, launching several new products that combine high-end texture with a comfortable feel, establishing distinct recognition through simple lines and practical functions amidst market homogenisation, further enhancing product competitiveness. The smart casual collection has consistently adopted a fully directly-operated model, strategically positioning its stores in premium shopping malls highly frequented by younger consumer groups, thereby enhancing the brand’s ability to manage end-pricing and discount strategies, while effectively maintaining a high-end, youthful brand image. The seamless integration of online and offline channels enables the brand, by leveraging big data analysis of end-consumer profiles, to more accurately grasp market trends, continuously launch new products that combine premium quality with technological functionality, and effectively enhance the synergistic efficiency of product planning and market promotion. Leveraging an agile market response mechanism, the smart casual and other collections continued their strong growth momentum during the period, with revenue recording a year-on-year increase of approximately 34.7%. The Group proactively improved the physical network layout of its smart casual collection by replacing some stores with poor locations, smaller areas or that were underperforming with larger size stores in prime locations. As at 30 June 2026, the smart casual collection and other collections had 355 stores, with a net closure of 16 stores, mainly in Eastern China. SALES CHANNEL MANAGEMENT Currently, the Group covers various consumption scenarios through a diversified channel structure: core collection employs consignment, distribution, DTC and e-commerce direct-to-retail models, while its smart casual collection operates entirely through offline and e-commerce direct- to-retail models. Each channel has clear positioning and can cooperate with each other to achieve synergy, enabling the Group’s products and services to better cater to the purchasing habits of different customer segments in the Chinese menswear market, thereby providing strong support for overall sales growth. ࠛLESS IS MORE Ⴠਠਕӻΐ ࠛLESS IS MOREɓe ٢ ኪdတԑϋ ሯ ٙ ೯ҳɝdપ̈εಛፄΥ৷၌ሯชၾബቇ d˸ᔊᆎᇞૢၾྼ̌͜ঐί̹ dආɓӉ મ͜Ό ϋჀ ʕːdϾ ၍ଣঐ Җ ঐ dһᆽ Ո৷ॴሯช Άྌၾ ̹ఙˀ ַ ߒ34.7% ᄣషf ၣഖd˸Ꮄ ՟˾Зໄ˞Գe f࿚Їɚཧɚʬϋʬ ֳژ355 dଋᗫ 16ί ήਜf ቖਯಬ༸၍ଣ ᔧႊʔΝऊ ൬ఙ౻j˴ӻΐમ͜˾ቖeʱቖe DTCձ ˸ᇞɨʿཥ З౸dԨ ପ ਕ˙όһঐ࿁ᏐʕӲༀ̹ఙʔΝ ԶϞ ɢ˕ᅟf
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1313 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 Regarding channel reform, the Group further expanded the coverage of the DTC model for its core collection “LILANZ” during the period. Following the completion of the transformation work in North-Eastern China, Jiangsu Province, Shandong Province, and Chongqing City in the previous two years, the sales performance in the relevant regions significantly improved after the transformation, fully validating the positive effect of this model on terminal operational efficiency and market responsiveness. The Group further incorporated Hubei Province into its DTC system in the first half of this year, achieving direct operation of the sales network in that region. The streamlining of channel levels helps the Group to more directly grasp terminal sales data and market dynamics, enhancing store operational efficiency and inventory allocation flexibility. At the same time, this enables the Group to adjust product strategies and marketing resource deployment effectively. Regarding store location strategy, the Group continues to optimize its store portfolio, focusing on expanding into larger and higher-quality shopping malls and outlet channels, and enhancing consumer experience through distinctive brand-specific renovations. As at the end of June 2026, the Group had 2,820 retail stores, representing a net increase of 3 during the period, with retail floor area totaling approximately 494,145 square meters (31 December 2025: 487,895 square meters), an increase of 1.3% from the end of last year. Among these, there were 1,130 shopping mall stores and outlet stores in total (31 December 2025: 1,135), representing approximately 40.1% of the total store count and approximately 44.9% of the total retail floor area. The stores that were closed were mainly less profitable stores. The Group has long attached importance to product supply and marketing resource allocation for the outlet channel. During the period, sales contribution from this channel significantly increased, with relevant styles designed to be similar to regular-priced products. These products, while meeting consumers’ demand for cost-effectiveness, effectively drove inventory turnover and channel sales performance. However, as products sold through this channel are priced slightly lower than regular-priced products, the increased sales proportion during the period had a certain dilutive effect on the overall gross profit margin. To continuously enhance its brand image, the Group has accelerated the upgrade of its seventh-generation tailored store image, integrating the brand philosophy of “Simplicity but not Simple” into the terminal experience through modern visual design and a youthful spatial layout. ಂʫආɓӉᓒɽ˴ ࠛLILANZDTCᔧႊᇍఖf ؇ ᔷ ତᜑഹʺd̂ʱ᜕ᗇ༈ᅼό Ъ ॶ ɝ DTCٜٙ ટ ֳژ dϞп f ଡ଼Υd ʕːʿෳ ⧕ ᜕f࿚Їɚཧɚʬϋʬ dණྠϞ 2,820dಂʫଋ ᄣ̋ 3މߒ494,145 ̻˙Ϸ ɚཧɚʞϋɤɚ˜ɧɤɓ˚j 487,895 ̻ ᄣ̋1.3%ਠ Υ 1,130ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚j 1,135⧕ᐼᅰ ߒ40.1%ጐ 44.9%ֳ ൖෳ d ᗫಛό ᄆ ᔷʿಬ༸ ᄆ༰͍ᄆପ ଫЭdಂʫቖਯЦˢʺ࿁ˣлଟ ᛅᑛᅂᚤf Җdණྠ̋Ҟપආୋɖ ࠇ ٙ ፄɝ၌᜕f
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1414 CHINA LILANG LIMITED ʮ̡ MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 Changes in the number of stores by region are as follows: Number of Stores ⧕ᅰඎ Region ਜਹ As at 1 January 2026 ɚཧɚʬϋ ɓ˜ɓ˚ Opened during the period ֳ Closed during the period ֳ As at 30 June 2026 ɚཧɚʬϋ ʬ˜ɧɤ˚ Northern China ശ̏ 324 7 7 324 North-Eastern Chinȁ 147 7 7 147 Eastern China؇812 21 45 788 Central and Southern Chinaی755 24 22 757 South-Western Chinaی445 21 9 457 North-Western China Г̏ 330 20 8 342 Overseas ऎ̮ 4 1 { 5 2,817 101 98 2,820 The breakdown of the store numbers is as follows: 30 June 2026 31 December 2025 ɚཧɚʬϋʬ˜ɧɤ˚ ɚཧɚʞϋɤɚ˜ɧɤɓ˚ Core collection ˴ӻΐ Smart casual collection Ⴠਠਕӻΐ Total ࠇ Core collection ˴ӻΐ Smart casual collection Ⴠਠਕӻΐ Total ࠇ By operations ˸ᐄ˙ό Direct-to-retail storesֳ121 349 470 92 365 457 Consignmentֳ986 { 986 983 0 983 Distributionֳ1,358 6 1,364 1,371 6 1,377 Total number of storesᅰ 2,465 355 2,820 2,446 371 2,817 By type of storesۨ Street storesֳ1,313 8 1,321 1,303 8 1,311 Stores in shopping malls and outlet stores ʿ ֳ818 312 1,130 813 322 1,135 Shop-in-shops in department stores ֳ 334 35 369 330 41 371 Total number of storesᅰ 2,465 355 2,820 2,446 371 2,817 ᅰඎᜊਗνɨj ⧕ᅰͦʱᗳνɨj
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1515 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 DEVELOPMENT OF NEW RETAIL CHANNELS During the period, new retail channels were one of the Group’s core growth engines, with sales increasing by 39.0% year on year. The Group continues to strengthen mature sales platforms such as Tmall, JD.com, and TikTok, and actively expands into emerging channels such as Pinduoduo, WeChat Channels, and Poizon, further broadening its online sales coverage. The Group leverages social media platforms such as Xiaohongshu and Weibo to disseminate high-quality content, including product styling demonstrations, designer interviews and fabric technology interpretations, thereby effectively strengthening its content-driven e-commerce strategy, deepening emotional connections with consumers, and further expanding the young customer base. Through the close synergy of online content marketing and offline store experience, the Group has achieved an efficient closed-loop from brand awareness to sales conversion. “MUL TI-BRANDS AND INTERNATIONALIZATION” DEVELOPMENT STRATEGY The Group steadily implemented its “Multi-brands and Internationalization” core strategy during the period. “MUNSINGWEAR” , a key element of the Group’s multi-brand strategy for expanding into the high-end market segment, continues to expand its physical store network in Chinese Mainland during the first half of the year. A new flagship store officially opened at Nanjing Deji Plaza, further enhancing the brand’s exposure and image building in high-end commercial landmarks, with a positive market response. At the same time, the Group has also actively expanded its online sales channels to achieve synergistic integration between online and offline operations, thereby enhancing brand awareness and market penetration among its target customers. The Group is committed to building a more comprehensive brand matrix and strengthening its competitiveness in the high-end apparel segment. In terms of overseas expansion, the Group continues to systematically expand its store network in the Malaysian market and completed the company registration process in the Philippines during the period. In Vietnam, the Group is currently undertaking company registration procedures to prepare for its entry into the local market. The Group will take Southeast Asia as its starting point to progressively accumulate overseas operating experience, thereby unlocking new growth areas for its long- term development. ࢝ ˏᏗ ڗ39.0%fණྠᘱᚃଉ ഃϓᆞቖਯ̨̻dԨ ഃอ fණ ۜ Ҧ༆ᛘഃ ཥਠб҅d ϋ Ց ௐᐑf ଫ ࣨ MUNSINGWEARණ ᗫᒟб҅d ၣ ԯᅃਿᄿఙd ᖅΈ dණྠ Չᇞɪቖਯಬ༸dྼତᇞɪᇞ ٝٙ һҁഛ ن ɢf dණྠᘱᚃί৵ԸГԭ̹ఙ Ⴗ කʮ ಂ ৎᓃdӉጐଢ଼ऎ ٤ڗ ගf
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1616 CHINA LILANG LIMITED ʮ̡ MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 ೯௴อ ᚃ ೯d˸ ɓϷᄱeຬ ௴อၾʈᖵʺॴd Ꮄැf ߗ ݹPOLOʦ ϋપ̈ 4.0೯ ܓ ྼତ 40% ಗᜄၾ 60%ፄ ᜑഹʺ ΫᏐɓ ছ POLOऊ൬ อВක ͪ 30 ϣᅺ ᜄၪᏨ᜕ʕː ͪdਗ਼ 30ν ٙ ࣘ Ӌʿ Ӌၾ f dණྠપ̈ ʃΏˬ ˬ˺ӻΐdਗ਼ટᙃ૭ชeீंፋᇮഃ̌ঐ ટᙃ ᅰ ≥0.20ᅺf dภ༱ ᅰ0.23 J/cm² · sd༰ᅺ ৷̈ 40%eUPF50+ ԣʿ 4߅ࠠ ٙ ೨ᓃf RESEARCH, DEVELOPMENT AND INNOVATION The Group adheres to the design philosophy of “Simplicity but Not Simple” and continuously deepens its proprietary research and development across its industrial chain. Guided by the principle of “Achieving Depth over Breadth” , the Group focuses on fabric innovation and craftsmanship upgrades to strengthen its competitive advantage of “Technology- Empowered Products” . During the period, the Group achieved a significant breakthrough in the wash-durable technology. The wash-resistant polo shirt series, after four generations of iterations in four years, launched its 4.0 version this year, with core technology derived from its independently developed “Linaisi” innovative fabric. This fabric achieves a deep integration of 40% cotton staple fiber and 60% chemical fiber filament at the fiber level, significantly enhancing the fabric’s dimensional stability and color fastness while retaining the skin-friendly feel of cotton. This effectively addresses the consumer’s complaints of deforming and turning gray after frequent washing for generic polo shirts. In April, the Group held an “Unboxing Not-So-New Clothes” themed pop-up event in Shanghai, publicly displaying sample garments after 30 standard machine wash tests. The testing report from the Fujian Fiber Inspection Center was simultaneously displayed on-site, transforming the brand claim of “as good as new after 30 machine washes” into a visible and verifiable quality experience for consumers. Concurrently, the Group, in conjunction with Fujian Textile Material Technology Co., Ltd., led the formulation of the industry standard “Requirements and Classification for Wash Resistance of Apparel” , which uniformly defines the requirements and classification methods for the wash resistance of apparel. In terms of functional product expansion, the Group launched the “Xiaobingniu” denim series, integrating features such as a cool-touch sensation, breathability and skin-friendly properties into the denim category. Its glacier denim fabric has an instant cool-touch coefficient of ≥0.20, which is significantly higher than the national standard. In addition, the Group has introduced the “Zero-Bound Ice Shell” windbreaker, featuring three technologies: original yarn cooling (cooling index 0.23 J/cm²·s, 40% higher than national standard), UPF50+ sun protection, and 4-grade water resistance, addressing the pain point of stuffiness when wearing long sleeves in summer through a technological approach.
