Lining Restarted The Big Platform Strategy: Planning For 10 Years, Investment Competition Is Just The Beginning.

In January 2019, extraordinary China announced that it had acquired the Snake of the League of professional league (LPL) teams.

For the first time, many people know that Lining, the gymnast prince, himself is the CEO of the company.

"We have been focusing on the field of electric gaming for two years, and have been following up. Just like this opportunity, we have made investment decisions."

Lining told reporters that the business mode of the electric field is maturing, and now is the time to invest.

However, the acquisition of Snake club is just a prelude to the extraordinary power of China.

Lining himself rarely talked about the company's business. Recently, he gave an exclusive interview with reporters, detailing his ambition about the extraordinary China. He defined the latter as the flagship platform for the development of the sports industry. About 25 billion of the Hong Kong dollar market value Li Ning Co was one of them, and said that after 30 years of creating the Lining brand, it will concentrate more energy and resources on expanding the new cause of extraordinary China in 2019.

Ten years of preparation

Lining has been almost planning for the layout of the extraordinary China for 10 years.

In 2010, Lining took the lead in Hong Kong listed companies 08032.HK, namely, preparing to integrate the resources of his personal and Lining brand to build a large platform for the sports industry.

At that time, Li Ning Co's revenue in mainland China just exceeded Adidas, and its performance continued to record high.

In its vision, the extraordinary China will have two main businesses: one is to run sports destinations and sports groups, including sports venues operation, training of sports people, organization of sports events, and other sports resources such as the Snake team. Secondly, sports consumer goods, including shoes, clothing, food and beverages, etc. at the same time, extraordinary China is also the main shareholder of Li Ning Co.

"We have (Li Ning Co) such basic resources in the field of consumer goods. I also have many sports resources, which can create enormous value."

Lining told 21CBR that he once gradually faded out of the daily operation of Li Ning Co, hoping to concentrate on exploring the extraordinary China model.

Beginning in 2010, Lining began to integrate sports resources, and put the business development business of his athletes brokerage, national gymnastics team and diving team into the extraordinary China. He won the commercial promotion rights of CUBA (Chinese University Basketball League) in 2013, and later arranged the independent competitions such as Lining 10K running league matches. In 2012, the extraordinary China became a major shareholder of the Li Ning Co holding 25% stake (accounting for about 22% of the shareholding and its constituent stock of convertible securities).

At the same time, Lining also tried to incubate sports community development as the core business, the key layout of which is the national fitness complex project "Lining Sports Park".

The model of Lining sports park started in the public welfare project. About 10 years ago, in view of the lack of public fitness venues in Guangxi, Lining personally donated a sports park in Nanning, in which the idea of personal mass entertainment and fitness was embedded in the design, which removed the facilities of the regular arena, such as public seats, and more than 80% of the area was used as a sports venue. The project was officially launched in 2011, and the flow of people increased rapidly. This allowed Lining to see the opportunity to reproduce in commercial form.

However, the development plan of extraordinary China ended abruptly in 2012.

As the sporting goods industry was in a stock crisis, Lining had to adjust his focus and take part in Li Ning Co pformation. He was personally appointed as agent CEO at the end of 2014.

As a major shareholder, extraordinary China subscribed a large amount of financial resources to support Li Ning Co, and plans to build flagship platforms were shelved by subscription and issuance of shares and acquisition of shares of red double happiness.

Public data show that in 2013 -2015, the revenue of extraordinary China's own business has been hovering at 110 million -1.5 billion Hong Kong dollars.

It was not until the end of 2015 that the business scale of Yangzhou Sports Park, which was first managed and operated by China, began to improve.

However, by the end of 2018, the company had only operated 3 Lining Sports Park / Lining sports center projects, located in Yangzhou, Linyi and Ningbo respectively.

Since 2018, the pformation of Li Ning Co has become better and better. It has become the trend of the new generation of young people, and its performance has rapidly recovered. "Li Ning Co has come to a new stage of development. The team is very stable. This year, I will spend more energy and use more resources to develop the business of China."

Lining told reporters.

