Lining Era: Achievements Return To Growth Track

It looks like Lining is on the right track. Recently, Lining announced the 2014 earnings report, operating income increased 16% to 6 billion 730 million yuan, 23% in the second half. Gross profit margin was 45% last year, and gross profit increased by 16% to 3 billion yuan. However, Lining group's basic investment in the early stage still caused some pressure on earnings. In 2014, Lining lost 780 million yuan.

In terms of inventory, Lining's share of inventory over 12 months dropped from about 40% in 2012 to about 25% in 2014, and the new product (season and last quarter) accounted for more than 55%. Channel Inventory (tag price) continued to decline year by year, down 33% from the peak in 2011.

"My duty is to make Lining return to profitability and continue to make profits." Lining said in an interview.

At the same time, the Li Ning Co announced a major decision at the same time, and executive chairman Lining also acted as deputy chief executive officer. This means that Lining formally returned to the Lining era. Although Lining responded that he would continue to look for the chief executive, however, whether Lining was inside or outside, he was optimistic about Lining's return. As of 12:30 am, the stock price rose by 11.878%.

Lining himself was last from behind the scenes to the stage in 2012. In that year, the performance of Anta, XTEP, PEAK and 31st degree major domestic listed brands declined to varying degrees, while Lining group's first loss was also the year when Lining began to change. The retail transformation initiated by Lining is involved in dealers, retailers and other chains. Both inside and outside employees or outside investors believe that Lining himself can fully mobilize the enthusiasm of the whole staff. In November 2014, the acting chief executive Kim Kim Chun resigned. Lining temporarily performs his duties.

Many things have happened after Mr. Lining has carried out his duties.

At the end of last year, Li Ning Co raised the maximum amount of about 1 billion 350 million yuan in the way of offering common shares and convertible securities in order to be used for the next stage of development of the company. Operating capital And optimize the company's capital structure.

In January 28th, Li Ning Co announced the establishment of a core category business unit. In each core category business unit, it formed a team consisting of seven major systems, including market analysis, commodity planning, product planning, product design, listing planning, sales channel strategy, and consumer communication plan.

"So far, there are more than 50 people reporting directly to me, which can simplify the process, such as developing millet cooperation and directly cling to it." Mr. Lining said that the company has a lot of room to adjust its cost control. The adjustment of the organizational structure is also a cost reduction. It is expected that the company will reduce its annual production by 130 million.

In March 16th, Lining announced cooperation with millet to produce cheap running shoes. On the one hand, Lining became the first domestic brand to cater for the new generation of consumers with new technology. On the other hand, Lining is more pragmatic in pricing strategy. It is estimated that the price of the third quarter products will be the lowest in the same category.

However, the burden is not too light. In 2014, the annual reports of sporting goods companies were released. The revenues of Anta, XTEP and 361 degrees were 8 billion 905 million, 4 billion 770 million and 3 billion 906 million yuan, respectively, increasing by 22%, 10% and 9% respectively. Despite the growth rate, Lining's vitality has gradually recovered, but from a profit standpoint, it is still one of the losses.

Mr Lining said, "if there is no adjustment, Lining will not lose money. In the past two or three years, the old mode has been abandoned and profits have been lost." However, as a Brand Company with light assets, "Lining hopes for a bigger platform and hopes for sustained profits. Therefore, the key to success depends on products. Retail operation And channels and so on.

Now, the adjustment has been completed. The provision for bad debts has been reduced by 300 million, and losses have been reduced. Lining said he expected to make profits this year.

According to the company's earnings report, Lining has decided to concentrate the core sports resources and invest in the five core sports categories including basketball, running, badminton, training and sports life.

In terms of products, the proportion of retail income in basketball, running, training and sports activities increased by 10 percentage points, accounting for 77% of the total income of the group.

　　 Retail operation capability In terms of commodity planning and tail cargo channels, Lining said that after three years of channel optimization, inventory structure has reached a relatively healthy level. As far as the tag price is concerned, the order meeting (excluding subsidiaries) has increased year-on-year in the five quarter of 2015 until the third quarter of last year.

Lining said that in terms of channels, the group will continue to strengthen cooperation with channel partners, expand potential market space and strategically enter low permeability southern China. In terms of retail operation capability, the group will have a more accurate grasp of the product's full sales mode, from product development, product planning, product sales mix, to store retail and tail cargo clearance to the entire chain of funds to promote a virtuous circle.

At the same time, in order to adapt to the new consumption trend in the Internet age, in April 2015, Lining's footwear products jointly with man Wei will be officially launched, and will promote online and offline marketing with digital marketing and media strategy.

Lining plans to launch a micro manager plan to enable young entrepreneurs to help Lining sell shoes at mobile terminals. "Robbing red packets during the Spring Festival is enough to prove the trend of mobile terminals." Mr. Lining said. And Lining's goal is that Internet channel revenue accounts for 25%.

The future may even include the return of A shares. "Ten years ago, without this opportunity, everything is possible now." Lining said.