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    Lining Team Reacts Executives Away

    2011/11/15 10:07:00 12

    Lining Stock Market Order

      

    Order

    Sharp drop in volume, high inventory,

    market

    Atrophy,

    Price of stock

    Falling and a series of negative factors.

    Lining

    Recently, there was another high-level personnel earthquake.

    From 13 days, Xu Maochun, the former chief product officer of Li Ning Co, formally resigned. This is the fifth senior executive of Li Ning Co since this year. Two weeks ago, Zhang Xiaoyan, director of the Li Ning Co government and director of external public affairs, has also been confirmed to leave the company.


    For two executives running away in two weeks, Li Ning Co's explanation is "normal changes in organizational structure and management", but the industry generally believes that frequent personnel changes at high levels are related to the failure of Lining's brand remodeling.


    At the end of June last year, Li Ning Co launched a series of brand reinventing plans, such as changing labels and changing slogans.

    However, over the past year and a half, Lining's orders declined due to a large number of old products, such as backlog of stock, the failure to straighten out the channels, and the market's failure to recognize the new standard.

    In the first half of this year, net profit of Li Ning Co decreased by 50% compared to the same period last year.


    "As chief product officer, we must be responsible for the continued decline of new product orders," an industry insider who did not want to be named pointed out that the resignation of two executives in two weeks indicates that Lining began paying debts for the brand remolding plan.


    In the capital market, because of frequent profit warning, Lining shares were sold by investors, and the share price fell into a long decline.

    Lining's share price dropped from HK $14 to HK $7 in July. Less than 5 months later, the share price was cut off.

    In the eyes of international investment banks, Lining's current predicament is the epitome of the whole sports apparel industry. "With the aging of the industry, some of the smaller and less cash businesses will be eliminated, but the large sportswear dealers can get through this crisis."

    Goldman Sachs pointed out that Lining, the first to go inventory, is expected to take the lead in "recovery".

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