Gross Profit Rate Increased From 40.9% To 41.1%

The rate of gross profit increased from 40.9% to 41.1%.

The price of raw materials is relatively stable during the period, and the proportion of original products is increased, which helps the group control the production cost.

The group continued to increase its R & D investment to enhance its originality and total R & D cost increased by 13.1% to 40 million yuan.

(01234.HK) announced the interim results as at the end of June, with a net profit of 277 million yuan, an annual increase of 11.64%, a profit of 23 points per share, an interim dividend of 13 cents, a special dividend of 6 Hong Kong cents, and a total of 19 Hong Kong cents.

During the period, the turnover was 1 billion 188 million yuan, up 8.98% annually, and gross profit was 488 million yuan, up 9.5% year on year.

Gross profit margin increased from 40.9% to 41.1%.

The price of raw materials is relatively stable during the period, and the proportion of original products is increased, which helps the group control the production cost.

In June 30th, there were 3080 stores in the group.

During the period, the number of retail stores in the "LILANZ" brand was reduced by 15, and "L2".

The net number increased by 16, consistent with the target of 20 to 30 stores a year.

"L2" continued to expand the four growth potential provinces in Henan, Shaanxi, Hunan and Hubei. The total number of stores in four provinces increased by 9 to 126 during the year.

The average stock turnover days were improved from 68 to the end of the 58 day, and the average turnover days of receivable trade accounts were extended to 80 days from 70 days of the end of last year.

In the middle of the term, the gross profit margin increased by 0.2%.

01234-HK announces,

It rose 16.4% to 343 million 400 thousand yuan (RMB).

The same below is mainly driven by sales growth and government subsidies.

The profit margin increased by 1.8 percentage points to 28.9%.

Gross profit margin increased by 0.2 percentage points to 41.1%.

The price of raw materials is relatively stable during the period, and the proportion of original products will increase. This will help the group control the production cost and enable the group to implement the strategy of "upgrading quality without raising prices", so as to promote overall sales growth, while gross profit margins will remain stable.

The sales cost increased by 8.6% to 700 million 300 thousand yuan, which was consistent with the growth rate of revenue.

The group continued to increase its R & D investment to enhance its originality and total R & D cost increased by 13.1% to 40 million yuan.

The cost of self production (including subcontracted expenses) increased by 2.2 points to 50.5% in total sales cost (48.3% in the first half of 2014).