Administrative Expenditure Minus 300 Million Cut Costs To Boost Lining'S Losses

A year after I returned from the mountain, the company's performance finally turned over.

In 2015, Li Ning Co Ltd (hereinafter referred to as Li Ning Co) lost its first profit after losing three consecutive years, and its revenue grew 17% to 7 billion 89 million yuan and net profit 14 million 309 thousand yuan.

After the founder's return, Li Ning Co reinvigorate the core category and find the core consumer group.

However, the company's administrative expenditure was reduced from 627 million yuan in the previous year to 346 million yuan, which also boosted the realization of profits.

Administrative expenses cut half

According to Li Ning Co's 2015 earnings report, revenue in 2015 was 7 billion 89 million yuan, up 17% over the previous year, and operating profit amounted to 157 million yuan during the year, including a rise in gross profit margin and operating cash flow.

At the same time, net profit of 14 million 309 thousand yuan was achieved, which is the first time that Li Ning Co has made a profit after losing three consecutive years.

The company's sales point has increased by 507 to 6133, of which 313 of the direct sales outlets have increased by a total of 313, and the distributors' sales point has increased by 194.

In 2015, the sales outlets of shopping malls increased by 303.

This is also the direct result of Lining's return to operation.

In 2016, the company planned a net increase of 300-500 sales points.

It is worth noting that the profit of Li Ning Co is only over ten million yuan. Last year, its administrative expenditure decreased from 627 million yuan in 2014 to 346 million yuan. The biggest decrease was management consulting fees and travel and business entertainment expenses. The Commission and order related expenses increased significantly.

Lining said that the cost control will continue to be maintained in 2016.

Core category segmentation

In 2012, Jin Zhenjun, a partner of TPG, after the airborne Li Ning Co, focused on the core market of the core brand.

In early 2015, after Lining returned to the company, he set up his own independent business cluster in five core categories: basketball, running, comprehensive training, badminton and sports life, hoping to become a profit center to drive the company's development.

According to the results of the report, the core brand Lining income accounted for 98.3% of the group's total revenue, up 17.5% from the same period last year, and the running Department increased substantially, and the order and sales of shoes products increased by over 300 yuan or over 50%.

Subdivision and subdivision of stores are also being carried out.

Running, basketball and training categories distinguish the professional and the public; sports life categories are refined into mass classic sports life products, sports and leisure fast fashion spring label products and high-end sports fashion LNG products. The company hopes to focus on the core consumer groups and expand sales of products.

According to the Beijing Commercial Daily reporter, Wade's way of playing basketball under Lining's basketball category is a special store in Beijing's Yedi harbour shopping center, which is a subdivision store that Li Ning Co has never had before. It's also an action taken by international sports giant Adidas and is being promoted.

There are 30 stores and more than 50 stores for LNG, a sports and leisure fast fashion spring store and a fashion business man. Both plans add 100 and more than 40 stores in 2016.

At the same time, non core categories will be left clean.

The company announced last year that it would sell 10% of the red double happiness to the extraordinary China with about 125 million yuan in cash.

Li Ning Co report shows that in 2015, the annual electricity supplier income increased by 95% over the same period.

The founder Lining announced the return in March last year, and announced at the 25th anniversary celebration ceremony in August 8th that the slogan "everything is possible" should be restarted to replace the "let change" that started in 2010 and pform to the service provider of "Internet + sports life experience".

In Lining's view, the mobile Internet is exerting a subtle influence on people's way of thinking and consumption habits. People's expectations of commercial organizations providing commodity services are also changing.

This means that Li Ning Co should rebuild a consumer interaction system in products, channels, logistics and other aspects. It can not be achieved without the introduction of smart products and the opening of online and offline businesses.

It is not yet known whether Lining, a traditional branding businessman, can play with all this. But at the moment, "Internet +" at least makes Lining brand a step closer to young people.

In addition, the domestic

Since 2014, there has been a trend of warmer growth. The profit growth of the major brands is obvious. Coupled with the frequent promotion of the Winter Olympic Games and the favorable sports policies, the whole sports industry, including the sporting goods industry, is developing vigorously.