It is against this background that he decided to restart the platform development plan of the extraordinary China, resulting in the merger and acquisition action of the Snake team.

Conception of "man, goods and field"

Lining sports park is the most imaginative business in terms of China's existing business portfolio.

According to Lining, Lining Sports Park adopts the operation mode of "light assets", and the input of land and hardware facilities is mainly responsible for the government or third party organizations. Then the project is delivered to the entrusted operation of the extraordinary China, and the latter provides experience services, training and event organization to the public, and the general entrusted period is 20-30 years.

At the same time, the team will participate in the design and planning of the venues, and implant the understanding of mass sports, such as emphasizing the openness of the interior design, and encouraging the communication among the sports people.

In cooperation, the income of extraordinary China mainly comes from the use of venues, sports training, sports events, leasing of commercial facilities, and sales of sporting goods and beverage.

According to Lining, taking the Lining Sports Park in Nanning (which is not attributable to the extraordinary China) as an example, it can generate about 50 million revenue a year. In addition, local governments will also provide appropriate subsidies according to their operation conditions to ensure the operation of the venues.

Based on the operation of the sports park, other business realizable opportunities will be created, including real estate development, such as the sports park in Yangzhou. In July 2015, special China bought 168 million square meters of land for 23 thousand and 300 square meters of land for property development.

However, Lining stressed that this is the thing that goes along with the trend. The sports park is mainly based on light assets operation, and even if there is a suitable opportunity, it is also mainly completed by the partners of real estate.

Public information shows that in August 2015, the extraordinary China subscribed 29% stake in CITIC Real Estate for 321 million yuan. In September 2017, it established a sports culture industry fund with the Huarong estate of Huarong in China, and the scale was 1 billion 500 million yuan for the development of sports community projects. According to media reports, the Hangzhou Lining sports park was founded in April 2018, and its partners include eight international construction enterprises and China construction enterprises.

After 2018, the replication speed of Lining Sports Park increased significantly. Besides the start of the Hangzhou project, it had signed a framework agreement with Kunming, Jiaxing, Linyi, Zhuzhou and other governments or related subjects.

In the first three quarters of 2018, the company's revenue increased by 260% over the same period, of which community development business income was HK $585 million 900 thousand, an increase of 273.4% over the same period last year.

Lining told reporters that in the next three years, the development of Lining sports park will be accelerated.

He believes that as the government promotes the implementation of the sports industry policy and the promotion of people's sports consumption intention, the number of sports parks reaches tens or even hundreds of them in the medium and long term, and it is revealed that it hopes to acquire professional operation teams and expand operational venues, so as to expand the operation network of sports destinations.

It is understood that Nanning Lining sports park people flow 4 million people, the Yangzhou Lining Sports Park annual flow of millions of people, once the formation of large-scale network, as well as a large number of events organizing and operation, extraordinary China will gather a lot of people online, at the same time, by the acquisition of Snake, will also affect hundreds of millions of young people online.

According to reports, there are now five hundred million or six hundred million people in China playing video games, and 40% of them are under 25 years old. This group contains huge business opportunities. For example, in 2018, the joint products of Lining brand and EDG competition club were sold out 7 minutes online.

"The sports park is the most dynamic and most willing consumer group in Chinese cities. They like sports and pursue leisure and entertainment. We will have a large number of opportunities to develop the sports consumer goods when we run this group."

Lining told reporters that apart from Li Ning Co, which focuses on sports products, extraordinary China is also looking for targets, taking into account the acquisition of healthy sports related consumer goods.

Through the operation of the crowd, the layout of the consumer goods business and the infiltration of a large number of sports scenes, the extraordinary China conceived by Lining is, in a sense, a new ecosystem of "people, goods and fields" in the field of sports.

Lining believes that the extraordinary China's platform plan will also benefit Li Ning Co. "My most important management responsibility in Li Ning Co is to form a reasonable business layout. We have been working in the sporting goods industry for 30 years, but the Chinese market has changed greatly. It will squeeze the growth space of professional companies at any time. If there are other resources under a platform structure, it will be able to interact with each other at any time, which is the most ideal."