Li Ning Company Limited Announces 2025 Interim Results
FINANCIAL HIGHLIGHTS
In the first half of the year, the Group recorded the following operating results:
- Revenue rose by 3.3% to RMB14,817 million; gross profit margin declined by 0.4 percentage points to 50%
- Net operating cash inflow was RMB2,411 million
- Net profit attributable to equity holders was RMB1,737 million with net profit margin of 11.7%, and EBITDA margin was 23.7%
Working capital remained at a healthy level:
- The percentage of gross average working capital to revenue was 7.3%
- The cash conversion cycle was flat at 31 days compared to the same period last year
The Board resolved to declare an interim dividend of RMB33.59 cents per ordinary share of the Company issued or to be issued upon conversion of convertible securities for the six months ended 30 June 2025.
OPERATIONAL HIGHLIGHTS
The retail sell-through for the overall platform increased by low-single-digit from last year, including online and offline channels.
Channel inventory increased by low-single-digit comparing to the same period last year. The inventory turnover and ageing structure remained at a healthy level.
Offline channel new products sell-through accounted for 84% of overall offline channel sell-through, maintaining a healthy and reasonable level.
HONG KONG SAR - Media OutReach Newswire - 21 August 2025 - Li Ning Company Limited (the "Company" or "Li Ning Company"; together with the subsidiaries, collectively, the "Group"; stock codes: 2331 (HKD counter) and 82331 (RMB counter)) announces today its 2025 interim results for the six months ended 30 June 2025 (the "Reporting Period").
Financial Results
In the first half of 2025, the Group steadily consolidated its operational foundation and actively accumulated momentum for business development, achieving steady revenue growth. During the Reporting Period, the Group's revenue amounted to RMB14,817million, representing an increase of 3.3% as compared to the corresponding period of 2024 (2024H1: RMB14,345 million). Gross profit amounted to RMB7,415 million, representing an increase of 2.5% as compared to the corresponding period of 2024 (2024H1: RMB7,236 million). The overall gross profit margin declined by 0.4 percentage points to 50.0%(2024H1: 50.4%).
During the Reporting Period, the net profit attributable to equity holders was RMB1,737 million (2024H1: RMB1,952 million). The margin of net profit attributable to equity holders was 11.7% (2024H1: 13.6%). Return on equity attributable to equity holders was 6.5% (2024H1: 7.8%). Basic earnings per share was RMB67.43 cents (2024H1: RMB75.80 cents). The Board resolved to declare an interim dividend of RMB33.59 cents (2024H1: RMB37.75 cents) per ordinary share of the Company issued or to be issued upon conversion of convertible securities for the six months ended 30 June 2025. The interim dividend payout ratio is 50%.
In terms of cash flow management, the Group's net cash generated from operating activities for the Reporting Period amounted to RMB2,411 million (2024 H1: RMB2,730 million). As at 30 June 2025, cash and cash equivalents (including cash at banks and in hand, and time deposits with original maturity of no more than three months) amounted to RMB11,798 million, representing an increase of RMB4,299 million, as compared with the position as at 31 December 2024. Adding back the amount recorded as time deposits, cash balance amounted to RMB19,190 million, which represented a net increase of RMB1,050 million as compared to 31 December 2024. During the Reporting Period, the decrease in retail revenue led to a reduction in retail collections. In addition, tax payments increased, resulting in a year-on-year decrease in net cash generated from operating activities. Meanwhile, the maturity and redemption of time deposits led to a significant increase in net cash generated from investing activities. The Group will continue to place extra emphasis on cash flow management to ensure the stable development of the Company in the long term.
Operational Summary
In the first half of the year, the Group continued to strengthen its core strategy of "Single Brand, Multi-categories, Diversified Channels" steadily advancing planned initiatives across key areas including product upgrade, brand marketing, and channel optimization.
Leveraging years of efforts and accumulated experience in professional sports, and relying on superior product excellence and brand strength, the Group successfully signed an agreement in 2025 to become the official sportswear partner for the Chinese Olympic Committee and the Chinese Sports Delegation from 2025 to 2028. During the Reporting Period, anchored by its core strategy of the marketing theme of "China's Glory, LI-NING Support"（中國榮耀，李寧同行）under its new Olympic identity, the Group reinforced its professional image as an unwavering supporter of Chinese sports, and further cemented its core positioning as a professional sports brand.
In respect of professional product and marketing, the Group focused on the six core categories of running, basketball, training, badminton, table tennis and sports casual, while actively grasping market trends and exploring new sports subcategories, such as outdoor sports, tennis and pickleball. The Group continued to strengthen its product capabilities through technological innovation and enhance the deployment of professional sports resources, based on three key pillars: solidifying a professional sports mindset, showcasing sports fashion aesthetics, and inheriting Chinese cultural values. Moreover, it proactively sought to strengthen its differentiated brand advantages, promote brand recognition and popularity and enhance brand influence through diversified and comprehensive marketing campaigns.
