Lining Netted Nearly 1 Billion 500 Million Of The Country'S Tide And Cost Performance Last Year. This Year, We Must Concentrate On Doing 5 Things Well.

Today (March 27th) morning, Li Ning Co Ltd (hereinafter referred to as "Lining") issued the 2019 annual report. During the reporting period, the company achieved operating income of 13 billion 870 million yuan, an increase of 32% over the same period, and gross profit of 6 billion 810 million yuan, an increase of 34.7% over the same period last year. Operating profit of 1 billion 540 million yuan, an increase of 98.6% over the same period, net profit of 1 billion 499 million yuan, an increase of 109.6% over the same period last year.

As of December 31, 2019, the number of Li Ning Co employees reached 3783, including 3610 employees in Lining headquarters and retail subsidiaries, and 173 employees in other subsidiaries.

In the reporting period, Lining footwear business income amounted to 6 billion 90 million yuan, an increase of 32.3% over the same period. Clothing business revenue of 7 billion 110 million yuan, an increase of 33.7% over the same period, equipment and accessories business income of 670 million yuan, an increase of 13.6% over the same period.

According to the regional perspective, Lining's operating income in China is 13 billion 600 million yuan, an increase of 32.6% over the previous year, accounting for 98% of the total revenue. The operating income of the northern, southern and Southern China markets reached 6 billion 890 million yuan, 4 billion 950 million yuan and 1 billion 760 million yuan respectively, while the operating income of other regions reached 270 million yuan, up 8% over the same period last year.

On the channel side, with the growth of market confidence in Lining's main brand, the growth rate of the retail terminal is over 30%, and the direct sales revenue has increased by 15%. On the line of Lining, the demand for consumer groups has been segmenting through self created "retrospective" series products and diversified brand positioning, and the income of electricity supplier channels has increased by 40%. In addition, the authorized dealer's income of Lining YOUNG brand branch has increased by 40%.

As of December 31, 2019, the sales volume of Lining brand (including Lining core brand and Lining YOUNG) regular store, flagship store, Chinese Lining fashion shop, factory shop and multi brand collection store was 7550, up 413 from 2018. Among them, the sales point of Lining northern China market was 3953; in addition, the number of dealers increased by 17 to 63, and most of the sales outlets were authorized by franchisees. There are 5157 operations.

Lining said that the company will continue to use digital marketing strategy, insight into changing consumer hot spots, and further connect the brand with different consumer groups, such as paying attention to the trend of the topic, strengthening the professional sports products fashion attributes. In the future, Lining will continue to focus on product, channel and retail operations as well as supply chain management, focusing on "single brand, multi category and multi-channel" strategy.

Cheng Weixiong, general manager of textile and clothing brand management and Shanghai Liang Qi Brand Management Co., Ltd., believes that unlike Anta's "multi brands and internationalization", Anta is relying on the national tide to "make a comeback" and focus on the practical development of "single brand, multi category and multi-channel" strategy. In terms of gross profit margin and net profit margin, Lining realizes the health of profitability. There is a lot of efforts for sustainable development. In the layout of the channel, Lining further focuses on the mode of the franchisee, and continues to exert efforts in China's Lining fashion shop, Lining YOUNG and the collection store to promote Lining's coverage in North, South and Southern China. However, Lining has only 2784 stores in the southwest, central China and East China, and the gap with Anta is relatively large. At the same time, Lining is pushing the brand marketing. The investment is still huge, although it accounts for less than 10%, but compared with the total amount in 2018, it still has more than 300 million investment.

In Cheng Weixiong's view, compared with Anta's heavy distribution in the international market, the proportion of Lining's income in the international market has dropped from 2.4% in 2018 to 1.9% in 2019, and Lining is more committed to doing well in the domestic market.

Guoxin Securities researcher Zhang Junhao believes that the overall profitability of Li Ning Co still has room for improvement. Gross profit margin, the overall price of the company's products can still be enhanced with product strength and brand strength, and good terminal sales will further reduce the company's support for dealer discounts, coupled with the improvement of inventory operation efficiency, the company's direct discount rate is also expected to further decline, in addition, high-end products accounted for the continued increase in the structural upgrading can also bring. Promote gross margin. In terms of cost, first, the rapid growth of sales scale will lead to higher cost input efficiency. In addition, with the continuous optimization and efficiency of the company's direct marketing channels and the more precise and diversified advertising investment, the main selling cost is expected to continue to decline and close to the same companies. At the same time, the expansion and encouragement of the internal team is only a short-term situation. The management fee rate will also return to normal trend.

