Li Lang Plans To Open More Than 300 New Stores A Year In The Next 3 Years.

According to Hongkong media reports, with the rapid development of the mainland economy, consumer demand for brand-name clothing has been increasing, so that operators can get more opportunities for expansion.

Wang Liangxing, chief executive of the company, revealed yesterday that the group plans to open 300-400 new stores a year in the next 3 years, and gradually enter the first and second tier cities to increase its strongholds so as to enhance the brand image.

Wang Liangxing said at yesterday's performance meeting that the group will further consolidate and expand its distribution network this year and expand its coverage of retail business.

He disclosed that the group is now actively deploying the launch of the brand new "L2", which aims at the 20-30 year old young customer base. It plans to launch in April this year, and will open 100 branches in the mainland in July, mainly in provincial capitals and prefecture level cities in different provinces.

However, the group did not intend to open branches in Hong Kong for 1-2 years, mainly because it wanted to achieve greater success in the mainland market.

Group chief financial officer Yu said that the capital expenditure this year is about 200 million yuan (RMB, the same below), of which marketing costs will account for a large proportion.

The marketing center director, Zhang Yufeng, revealed that the same store sales increased by 15% last year, but the data have not been counted since this year, but they are confident that they will maintain a good level.

In terms of price, he said that inflation in the mainland was only 3%, and the pressure on prices temporarily was not large.

On Monday, the company announced its first final performance after listing. Shareholders recorded a profit of 303 million yuan at the end of 09 December 31st, an increase of 96.6% over the same period in 08, exceeding the profit forecast for the prospectus.

Earnings per share were 30.87 points, sending a final interest rate of 11 points.

The performance was better than that of the stock market. The stock price was once good, with a high price of 7.5 yuan, a rise of 7.91%, a new high in the stock market, but a sharp rise in the stock market, or a decrease of 2.6% to 6.77 yuan.

According to the performance report, sales and sales prices all increased during the period, resulting in a sharp surge in turnover and performance.

The average wholesale price of clothing and accessories rose 12% to 159 yuan, and rose 19% to 100 yuan, leading to a 5 percentage point increase in gross margin to 35.3%.