Lining Releases Signs Of Good Investment And Continues Investment Reform Plan

Recently, Li Ning Co announced that the group has entered the next stage of development. According to the announcement, the group's income has been growing steadily. From July 2014 to November, the income growth rate was about 20% based on the year-on-year benchmark, much higher than the 8% recorded in the first half of 2014, which was disclosed in the mid 2014 report.

The Li Ning Co continued to invest in the second half of 2014. This plan enables enterprises to gradually release their profit potential and achieve long-term sustainable development.

The announcement also shows that channel profitability has been continuously improved in terms of business performance.

As of the second quarter of 2015, orders for orders increased for the five consecutive quarter, and the same store sales in the second half of 2014 were positive.

According to this, it is easy to see that after a series of changes, Li Ning Co has shown signs of good performance now, laying a solid foundation for turning losses into profits.

Li Ning Co also said in its announcement that, as disclosed before the mid-term report in 2014, the net loss recorded in the first half of 2014 was mainly due to the initial investment required by the implementation of the group's change plan launched in July 2012, due to the earlier clearance of the channel inventory, resulting in reduced shipments, provision for bad debts and other expenses.

In the second half of 2014, Li Ning Co continued its investment and change plan, which will enable the company to gradually release its profit potential and achieve long-term sustainable development.

However, the effectiveness of the investment plan can only be reflected in the company's financial performance. Therefore, the company's performance and financial performance remain under pressure in the first half of 2014, and affect the profitability of the second half of 2014.

Lining, founder and executive chairman of Li Ning Co, said: "the company will continue to adhere to its inherent strategic focus, namely, focusing on the brand of Lining, focusing on the Chinese market, promoting channel rehabilitation plan, and focusing on core sports categories, such as basketball, running, comprehensive training, badminton and sports life.

The company has made steady progress in developing the inspiring sports related products and expanding its product range to further penetrate into China's major regional markets.

The company continues to insist on Lining style.

The idea is to make full use of sponsorship for athletes and national teams, consolidate the unique Chinese sports culture, and combine innovative social media, sports events and store sales to achieve the sale of cost-effective products.

We are also committed to improving the efficiency and profitability of Direct stores and strengthening our long-term relationship with channel partners. "

Li Ning Co non-executive directors and TPG partners

"Li Ning Co and TPG are pleased with the progress made by the company.

TPG will continue to use its rich industry related experience and resources to support the development of Li Ning Co. "