Lining Responded To The Bankruptcy Of Spain'S Subsidiaries, Leaving Senior Executives To Leave.

Recently, some media reported that China Sports goods Lining, the producer of the Spanish Company, declared bankruptcy, resulting in many sports clubs in Spain unable to get the original equipment to deal with the next season.

Zhu Qinghua, a light industry researcher at CIC, said in an interview with reporters: "the bankruptcy of Spanish Company Spanish Company will make the promotion of Lining related products in Spain face a lot of obstacles, and it will also weaken Lining's overall strength and global influence."

Zhu Qinghua told reporters at the same time: "the reason for the bankruptcy of Spanish Company Spanish Company is mainly due to the deepening of the Spanish economic crisis, and the Li Ning Co has suffered irreparable financial deficits so that it finally goes bankrupt."

According to Lining, director of the public relations department of the public brand, "after verification with the company's international market department, this rumor is not consistent with the facts."

Deutsche Bank: Lining's short term profit is limited.

Recently, Deutsche Bank released a research report to cut Lining's target price.

Deutsche Bank pointed out that following Lining's resignation as chief executive officer, the bank expects the company to strengthen its TPG participation in its operation. In the past 6-12 months, the bank believes that the high inventory and discount rate is still the resistance of the company.

Although TPG's investment in Lining's retail and promotion may affect short-term profits, it is believed that the long-term development of the brand will be improved. The pace of improvement depends mainly on the sales growth of the industry and whether the distributors can give the distributors less discount rate.

Based on the risks in the business environment and the limited short-term profits, the bank will reduce its 2012-14 year profit measurement by 43-63%, and the target price will be reduced from 7.5 yuan to 4.7 yuan, with a rating of "holding".

At the same time, Lining, a sports brand bigwigs, is facing a series of "contradictions", such as brand aging, reform and retreat, executives running away, and Lining himself planning to enter the real estate market.

Zhu Qinghua said: "at present, the domestic sports apparel industry has entered the second half of the mature stage. The biggest decline in scale growth, high market concentration and high inventory is the biggest feature of the industry. In the environment of continued expansion of the industry, the international big Brand Company also increased the "horse race enclosure".

But in recent years, Lining has failed in several reforms. In addition, the price raising measures put forward by Lining are regarded as "chronic suicide" by the industry. Because most of its customer groups are concentrated in two or three tier cities with limited purchasing power, the continuous price increase has left the original cost performance advantage intact, leading to high-end consumers turning. Adidas (Adidas) and Nike (Nike) and other international brands, low-end consumers are turning to more affordable Anta and PEAK. Lining finally ended up in an awkward situation.

Executives leave Lining to return

Since 2011, Lining's chief brand official Shi Wei, chief operating officer Guo Jianxin, Lotto (Le Tu) general manager Wu Xianyong and other core executives have left. In November of the same year, Xu Maochun, the newly appointed chief product officer, also went on the market. In May of this year, Lining announced the arrangement of high-level substitutions and the development plan for the next 3 years.

according to Li Ning Co The announcement indicates that Zhang Zhiyong resigned as chief executive officer of the company and was no longer a member of the Executive Committee of the board of directors since July 4th. He was appointed chief adviser to the Executive Committee of the board of directors to ensure a smooth transition of the company's management before the new chief executive took office.

At the same time, Li Ning Co said Jin Zhenjun, partner of private equity fund TPG, served as executive director and executive vice president of the company. Su Jingshi, chairman of China business division of Yum Sun Restaurant Group, was appointed as the independent non-executive director of the company. Before hiring the new chief executive, Li Ning Co will be led by the founder and executive chairman Lining and Jin Zhenjun. Lining will be mainly responsible for the external affairs and relations of the company, while Jin Zhenjun is mainly responsible for the internal affairs and operation of the group, and will promote the transformation of the group during the transition period.

Li Ning Co said that in 2012, the sports industry competition was more intense, and the discount promotion efforts were further intensified. At present, solving the problem of high inventory is the "urgent matter" of the company.