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    Lining Net Profit Fell 49.5% In The First Half Of The Year

    2011/8/26 14:19:00 37

    Lining Half Year Net Profit Year-On-Year

    Overstock

    cost

    Lining's net profit dropped by 49.5% to 294 million yuan in the first half of compared with the increase in the discount rate of dealers and the discount rate of dealers. The income also decreased by 4.8% to 4 billion 289 million yuan compared with the same period last year.


    Lining has been upscale in recent years.

    commodity

    The process of pformation is not smooth, and the pressure of excessive inventory on the company has become increasingly prominent.

    Half year performance data showed that the increase in inventory balance resulted in a 35.9% increase in inventory provision than at the end of last year.

    Zhang Zhiyong, chief executive of the company, said it plans to reduce its inventory to a normal level in 2012.


    Zhang Zhiyong said that the future will continue to expand sales channels coverage, the main force to expand the two or three line cities.

    Zhang Zhiyong also

    Express

    It will pay more attention to the growth of same store sales rather than network expansion.

    According to the performance bulletin, by the end of June, the company had a total of 8163 stores, with a net increase of 248.


    Li Ning Co is not optimistic about the outlook for the second half of this year.

    According to the report, the total volume of orders is expected to drop by 5% over the same period this year. It is estimated that raw material costs will increase substantially in the second half of this year, and the gross profit margin will decrease in the second half of the year.


    Yesterday, Lining shares fell more than 3%, closing slightly up 0.33% to close at HK $9.03.


     
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