Li Ning Co Sells Shares To Executives To Help Themselves

< p > allowing high-level shareholding to launch the "channel revival" plan, facing the first loss of listing in eight years, < a href= "http://www.91se91.com/news/index_x.asp" > Lining < /a > the company chose to respond positively to hope for rebirth of nirvana.

In December 20th, the Li Ning Co announced that the board had sold 19 million 410 thousand share options to the company directors, senior managers and consultants on the basis of the share option scheme. The exercise price was HK $5.36, which is equivalent to the closing price of the previous trading day.

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< p > < strong > industry downturn. Lining is also tired of < /strong > < /p >.

< p > December 17th, Li Ning Co announced that as of December 31, 2012, it is expected that the company will lose substantially in the current fiscal year.

This is Lining's first financial year loss since it was listed on the HKEx in 2004, and selling shares to the company's senior level is undoubtedly one of the best ways to deal with losses.

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< p > according to the 2012 annual report of China sporting goods industry, the total inventory of the six major domestic sports brands such as Lining, Anta, XTEP, XTEP, PEAK and so on this year is as high as 3 billion 721 million yuan, compared with the total inventory of 3 billion 699 million yuan at the end of last year, which has increased by more than 22 million yuan.

Lining's income in the first half of this year was 3 billion 880 million yuan, a decrease of 9.5% compared with the same period last year, and net profit was 44 million yuan, a decrease of 84.9% compared with the same period last year.

With the sharp decrease in net profit in the first half of the year, personnel changes at the top of Li Ning Co also drew attention.

At the end of June this year, Li Ning Co announced that Zhang Zhiyong, CEO of 10 years in office, was dismissed from the course. He was vice president of the Dezhou Pacific (601099) group, a href= "http://www.91se91.com/pioneer/" > Kim Chun Jun /a, and became the core of Li Ning Co's actual operation management.

In addition, before the change of top leadership, Li Ning Co began to lay off workers aiming at reducing the cost of human resources.

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< p > < strong > the company's ambition is to turn over /strong < < /p >.

< p > in the face of all kinds of adverse circumstances, Lining condensed the combat effectiveness of the employees by giving out share options.

At the same time, in order to solve the current large inventory, Li Ning Co issued a notice on the evening of 17, announced that it will implement a large-scale one-time channel rehabilitation plan, with a view to dredging the channel problem caused by high inventory.

Based on the preliminary success of the pilot scheme, the Li Ning Co Board approved the implementation of the channel a href= "http://www.91se91.com/news/index_s.asp" > recovery plan < /a >. The total investment is estimated to be between 1 billion 400 million yuan and 1 billion 800 million yuan.

Lining's plan focuses on supporting dealers to clean up inventory, buy back, integrate sales channels, and restructure accounts receivable for dealers.

The one-time investment of the channel revival plan will mainly be reflected in non cash and offset accounts receivable.

The company's internal changes, as well as a lot of stock on the market, at the same time take the thunder measures.

We can see that Lining is determined to face the dilemma of the determination to rebirth. But in the past two years, the domestic clothing industry generally adopted the product wholesale mode, which led to rapid development, high channel inventory and rising costs. Lining's two pronged effect remains to be seen. However, from the perspective of the industry, Lining's two positive measures should win good results.

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< p > "let the management shareholding aim at gaining people's hearts. At present, Lining has a lot of pressure. Li Ning Co's move is to let employees treat their company as their own home, and the business effect will be greatly improved. The enthusiasm and enthusiasm of employees will be mobilized. Relying on the team to pull back the disadvantage is Lining's strategic decision."

Chen Yi, a retail trainer at Huda's management consulting company, said Chen Yi, a retail trainer at Huda's management consulting company.

Now that we have made the move, what is the effect of these two measures? Chen Yi said that we can make management and employee stock ownership, take the channel to revive the stock repurchase, and have a strong reputation.

Lining, who has experienced high-level changes, left behind employees who have enough feelings for the company. This will undoubtedly stimulate the morale of these people. It is a good way to stabilize the team.

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