Coping With Rising Costs &Nbsp; Local Sports Brand Collective Price Increases In The Fourth Quarter

According to reports, domestic sports

Lining brand new product orders in the fourth quarter of 2011 will end in June.

Li Ning Co said that the order amount determined at the order meeting increased by more than 5% compared with the same period last year, and the average retail price of clothing and footwear products increased by more than 10%.

Zhang Xiaoyan, director of the Li Ning Co government and public relations department, explained in an interview that the increase was mainly due to increased investment in research and development and improved product cost performance.

Coincidentally, the average selling price of footwear and clothing has increased by 10% and 17% respectively after the end of the winter order conference of 361 (01361.HK).

361 orders received will increase by 27% compared with the order held in April last year, of which the number of footwear increased by 12% and orders for clothing products increased by 10%.

On the 361 hand, the increase in the average price of clothing reflects the rising cost of raw materials and the overall higher quality of the garment.

In addition, Anta sports (02020.HK) increased by 25% in the fourth quarter of 2011 compared with the same period last year. The average selling price of sports shoes and clothing also increased by double figures compared with the same period last year.

According to Lining's prediction of the main financial performance in the first half of 2011, the overall sales revenue of the group in the first half of this year will be about 5% lower than that of the same period last year.

Affected by the new wholesale discount policy and the rising production costs of raw materials and labor, the gross margin level dropped by 1 percentage points from 47.9% in the same period last year.

A 5% drop in earnings warning led to a sharp plunge in the share price of Li Ning Co (02331.HK), which plunged 27% in nearly three days, and the market value evaporated nearly HK $3 billion 700 million.

Investment banks, including UBS, have thrown out the report of singing empty, rating Lining's investment rating from "neutral" to "selling".

At the same time, Lining and China trend (03818.HK) issued a profit early warning drag, 11 listed in Hong Kong's domestic sports brand share price fell.

At the end of 12, Hong Kong stocks closed at HK $9.91, or 2.84%, Lining.

Other stocks, XTEP International (01368.HK) fell 2.78%, 361 rose 2.10%, Anta sports fell 0.64%, PEAK sports (01968.HK) fell 3.83%.