Li Ning Co also stressed that in 2020, the 30th anniversary of the brand was established. The company will continue to take the strategy of "single brand, multi category and multi-channel" as the direction of guidance, consolidate and strengthen the following core business priorities, continuously enhance the Lining experience value, optimize the products and enhance efficiency as the core, so as to realize the healthy and sustainable development of the company's future profits.

1, in terms of products, the company will continue to focus on the trend topics, explore more inspiration for the integration of cultural creativity and professional sports, closely grasp the trend of fashion, strengthen the fashion attributes of professional sports products, further expand the consumer groups, deepen brand influence, intensify efforts in sports science research and development, enhance the professional and sports products' technological performance, and optimize consumer wear. Use experience to continuously improve product quality;

2, in terms of channel development, we are still focusing on improving the channel efficiency, continuously promoting the diversified development of channels, and steadily implementing the strategy of efficient shops and benchmarking stores, while continuing to rectify or close inefficient and loss shops, and promote the optimization of channel structure.

3, optimizing retail operation support platform and supply chain management system is still one of our key concerns. We should strengthen store consumption experience, optimize shop operation standards, improve shop management capabilities, continue to explore new retail businesses, consolidate and improve the online and offline integrated business models, strengthen the supply chain management system, and continue to enhance their own supply chain management and R & D technology knowledge application capabilities;

4, marketing, the company will make full use of digital means, continue to deepen the online and offline marketing layout. Taking the actual consumption demand as the starting point, we should accurately grasp the current hot spots, create and promote topics, enhance interaction with consumers, deepen brand identity and loyalty, and enhance brand value.

5, the new business, the company will continue to enhance the profitability of a single shop as the core development goals, resources will be reasonable and prudent in the development of business opportunities and market potential, for the company's long-term growth and profitability to cultivate new opportunities.

Public information shows that, as the leader of the domestic sports footwear industry in the Li Ning Co, by the Olympic gymnastics champion Mr. Lining in 1990, the main business of the Lining brand has been 30 years of history, the national brand has a deep foundation, the current domestic market share in the fourth place, the local brand ranked second. The company is headquartered in Beijing, which includes brand marketing promotion, product development, design, manufacture, distribution and retail, and has a large nationwide retail distribution network and supply chain management system.

Based on the basic strategy of focusing on the main brand, the proportion of Lining's brand income has exceeded 99.3% since 2017. As a comprehensive sports brand, Lining's five core plates are basketball, running, comprehensive training, badminton and sports fashion. Among them, the first four big plates are positioned as professional sports plates, mainly aiming at the most popular sports at present. Relevant shoes and clothing products emphasize certain functions according to the characteristics of each movement. They are comprehensive in terms of performance levels, and widely cover the needs of users from ordinary sports enthusiasts to top professional athletes at all levels. The sports fashion section mainly aims at the needs of the consumers in daily life and leisure, and takes sports as the basic style, focusing on the appearance of fashion.

Zhang Junhao believes that as a leading local sports brand, Lining has a medium price and high price performance ratio. In actual sales, it mainly focuses on medium and low price series, so as to meet the needs of the general public. Among them, users of professional sports products are mainly young sports enthusiasts under 35 years old. At the same time, the company also pays attention to developing a certain number of high quality and high quality products, which are mainly professional sports shoes and sports equipment with high technology and strong function, as well as sports fashion shoes and clothes with outstanding fashion characteristics, including the "China Lining" fashion show in New York / Paris international fashion week, online COUNTERFLOW series and all kinds of joint names. And so on, so as to satisfy the consumers with higher demand level.

Thanks to the rapid growth of performance, Lining's share price has led to the strengthening of the sporting goods sector of the Hong Kong stock market. As of the first textile network reporter, Lining's share price was HK $22.85 / share, or 13.965%, and its market value was HK $56 billion 92 million.