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1717 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 As at the end of June 2026, the Group’s research and development department had a total of 466 staff members, representing 8.1% of the Group’s entire workforce. BRAND MARKETING During the period, China Lilang continued to deepen its youth-focused brand transformation, focusing on “innovation, quality and vitality” . Leveraging a diversified marketing matrix, cross-industry collaborations, and immersive experiences, it precisely engaged consumers across city tiers and various age groups, further solidifying its market-leading position. At the beginning of the year, the Group partnered with BAZAAR to launch the Lilang SMART Elite Suit Spring/Summer 2026 joint campaign. This campaign took “Lilang is there for every important moment in life” as its main theme, integrating business formal wear into the narrative of important life moments. In April, the Group organized a unique “Unboxing Not-So-New Clothes” themed pop-up event in Shanghai. The event focused on the flagship product, the “Wash-Resistant Polo Shirt 4.0” , which, through an immersive laundry care space scenario and physical product comparison interaction, intuitively demonstrated the brand’s research and development depth in fabric technology, successfully transforming the physical data of “as good as new after 30 machine washes” into consumers’ genuine perception of quality. 466ʈᐼᅰ 8.1%f ᐄቖ ϋჀʷ ːdኯ ΆྌʿӐऍό ऊ dආɓӉቩո̹ఙჯኬήЗf dණྠᙳ˓ BAZAAR୶ પ̈л ࠛSMART2026ᑌΥΆྌf༈ ٙ ɪऎഄྌəйՈ ਗ ݹߗPOLOࠄ4.0 dீཀӐ ٜ d ϓ̌ਗ਼ 30ଣᅰኽᔷʷ f
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1818 CHINA LILANG LIMITED ʮ̡ MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 In terms of offline engagement and celebrity marketing, the Group organized brand meet-and-greet events in several core cities across the country during the period, strengthening the emotional connection between the brand and consumers, and expanding the brand’s coverage and influence in cities of all tiers. During the period, “LESS IS MORE” successively invited renowned musician Kenji Wu to hold brand meet-and- greet events at Wuhan Outlet and in Taiyuan, vividly conveying the concept of “Effortless” business attire for young people; the core collection also invited Zhang Yuan and Jiro Wang to hold meet-and-greet events in key regional markets such as Shenzhen and Shenyang. Through strengthening offline initiatives in regional markets, the Group has effectively achieved a dual enhancement of customer traffic conversion and brand awareness, allowing the brand philosophy of “Simplicity but not Simple” to be deepened amidst an enthusiastic market response. In addition, the Group’s continuous in-depth efforts in business model and brand building have repeatedly received industry recognition. The Group was awarded the “Annual Business Leading Brand” honor at the 21st China Business Brand Festival in May, which fully demonstrates the high recognition of the Group’s brand influence by the market and the industry. ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) The Group has always adhered to the core ESG philosophy of “Creating a Better Life Together” , continuously deepening its ESG governance and integrating sustainable development concepts into its long-term strategy and daily operations. During the period, the Group’s ESG performance was once again recognized by the capital market: China Securities Index upgraded the Group’s ESG rating to BBB in April 2026; the Group also published its 2025 ESG Report in March 2026, systematically disclosing its practices and performance in environmental, social and governance aspects. In terms of social welfare, the Group adheres to the principle of “taking from society and giving back to society” , and continues to deeply cultivate the “Lilang Youth Esthetic Education Program” . In May, the “Travel through China” teacher study tour took place in Wenshan, Yunnan, where 22 esthetic education teachers from 10 provinces across the country gathered in Qiubei County to conduct teaching seminars and practical exchanges. In June, Lilang Charity Month arrived in Korla City, Xinjiang, donating RMB300,000 to support the local construction of an AI Dream Center, thereby delivering high-quality aesthetic education resources to the border region 4,000 kilometers away. During the period, the Group also held a signing ceremony for Party-building pairing and co-construction with Shanghai Tenth People’s Ό ۜ ίᇞ ࠛLESS IS MOREဏ ึd͛ਗෂ i˴ӻΐ ଉέʿᓨජഃ ਗfஷཀଉঁ ᔷ ʔᔊ ̹ఙΫᚤʕ˸ ଉʷf ܵٙ ʞ˜ୋ 21֣ ۜ ࿁ණྠ Ⴉ̙f طparenleft.capESG/parenright.cap ʘESGː ᚃଉʷ ESG࢝ ಂଫၾ˚੬ᐄ༶fಂʫdණ ྠ ESGᅰ ɚཧɚʬϋ̬˜ਗ਼ණྠ ESG ൙ॴɪሜЇ BBBɚཧɚʬϋɧ˜೯бɚ ܓESGٟ f ึd ˇ ࢪ ˖ʆdԸІΌ 10΅ ٙ22 ʮू˜Ԑආอ ༟ 30ண AI ԃ༟๕፩Ї 4,000 ʮ ᗙᖛήਜfಂʫdණྠ͵ၾɪऎ̹ ഐ อᅼ
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1919 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 Hospital and Jinjiang Hospital of Traditional Chinese Medicine, initiating a new model of collaborative development between medical institutions and enterprises. At the beginning of the year, it jointly organized a free clinic event themed “Medical-Enterprise Collaboration for Co-construction” , demonstrating its corporate social responsibility through practical actions and promoting the co-creation and sharing of a better life. PROSPECTS Looking ahead to the second half of the year, the external economic environment is subject to numerous uncertainties. International geopolitical tensions remain high, and regional conflicts jeopardize the stability of global supply chains, such that the actual impact on global inflation risks and economic growth momentum remains to be seen. China’s economic growth has been steady, and its economic structure continues to upgrade and transform. However, the Chinese economy still faces the imbalance of “strong supply and weak demand” , which will continue to affect consumer confidence in the short term. The pace and progress of consumer market recovery continue to face challenges. Facing a complex and ever-changing macro environment, China Lilang will continue to leverage its solid brand foundation and market leadership advantages, and on the premise of stable operations, enhance its own strengths and seize industry development opportunities. In response to the latest changes in the consumer market and the development of technological innovation, the Group will firmly promote reform and transformation, strengthen product innovation, and enhance operational efficiency to demonstrate business resilience and strive to enhance the Group’s leading position in China’s menswear industry. The Group will continue to implement its channel upgrade and high-quality development strategy, focusing on enhancing the operating efficiency and profitability of store network. With Hubei Province having completed its DTC model transformation, the Group will focus on consolidating and developing the operation of the transformed regions and fully leveraging the advantages in management efficiency and market responsiveness brought about by the channel reform in the second half of the year. In the future, the Group will prudently evaluate the expansion of the DTC model to other regions and continuously improve the sales network layout, based on the market environment and operating performance in various regions. In terms of overall store deployment, the Group will continue to focus on potential locations such as high-quality shopping malls and outlets, promote store image upgrades and enhance store efficiency, strengthen brand terminal competitiveness and consumer experience, and move towards the goal of increasing the number of stores for the full year of 2026. ᑌΥᑘ፬ ᔼΆΝБഐ࿁ ึ ௴Ԯf ౻ ૐɨ̒ϋd̮ᐑྤπίεʔᆽ ᚃၡੵdήਜ ࿁ᐑଢஷ ྼყᅂᚤdʥϞ dഐʺ ࿁ Զ੶ ʔ̻ፅਪᕚdಂʫʥึᅂᚤऊ ʥ ɽᐑྤdʕ ਿᓾʿ̹ఙჯ ɨdʺІԒ ዚ༾fΪᏐऊ൬̹ఙ ֛ ௴อe৷༶ᐄ ჯήЗf ഄ лঐ ҁϓ DTCdණྠ ᐄ ଟʿ ኽή̹ఙᐑ ࢝ן DTCᚃҁഛቖਯၣഖб҅f ي ֳژ ن ٙ ͦᅺᒕආf
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2020 CHINA LILANG LIMITED ʮ̡ MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 The Group will consolidate the development of new retail business as its core growth engine. The Group will pursue integrated online and offline development by stepping up refined operations on TikTok, Tmall and other mainstream e-commerce platforms. Through content marketing, member operations, live-stream sales and other approaches, it will boost brand exposure and enhance conversion efficiency. Benefiting from the continuous improvement of online channels and changes in consumer shopping habits, the Group’s new retail business maintained a good growth momentum. The Group will continue to strive to achieve revenue growth of 20% or more for its new retail business in 2026. The overall retail value growth target is not less than 10%. In the future, the Group will fully leverage its omni-channel advantages to enhance customer engagement and shopping experience, thereby driving steady growth in overall sales. The “LILANZ” core collection will focus on leveraging channel transformation to better enhance the brand’s management capabilities over its terminal retail network and consolidate its leading market position. The “LESS IS MORE” smart casual collection will continue to strengthen product research and development and brand building efforts, further expand its target consumer base, and enhance its development vitality, thereby solidifying its important position as the Group’s long-term growth engine. At the same time, the Group will continue to deepen its “Multi-brands” development strategy, enrich its product matrix, and satisfy consumers’ diversified needs. As an important component of its multi-brand strategy, the Group will continue to enrich the product portfolio of “MUNSINGWEAR” and expand its retail network layout, thereby enhancing brand influence and market coverage, gradually expanding its business scale, and laying a solid foundation for future development. ٙ fණྠਗ਼ආɓӉ̋੶ᇞɪᇞɨፄΥ ཥਠ̻ ࡰ ᖅΈʿ ᇞɪಬ༸ʔᓙʺʿऊ ڭ ɚཧ ڗ20%˸ɪf 10%f͊Ը ʝ f ࠛLILANZ೯౨ಬ༸ ٙ ࠛ LESS IS MOREۜ ͦᅺऊ ණྠ dණྠਗ਼ ۜ ۜ ᚃᔮబ MUNSINGWEARଡ଼ΥdԨ ᅂᚤɢʿ̹ ࢝ ਿᓾf
