Lining'S Profit Rose By 166.9% In The First Half Of The Year To Create A Offline Experience Mode.

Lining's 2016 medium-term results released in August 11th showed that the company's revenue in the first half of 2016 increased by 12.8% over the same period in 2015, and its operating profit increased 166.9% over the same period last year.

After getting out of the spell of many years of loss,

(02331.HK) continue to exert power and take advantage of the "national sports" in the East, and profitability is consolidated again.

Lining's 2016 medium-term results released in August 11th showed that the company's revenue in the first half of 2016 increased by 12.8% over the same period in 2015, and its operating profit increased 166.9% over the same period last year.

For the improvement of performance, Lining thought "seize the market opportunity".

Lining, founder and executive chairman of Lining group, told reporters that "urban people's pursuit of leisure, sports and healthy lifestyles brings a huge future business space for the sports industry."

In the first half of 2016, Lining began to try to clean up inventory.

Channel, operation and Sport create experience value.

On the one hand, Lining continues to improve retail efficiency through various channels.

On the other hand, Lining constantly innovating marketing mode to create interaction with consumers.

Experience Museum, deepen brand value.

Operating profit increased by 166.9%

Lining gradually recovered his rhythm under the guidance of his founder, veteran Lining, who returned to normal orbit in 2015. Lining consolidated his profitability in the first half of 2016.

According to the 2016 interim results announcement issued by Lining in August 11th, the company's revenue reached 3 billion 596 million yuan, up 12.8% from the same period in 2015.

The operating profit during the period was 153 million yuan, up 166.9% from the 57 million yuan in the same period last year.

The gross profit margin of Lining in the first half of 2016 was 46.7%, which was higher than that of last year.

Lining said the increase was mainly due to the higher gross margin sales.

"The company has effectively controlled the procurement cost, and the cost ratio of the tag has been improved.

At the same time, retail and wholesale sales of new and old products have improved in proportion, and the significant increase in electricity providers' business has a positive impact on gross margins. "

In addition, Lining told reporters that with the tag price calculation, the order from the franchisee's Lining brand products will continue to record year-on-year growth for eleven consecutive quarters.

Orders for the first quarter of 2017, which were signed by the latest order, were recorded on a high annual basis.

This report card is hard won.

Li Ning Co announced its pformation in 2010. Lining, the founder, once told the media that "it is not so easy for an enterprise to change itself to pform itself."

Lining said, "in the past few years, Lining has been looking for a business model for future development, and the so-called performance decline is the result of active adjustment".

Lining said that the return is "seize the opportunity". He said, "based on the successful implementation of various initiatives in 2015, the group continued to grasp market opportunities and consolidate the results, with the help of brand influence, multi-channel and cross platform to enhance user experience and actively foster brand loyalty."

Pioneer sports brand line Experience Hall

In 2008, the sports industry had experienced a great deal of excitement under the Olympic stimulus, and thereafter it was in a painful inventory stage.

This also makes the industry realize that the development of the industry is not feasible by short-term stimulation, and the establishment of the national fitness concept is the key.

According to public information, in 2015, the proportion of sports consumption in China accounted for GDP for the first time in 15 years.

In that year, the proportion of sports consumption to GDP increased to 0.40%.

The industry called it the "turning point" of the sports industry, which is a sign of a real rebound in the industry.

From the perspective of consumption habits, the rise of sports such as marathon, bicycles and skiing also shows the initial completion of the introduction of national sports consumption habits.

In the context of rising demand for sporting goods, Lining developed several new products in the first half of this year, such as smart running shoes, ultra light running shoes, and developing other brands.

In terms of sales channels, as of June 30, 2016, the number of sales outlets in Lining's stores was 6169, an increase of 36 compared with December 31, 2015, and the development of virtual business channels was faster. In the overall electricity industry growth rate slowed down sharply, the sales of the company's sales increased more than doubled. Lining said that it will focus on the whole channel business in 2016.

It is worth mentioning that Lining launched two brand experience museums in Shanghai and Dalian in the first half of this year.

The brand experience shop upgraded the original store mode, focused on improving the consumption experience, and integrated the whole category of seasonal explosion, iRun running club and science and technology sports products to provide professional sports experience and service.

"Lining has to create experience value around products, channels, operations and campaigns -- product experience, purchase experience, sports experience and more experience value derived from it."

Lining introduced to reporters.

In this regard, Lining, an independent critic of garment industry, told reporters that the implementation of offline experience hall is the first among sports brands. Through interaction, consumers' acceptance of new commodities or market activities has changed, helping to consolidate Lining's brand image.