Lining'S Low-Key Pformation Continued To Run Within The Stock System.

Lining was once again pushed to the cusp of public opinion.

Unlike in the past, this is the first time that Lining has sold his brand red double happiness since its inception.

According to the Li Ning Co announcement, the company intends to divestiture 10% of the shares of red double happiness to the extraordinary China at a price of about 125 million yuan. After sale, Lining still holds a 47.5% stake in red double happiness.

Since November 2007, when Lining announced a 57.5% stake in the acquisition of red double happiness with 305 million yuan, red double happiness has indirectly become a wholly owned Affiliated Companies of Affiliated Companies. At that time, Li Ning Co was also considered to be strengthening the company's position in the domestic market of table tennis and badminton products through the acquisition, and the Li Ning Co suddenly pferred its shares in a low key. What kind of chess did it take?

According to Li Ning Co's recent two years' earnings report, in 2013, although the deficit situation has improved, narrowed to 392 million yuan.

However, in the first half of 2014, the loss of Li Ning Co expanded again to 586 million yuan, and inventory 1 billion 90 million approached the highest point in 10 years.

Become the only loss making enterprise in 6 local sports brands.

Until the beginning of 2015, Lining announced that he was once again coming out of the mountain. Jin Zhenjun also resigned successively as Li Ning Co's acting chief executive officer and executive director of Lining group. However, it did not resist the declining trend of Lining's performance.

Until this year's mid-term report, Lining continued to lose money.

In August 13th, the Li Ning Co released the interim results as of June 30, 2015. During the reporting period, Li Ning Co revenue increased 16% to 3 billion 641 million yuan over the same period, and the loss of equity holders narrowed nearly 95% to 29 million 410 thousand yuan, compared with a loss of 586 million yuan in the same period last year.

"Lining insisted on selling one of his most profitable brands," red double happiness ", in fact, it has much to do with the loss impact after Jin Zhenjun and Lining's" double horse chariot "recovery plan failed. This is also Lining's attempt to reinvigorate Lining brand with the help of selling shares of red double happiness.

Another long-term concern Lining brand industry insiders said.

It goes back to three years ago.

In 2012, the domestic sports brand collectively spent the winter, and Lining Zhang Zhiyong served for nearly 20 years, leaving CEO.

At that time, private equity fund TPG partner Jin Zhenjun airborne Lining board, served as executive vice president, responsible for the group's internal affairs and operations.

It was also in this year that Lining began to carry out reforms in three steps.

However, the ideal is very plentiful, but the reality is very skinny.

As Kim Chun Chun's idea is to pform Li Ning Co from the traditional wholesale mode to "guided orders, order + quick replenishment + quick response" through a series of changes to Li Ning Co, it can not solve the real problems faced by Li Ning Co.

Subsequently, Lining not only welcomed the passive development of a large number of stores forced to close, but also because of the strong Jin Zhenjun, many agents chose other brands.

Subsequently, the state of Li Ning Co's continuous losses has not been alleviated, and it has intensified.

According to Lining's previous earnings report, in 2012, there were 57 dealers in Lining, and the remaining 52 were cut down after that year. In 2014, Lining cut off 4 dealers again, plus the number of distributors who had joined before, and the number of Lining dealers was 51 at present.