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2121 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 Regarding overseas business, the Group will steadily advance its internationalization development strategy. Since the commencement of its operations, the Malaysian market has progressed as expected. The Group will gradually expand its local retail network, strengthen brand building efforts, and actively accumulate operating experience in overseas markets. The Group believes that with the gradual development of its overseas business and the enhancement of brand recognition, it will help expand the Group’s market coverage and growth potential, laying a more solid foundation for long-term development. The Group will continue to strengthen its research, development and innovation capabilities, focusing on product design, functional fabric development, and quality improvement, to continuously enhance product competitiveness and meet the increasingly diverse needs of consumers. At the same time, the Group will further strengthen its supply chain management and operational efficiency enhancement efforts, and reinforce its inventory management and resource allocation capabilities. Regarding sustainable development, the Group will continue to implement ESG- related initiatives, integrating environmental protection, social responsibility, and corporate governance concepts into its daily operations and decision- making processes, thereby achieving business growth alongside sustainable development and creating long-term value for shareholders, employees, customers, and other stakeholders. LIQUIDITY AND FINANCIAL RESOURCES Cash and Bank Balances and Cash Flows As at 30 June 2026 As at 31 December 2025 ɚཧɚʬϋ ʬ˜ɧɤ˚ ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB million RMB million ɛ͏࿆ϵຬʩ ɛ͏࿆ϵຬʩ Pledged bank depositsვБπಛ 60.7 822.2 Cash and cash equivalentsي1,465.8 1,117.5 Fixed deposits held at banksಂπಛ 1,128.4 874.6 Total cash and bank balanceʿვБഐቱᐼᕘ 2,654.9 2,814.3 As at 30 June 2026, the Group had fixed deposits totalling RMB1,189.1 million (31 December 2025: RMB1,696.8 million). The Group’s total cash and bank balance was mainly denominated in Renminbi 93.44%. dණྠਗ਼ᖢӉપආყʷ೯ ഄଫf৵ԸГԭ̹ఙІҳɝᐄ༶˸Ըආ ήཧਯၣ ணʈЪdԨጐଢ଼ጐऎ dᎇഹऎุ̮ ʺdਗ਼Ϟпᓒ ڗމ һᖢոਿᓾf ۜ ᚃ ˚ूεʩ dණྠਗ਼ආɓӉ̋੶ԶᏐ π၍ d ණྠਗ਼ᘱᚃໝྼ ESGڭ ፄɝ˚੬ᐄ ᚃ೯ ΅ f ʿৌਕ༟๕ ඎ ಂ πಛΥɛ͏࿆ 1,189.1 ϵຬʩ ɚཧɚʞ ϋɤɚ˜ɧɤɓ˚ jɛ͏࿆ 1,696.8 ϵຬ ˸ɛ ࠽ࠇ93.44%f
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2222 CHINA LILANG LIMITED ʮ̡ MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 ɓϋ ვБ൲ಛΥɛ͏࿆ 768.4 ϵຬ ʩ ɚཧɚʞϋɤɚ˜ɧɤɓ˚jɛ͏࿆ 809.3лଟ f ഐቱᄣ̋ɛ͏࿆ 348.3 ϵ ඎᜊਗνɨj { ɛ͏࿆ 127.7ɝଋᕘၾ ಂʫଋлᆗɛ͏࿆ 206.5 ϵຬʩʘග ሪಛʿՉ˼ Ꮠ˹ಛධഐቱಯˇɛ͏࿆ 316.1 ϵຬ ʩf { ɛ͏࿆ 499.5ಂ πಛΥɛ͏࿆ 425.3 ϵຬʩf { ɛ͏࿆ 274.4 ಛධଋᕘΥɛ͏࿆ 3.5 ϵຬʩe˕ ˹࿚Їɚཧɚʞϋɤɚ˜ɧɤɓ˚˟ Υɛ͏࿆ 165.4 ϵ ʿл ʱΥɛ͏࿆ 64.6 ϵຬʩf ᔷ˂ᅰ As at 30 June 2026, the Group had bank loans maturing within one year totalling RMB768.4 million (31 December 2025: RMB809.3 million). All the bank loans carried interest at fixed rates. Cash and cash equivalents balance increased by RMB348.3 million. Major cash flow movements during the period were as follows: — Net cash generated from operating activities amounting to RMB127.7 million. The major reconciling item between the amount of net operating cash inflow and the net profit for the period of RMB206.5 million was the decrease in trade and other payable balances by RMB316.1 million. — Net cash generated from investing activities amounting to RMB499.5 million, comprising mainly uplift of fixed deposits totalling RMB425.3 million. — Net cash used in financing activities amounting to RMB274.4 million, mainly attributable to the net proceeds from bank loans totalling RMB3.5 million, the payments of the final dividends totalling RMB165.4 million in respect of the year ended 31 December 2025, and capital and interest elements of lease rentals paid totalling RMB64.6 million. Trade Working Capital Turnover Days Six months ended 30 June 2026 Year ended 31 December 2025 Six months ended 30 June 2025 ࿚Ї ɚཧɚʬϋ ʬ˜ɧɤ˚ ˜ ࿚Ї ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ ܓ ࿚Ї ɚཧɚʞϋ ʬ˜ɧɤ˚ ˜ Average inventory turnover days ̻ѩπᔷ˂ᅰ 250 226 231 Average trade receivables turnover days ሪಛᔷ˂ᅰ 31 36 37 Average trade payables turnover days ሪಛᔷ˂ᅰ 180 184 179
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2323 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 INVENTORY TURNOVER DAYS The Group’s average inventory turnover days was 250 days for the period, an increase of 19 days as compared to the interim period last year. The increase of average turnover days was mainly due to higher levels of inventory, which was in line with the increase in the proportion of sales conducted under the consignment model and direct retailing model. Inventory balance decreased by RMB13.3 million to RMB1,438.9 million. The inventory balance was maintained at similar level for the end of the previous year. As at 30 June 2026, a provision of RMB71.9 million was made in accordance with the Group’s inventory provision policy. TRADE RECEIVABLES TURNOVER DAYS The Group’s average trade receivables turnover days was 31 days for the period, as compared to 37 days for the interim period last year. Turnover days reduced as a result of lower levels of trade receivables, which was in line with the decrease in the proportion of sales conducted under distribution model. As at 30 June 2026, a provision of RMB9.6 million was made in accordance with the Group’s trade receivables provision policy. TRADE PAYABLES TURNOVER DAYS The Group’s average trade and bills payables turnover days was 180 days for the period, as compared to 179 days for the interim period last year. There were no material changes in the payment terms with suppliers. PLEDGE OF ASSETS As at 30 June 2026, deposits with banks totalling RMB60.7 million (31 December 2025: RMB822.2 million) were pledged as securities for bills payable and bank loans. The pledged bank deposits will be released upon the settlement of relevant bills payable and bank loans. πᔷ˂ᅰ މ250 ˂dၾ ˢᄣ̋ 19 ˂f̻ѩᔷ˂ᅰᄣ π˥̻༰৷dவୌΥආБ ቖਯˢԷᄣ̋f πഐቱಯˇɛ͏࿆ 13.3 ϵຬʩЇɛ͏࿆ 1,438.9ֵ ˥̻f ණྠʘ ഄЪ̈ᅡ௪ɛ͏࿆71.9ϵຬʩf ሪಛᔷ˂ᅰ މ31 މۆ37Ꮠϗಛධ ቱᕘಯˇdմᔷ˂ᅰᎇʘᐵdϤᜊʷၾ f ණྠʘ ഄЪ̈ᅡ௪ɛ͏࿆ 9.6 ϵຬʩf ሪಛᔷ˂ᅰ ሪಛʿᏐ˹ୃኽ މ180މۆ179 ˂f ɽᜊਗf ץת ɚཧɚʬϋʬ˜ɧɤ˚ dᐼᕘɛ͏࿆ 60.7 ϵຬʩ ɚཧɚʞϋɤɚ˜ɧɤɓ˚j ɛ͏࿆ 822.2Ꮠ ვБπ ᐏ ༆ৰf
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2424 CHINA LILANG LIMITED ʮ̡ MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 CAPITAL COMMITMENTS AND CONTINGENCIES As at 30 June 2026, the Group had total capital commitments of RMB63.5 million, primarily related to expansion project of logistic center warehouse and the improvement project of automated plant and production facilities, and fabric research centre. These capital commitments are expected to be financed by internal resources of the Group. As at 30 June 2026, the Group had no material contingent liabilities. FINANCIAL MANAGEMENT POLICIES The Group continues to control financial risks in a prudent manner. The functional currency of the Company is the Hong Kong Dollars and the Company’s financial statements are translated into Renminbi for reporting and consolidation purposes. Foreign exchange differences arising from the translation of financial statements are directly recognized in equity as a separate reserve. As the Group conducts business transactions principally in Renminbi, the exchange rate risk at the Group’s operational level is not significant. HUMAN RESOURCES As at 30 June 2026, the Group had 5,750 staff. Total staff costs for the period amounted to approximately RMB334.8 million (first half of 2025: RMB290.9 million). The Group places great emphasis on recruiting and training quality personnel. We recruit talents from universities and technical schools and provide pre-employment and on-going training and development opportunities to our staff members. Our training programs cover areas such as sales and production, customer service, quality control, trade fairs planning, workplace ethics and other areas relevant to the industry. The Group offers competitive remuneration packages to employees based on factors such as market rates, workload, responsibility, job complexity as well as the Group’s performance. The Group has also adopted a share option scheme to recognize, reward and promote the contribution of the employees to the growth and development of the Group. On 3 July 2020, the Group granted options to subscribe for a total of 11,500,000 shares of the Company to its employees under the share option scheme at an exercise price of HK$4.31 per share. The options were vested during the period from 3 July 2022 to 3 July 2024. ව ו ɛ͏࿆ 63.5ݴي ˸ ӺʕːҷிධͦϞᗫf ʫ༟๕ᅡ ˹f ɽ වf ഄ ᎈf͉ʮ̡̌ঐ Ϊිజձ ɛ͏࿆fΪ౬ၑৌ ᛆूʕᆽ ˸ɛ͏࿆ආ ᎈԨ ɽf ɛɢ༟๕ ɚཧɚʬϋʬ˜ɧɤ˚d͉ණྠϞ 5,750 ɛ͏࿆ 334.8 ϵຬʩ ɚཧɚʞϋɪ̒ϋjɛ͏࿆ 290.9 ϵຬʩ f ໌ၾ৷ሯ९ɛʑfҢ ʈ ٙࡁ ਕeሯ ึྌeᔖఙςʿՉ˼ၾ ჯਹf ኽ̹ఙᑚཇeʈЪඎeᔖபeʈЪ ԶՈᘩ ࠇ ࿁ණྠϓ ɚཧɚཧϋɖ˜ɧ બ̈Υ ̙Ⴉᒅ 11,500,000ٰ މ4.31ᛆ ɚཧɚɚϋɖ˜ɧ˚Їɚཧɚ̬ϋɖ ˜ɧ˚ಂගᓥ᙮f
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2525 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 REVIEW REPORT OF THE AUDITOR 核數師審閱報告 REVIEW REPORT TO THE BOARD OF DIRECTORS OF CHINA LILANG LIMITED (Incorporated in the Cayman Islands with limited liability) INTRODUCTION We have reviewed the interim financial report set out on pages 27 to 47, which comprises the condensed consolidated statement of financial position of China Lilang Limited (the “Company”) as of 30 June 2026 and the related condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the six- month period then ended, and explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of an interim financial report to be in compliance with the relevant provisions thereof and International Accounting Standard 34 Interim financial reporting as issued by the International Accounting Standards Board. The directors are responsible for the preparation and presentation of this interim financial report in accordance with International Accounting Standard 34. Our responsibility is to express a conclusion, based on our review, on this interim financial report and to report our conclusion solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. SCOPE OF REVIEW We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410, Review of interim financial information performed by the independent auditor of the entity as issued by the Hong Kong Institute of Certified Public Accountants. A review of interim financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. ᄲ閱జѓ ʮ̡ԫึ ʮ̡ ˏԊ ʊᄲ閱ୋ 27 Ї 47ʕಂৌਕ ࠢ ʮ̡ ൮ʮ̡ ࿚Їɚཧɚʬϋʬ˜ɧɤ d˸ʿ࿚Ї༈˚ ၝΥฦूʿՉ˼ ಥᑌΥʹ dɪ̹ʮ ձყ ୋ 34ᇜႡʕಂৌ ୋ 34 ᇜႡʿΐజ͉ʕಂৌਕజѓf ᄲ閱 ࿁͉ʕಂৌ ֛ Ꮠ໌ૢಛdසΣΌԫึజѓfৰϤ జѓʔ̙͜ЪՉ˼͜fҢ ࠋ பf ᄲ閱ᇍఖ ಥᄲ 閱 ୋ2410࿁ ᄲ閱 ආБᄲ閱fʕಂৌ ਕజѓᄲ閱ࠇ ձՉ˼ᄲ閱 ᄲ閱ࠇ ᗇҢ Ϟ ࣨ จԈf
