Li Ning Co's 2014 Performance Picked Up, And Lining Led The Company Back.

　　 Li Ning Co announces 2014 annual performance

The board appointed Lining and acting chief executive officer to lead the business back to growth track.

In March 19, 2015, one of China's leading sports brand companies in Hongkong. Li Ning Company Limited ("Lining" or "group"; Hongkong Stock Exchange Stock Code: 2331) announces year-round results for the year ended December 31, 2014. The group's annual revenue will return to growth track, increasing by 16% to 6 billion 730 million yuan per year.

Gross profit margin remained at a stable level of 45% during the year, and Maori run up to 3 billion yuan. The group's initial investment in the early stage still caused some pressure on the profit this year, and the loss of equity holders in 2014 was 780 million yuan. After adjusting interest rate, depreciation and amortization, profit (EBITDA) 1 recorded a loss, but improved compared with last year, narrowing by 82% in the second half of the year.

Over the past year, the old stock of the group has been significantly reduced, and the share of inventories over 12 months has dropped from about 40% in 2012 to about 25% in 2014. The proportion of new products (season and last quarter) is more than 55%. Channel Inventory (tag price) continued to decline year by year, down 33% from the peak in 2011. Channel store network The optimization has been completed; the old stock in the channel has been significantly reduced, and the proportion of new products (season and last season) in 2014 is 55% higher.

In 2014, the group continued to improve its business on the basis of previous investment. The Chinese government has introduced a number of supportive policies to encourage the overall development of the domestic sports industry, aiming at building a healthy and healthy mass sports culture and harmonious community. With the continuous deepening of urbanization in China, the enthusiasm of the public to participate in sports has been decreasing. Sporting goods industry The long-term development brings new opportunities. The group concentrates on the core sports resources and puts five core sports categories including basketball, running, badminton, training and sports life.

In terms of products, the proportion of retail sales of basketball, running, training and sports activities increased by 10 percentage points year-on-year, accounting for 77% of the total running water of the group. New products have shown unique competitiveness in the market, and the brand image of the leading market has been deepened. Channel, after three years of channel optimization, the inventory structure has reached a relatively healthy level; with the tag price as the order, the order meeting (excluding subsidiaries) recorded a year-on-year growth in the five quarter of 2015 until the third quarter of 2015, while the sales channel network of the Li Ning Co was stable. However, due to the inertia of the joint operations, the group lost some of its due market. The ability of commodity planning, tail cargo handling and cash withdrawal in retail operation capacity has begun, but it needs further improvement.

In the next three years, Lining group will focus on promoting business growth through synergy of products, channels and retail operation capabilities. On the product side, the group has made clear the two product positioning strategies that continue to focus on the five core sports categories, namely, professional and functional product strategies for professional and sports customers, and fashion and sports life product strategies for the needs of the mass consumers. In terms of channels, the future 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 better grasp of the product's full sales mode, from product development, merchandise planning, product sales mix, to store retail and tail cargo clearance to capital withdrawal to form a "dead circle" effect, to promote a virtuous circle in the loop, thereby enhancing overall operational efficiency and reducing operating costs.

In addition, the Internet era introduces a new pattern for the consumption pattern, information exchange and retail payment mode of public life. In order to seize the new opportunities brought about by the Internet for sports life, the group decision will link product development and retail capabilities with the Internet driven business environment, and forge ahead to create cross-border business opportunities.

At the beginning of 2015, the group began to have deep contact with the enterprises in the Internet field, such as man Wei and millet bracelet, and the two teams activated various kinds of cooperation creativity on their respective advantages and resources. Its products will be listed in early April, and will promote online offline marketing with digital marketing and self media strategy. Moreover, we have recently issued a strategic agreement with the millet ecological chain enterprise and the millet Bracelet founder, to build a new generation of smart running shoes and explore the health field of big data. This is the domestic sports and intelligence technology. cross-border cooperation Precedent. In addition, in view of the scale application of mobile terminal payment, we have begun to increase the corresponding system capability, so that it can highly match the landing of the new business mode.

The group hopes to develop together with partners through the complementarity of resources and capabilities of every opportunity. Because of the multidimensional space of the Internet, our future forms of cooperation and pointcuts will also be different. The business extension and transboundary properties in this open information space can form a series of exploration and organic development based on intelligence and innovation, and build a unique Lining ecosystem. The group will make use of its own product technology advantages and cross border cooperation with more innovative and technology enterprises to provide products and services that are more in line with modern sports lifestyle and consumption patterns, making it a driving force for the company's new round of growth. {page_break}

Lining, founder and executive chairman of the group, said: "2015 is the first year of the company's redevelopment, and the next three years will be a period of breakthrough growth in the next stage of development. I will devote myself to the strategic development and daily operation of the company and lead the company back to the track of growth. "

The group raised funds in public offering in December 2014 and was completed in January 2015. equity financing The funds raised will optimize the capital structure and provide targeted growth for business growth.

The board also announced the appointment of chairman Lining as deputy chief executive officer. The Board believes that the current arrangements are conducive to the implementation of business planning and strategy, which is beneficial to the company's current development and shareholders.

　　 2015 outlook

From 2015 to 2017, the group will focus on promoting business growth through product, channel and retail operation capabilities. At the same time, it will strive to reduce costs and improve overall operational efficiency.

We should speed up the construction of internal capabilities, seize the opportunities in the Internet era, take the sports product technology as the foundation, and cooperate with innovation and technology enterprises to provide products and services that are more in line with the modern sports lifestyle and consumption patterns, making them the driving force for the company's new round of growth.

We should focus on building the internal capabilities of the group, the ability of powerful groups, firmly grasp the Internet economy, actively seize the policy of strengthening the construction of the sports industry in the country, take the sports products as the foundation, actively innovate, and engage in cross-border cooperation with the technology enterprises, take the needs of consumers as the starting point, and provide the consumers with products and services that are more in line with the current sports lifestyle and consumption patterns, so as to seize the customers' first aim and lead the company's new round of growth.