Is The Situation Of Domestic Sports Brand Li Ning Not Optimistic?

In March this year, Li Ning group announced its annual results as of December 31, 2019. The results showed that the annual operating revenue increased by 32% to RMB 13.87 billion.

During the period, net profit increased by 110% year-on-year to 1.499 billion yuan. After deducting the one-time non operating profit and loss, the net profit increased by 77% year-on-year to 1.266 billion yuan, both of which exceeded market expectations.

Regarding this year's epidemic situation, Li Ning, the group's executive chairman and co chief executive officer, said that the outbreak of the new type of coronavirus may put the overall outlook for 2020 under severe test. "Since the outbreak of the epidemic, the group has been paying close attention to the trend of the epidemic situation and the market situation. In the face of the crisis, it has responded quickly and mobilized all staff to fight the epidemic together to minimize the impact of the epidemic. After that, we believe that people will pay more attention to the health of the industry and exercise potential. "

In the near future, it is worth noting that the average price of Li Ning online clothing dropped 34% from 351 yuan in January to 232 yuan in June. In the official flagship store of Li Ning tmall, the high price of single item is 3999 yuan of medium length down jacket, and the low price product is the men's quick drying T-shirt with the original price of 48 yuan after 99% discount. The difference between the two is 3951 yuan.

Credit Suisse recently released a research report that lowered Li Ning's rating to "neutral.". Investors said the situation is not optimistic. In the long run, it is not conducive to the promotion of brand value.

In 2020, it is the 30th anniversary of the founding of Li Ning brand. On July 11, Li Ning first released a video clip from "game start" on men's wear week in digital Paris. Founder Li Ning also released a series of sportswear with a sense of science and technology and a large number of futuristic elements, and extracted a large number of models from the pixel cube of video games as fashion design elements.

In the short film, many brand allies appeared, including NBA stars Dwyane Wade and CJ McCollum; Stefano Pilati and his latest brand random identities; kung fu star Jackie Chan; and the Danish Modern Street pioneer brand soundland, which was jointly signed by the public cloth.

But so far, the number of relevant videos played in microblog is less than 20000, and the number of forwarding points and comments is less than 200. In January this year, Li Ning's share price fell by nearly 3% after the Paris show, which was in sharp contrast to the previous two consecutive days of soaring after the show.

Industry insiders believe that after a year of continuous high-speed growth, the market began to suspect that Li Ning's favorable momentum has been out, and the subsequent growth is becoming more and more routine.

In May this year, Feifan China, which is actually controlled by Li Ning, and Luo Zhengjie, the nephew of Luo Jiasheng, the major shareholder of Bao Shilong, announced the formation of a consortium to acquire 1.093 billion shares held by Luo Jiasheng, accounting for 66.6% of the total share capital of baoshilong, totaling HK $46.62 million, equivalent to the purchase of HK $0.043 per share, less than 30% of the market price.

Perhaps in order to explore more new opportunities in the market, Li Ning was transferred to co CEO from Chairman and acting CEO of Li Ning group in September last year, releasing some power. Li Ning, 56, was transferred to co CEO from Chairman and acting CEO of the board of directors.

Li Ning, who has been aware of the market crisis, has already begun to implement measures. With the rise of the national tide, Li Ning is confident that its development will follow the storm and usher in a new chapter.