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2626 CHINA LILANG LIMITED ʮ̡ REVIEW REPORT OF THE AUDITOR (CONTINUED) 核數師審閱 報告 （續） CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the interim financial report as at 30 June 2026 is not prepared, in all material respects, in accordance with International Accounting Standard 34, Interim financial reporting. KPMG Certified Public Accountants 8th Floor, Prince’s Building 10 Chater Road Central, Hong Kong 17 August 2026 ഐሞ ᄲ閱จՑ ɚཧɚʬϋʬ˜ Ӛ ୋ34 ʕಂৌਕ ᇜႡf ה ࢪࠇ ಥʕᐑ ቈ͂༸ 10 ˄ɿɽข 8 ᅽ ɚཧɚʬϋɞ˜ɤɖ˚
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2727 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the six months ended 30 June 2026 — unaudited (Expressed in Renminbi) 簡明綜合損益及其他全面收益表 截至二零二六年六月三十日止六個月 — 未經審核 （以人民幣為單位） Six months ended 30 June ˜ 2026 2025 ɚཧɚʬϋ ɚཧɚʞϋ Note RMB’000 RMB’000 ൗ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Revenue ϗɝ 3 2,064,701 1,727,215 Cost of sales ቖਯϓ͉ (1,055,158) (859,455) Gross profit ˣл 1,009,543 867,760 Other net income Չ˼ϗɝଋᕘ 48,485 50,191 Selling and distribution expenses ቖਯʿʱቖක˕ (687,152) (546,286) Administrative expensesක˕ (131,087) (111,558) Other operating expenses Չ˼ᐄක˕ (7,000) { Profit from operations ᐄлᆗ 232,789 260,107 Net finance income ፄ༟ϗɝଋᕘ 4 17,053 31,827 Profit before taxationлᆗ 5 249,842 291,934 Income tax 6 (43,342) (51,839) Profit for the period ಂʫлᆗ 206,500 240,095 Attributable to:j Equity shareholders of the company؇ٰ215,366 242,525 Non-controlling interestsᛆू (8,866) (2,430) Other comprehensive income for the period ϗू Item that may be reclassified subsequently to profit or loss: อʱᗳЇฦूʘ ධͦj Exchange differences on translation of financial statements of the Company and subsidiaries outside Chinese mainland ౬ၑ͉ʮ̡ʿʕʫήྤ̮ ිг ᕘ (9,561) (13,276) Total comprehensive income for the period ϗूᐼᕘ 196,939 226,819 Attributable to:j Equity shareholders of the company؇ٰ205,805 229,249 Non-controlling interestsᛆू (8,866) (2,430) Earnings per shareл 7 Basic (RMB cents) ਿ͉ ɛ͏࿆ʱ 18.0 20.2 Diluted (RMB cents) ᛅᑛ ɛ͏࿆ʱ 18.0 20.2 The notes on pages 32 to 47 form part of this interim financial report. Details of dividends payable to shareholders of the Company are set out in note 18. ୋ 32 Ї 47ଡ଼ ༉ઋ ൗ 18f
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2828 CHINA LILANG LIMITED ʮ̡ CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 30 June 2026 — unaudited (Expressed in Renminbi) 簡明綜合財務狀況表 於二零二六年六月三十日 — 未經審核 （以人民幣為單位） 30 June 2026 31 December 2025 ɚཧɚʬϋ ʬ˜ɧɤ˚ ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ Note RMB’000 RMB’000 ൗ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Non-current assetsਗ༟ପ Property, plant and equipmentʿண௪ 8 1,110,873 1,160,478 Investment propertiesุ 9 204,056 207,112 Right-of-use assets Դ͜ᛆ༟ପ 10 254,080 277,324 Intangible assets ೌҖ༟ପ 89,622 92,328 Deposits for purchases of plant and equipment ږࠈ 10,602 6,313 Lease rental depositsږܲږ58,661 56,013 Fixed deposits held at banks with maturity over three months ಂ πಛ 14 877,971 295,783 Deferred tax assetsධ༟ପ 82,551 77,566 2,688,416 2,172,917 Current assetsਗ༟ପ Inventories π 11 1,438,884 1,452,236 Trade and other receivablesሪಛʿՉ˼Ꮠϗಛධ 12 726,669 874,485 Prepaid income tax 4,665 5,122 Pledged bank depositsვБπಛ 13 60,679 822,172 Fixed deposits held at banks with maturity over three months ಂ πಛ 14 250,470 578,829 Cash and cash equivalentsي14 1,465,811 1,117,497 3,947,178 4,850,341 Current liabilitiesව Bank loans ვБ൲ಛ 15 768,368 809,333 Trade and other payablesሪಛʿՉ˼Ꮠ˹ಛධ 16 1,099,275 1,415,344 Lease liabilitiesව 17 87,215 93,145 Contract liabilitiesව 53,646 47,358 Current tax payable Ꮠ˹уಂධ 208,881 242,141 2,217,385 2,607,321 Net current assets࠽1,729,793 2,243,020 Total assets less current liabilitiesව 4,418,209 4,415,937 Non-current liabilitiesව Deferred tax liabilitiesව 19,810 33,656 Lease liabilitiesව 17 44,200 59,639 64,010 93,295 Net assets࠽4,354,199 4,322,642
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2929 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) At 30 June 2026 — unaudited (Expressed in Renminbi) 簡明綜合財務狀況表 （續） 於二零二六年六月三十日 — 未經審核 （以人民幣為單位） ಥԫึ બᛆ̊೯f ୋ 32 Ї 47ଡ଼ ϓʱf 30 June 2026 31 December 2025 ɚཧɚʬϋ ʬ˜ɧɤ˚ ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Capital and reserves ༟͉ʿᎷ௪ Share capital͉ 105,517 105,517 Reserves Ꮇ௪ 4,139,670 4,099,247 Total equity attributable to equity shareholders of the company ࠽ 4,245,187 4,204,764 Non-controlling interestsᛆू 109,012 117,878 Total equity ᛆूᐼᕘ 4,354,199 4,322,642 Authorised for issue by the board of directors in Hong Kong on 17 August 2026. Mr. Wang Dong Xing Mr. Wang Liang Xing Mr. Wang Cong Xing ͛ Chairman Chief Executive Officer Executive Director ᐼ ੂБԫ The notes on pages 32 to 47 form part of this interim financial report.
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3030 CHINA LILANG LIMITED ʮ̡ CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended 30 June 2026 — unaudited (Expressed in Renminbi) 簡明綜合權益變動表 截至二零二六年六月三十日止六個月 — 未經審核 （以人民幣為單位） Attributable to equity shareholders of the company Total equity ᏐЦ Share capital Share premium Statutory reserve Capital reserve Exchange reserve Retained profits Total Non- controlling interests Ꮇ௪ ༟͉Ꮇ௪ ි兌ᛆू ᛆूᐼᕘ RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ As at 1 January 2025ɚཧɚʞϋɓ˜ɓ˚ 105,517 31,411 282,824 32,352 (36,740) 3,610,359 4,025,723 29,483 4,055,206 Changes in equity for the six months ended 30 June 2025: ࿚Їɚཧɚʞϋ ٙ ᛆूᜊਗj Profit for the period ಂʫлᆗ { { { { { 242,525 242,525 (2,430) 240,095 Other comprehensive income for the period ϗू { { { { (13,276) { (13,276) { (13,276) Total comprehensive income for the period ϗूᐼᕘ { { { { (13,276) 242,525 229,249 (2,430) 226,819 Equity-settled share-based payment ᛆഐၑ ක˕ { { { (61) { { (61) { (61) Capital contribution by non-controlling interests of a subsidiary ᛆू̈༟ { { { 62 { { 62 97,978 98,040 Dividends approved in respect of the previous year ࢹٰܓ { { { { { (132,039) (132,039) { (132,039) As at 30 June 2025ɚཧɚʞϋʬ˜ɧɤ˚ 105,517 31,411 282,824 32,353 (50,016) 3,720,845 4,122,934 125,031 4,247,965 As at 1 January 2026ɚཧɚʬϋɓ˜ɓ˚ 105,517 31,411 284,753 32,725 (52,968) 3,803,326 4,204,764 117,878 4,322,642 Changes in equity for the six months ended 30 June 2026: ࿚Їɚཧɚʬϋ ٙ ᛆूᜊਗj Profit for the period ಂʫлᆗ — — — — — 215,366 215,366 (8,866) 206,500 Other comprehensive income for the period ϗू — — — — (9,561) — (9,561) — (9,561) Total comprehensive income for the period ϗूᐼᕘ — — — — (9,561) 215,366 205,805 (8,866) 196,939 Dividends approved in respect of the previous year ࢹٰܓ 165,382) (165,382) — (165,382) As at 30 June 2026ɚཧɚʬϋʬ˜ɧɤ˚ 105,517 31,411 284,753 32,725 (62,529) 3,853,310 4,245,187 109,012 4,354,199 The notes on pages 32 to 47 form part of this interim financial report. ୋ 32 Ї 47ଡ଼ ϓʱf
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3131 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended 30 June 2026 — unaudited (Expressed in Renminbi) 簡明綜合現金流量表 截至二零二六年六月三十日止六個月 — 未經審核 （以人民幣為單位） Six months ended 30 June ˜ 2026 2025 ɚཧɚʬϋ ɚཧɚʞϋ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Operating activitiesਗ Cash generated from operationsږ222,675 194,319 Tax paid ʊ˹ධ (94,975) (76,624) Net cash generated from operating activitiesଋᕘ 127,700 117,695 Investing activitiesਗ Payments for the purchases of property, plant and equipment, and intangible assets ʿண௪˸ʿೌҖ ˹ಛ (43,645) (52,264) Payments of lease rental deposits˹ಛ (2,648) (3,028) Interest income receivedϗɝ 120,460 42,405 Uplift of/(placements of ) fixed deposits held at banks with maturity over three months ვ ಂπಛ 425,302 (71,998) Other cash inflows arising from investing activities ɝ 78 4,835 Net cash generated from/(used in) investing activities ږ ଋᕘ 499,547 (80,050) Financing activitiesਗ Capital contribution by non-controlling interests of a subsidiary ᛆू̈༟ { 5,241 Proceeds from bank loansಛධ 770,000 350,000 Repayment of bank loans ᎵᒔვБ൲ಛ (766,500) (496,500) Dividends paidࢹٰ165,382) (132,039) Interest expense paidක˕ (47,935) (16,788) Capital element of lease rentals paidʱ (62,319) (54,970) Interest element of lease rentals paidʱ (2,302) (2,280) Net cash used in financing activitiesଋᕘ (274,438) (347,336) Net increase/(decrease) in cash and cash equivalents ᄣ̋Ŋ ಯˇ ଋᕘ 352,809 (309,691) Cash and cash equivalents at 1 Januaryي1,117,497 826,980 Effect of foreign exchange rate changesᅂᚤ (4,495) (329) Cash and cash equivalents at 30 Juneږ ي1,465,811 516,960 The notes on pages 32 to 47 form part of this interim financial report. ୋ 32 Ї 47ଡ଼ ϓʱf
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3232 CHINA LILANG LIMITED ʮ̡ NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (Expressed in Renminbi) 未經審核中期財務報告附註 （以人民幣為單位） 1. BASIS OF PREPARATION This interim financial report has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with International Accounting Standard (“IAS”) 34, Interim financial reporting, issued by the International Accounting Standards Board (“IASB”). It was authorised for issue on 17 August 2026. The interim financial report has been prepared in accordance with the same accounting policies adopted in the 2025 annual financial statements, except for the accounting policy changes that are expected to be reflected in the 2026 annual financial statements. Details of these changes in accounting policies are set out in note 2. The preparation of an interim financial report in conformity with IAS 34 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses on a year to date basis. Actual results may differ from these estimates. The interim financial report contains condensed consolidated financial statements and selected explanatory notes which do not include all of the information required for a full set of financial statements prepared in accordance with IFRS Accounting Standards. The notes include an explanation of events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the 2025 annual financial statements. The interim financial report is unaudited, but has been reviewed by the Company’s auditor, KPMG, in accordance with Hong Kong Standard on Review Engagements 2410, Review of interim financial information performed by the independent auditor of the entity, issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”). KPMG’s independent review report to the Board of Directors is included on pages 26 to 27. The financial information relating to the financial year ended 31 December 2025 that is included in the interim financial report as comparative information does not constitute the Company’s statutory annual consolidated financial statements for that financial year but is derived from those financial statements. Statutory financial statements for the year ended 31 December 2025 are available from the Company’s registered office. The auditor has expressed an unqualified opinion on those financial statements in their report dated 16 March 2026. 1. ᇜႡਿᓾ Ϟ ܼ ۆ ყึ ୋ34 ʕಂৌਕజѓ ϾᇜႡf ɚཧɚʬϋɞ˜ɤɖ˚ ᐏબᛆ̊೯f ʫˀ ഄᜊਗ̮dᇜႡʕಂৌਕజѓ ৌ ഄᜊਗ ൗ 2f ୋ 34 ᇜႡʕಂৌਕజ ձணdϤ වeϗɝ ؈ ʔΝf ʿ ኽყৌਕజ ࿁ə༆Іɚཧɚʞ ڌ f dઓʊ͉͟ʮ̡ ࠇ ಥ ୋ2410ࢪ ึ ୋ 26Ї 27f ͉ʕಂৌਕజѓʫϞᗫ࿚Їɚཧɚʞϋ ɗ ݁ dઓ༈ഃ༟ f࿚Їɚཧɚʞϋ ̙ జѓʫ वจԈf
