Lining'S Inventory Of 960 Million Must Be Cut Off.

Even in 2015, when the deficit was realized.

The stock of the company remains at a high level of 960 million yuan, which means that the inventory problem that has caused the company a hidden danger of loss remains unchanged.

It is easy to find that Li Ning Co has realized losses in 2015, but there is still a way to go out of the difficulties of Li Ning Co.

Li Ning Co Ltd, which just lost its deficit in 2015, has to face the decline of the same store profitability in the first quarter of 2016, and the slowdown in the business of e-commerce.

The Li Ning Co released the "latest order and operation status" notice. In the first quarter of March 31, 2016, the sales of Lining's same store recorded a low digit growth rate, much lower than that of 2015, which means that the profitability of Lining's retail store has declined.

At the same time, as the development focus of the next few years, the electricity business has slowed down significantly in the first quarter of this year.

Lining business platform business grew by 60%-70%, but this has slowed down considerably compared with the growth of 95% over the previous year.

As of March 31, 2016, the number of sales outlets of Lining brand in China totaled 6106, representing a net decrease of 27 compared with the end of last year.

Lining, founder and executive chairman of Lining group, said that considering the economic factors, Li Ning Co Ltd generally chose to close low profit sales outlets at the beginning of the year, and the sales network gradually expanded after the Spring Festival holiday.

"The target of a net sales increase of 300-500 in 2016 will remain unchanged."

When Lining faced the difficulties of losing money in the past, the most direct expression was to digest high prices.

。

Even in the 2015, Li Ning Co inventory remained at a high level of 960 million yuan, indicating that the inventory problem that had caused losses to the company remained unchanged.

According to public data, Lining's inventory reached 1 billion 133 million yuan in 2011, and its inventory remained above 900 million yuan.

Flush statistics show that from 2012 to 2014, Lining's inventory reached 920 million yuan, 942 million yuan and 1 billion 289 million yuan respectively.

In recent years, the highest inventory year is 2014. In 2014, when Lining cleared the inventory, Jin Zhenjun, executive vice president and deputy chief executive officer of the group, told the media that more than 1 years of inventory had been cleared and only about 20% remained.

But at the same time, it said that some of its distribution partners were weaker, accounting for about 10%, and they were not enough in coordination with the pformation.

Jin Zhenjun said that there are problems such as weak retail capacity, weak resources and insufficient coordination.

Therefore, Lining eliminated the dealers and increased the proportion of self operated stores.

Insiders analysis, Lining inventory increase shows that the company's sales are not very good.

Li Ning Co annual report 2015 showed that the company's annual revenue was 7 billion 89 million yuan, an increase of 17% over the same period, and the equity holders should account for a profit of 14 million 310 thousand yuan.

And footwear business achieved nearly 50% growth in performance.

This is the first time Li Ning Co has turned a profit since 2012, but this figure is far from that of its competitors.

Previously, according to Anta's 2015 earnings report, business income reached 11 billion 126 million yuan, net profit of 2 billion 40 million yuan, an increase of 24.7% and 20%, respectively. This is the first time China's local sporting goods brand has entered the 10 billion club.

In addition, although the sales of several local sports brands are less than that of Lining, the net profit is far more than that of Lining.

XTEP revenue 5 billion 295 million yuan, net profit 478 million yuan; 361 degrees, PEAK's revenue were 4 billion 459 million yuan and 3 billion 110 million yuan, net profit of 518 million yuan and 390 million yuan respectively.

In 2010, Lining was the most prosperous period. His business income amounted to 9 billion 478 million yuan.

The sudden winter of 2011 caused a great blow to Lining. During the period from 2012 to 2014, Lining lost 1 billion 979 million yuan, 392 million yuan and 781 million yuan respectively, and accumulated a deficit of 3 billion 152 million yuan in three years.

Some analysts believe that the reasons for Li Ning Co's losses in 2015 are more complicated.

The person believes that Li Ning Co's 2015 earnings showed that its revenue was 7 billion 89 million yuan, an increase of 17% over the previous year, operating profit of 157 million yuan during the year, and a net profit of 14 million 309 thousand yuan at the same time.

Profits were only over ten million, while administrative expenditure in 2015 dropped from 627 million in 2014 to 346 million, a 281 million decrease.

It is mainly the management of consulting fees and travel and business hospitality, which is not a long-term sustainable profit.

In addition, in October 2015, Li Ning Co announced that it would sell 10% of red double happiness and generate an income of about 125 million.

The sale of shares of red double happiness is net income, so the important part of Lining's earnings is also relying on equity income.

After Lining bought 57.5% of the red double happiness in 305 million in 2007, red double happiness indirectly became a wholly owned Affiliated Companies of Li Ningfei. After selling 10% stake in 2015, Li Ning Co is still the largest shareholder of red double happiness, but red double happiness will no longer be a subsidiary of Lining and will not be included in the consolidated financial statements.

Min Guangya, a retail expert, said Lining's losses now came mainly from the compression of internal costs and the loss of some of the losses. The reverse of store losses also came from shutting down some shops, indicating that the closed shops were invalid shops, which could further improve their profitability after shutting down.

Zhu Qinghua, a light industry researcher at CIC, said in an interview that the root cause of Lining's persistent losses was the ambiguity of positioning and price increase.

"In 2010, Li Ning Co launched the brand remolding plan, changing the brand name of Lining, positioning the consumer group as" post-90s ", and raising the price of products. The price range ranges from 7% to 17.9%, which has laid a big hidden danger for Lining's future development.