Lining And Other Sports Brands Have Fallen To The Bottom Of The Reform And Survival Is Imminent.

Once the Chinese mainland

Lining, the boss, reflects the ups and downs of the industry.

Catching up with the fastest ten years of China's economic development and catching up with the fast track of the Beijing Olympic Games, the revenue in China even caught up with the international giant Nike.

But happiness comes and goes quickly.

Because of the accumulative superposition of problems such as unclear positioning and pformation, improper price increase and confusion in management, Lining's position as a leader has finally been handed over to others. What's more, the company has plunged into a lot of difficulties, such as the sharp decline in performance and orders, the turbulence of executives, the Ku Cungao enterprises, the swing of positions, the internal and external clamping attacks, and so on. When can we get back to the peak, no one can give an accurate prediction.

At the end of 2011, Lining's share price fell to 6 Hong Kong dollars / share.

While investors are suffering from shrinking share prices, investors are eager to know what has happened to Lining.

The answer can be found in all the annual reports issued in March 29, 2012.

The total revenue of Li Ning Co in 2011 was 8 billion 929 million yuan, down 5.80% from the same period last year. Net profit was 386 million yuan, down 65.19% from the same period last year, and the basic earnings per share were 0.367 yuan.

In 2010, Lining's earnings per share were as high as 1.07 yuan.

At the same time, Lining's inventory in 2011 has reached 1 billion 130 million yuan, an increase of 40.57% over the same period last year, almost two times that of 2008, and the number of days of inventory turnover also increased from 52 days in the previous year to 73 days.

Lining also issued a performance warning earlier, saying that the annual orders fell. It is expected that profits in the first half of this year and the whole year will drop sharply.

In the first quarter of July, the order volume (calculated at wholesale value) decreased by 20% to 30% in the first quarter of 2013.

PEAK is also facing a similar embarrassing experience.

Orders for the fourth quarter of this year, footwear products and

Products fell by 20% to 30%.

PEAK expects that the number of stores will be reduced to 7000 by the end of this year, with a drop of around 10%.

Dongxing Securities believes that according to the life cycle of the apparel industry, the domestic sportswear is in the second half of the mature period.

The current market has shown signs of growth lacklacklable, and the era of easy money continues over the past few years.

So far, Lining 2012 annual order meeting has been completed, the fourth quarter of the first quarter of the order has a larger decline.

In terms of clothing, the amount of orders has fallen by more than 20%.

At the same time, affected by the amount and duration of CBA sponsorship contracts, the brand marketing and promotion costs will increase significantly in the fourth quarter to the third quarter of 2017. With the impairment of intangible assets of Lotto franchise business and interest on convertible bonds, Lining expects that the pre tax profit and net profit will decrease considerably in the first half of this year and the whole year.

Lining's performance fell sharply last year.

Lining's net profit decreased by 65.2% to 386 million yuan last year, and its profit declines ranked first among Anta, XTEP, XTEP and PEAK.

In order to improve this dilemma, Lining has said that it will continue to promote channel pformation, enhance the retail efficiency of the two to four line market, further clean up the retail end inventory and speed up cash turnover.

However, Lining is not the only way to sink the channel. As early as 2010, Nike launched 300 yuan low price shoes to seize the middle and low end market.

Meanwhile, Adidas, the world's second largest sporting goods manufacturer, has said that by 2015, it will open more than 2500 stores in two or three cities in China, covering 1400 cities, including small cities with a population of 50 thousand to 500 thousand.

By contrast, Lining's brand influence and price advantage are even more bleak.

The superposition of various reasons makes Lining's performance slightly extreme, but behind this is the deep thinking of whether the whole local sports brand has left gold for ten years.

Because not only is it

Similarly, Anta, XTEP and PEAK, which are also in the first camp, have low turnover in 2011.