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3333 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） 2. ഄᜊһ ึ ࠇ ฿ೌ࿁༈ഃৌਕజ ɽᅂᚤf͉ණྠԨೌમ͜Оί ༕ᙑf 3. ϗɝ ۜ ቖਯ f ᆽႩf Ϊ९ᅂᚤf 4. ፄ༟ϗɝଋᕘ 2. CHANGES IN ACCOUNTING POLICIES The IASB has issued a number of amendments to IFRS Accounting Standards that are first effective for the current accounting period. None of these developments have had a material effect on these financial statements. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period. 3. REVENUE The principal activities of the Group are manufacturing and sale of branded menswear and related accessories in the PRC. Revenue represents the sales value of goods sold less returns, discounts and value-added taxes (“VAT”). Revenue is recognised at the point in time when the control of the goods is transferred to customers. The Group’s operations are not subject to significant seasonal factors. 4. NET FINANCE INCOME Six months ended 30 June ˜ 2026 2025 ɚཧɚʬϋ ɚཧɚʞϋ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Interest incomeϗɝ 22,651 39,833 Interest on bank loansࢹ3,470) (8,275) Interest on lease liabilitiesࢹ2,302) (2,280) Net foreign exchange gain ිгϗूଋᕘ 174 2,549 17,053 31,827
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3434 CHINA LILANG LIMITED ʮ̡ NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） 5. лᆗ ɝ j 5. PROFIT BEFORE TAXATION Profit before taxation is arrived at after charging/(crediting): Six months ended 30 June ˜ 2026 2025 ɚཧɚʬϋ ɚཧɚʞϋ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Amortisation of intangible assets ೌҖ༟ପᛅቖ 3,405 2,127 Depreciation ұᔚ { owned property, plant and equipment Ñ ʿண௪ 80,799 72,472 { investment properties Ñ ุ 3,056 3,427 { right-of-use assets Ñ Դ͜ᛆ༟ପ 65,281 57,489 Short-term lease rental expensesක˕ 29,181 17,627 Research and development costs೯ϓ͉ 68,354 64,030 Subcontracting charges (Note (i))ൗ(i) 224,932 196,605 Inventory write-down (Note 11(b))ൗ11(b) 38,967 17,828 Reversal of impairment losses on trade receivables (Note 12) ᑦฦᅡΫ ൗ12 (4,120) (1,428) Note: (i) Subcontracting charges include service charges and auxiliary raw material costs payable to subcontractors. ൗj (i) ਕ൬͜ʿႾ ϓ͉f
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3535 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） ൗj (i) ᙮ஈɾ ૢԷʿԷd͉ණྠˡᖮॶ f (ii) ࿚Їɚཧɚʬϋʿɚཧɚʞ ಥл ಥлЪ ̈ᅡ௪f (iii) ᙮ʮ ᗫʕ ൗd ᙮ʮ̡ʊᐏબ৷อҦஔΆุ༟ ɚཧɚʬϋԮϞ 15%ה ʕ ɚ ཧɚʬϋԮϞ 15%ଟf (iv) ʕ ܲ 10%ኽʕʫ ج ٙ ϞՉ25%͉ ዄ๕Іʕ ٙ5% ཫϔfఱϤϾԊd ᙮ʮ̡ί̙Ԉਗ਼ л Ъ̈ᅡ௪f 6. 6. INCOME TAX Six months ended 30 June ˜ 2026 2025 ɚཧɚʬϋ ɚཧɚʞϋ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Current tax { PRC Corporate Income Tax уಂධ { 62,173 63,868 Deferred taxධ (18,831) (12,029) 51,839 61,520 43,342 51,839 Notes: (i) Pursuant to the rules and regulations of the Cayman Islands and British Virgin Islands (“BVI”), the Group is not subject to any income tax in the Cayman Islands and the BVI. (ii) No provision for Hong Kong Profits Tax has been made as the Group did not have assessable profits subject to Hong Kong Profits Tax for the six months ended 30 June 2026 and 2025. (iii) Taxation for the Group’s PRC subsidiaries is calculated using the income tax rates applicable to the subsidiaries. In accordance with the relevant PRC Corporate Income Tax Law, regulations and implementation guidance notes, one of the subsidiaries had been granted Advanced and New Technology Enterprise status and was entitled to a reduced income tax rate at 15% for 2026. In addition, three of the Group’s subsidiaries incorporated in the Xizang Autonomous Region of the PRC are entitled to a reduced income tax rate of 15% in 2026. (iv) According to the Corporate Income Tax Law and its implementation rules, dividends receivable by non-PRC corporate residents from PRC enterprises are subject to withholding tax at a rate of 10%. In addition, under the Sino-Hong Kong Double Tax Arrangement and its relevant regulations, a qualified Hong Kong tax resident will be liable for withholding tax at the rate of 5% for dividend income derived from the PRC if the Hong Kong tax resident is the “beneficial owner” and holds 25% or more of the equity interests of the PRC company. Deferred tax liabilities have been provided for in this regard based on the expected dividends to be distributed from these subsidiaries in the foreseeable future in respect of the profits generated since 1 January 2008.
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3636 CHINA LILANG LIMITED ʮ̡ NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） 7. EARNINGS PER SHARE (A) Basic Earnings Per Share The calculation of basic earnings per share is based on the profit attributable to equity shareholders of the Company for the period of RMB215,366,000 (2025: RMB242,525,000) and the weighted average number of ordinary shares in issue of 1,197,485,000 (2025: 1,197,485,000). (B) Diluted Earnings Per Share There were no dilutive potential ordinary shares for the six months ended 30 June 2026 and 2025; therefore, diluted earnings per share are equivalent to the basic earnings per share. 8. PROPERTY , PLANT AND EQUIPMENT 2026 2025 ɚཧɚʬϋ ɚཧɚʞϋ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Net book value, as at 1 January࠽1,160,478 1,163,421 Additions ໄ 31,476 43,646 Disposals (net carrying amount) (78) (4,835) Depreciation charge for the period ಂʫұᔚ൬͜ (80,799) (72,472) Exchange adjustment ිгሜ (204) 22 1,129,782 1,163,549 Net book value, as at 30 June࠽1,110,873 1,129,782 7. л (A) л Ꮠ Цлᆗɛ͏࿆ 215,366,000 ʩ ɚཧɚʞϋj ɛ͏࿆ 242,525,000 ʩ d˸ʿʊ೯Б౷ஷ ᅰ 1,197,485,000ɚཧɚʞ ϋj1,197,485,000ၑf (B) л ࿚Їɚཧɚʬϋʿɚཧɚʞϋʬ˜ɧɤ˚ iΪϤӊ лf 8. ʿண௪
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3737 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） ᑦฦΐ ̙͜ϋಂ ʔ൴ཀ 40 ϋ dίϔৰП ቖՉϓ͉ ၑf 10. Դ͜ᛆ༟ପ 9. INVESTMENT PROPERTIES 2026 2025 ɚཧɚʬϋ ɚཧɚʞϋ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Net book value, as at 1 January࠽207,112 248,936 Depreciation charge for the period ಂʫұᔚ൬͜ (3,056) (3,427) 245,509 257,307 Net book value, as at 30 June࠽204,056 245,509 Investment properties are stated at cost less accumulated depreciation and impairment losses. Depreciation is calculated to write off the cost of items of investment properties, less their estimated residual value, if any, on a straight-line basis over the estimated useful life being no more than 40 years after the date of completion. 10. RIGHT-OF-USE ASSETS 2026 2025 ɚཧɚʬϋ ɚཧɚʞϋ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Net book value, as at 1 January࠽277,324 260,510 Additions ໄ 51,134 52,312 Disposals ̈ਯ (8,692) (8,688) Depreciation charge for the period ಂʫұᔚ൬͜ (65,281) (57,489) Exchange adjustment ිгሜ (405) 124 Net book value, as at 30 June࠽254,080 246,769 The Group’s right-of-use assets contain the land use rights and properties leased for own use. The interest of land use rights in the PRC are prepaid upon acquisition. The leases related to properties are typically run for an initial period of one to five years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. As at 30 June 2026, rental deposits of RMB58,661,000 (31 December 2025: RMB56,013,000) were paid for the leases, which will be held by the lessors throughout the respective lease terms. 9. ุ ɺήԴ͜ᛆʿॡ༣ ஷ йਿᆻਠdԨ ɚཧ ɚʬϋʬ˜ɧɤ˚dఱ༈ഃॡ༣ʊ˕˹ॡ ɛ͏࿆ 58,661,000 ʩ ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚jɛ͏࿆ 56,013,000 ʩ d ܵ Ϟf
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3838 CHINA LILANG LIMITED ʮ̡ NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） 11. π (a) π̍ j 11. INVENTORIES (a) Inventories in the condensed consolidated statement of financial position comprise: 30 June 2026 31 December 2025 ɚཧɚʬϋ ʬ˜ɧɤ˚ ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Raw materialsࣘ198,829 157,369 Work in progressۜ42,650 43,410 Finished goodsۜ1,197,405 1,251,457 1,438,884 1,452,236 (b) An analysis of the amount of inventories recognised as an expense and included in profit or loss is as follows: Six months ended 30 June ˜ 2026 2025 ɚཧɚʬϋ ɚཧɚʞϋ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Carrying amount of inventories sold࠽ࠦ1,016,191 841,627 Write-down of inventories (Note 5)ൗ5 38,967 17,828 1,055,158 859,455 (b) ᕘ νɨj
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3939 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） 12. ሪಛʿՉ˼Ꮠϗಛධ12. TRADE AND OTHER RECEIVABLES 30 June 2026 31 December 2025 ɚཧɚʬϋ ʬ˜ɧɤ˚ ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Trade receivablesሪಛ 312,259 507,116 Less: Loss allowance ಯjᑦฦᅡ௪ (9,639) (13,759) Trade receivables, net of loss allowanceሪಛdϔৰᑦฦᅡ௪ 302,620 493,357 Prepayments to suppliers ཫ˹ԶᏐਠಛධ 4,120 3,873 VAT deductible 306,433 315,905 Other deposits, prepayments and receivableseཫ˹ಛධʿᏐϗಛධ 113,496 61,350 726,669 874,485 Trade and other receivables, net of loss allowance, are expected to be recovered or recognised as expense within one year. An ageing analysis of the trade receivables, based on the invoice date and net of loss allowance, is as follows: 30 June 2026 31 December 2025 ɚཧɚʬϋ ʬ˜ɧɤ˚ ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Within 3 months˜ʫ 237,635 465,339 Over 3 months but within 6 months˜ʫ 60,413 24,046 Over 6 months but within 1 year˜Шɓϋʫ 4,572 3,972 302,620 493,357 The Group grants a credit period of 30 to 180 days (31 December 2025: 30 to 180 days) to its debtors. ሪಛʿՉ˼Ꮠϗಛධ ϔৰ ක˕f ၑԨϔৰᑦ νɨj މ30 Ї 180 ˂ ɚཧɚʞϋɤɚ˜ɧɤɓ˚j30 Ї 180 ˂ f
