TPG Will Continue To Support Lining For A Long Time.

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The shoe and hat net's small compiling is to introduce some cases about Jin Zhenjun's stay in Li Ning Co.

Since the news of Kim Jun Chun and Lining and the board of directors began management handover in November last year, the industry has announced that Kim Chun Jun may be leaving because of Lining's losses.

From the announcement of the "change of directors or important administrative functions or responsibilities" announced by Li Ning Co today, Jin Zhenjun resigned as executive director and executive vice president of Li Ning Co since July 4th.

For Jin Zhenjun's resignation, insiders suspect that Li Ning Co's internal management is divided.

In this regard, people close to the Li Ning Co told reporters that Jin Zhenjun's departure is only due to the three year contract due to the relationship, and after Jin Zhenjun left office, TPG has also selected Wu Renwei replacement.

TPG will continue to support Lining for a long time.

The Li Ning Co announcement shows that Jin Zhenjun resigned as executive director and executive vice chairman of the company for pursuing other business commitments. It has entered into force since July 4, 2015. Wu Renwei has been appointed as a non-executive director and executive member of the company since August 12, 2015.

After the release of Jin Zhenjun's resignation, insiders pointed out that the company's sustained performance pressure and team discord were the main reasons leading to Jin Zhenjun's departure.

It is understood that, in July 5, 2012, three years ago, Li Ning Co appointed private equity fund TPG partner Jin Zhenjun (Jin-GoonKim) as executive director and executive vice chairman.

Kim Chun Chun, a Korean American, is a partner and head of Greater China in the global private investment firm TPG, and serves as director of several TPG investment companies including Guanghui automobile, Daphne and so on.

The market was interpreted as the "firefighting team" when TPG was settled in the Li Ning Co at that time, and it successfully compared with TPG in 2009 to help women shoes Daphne turn over.

At the beginning of his presidency, Jin Zhenjun said in a conference call that whether it is improving channels or reducing the design cycle, the ultimate goal is: "every Lining store is making money".

But after the expiration of the three years of cooperation, Jin Zhenjun's resignation made it possible for the market participants to think of whether it was related to their failure to reverse Li Ning Co's losses.

In fact, Jin Zhenjun's departure was not a sudden event.

As early as last November, Jin Zhenjun and Lining and the board of directors began to manage handover. During the same period, Kim Chun Chun was outgoing as Li Ning Co's acting chief executive officer.

At this point, it was speculated that Kim might be leaving Lining.

In this regard, clothing analyst Ma Gang analyzed to the media, Jin Zhenjun's rhetoric is either because his arrival has not played the role of saving the Li Ning Co. On the other hand, he has brought a large number of "airborne troops" executives. At the same time, many managers familiar with Lining culture and Lining dealer system have left, resulting in team disharmony, and the reform can not proceed smoothly.

More people in the industry believe that

For three consecutive years, the company may have internal management problems, and the team's opinions are divided.

For the above analysis from the industry, Li Ning Co said it is not in line with the actual situation.

People close to the Li Ning Co revealed to reporters that Jin Zhenjun's resignation was due to the expiration of the contract. When he first took office, he only represented TPG and became a Li Ning Co agent CEO. His status was variable.

At present, only TPG has changed his name to Kim Chun king.

The announcement shows that Wu Renwei, who succeeded Jin Zhenjun, has been appointed as a non-executive director and executive member of the Li Ning Co.

Statistics show that Wu Renwei served as the global chairman of the consumer goods division of Jonson.

Li Ning Co responded to reporters that Wu Renwei has more than 30 years' experience in the field of consumption and has made great achievements in the operation of platforms at home and abroad. His accession will surely bring great value to Lining's board of directors.

The Li Ning Co further indicated that TPG would give long-term and sustained support to Li Ning Co development through the presence of representatives with profound insights in specific areas, such as Chen Yue and Wu Wei Wei as non-executive directors and executive committee members and non-executive directors respectively.

Total loss in three years is 3 billion 100 million yuan.

In fact, the reason why the industry thought Jin Zhenjun resigned from Lining was the reason for the disagreement of the company's management team, mainly because of the loss of Li Ning Co's performance for three consecutive years during the tenure of Jin Zhenjun.

Public data show that from 2012 to 2014, the performance of Li Ning Co has been in a state of deficit. The losses in three years were 1 billion 980 million yuan, 390 million yuan and 780 million yuan respectively, totaling over 3 billion 100 million yuan.

In addition to performance losses, Li Ning Co has also fallen into a problem of high inventories and closing stores.

From the 2012 earnings report, Li Ning Co revenue was 6 billion 739 million yuan, down 24.5% from the same period last year, gross margin was 2 billion 550 million yuan, a decrease of 36.9% compared to the same period last year, and equity holders should account for a loss of 1 billion 979 million yuan.

At that time, Jin Zhenjun, executive vice president of Li Ning Co, explained that the main source of loss of nearly 2 billion yuan was the one-time adjustment made by the company. The risk of all accounts was cleaned up at the end of 2012, so that it could be installed from 2013 young people.

Unfortunately, Li Ning Co not only lost 390 million yuan in 2013, but also reported a deficit of 780 million yuan in 2014.

The Li Ning Co that had originally been deployed lightly did not appear.

CIC light industry researcher Zhu Qinghua told reporters that the main reasons for Lining's losses are: firstly, the market environment of the sports apparel market is worse in recent years, which is affected by the economic downturn, and the market demand is slowing down. Meanwhile, the supply side is fiercely competitive. Secondly, Lining launched the reform plan in 2012 and spent a lot of money in cleaning up the channel, but the effect is not yet fully apparent. Thirdly, the internal management problems and the team's opinions are quite different.

Zhu Qinghua believes that if Li Ning Co wants to turn around the deficit, on the one hand, it should optimize internal management, enhance company cohesion and unify team opinions; on the other hand, strengthen product innovation and improve marketing level.

According to people close to Li Ning Co, the current stock of Li Ning Co has returned to normal. According to the order meeting in March this year, the order obtained by Li Ning Co franchisees in the order meeting has been increasing for six consecutive quarters at the price of the tag.

The order for the fourth quarter of 2015, which was held in March of this year, was double digit (10% to 20%) growth year by year.

Lining, who has been in operation since the beginning of the same quarter last year, said the above.

Store calculation, as of March 31, 2015, Lining brand product platform sales of the same store grew.

In terms of channels, the number of retail units (direct operations) and wholesale (Franchised Distributors) channels has increased.