Lining Responded By Giving Up Sponsorship Of The International Gymnastics Team: Reluctantly Giving Up.

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< p > August 14th, Lining (Lining store) announces its first half of 2014 performance. The group achieved 3 billion 137 million yuan in the first half of the year, up 8% from the same period last year, and the gross profit margin was 1 billion 400 million yuan, up 10.51% compared to the same period last year.

But the loss expanded from 184 million yuan in the same period last year to 586 million yuan.

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< p > > a href= "http://sjfzxm.com/news/index_z.asp" > Data < /a > shows that higher inventory, provision for bad debts and manpower cost are the main factors that affect Lining's current performance.

In further explaining the implementation of the Lining group's reform plan, Mr. Lining, founder and executive chairman of the group, also responded for the first time why he gave up sponsorship of the national gymnastics team.

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< p > < strong > change plan "scrape the wound heal" < /strong > < /p >

< p > financial reports show that Li Ning Co lost 586 million yuan in the first half of the year. The company said that the group's platform fees (excluding one-time fees) were relatively high in scale of income, but still had a significant negative leverage on company profits and brought negative cash flow to business activities.

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During the reporting period, the net loss was consistent with that of the same period last year in addition to bad debt provision and other items. The group's early investment in the implementation of the change plan was reduced by wholesale sales after clearing the channel inventory, and the provision of bad debts further eliminated the risks faced by the group recovery and other major one-time projects. P

However, the removal of these factors resulted in a decrease in core operating losses in the company compared with the same period last year.

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< p > by the end of June, the total provision for inventory provision was about 400 million yuan, and 2013 (2013 stores) at the end of the year was 382 million yuan.

Lining, vice chairman of TPG, Jin Zhenjun, a private equity fund shareholder, said that the old inventory had been cleared for more than half, and more than two years of inventory had been cleared up, and only about 20% remained for more than a year.

At the same time, sales of new products increased by more than 20%, and grew rapidly.

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Lining P announced the implementation of the change plan in 2012. The reform has been promoted for two years. Lining said that the company's financial position has improved significantly, and the pformation plan has achieved many achievements in various aspects, including improving the sales strength of new products and optimizing shop network and supply chain.

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< p > < strong > Lining's first talk with the National Gymnastics Team "break up" < /strong > /p >

In August 4th, Lining's domestic competitor Anta (Anta store) Co operated with the National Sports Administration's gymnastic movement management center in the Gymnastics Hall of the State Sports General Administration Training Bureau. This move also showed that the strategic cooperation between Lining and the national gymnastic team for 23 years ended abruptly.

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< p > 1986, in the Rome gymnastics competition, Lining included six all-around champions, including the parallel bars. In 1990, Lining founded Lining Sports Products Co., Ltd. and began to cooperate with the national gymnastics team, so Lining had a deep relationship with the national gymnastics team.

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In 2014 P, after the expiration of the sponsorship contract between Li Ning Co and the national gymnastics team, he gave up sponsorship and cooperation. In this regard, Lining himself said that he had abandoned the sponsorship of the National Gymnastics Team in order to combine the limited resources with the company strategy more closely, to lock the core sports category nowadays, and to focus on the five core sports of basketball, running, badminton, training and sports life.

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< p >, but when it comes to breaking up with the gymnastic team, Lining himself is very sad. "For me, this decision is a great pressure. Gymnastics is part of my life. I am also very miserable."

But I have to make this choice, because this is the right choice for the company.

But he also said he would continue to focus on Chinese gymnastics.

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< p > Jin Zhenjun believes that Lining's decision to give up sponsorship voluntarily is very moving, reflecting Lining's determination to pform the company.

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