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4040 CHINA LILANG LIMITED ʮ̡ NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） 12. TRADE AND OTHER RECEIVABLES (CONTINUED) The movement in the loss allowance account for trade receivables during the period is as follows: 2026 2025 ɚཧɚʬϋ ɚཧɚʞϋ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ As at 1 Januaryɓ˜ɓ˚ 13,759 11,412 Reversal of impairment losses for the period (Note 5) ൗ5 (4,120) (1,428) As at 30 Juneʬ˜ɧɤ˚ 9,639 9,984 The Group measures loss allowance for trade receivables at an amount equal to lifetime expected credit losses, which is calculated using a provision matrix. The Group keeps assessing the expected loss rates based on the Group’s historical credit loss experience over the past years, adjusted for factors that are specific to the debtors, and an assessment of both the current and forecast general economic conditions at the end of the reporting period over the expected lives of the receivables. Normally, the Group does not obtain collateral from customers. 13. PLEDGED BANK DEPOSITS Bank deposits have been pledged as security for bank loans (see note 15) and bills payable (see note 16). The pledged bank deposits will be released upon the settlement of the relevant bank loans and bills payable. 12. ሪಛʿՉ˼Ꮠϗಛධ ᚃ ᑦฦᅡ௪ሪᜊਗν ɨj ࡈ ඎᏐϗ൱ ሪಛʘᑦฦᅡ௪f ൲ᑦฦ᜕ ٙ Ϊ९ʿ࿁జѓಂ͋Ꮠϗಛධʘཫಂϋ ൙ПආБ ሜf ץתٙ f 13. ვБπಛ ڝ ൗ 15ൗ16fʊ ᎵᒔϞᗫვБ൲ಛʿᏐ ᐏ༆ৰf
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4141 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） 14. CASH AND CASH EQUIVALENTS AND FIXED DEPOSITS HELD AT BANKS As at 30 June 2026 As at 31 December 2025 ɚཧɚʬϋ ʬ˜ɧɤ˚ ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Cash and cash equivalents in the condensed consolidated statement of financial position and the condensed consolidated statement of cash flows ʿ ٙ ي { Cash at bank and in hand { ږ1,465,811 1,117,497 Fixed deposits held at banks with maturity over three months ಂπಛ 1,128,441 874,612 Pledged bank deposits (Note 13)ൗ13 60,679 822,172 Totalࠇ2,654,931 2,814,281 15. BANK LOANS As at 30 June 2026 and 31 December 2025, the analysis of the repayment schedule of bank loans were as follows: 30 June 2026 31 December 2025 ɚཧɚʬϋ ʬ˜ɧɤ˚ ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Within 1 year or on demandӋ 768,368 809,333 14. ಂ πಛ 15. ვБ൲ಛ ɚཧɚʬϋʬ˜ɧɤ˚ʿɚཧɚʞϋ ʱ νɨj
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4242 CHINA LILANG LIMITED ʮ̡ NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） 15. BANK LOANS (CONTINUED) As at 30 June 2026, bank loans of RMB770,000,000 (31 December 2025: RMB125,000,000), which were discounted bank acceptance bills (financing in nature), were secured by the bank deposit of RMB25,000,000 (31 December 2025: RMB12,500,000). Discounted bank acceptance bills (financing in nature) were bills of exchange which were denominated at Renminbi, measured at amortised cost and repayable within one year. 16. TRADE AND OTHER PAYABLES 30 June 2026 31 December 2025 ɚཧɚʬϋ ʬ˜ɧɤ˚ ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Trade payablesሪಛ 577,108 649,103 Bills payable Ꮠ˹ୃኽ 353,860 501,070 Trade and bills payablesሪಛʿᏐ˹ୃኽ 930,968 1,150,173 Staff benefits payableʈ၅л 83,013 93,454 Payables for purchase of property, plant and equipment ʿண௪ Ꮠ˹ಛධ 11,670 18,852 Other payables and accrualsಛධ 73,624 152,865 100,221 128,352 1,099,275 1,415,344 All of the trade and other payables are expected to be settled or recognised as income within one year or are repayable on demand. Bills payable were secured by pledged bank deposits of RMB35,679,000 (31 December 2025: RMB30,269,000) as disclosed in Note 13 (see note 13). ሪಛʿՉ˼Ꮠ˹ಛධਗ਼ ӋᎵ ൗ 13ᚣ dᏐ˹ୃኽɗ˸ ვБπಛɛ͏࿆ 35,679,000 ʩ ɚཧ ɚʞϋɤɚ˜ɧɤɓ˚jɛ͏࿆ 30,269,000 ൗ13f 15. ვБ൲ಛ ᚃ ʊ൨ତვ ვБ൲ಛɛ͏࿆ 770,000,000 ʩ ɚཧɚʞϋɤɚ˜ɧɤɓ ˚jɛ͏࿆ 125,000,000 ʩ ͟ვБπಛɛ͏ ࿆ 25,000,000 ʩ ɚཧɚʞϋɤɚ˜ɧɤɓ ˚jɛ͏࿆ 12,500,000fʊ൨ତ ࠽ࠇ ɓϋʫ Ꮅᒔf 16. ሪಛʿՉ˼Ꮠ˹ಛධ
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4343 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） 16. TRADE AND OTHER PAYABLES (CONTINUED) An ageing analysis of the Group’s trade and bills payables based on the invoice date is as follows: 30 June 2026 31 December 2025 ɚཧɚʬϋ ʬ˜ɧɤ˚ ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Within 3 months˜ʫ 660,311 782,236 Over 3 months but within 6 months˜ʫ 248,868 365,999 Over 6 months but within 1 year˜Шɓϋʫ 21,655 1,577 Over 1 year ൴ཀɓϋ 134 361 930,968 1,150,173 17. LEASE LIABILITIES The remaining contractual maturities of the Group’s lease liabilities at the end of the reporting period are as follows: At 30 June 2026 At 31 December 2025 ɚཧɚʬϋʬ˜ɧɤ˚ɚཧɚʞϋɤɚ˜ɧɤɓ˚ Present value of the minimum lease payments Total minimum lease payments Present value of the minimum lease payments Total minimum lease payments ௰Эॡ༣ ࠽ ௰Эॡ༣ ˹ಛᐼᕘ ௰Эॡ༣ ࠽ ௰Эॡ༣ ˹ಛᐼᕘ RMB’000 RMB’000 RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Within 1 year ɓϋʫ 87,215 88,319 93,145 93,745 After 1 year but within 2 yearsШՇϋʫ 35,684 37,189 44,553 46,568 After 2 years but within 5 yearsШʞϋʫ 8,516 9,119 15,086 16,237 131,415 134,627 152,784 156,550 Less: Total future interest expensesක˕ᐼᕘ (3,212) (3,766) Present value of lease liabilities࠽131,415 152,784 16. ሪಛʿՉ˼Ꮠ˹ಛධ ᚃ ೯ୃ˚ νɨj 17. ව ߒ Ցಂ˚νɨj
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4444 CHINA LILANG LIMITED ʮ̡ NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） 18. ࢹٰ j 18. DIVIDENDS Dividends payable to shareholders of the Company attributable to the period: Six months ended 30 June ˜ 2026 2025 ɚཧɚʬϋ ɚཧɚʞϋ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Declared and payable after interim period:ʿᏐ˹j Interim dividend of HK10 cents per ordinary share (2025: HK11 cents per ordinary share) ࢹٰ ٰ10 ಥ̀ ɚཧɚʞϋj ٰ11 ಥ̀ 103,858 120,380 Special interim dividend of HK4 cents per ordinary share (2025: HK5 cents per ordinary share) ࢹٰ ٰ4 ಥ̀ ɚཧɚʞϋj ٰ5 ಥ̀ 41,543 54,718 145,401 175,098 The interim dividend has not been recognised as liabilities as at 30 June 2026. Dividends payable to shareholders of the Company attributable to the previous financial year, approved and paid during the period: Six months ended 30 June ˜ 2026 2025 ɚཧɚʬϋ ɚཧɚʞϋ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Final dividend in respect of the previous financial year of HK13 cents per ordinary share (2025: HK9 cents per ordinary share) ࢹٰ ٰ13 ಥ̀ ɚཧɚʞϋj ٰ9 ಥ̀ 134,372 99,029 Special final dividend in respect of the previous financial year of HK3 cents per ordinary share (2025: HK3 cents per ordinary share) ࢹٰ ٰ3 ಥ̀ ɚཧɚʞϋj ٰ3 ಥ̀ 31,010 33,010 165,382 132,039 ɚཧɚʬϋʬ˜ɧɤ˚Ԩ͊ᆽ වf ཀ j
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4545 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） 19. ɚཧɓɘϋ̬˜ɚɤɧ˚ ٰ ࿁͉ණྠЪ ԶዧᎸʿᆤሧf ٰ બ̈Υ̙Ⴉᒅ 11,500,000 މ 4.31ɚཧɚɚϋɖ ˜ɧ˚Їɚཧɚ̬ϋɖ˜ɧ˚ಂගᓥ᙮f ᅰͦ ʿ̋ᛆ̻ѩБԴᄆ༉ઋνɨj 19. EQUITY-SETTLED SHARE-BASED TRANSACTIONS The Company has adopted a share option scheme (the “Share Option Scheme”) pursuant to an ordinary resolution passed by the shareholders of the Company on 23 April 2019 for the purposes of providing incentives and rewards to eligible participants who contribute to the Group. On 3 July 2020, the Group granted options to subscribe for a total of 11,500,000 shares of the Company to its employees under the Share Option Scheme at an exercise price of HK$4.31 per share. The options were vested during the period from 3 July 2022 to 3 July 2024. Details of the number and weighted average exercise price of share options granted under the Share Option Scheme during the period were as follows: Exercise price No. of options ᛆᅰͦ Outstanding at 1 January 2026ɚཧɚʬϋɓ˜ɓ˚ ͊БԴ HK$4.31 4.31ಥʩ 10,739,000 Lapsed during the periodࣖHK$4.31 4.31ಥʩ { Outstanding at 30 June 2026ɚཧɚʬϋʬ˜ɧɤ˚ ͊БԴ HK$4.31 4.31ಥʩ 10,739,000 Exercisable at 30 June 2026ɚཧɚʬϋʬ˜ɧɤ˚ ̙БԴ HK$4.31 4.31ಥʩ 10,739,000 The share options outstanding under the Share Option Scheme at 30 June 2026 had a weighted average remaining contractual life of 4 years. 20. COMMITMENTS Capital commitments of the Group in respect of property, plant and equipment, and computer system and software outstanding at 30 June 2026 not provided for in the financial statements were as follows: 30 June 2026 31 December 2025 ɚཧɚʬϋ ʬ˜ɧɤ˚ ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Authorised but not contracted forߒࠈ63,530 20,000 ྌධɨ ϋಂ މ4 ϋf 20. ዄ ي ࠦ ༟ ዄνɨj
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4646 CHINA LILANG LIMITED ʮ̡ NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） 21. MATERIAL RELATED PARTY TRANSACTIONS (A) Key Management Personnel Remuneration Remuneration of key management personnel of the Group for the period, including amounts paid to the Directors, was as follows: Six months ended 30 June ˜ 2026 2025 ɚཧɚʬϋ ɚཧɚʞϋ RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Short-term employee benefits၅л 6,316 6,415 Contributions to defined contribution retirement benefit scheme ٙ Զಛ 162 177 6,478 6,592 (B) Balances with Related Parties The Group did not have any outstanding balances with related parties as at 30 June 2026 and 31 December 2025. 22. POSSIBLE IMPACT OF AMENDMENTS, NEW STANDARDS, AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE FOR THE SIX MONTHS ENDED 30 JUNE 2026 A number of amendments and new standards are not yet mandatory for annual periods beginning 1 January 2026. Earlier application is permitted; however, the Group has not early adopted any new or amended standards in preparing this interim financial report. The following updates the information provided in the last annual financial statements about the possible impacts of IFRS 18 which may have a significant impact on the Group’s consolidated financial statements when adopted. (B) ၾᗫஹ˙ʘഐቱ ɚཧɚʬϋʬ˜ɧɤ˚ʿɚཧɚʞϋ ɤɚ˜ɧɤɓ˚d͉ණྠ฿ೌОၾᗫஹ ˙ʘ͊Ꮅᒔഐቱf 22. ࿚Їɚཧɚʬϋʬ˜ɧɤ˚˟ ࡌٙࣖ ٙ ᅂᚤ ɚཧɚʬϋɓ˜ɓ˚ મ ॶi್Ͼd͉ණྠίᇜႡ͉ʕಂৌਕజѓ f ༟ ୋ 18 ̙ ̙ঐ࿁ ɽᅂᚤf 21. A) ږ ʊ ᕘ νɨj
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4747 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (CONTINUED) (Expressed in Renminbi) 未經審核中期財務報告附註 （續） （以人民幣為單位） 22. ࿚Їɚཧɚʬϋʬ˜ɧɤ˚˟ ࡌٙࣖ ٙ ᅂᚤ ᚃ ୋ 18 dٙڌ ᚣ ୋ 18ࠇ ୋ 1яΐ dϙίʺྼ fყ ୋ 18ɚཧɚɖϋɓ˜ dԨ๑Ꮠ ͜f ୋ 18Ϟϗɝ ᗳйdуᐄุeҳ༟eፄ ᗳйfྼ͵ί ᐶ ᚣf ୋ 18ᅂᚤf 22. POSSIBLE IMPACT OF AMENDMENTS, NEW STANDARDS, AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE FOR THE SIX MONTHS ENDED 30 JUNE 2026 (CONTINUED) IFRS 18, Presentation and disclosure in financial statements IFRS 18 will replace IAS 1 Presentation of financial statements and aims to improve the transparency and comparability of information about an entity’s financial statements. IFRS 18 is effective for the year beginning on or after 1 January 2027 and is to be applied retrospectively. Among other changes, under IFRS 18, entities are required to classify all income and expenses into five categories in the consolidated statements of profit or loss, namely the operating, investing, financing, discontinued operations and income tax categories. Entities are also required to provide specific disclosures about management-defined performance measures in a single note in the financial statements. The Group does not plan to early adopt IFRS 18 and is still in the process of assessing the impact of the adoption.
