Li Ning’s Sales Climb 22 Percent In First Half

Source:China Sport ShowRelease time:21-Aug-2022Clicks:

Article From：SGB MEDIA

Li Ning Company, Ltd. reported net income grew 11.6 percent in the half ended June 30 on a 21.7 percent revenue gain. The improvement came despite the “impact of repeated outbreaks of the COVID-19 pandemic and significant increase in raw material prices that led to certain challenges to the operating environment.”

Sales reached RMB12,409 million ($1.8 bn) against RMB10,197 million a year ago.

By Product Category:

Footwear sales climbed 47.1 percent to RMB6,759 million against RMB4,594 million;

Apparel sales declined 3.1 percent to RMB4,907 million from RMB5,061 million; and

Equipment sales improved 37.4 percent to RMB743 million from RMB541 million.

Net profit came to RMB2,189 million versus RMB1,962 million a year ago, and the net profit margin decreased from 19.2 percent to 17.6 percent. Gross profit margin was lowered by 5.9 percentage points to 50.0 percent

Operational Highlights

Operation improvement mitigated a certain extent of the negative impact of COVID-19.

The retail sell-through for the overall platform increased by high-single-digits, including online and offline channels.

Channel inventory increased by the mid-forties, mainly due to business expansion and the early layout planning made by the company to seize opportunities for growth. The inventory turnover remained at a healthy level with continuous improvement in the aging structure.

Offline channel new product sell-through increased by mid-teens.

sell-through mix of new products increased by 6 percentage points;

sell-out rate for 6 months declined by approximately 7 percentage points; and

sell-out rate for 3 months declined by approximately 9 percentage points.