Lining's Poor Performance Is Expected To Reach 820 Million Yuan Last Year.

The Li Ning Co announced in the morning of January 9th that it is expected that in the 2014 fiscal year, the loss of the company will not exceed 820 million yuan, and the annual loss is only 19.8 billion yuan in the 2012 fiscal year, which will be a loss for third consecutive years.

The Li Ning Co previously announced that the net loss attributable to the company's equity holders was about 590 million yuan in the six months ended June 30, 2014. According to the annual loss of 820 million yuan, the loss is expected to be 230 million yuan in the second half of 2014, and the loss has narrowed compared with the first half of the year.

For the reasons for the loss, Li Ning Co said there were two main reasons: first, to implement the previous investment required by the company's change plan launched in July 2012, as well as the previous liquidation. Channel inventory The reduction in delivery, provision for bad debts and other expenses also increased the amount of losses.

In addition, Li Ning Co continued to invest in the change plan in the second half of 2014. The plan is expected to allow Li Ning Co to gradually release its earning potential and achieve long-term sustainable development. However, the benefits of investing in the scheme still need time, and this also affects the profitability of the second half of 2014.

Sullivan, global partner and chief executive of Greater China, told reporters earlier that Wang Xin's resignation has impeded the smooth operation of Lining's change strategy. By the end of 2014, the Li Ning Co announced that Lining himself would take the lead in acting as president of the enterprise, and Lining himself would be able to inject confidence into the capital market. But overall, Lining's reform plan is not effective enough, and the task is arduous.

In the 2012 fiscal year and the 2013 fiscal year, Li Ning Co lost about 1 billion 980 million yuan and 390 million yuan respectively. In the second half of 2014, Li Ning Co's performance has already shown signs of reversal.

During the five months from July 2014 to November, the income growth rate was about 20% based on the year-on-year benchmark, much higher than the 8% recorded in the first half of 2014 in the mid 2014 report.

In terms of business performance, Li Ning Co's channel profitability has improved. Its futures orders recorded a year-on-year growth in the second quarter of 2015 (the data in the third quarter of 2015 not yet determined) for the five consecutive quarter. In the second half of 2014, Li Ning Co's quarterly store sales rose to positive growth.

Li Ning Co said it will focus on improving the efficiency and profitability of Direct stores, and strengthening its long-term cooperation with channel partners. Its marketing strategy is to make full use of sponsorship for athletes and teams, consolidate unique Chinese sports traditions and high performance price ratio, as well as innovative social media, sports events and store marketing.

In January 9th, Li Ning Co also announced the launch of rights issue fundraising. According to the previously announced plan, eligible shareholders of Li Ning Co can issue 5 copies of the benchmark for offering securities on each holding of 12 shares of existing common stock, choose the existing shares to subscribe for common stock, or apply for convertible securities, with a subscription price of HK $2.60 each. The number of securities issued is estimated to be about 584 million ~6.52 billion, which can be raised to HK $15~17 per HK $2.6 per share.

Such a successful fund-raising, Li Ning Co's financial pressure will be greatly alleviated, and Lining himself more involved in the daily operation of the company, in the old employees of Li Ning Co, it helps to form an internal force to bring the company out for many years.

Lining himself has said: "in Li Ning Co During the management transition period, I will participate in more daily operations with the help of the management team. The board and myself attached great importance to the continuous support from the wholesale investors to the business models dominated by sports marketing, product and retail operation capabilities. We are entering the new development journey and establishing the leading position. Sports brand The vision is full of confidence.