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4848 CHINA LILANG LIMITED ʮ̡ OTHER INFORMATION 其他資料 DISCLOSURE OF INTERESTS Directors’ and Chief Executives’ Interests and Short Positions in Shares, Underlying Shares and Debentures As at 30 June 2026, the interests and short positions of the Directors and chief executives of the Company in the shares, underlying shares and debentures of the Company and its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance (“SFO”)), as recorded in the register required to be kept by the Company under Section 352 of the SFO or as otherwise notified to the Company and The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (“Model Code”) contained in Appendix 10 to the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”) were as follows: Name of shareholder Τ Name of Group company/ associated corporation ʮ̡Ŋ ྠΤ၈ Capacity/nature of interest ሯ Number of shares ΅ᅰͦ Number of underlying shares ΅ᅰͦ Approximate percentage of shareholding ϵʱˢ (Note 1) (Note 1&2) ൗ1ൗ1 ʿ 2 Mr. Wang Dong Xing ͛ The Company ͉ʮ̡ Beneficial owner ྼूኹϞɛ 22,950,000 shares (L) 22,950,000΅(L) { 1.917% Xiao Sheng International Limited (“Xiao Sheng International”) (Note 3) ʮ̡ ൗ3 Founder of a discretionary trust who can influence how the trustee exercises his discretion ɛdՉ̙ᅂᚤա ˙ό 2,550 shares of US$1.00 each (L) 2,550࠽ٰࠦ 1.00΅(L) { 26.289% The Company ͉ʮ̡ Interest of spouse ৣਅᛆू 3,490,000 shares (L) 3,490,000΅(L) { 0.291% Mr. Wang Liang Xing ͛ The Company ͉ʮ̡ Beneficial owner ྼूኹϞɛ 22,950,000 shares (L) 22,950,000΅(L) { 1.917% Xiao Sheng International (Note 3) ൗ3 Founder of a discretionary trust who can influence how the trustee exercises his discretion ɛdՉ̙ᅂᚤա ˙ό 2,550 shares of US$1.00 each (L) 2,550࠽ٰࠦ 1.00΅(L) { 26.289% ᚣ ΅ ࡑ ɚཧɚʬϋʬ˜ɧɤ˚dԫʿ͉ʮ̡ ֛ ່ԈᗇՎʿಂૢԷ ᗇՎʿಂૢԷ ୋ XV΅ʿවᛆᗇʕd ኽᗇՎʿಂૢԷୋ 352ࡑ ʮ̡ ᑌʹ ה ᅺς ה νɨj
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4949 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 20264949 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 OTHER INFORMATION (CONTINUED) 其他資料 （續） Name of shareholder Τ Name of Group company/ associated corporation ʮ̡Ŋ ྠΤ၈ Capacity/nature of interest ሯ Number of shares ΅ᅰͦ Number of underlying shares ΅ᅰͦ Approximate percentage of shareholding ϵʱˢ (Note 1) (Note 1&2) ൗ1ൗ1 ʿ 2 Mr. Wang Cong Xing ͛ The Company ͉ʮ̡ Founder of a discretionary trust who can influence how the trustee exercises his discretion ɛdՉ̙ᅂᚤա ˙ό 22,950,000 shares (L) 22,950,000΅(L) { 1.917% Xiao Sheng International (Note 3) ൗ3 Beneficial owner ྼूኹϞɛ 2,550 shares of US$1.00 each (L) 2,550࠽ٰࠦ 1.00΅(L) { 26.289% Mr. Cai Rong Hua ᇹശ͛ The Company ͉ʮ̡ Beneficial owner ྼूኹϞɛ 1,810,000 shares (L) 1,810,000΅(L) { 0.151% Mr. Hu Cheng Chu ͛ The Company ͉ʮ̡ Beneficial owner ྼूኹϞɛ 4,500,000 shares (L) 4,500,000΅(L) { 0.376% Mr. Pan Rong Bin ᆙ͛ The Company ͉ʮ̡ Beneficial owner ྼूኹϞɛ 3,171,000 shares (L) 3,171,000΅(L) { 0.264% The Company ͉ʮ̡ Interest of spouse ৣਅᛆू { 150,000 shares (L) 150,000΅(L) 0.013% Xiao Sheng International (Note 3) ൗ3 Beneficial owner ྼूኹϞɛ 300 shares of US$1.00 each (L) 300࠽ٰࠦ 1.00΅(L) { 3.093% Mr. Wang Jun Hong ҃͛ The Company ͉ʮ̡ Beneficial owner ྼूኹϞɛ 522,000 shares (L) 522,000΅(L) 350,000 shares (L) 350,000΅(L) 0.007% Mr. Wang Zhi Yong ͛ The Company ͉ʮ̡ Beneficial owner ྼूኹϞɛ 2,517,000 shares (L) 2,517,000΅(L) 350,000 shares (L) 350,000΅(L) 0.24% The Company ͉ʮ̡ Interest of spouse ৣਅᛆू 760,000 shares (L) 760,000΅(L) { 0.006%
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5050 CHINA LILANG LIMITED ʮ̡5050 CHINA LILANG LIMITED ʮ̡ OTHER INFORMATION (CONTINUED) 其他資料 （續） ൗj 1. ˖ο͎ Lᑌ f 2. ྌ ٰ f 3. ණྠϞ ʮ̡ ණྠ ІኹϞ26.289%e˸ʿՉ˼ɛ Ϟ 21.134%f 4 2,550ᛆूீཀ䥊 ͉͟ TMF (Cayman) Ltd.ৄɛԒ ͛ணͭf fЪ މ ΅ʕኹϞᛆूf 5 2,550ᛆूீཀସ ͉͟ TMF (Cayman) Ltd.ৄɛԒ ͛ணͭf fЪ މ ΅ʕኹϞᛆूf 6 2,550ᛆूீཀሾ ͉͟ TMF (Cayman) Ltd.ৄɛԒ ͛ணͭf fЪ މ ΅ʕኹϞᛆूf ɚཧɚʬϋʬ˜ ฿ೌ ່ԈᗇՎʿಂ ૢԷୋ XVවᛆ ࣬ ኽᗇՎʿಂૢԷୋ 352೮া ึ͉ʮ̡ʿ f Notes: 1. The letter “L ” denotes the Directors’ long position in the shares of the Company or the relevant associated corporation. 2. The interests in underlying shares represent the interests in share options granted pursuant to the Company’s share option scheme, details of which are set out in the paragraph below headed “Share Option Scheme” . 3. As at 30 June 2026, Xiao Sheng International was owned as to 26.289% by each of Dawn Star Group Limited (“DSGL ”), Boom Star Group Limited (“BSGL ”) and Glow Star Group Limited (“GSCL ”), and 21.134% by other individuals. 4. The interests of Mr. Wang Dong Xing in 2,550 shares of Xiao Sheng are held through DSGL. The entire issued share capital of DSGL is indirectly held by TMF (Cayman) Ltd. in its capacity as the trustee of an irrevocable trust set up by Mr. Wang Dong Xing as the settlor. The beneficiaries under the trust are Mr. Wang Dong Xing and his family members. Mr. Wang Dong Xing is deemed to be interested in these shares as the settlor of the discretionary trust. 5. The interests of Mr. Wang Liang Xing in 2,550 shares of Xiao Sheng are held through BSGL. The entire issued share capital of BSGL is indirectly held by TMF (Cayman) Ltd. in its capacity as the trustee of an irrevocable trust set up by Mr. Wang Liang Xing as the settlor. The beneficiaries under the trust are Mr. Wang Liang Xing and his family members. Mr. Wang Liang Xing is deemed to be interested in these shares as the settlor of the discretionary trust. 6. The interests of Mr. Wang Cong Xing in 2,550 shares of Xiao Sheng are held through GSGL. The entire issued share capital of GSGL is indirectly held by TMF (Cayman) Ltd. in its capacity as the trustee of an irrevocable trust set up by Mr. Wang Cong Xing as the settlor. The beneficiaries under the trust are Mr. Wang Cong Xing and his family members. Mr. Wang Cong Xing is deemed to be interested in these shares as the settlor of the discretionary trust. Save as disclosed above, as at 30 June 2026, none of the Directors and chief executives of the Company had or was deemed to have any interests or short position in the shares, underlying shares or debentures of the Company and its associated corporations (within the meaning of Part XV of the SFO) which was recorded in the register maintained by the Company pursuant to section 352 of the SFO or which had otherwise been notified to the Company and the Stock Exchange pursuant to the Model Code.
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5151 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 20265151 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 OTHER INFORMATION (CONTINUED) 其他資料 （續） ൗj (1) ˖ο͎ Lλ f (2) ɚཧɚʬϋʬ ණྠ ණྠІኹϞ 26.289%e˸ʿՉ˼ɛɻ Ϟ 21.134%f (3) ɚཧɚʬϋʬ ණྠ ණྠІኹϞ 26.289%e˸ʿՉ˼ɛɻ Ϟ 21.134%f INTERESTS AND SHORT POSITIONS OF SUBSTANTIAL SHAREHOLDERS As at 30 June 2026, the persons or corporations (not being a Director or chief executive of the Company) who had an interest or short position in the shares and underlying shares of the Company as recorded in the register required to be kept by the Company under section 336 of the SFO were as follows: Name of shareholder Τ၈ Capacity/nature of interest ሯ Number of shares ΅ᅰͦ Approximate percentage of shareholding ϵʱˢ (Note 1) ൗ1 Xiao Sheng International ወʺყ Beneficial owner ྼूኹϞɛ 708,325,000 shares (L) (Note 2) 708,325,000΅(L) ൗ2 59.15% Ming Lang Investments Limited (“Ming Lang Investments”) ʮ̡ ҳ༟ Beneficial owner ྼूኹϞɛ 74,905,000 shares (L) (Note 3) 74,905,000΅(L) ൗ3 6.26% TMF (Cayman) Ltd. TMF (Cayman) Ltd. Trustee ৄɛ 783,230,000 shares (L) (Note 4) 783,230,000΅(L) ൗ4 65.41% Notes: (1) The letter “L ” denotes the person’s long position in the shares of the Company. (2) These shares were held by Xiao Sheng International. As at 30 June 2026, Xiao Sheng International was owned as to 26.289% by each of DSGL, BSGL and GSGL, and 21.134% by other individuals. (3) These shares were held by Ming Lang Investments. As at 30 June 2026, Ming Lang Investments was owned as to 26.289% by each of DSGL, BSGL and GSGL, and 21.134% by other individuals. ࡑ ΅ ኽᗇՎ ʿಂૢԷୋ 336ٙ ͉ νɨj
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5252 CHINA LILANG LIMITED ʮ̡5252 CHINA LILANG LIMITED ʮ̡ OTHER INFORMATION (CONTINUED) 其他資料 （續） (4) TMF (Cayman) Ltd. in its capacity as trustee of each of the irrevocable discretionary trusts set up by Mr. Wang Dong Xing, Mr. Wang Liang Xing and Mr. Wang Cong Xing, and indirectly holds the entire issued share capital of DSGL, BSGL and GSGL, each of which holds 26.289% shares in Xiao Sheng International and Ming Lang Investments. Accordingly, TMF (Cayman) Ltd. is deemed to be interested in the shares of the Company held by Xiao Sheng International and Ming Lang Investments. Save as disclosed above, as at 30 June 2026, the Directors were not aware of any other person or corporation having an interest or short position in shares and underlying shares of the Company as recorded in the register required to be kept by the Company pursuant to section 336 of the SFO. SHARE OPTION SCHEME The Company has adopted a share option scheme (the “Share Option Scheme”) pursuant to an ordinary resolution passed by the shareholders of the Company on 23 April 2019 for the purposes of providing incentives and rewards to eligible participants who contribute to the Group. Details of the Share Option Scheme are set out in the 2025 Annual Report of the Company. Details of the movements of the options during the period are set out below: Number of options ᛆᅰͦ Name or category of participants ᗳй As at 1 January 2026 ɚཧɚʬϋ ɓ˜ɓ˚ Exercised ʊБԴ Cancelled ʊൗቖ Lapsed ࣖ As at 30 June 2026 ɚཧɚʬϋ ʬ˜ɧɤ˚ Exercise price БԴᄆ Date of grant બ̈˚ಂ Exercise period БԴಂ Mr. Chen Wei Jin (note 1(a)) ൗ1(a) 433,000 { { { 433,000 HK$4.31ಥʩ 3 July 2020 ɚཧɚཧϋ ɖ˜ɧ˚ Note 2(a) ൗ2(a) Mr. Wang Jun Hong (note 1(b)) ൗ1(b) 350,000 { { { 350,000 HK$4.31ಥʩ 3 July 2020 ɚཧɚཧϋ ɖ˜ɧ˚ Note 2(b) ൗ2(b) Mr. Wang Zhi Yong (note 1(c)) ൗ1(c) 350,000 { { { 350,000 HK$4.31ಥʩ 3 July 2020 ɚཧɚཧϋ ɖ˜ɧ˚ Note 2(b) ൗ2(b) Ms. Chen Zhi Mei (note 1(d)) ൗ1(d) 150,000 { { { 150,000 HK$4.31ಥʩ 3 July 2020 ɚཧɚཧϋ ɖ˜ɧ˚ Note 2(b) ൗ2(b) Employees ࡰ 9,456,000 { { { 9,456,000 HK$4.31ಥʩ 3 July 2020 ɚཧɚཧϋ ɖ˜ɧ˚ Note 2(c) ൗ2(c) 10,739,000 { { { 10,739,000 (4) TMF (Cayman) Ltd.ৄ ͛ ٰ ҳ༟ 26.289%΅ fΪϤ d TMF (Cayman) Ltd. ͉ʮ̡ ΅ʕኹϞᛆूf ɚཧɚʬϋʬ˜ א ΅ʕdኹϞা ኽᗇՎʿಂૢԷୋ 336 ૢ f ྌ ɚཧɓɘϋ̬˜ɚɤɧ˚ ٰ ࿁͉ණྠЪ ԶዧᎸʿᆤሧf ͉ʮ̡ɚཧ ɚʞϋϋజf ᛆᜊਗ༉ઋ༱ΐνɨj
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5353 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 20265353 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 OTHER INFORMATION (CONTINUED) 其他資料 （續） Notes: 1 Options granted to associates (as defined in the Listing Rules): a. Mr. Chen Wei Jin, the head of the group ordering department of the Group, is the brother-in-law of Mr. Wang Dong Xing, a non-executive Director and a controlling shareholder of the Company. b. Mr. Wang Jun Hong, general manager of Lilang (China) Co., Ltd* (Lilang China*), is the son of Mr. Wang Dong Xing, a non-executive Director and a controlling shareholder of the Company. He was appointed as an executive Director of the Company on 5 February 2024. c. Mr. Wang Zhi Yong, the sales channel director of Lilang China’s marketing center, is the son of Mr. Wang Liang Xing, an executive Director and a controlling shareholder of the Company. He was appointed as an executive Director of the Company on 5 February 2024. d. Ms. Chen Zhi Mei, the assistant to the head of the sales and marketing department of the Group, is the wife of Mr. Pan Rong Bin, an executive Director of the Company. 2 Exercisable periods of options: a. The options are exercisable by the grantee during the period commencing from the day immediately following the expiry of the two year period after the date of grant, and ending on the day falling ten years after the date of grant, during which, (i) up to 129,000 options granted may be exercised on or prior to the end of the third year after the date of grant; (ii) subject to (i), up to 130,000 options granted may be exercised on or prior to the end of the fourth year after the date of grant; and (iii) subject to (i) and (ii), all outstanding options may be exercised prior to the expiry of the said exercise period, failing which the options will lapse and no longer be exercisable. b. The options are exercisable by the grantees during the period commencing from the day immediately following the expiry of the two year period after the date of grant, and ending on the day falling ten years after the date of grant, during which, (i) up to 30% of the options granted may be exercised on or prior to the end of the third year after the date of grant; (ii) subject to (i), up to 60% of the options granted may be exercised on or prior to the end of the fourth year after the date of grant; and (iii) subject to (i) and (ii), all outstanding options may be exercised prior to the expiry of the said exercise period, failing which the options will lapse and no longer be exercisable. ൗj 1 ᛆj a. މ ፋ̃Ҕf b. ʕ ᐼ ࡒ ɚཧ ͉ʮ̡ੂБ ԫf c. ۇ ˮ ɚཧɚ̬ϋɚ˜ ͉ʮ̡ੂБԫf d. ͉ණྠᐄቖʕːᐼпଣқૠɾɻd ֈɿf 2 ᛆ̙ʚБԴಂගj a. Іၡᎇબ̈˚ಂՇ ɤϋ˟ ಂගʫБԴdಂගj (i) ʔ൴ཀ 129,000 ୋɧϋϋ БԴi (ii) ʔ൴ཀ 130,000 ΅ᐏબ ʘ БԴ ઓա(i) iʿ(iii)֠ တ БԴ ઓա(i) ʿ (ii)ۆ ʿʔ̙ΎᐏБԴf b. Іၡᎇબ̈˚ಂՇ ɤϋ˟ ಂගʫБԴ dಂග j (i) ʔ൴ཀ 30%ٙ ֵ БԴi (ii) ʔ൴ཀ 60%ٰ Б Դ ઓա(i) iʿ(iii)͊Б ۃ БԴ ઓա(i) ʿ (ii)ٰ ʿʔ̙ΎᐏБԴf
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5454 CHINA LILANG LIMITED ʮ̡5454 CHINA LILANG LIMITED ʮ̡ OTHER INFORMATION (CONTINUED) 其他資料 （續） c. The options are exercisable by the grantees during the period commencing from the day immediately following the expiry of two year period after the date of grant and ending on the day falling ten years after the date of grant, during which, (a) up to 2,811,000 options granted may be exercised on or prior to the end of the third year after the date of grant; (b) subject to (a), up to 2,850,000 options granted may be exercised on or prior to the end of the fourth year after the date of grant; and (c) subject to (a) and (b), all outstanding options may be exercised prior to the expiry of the said exercise period, failing which the options will lapse and no longer be exercisable. CORPORATE GOVERNANCE The Company had complied with all code provisions of the Corporate Governance Code and Corporate Governance Report as set out in Appendix 14 to the Listing Rules during the six months ended 30 June 2026. The Company has adopted the Model Code as the Company’s code of conduct regarding securities transactions by Directors. The Company has made specific enquiries of all the Directors, who confirmed their compliance with the required standards set out in the Model Code during the six months ended 30 June 2026. REVIEW OF INTERIM RESUL TS The Audit Committee comprises four independent non-executive Directors. The principal responsibilities of the Audit Committee are to review and supervise the financial reporting process and internal control systems of the Group. The interim results of the Group for the six months ended 30 June 2026 have not been audited but they have been reviewed by KPMG, the auditor of the Company, and the Audit Committee. PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES Neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the Company’s listed securities during the six months ended 30 June 2026. c. ܝ ܝ ಂගʫБԴ dಂග j (a) ʔ൴ ཀ 2,811,000બ̈˚ಂ БԴ i (b) ʔ൴ཀ 2,850,000ܝ БԴ ઓա (a) iʿ(c)ה БԴ ઓա(a)ʿ(b) ʿʔ̙Ύ ᐏБԴf ط ˜d͉ ༱ Άุ ૢ ˖f ͉ʮ̡ԫආ f͉ʮ̡ʊΣΌ ഃ ˜ɓ ༱̀ςᅺf ʕಂุᐶᄲ閱 ੂБԫଡ଼ϓf Ꮸীʿ္ຖ͉ණ ৌਕజѓҏʿʫ္છӻ୕f͉ණ ٙ ࢪ ึᄲቡf ᛙΫ͉ʮ̡ɪ̹ᗇՎ ˜d͉ א ᛙΫО͉ʮ̡ɪ̹ᗇՎf
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5555 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 20265555 ɚཧɚʬϋʕಂజѓ INTERIM REPORT 2026 OTHER INFORMATION (CONTINUED) 其他資料 （續） CLOSURE OF REGISTER OF MEMBERS In order to determine the entitlements to the proposed interim dividend, the register of members will be closed from Friday, 4 September 2026 to Tuesday, 8 September 2026 (both days inclusive) during which period no transfer of shares will be effected. In order to qualify for the proposed interim dividend, all transfers accompanied by the relevant share certificate must be lodged with the Company’s share registrar and transfer office in Hong Kong, Computershare Hong Kong Investor Services Limited at Shops 1712-1716, 17/F., Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong not later than 4:30 p.m. on Thursday, 3 September 2026 for registration. APPRECIATION I would like to thank our fellow Directors for their contribution and support throughout the period, and our management and staff for their dedication and hard work. I would like to express my sincere appreciation to our shareholders, customers and suppliers as well as our business associates for their continuing support. By Order of the Board WANG DONG XING Chairman Hong Kong, 17 August 2026 ΅ཀ˒೮া d͉ʮ̡ ಂʞ Їɚཧ ܼ ΅ཀ˒೮াdಂගʔึ፬ଣ ϗ՟ ɚཧɚʬϋ dਗ਼ ୃɓԻ༺͉ʮ ಥʕ̯ᗇՎ Χɽ༸ ؇183 Υձʕː 17 ᅽ 1712-1716 ⧕d˸ ፬ଣ೮া˓ᚃf ჼᑽ d˸ ւᘠʿрɢf ˒eԶᏐਠʿ ˸হːชᑽf ԫึն ࢩ ಥdɚཧɚʬϋɞ˜ɤɖ˚
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5656 CHINA LILANG LIMITED ʮ̡5656 CHINA LILANG LIMITED ʮ̡ OTHER INFORMATION (CONTINUED) 其他資料 （續） BOARD Executive Directors Mr. Wang Liang Xing (Chief Executive Officer) Mr. Wang Cong Xing Mr. Pan Rong Bin Mr. Wang Jun Hong Mr. Wang Zhi Yong Non-executive Directors Mr. Wang Dong Xing (Chairman) Mr. Cai Rong Hua Mr. Hu Cheng Chu Independent Non-executive Directors Mr. Lai Shixian Mr. Zhang Shengman Prof. Liao Jianwen Prof. Jiang Zhan SHARE INFORMATION Listing date: 25 September 2009 Board lot size: 1,000 shares Number of shares in issue: 1,197,484,919 shares (as at 30 June 2026) IR CONTACT If You Have Any Inquiries, Please Contact: China Lilang Limited Suite 3402, 34F, Tower One, Lippo Centre, 89 Queensway, Hong Kong Telephone: (852) 2526-6968 Fax: (852) 2526-6655 Email: ir@lilanz.com.hk Website: www.lilanz.com ԫึ ੂБԫ ᐼ ͛ ᆙ͛ ҃͛ ͛ ੂБԫ ᇹശ͛ ͛ ੂБԫ ፠˰ሬ͛ ᳅ਟ͛ ˖બ બ ࣘ ɪ̹˚ಂjɚཧཧɘϋɘ˜ɚɤʞ˚ ᅰj1,000ٰ ΅ᅰͦj1,197,484,919ٰ ɚཧɚʬϋʬ˜ɧɤ˚ ᑌഖ ༔dሗᑌᖩj ʮ̡ ᙒ༸ 89ࢭ34 ᅽ 3402܃ ཥ༑j(852) 2526-6968 ෂॆj(852) 2526-6655 ཥඉjir@lilanz.com.hk ၣ१jwww.lilanz.com
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PUBLICATION OF RESULTS ANNOUNCEMENT AND ANNUAL REPORT The 2026 Interim Report of the Company will be dispatched to shareholders and published on the website of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk and the Company’s website at www.lilanz.com in due course. This announcement can also be accessed on the above websites. GENERAL As at the date of this announcement, the Board comprises: Executive Directors: Independent Non-executive Directors: Mr. Wang Liang Xing (Vice Chairman Mr. Lai Shixian and Chief Executive Officer) Mr. Zhang Shengman Mr. Wang Cong Xing Prof. Liao Jianwen (Vice Chairman) Prof. Jiang Zhan Mr. Pan Rong Bin Mr. Wang Jun Hong Mr. Wang Zhi Yong Non-executive Directors: Mr. Wang Dong Xing (Chairman) Mr. Cai Rong Hua Mr. Hu Cheng Chu By order of the Board China Lilang Limited Shum Chi Chung Company Secretary Hong Kong, 17 August 2026