In respect of channel, the Group has actively built a multi-dimensional channel network, and systematically promoted deepening of market coverage and upgraded of operational efficiency. In high-tier markets, through deepening strategic coordination with top-tier commercial entities and leading outlet projects, the Group promoted innovative store format planning and deployment. In emerging markets, the Group implemented deep expansion and optimised channel hierarchy layout to expand market share. As of 30 June 2025, the number of conventional stores, flagship stores, China LI-NING stores and factory outlets under the LI-NING brand (including LI-NING Core Brand and LI-NING YOUNG) amounted to 7,534, representing a net decrease of 51 as compared to 31 December 2024.
In terms of retail operations, the Group focused on the systematic construction of operating models in high-tier markets and distribution business models. Through channel structure optimisation, adjustment of store product mix, and planning of consumer interaction activities, the Group has strengthened brand mindshare penetration and improving product operation efficiency. In addition, the Group concentrated on optimising store visual presentation and marketing promotion quality, upgrading property cooperation effectiveness, and enhancing the professional service capabilities of sports consultants. The Group has also strengthened efficient collaboration between headquarters and terminals, continuously improved retail process standards, and made full preparations for new store expansion and retail capability enhancement during the Olympic cycle.
In terms of new retail business, the Group has comprehensively deepened the construction of its new retail business system. With digital upgrade as the core, the Group has been committed to driving all-round enhancement of business efficiency.
For the e-commerce business, in the face of a challenging market environment across the industry, the Group adhered to a prudent and steady operational strategy. By fostering strong cooperation between online and offline channels, developing exclusive marketing IPs, and strategically deploying key promotional campaigns, the Group continued to drive comprehensive improvements in operational efficiency, making e-commerce a key motivation for the growth.
In terms of supply chain, the Group continued to advance deep optimisation and strategic upgrading of its supply chain, focusing on four core objectives: quality control, delivery assurance, cost optimisation, and sustainable development, and has achieved notable results. Breakthrough progress was made in flexible supply capabilities, successfully expanding into e-commerce exclusive product lines, and establishing a rolling replenishment system and cross-channel coordination mechanism to maximise market demand fulfilment. In addition, the Group deeply integrated the sustainability concept into supply chain practices, effectively advancing the implementation of green products, with order volume of eco-friendly products exceeding target levels.
In the first half of the year, the Group vigorously promoted the strategic construction of the logistics system, focusing on three core directions: omnichannel logistics integration, digital upgrade, and automation optimisation, to achieve comprehensive enhancement of logistics efficiency and precise optimisation of cost control. During the Reporting Period, the launch of the Nanning central warehouse marked the Group's completion of nationwide logistics and warehousing network deployment, further enhancing market responsiveness and core competitiveness.
In terms of kidswear business, LI-NING YOUNG has achieved steady progress in product optimisation, channel expansion, retail efficiency enhancement and brand marketing, with an emphasis on improving its professional brand image and market share. In terms of product optimisation, LI-NING YOUNG continued to drive progress through product research and development, and IP establishment, fostering breakthrough growth in its core categories. In terms of channel development, LI-NING YOUNG focused on expanding market coverage and enhancing channel quality, with a strong commitment to implementing a multi-channel growth strategy. In addition to deepening its presence in core markets, it strategically expanded emerging markets and strengthened its outlet channel layout. In terms of marketing and promotion, LI-NING YOUNG has fully leveraged the Group's resources, working in close collaboration with categories such as basketball and running to provide a wide range of brand experiences to consumers through diversified marketing campaigns. As at 30 June 2025, the total number of LI-NING YOUNG POS amounted to 1,435, representing a net decrease of 33 POS since 31 December 2024.
Outlook
Looking ahead, the Group will firmly implement the core strategy of "Single Brand, Multi-categories, Diversified Channels", uphold the core value of "Serve with Sportsmanship", and continuously refine "LI-NING's Experience Value".
1. Building Product Competitive Advantage: The Group will continue to rely on the LI-NING Technology Innovation Platform（李寧科技創新平台）to optimise product structure, strengthen diversified deployment under the single-brand strategy, and build differentiated competitive advantages. We will focus on the deep integration of technology and fashion, creating a sports product matrix that combines functionality and trend aesthetics, meeting consumers' full-scenario needs, and actively driving market share acquisition across various sub-segment markets. At the same time, the Group will accelerate the deployment in high-growth potential markets, focusing on breakthroughs in three emerging tracks: women's sports, outdoor gear, and youth sports products, to seize market opportunities and cultivate new business growth drivers. In addition, the Group will increase R&D investment, leveraging core technologies to enhance product strength, and reinforce long-term competitive advantage through technological barriers.
2. Deepening the Cooperation Effectiveness with COC: LI-NING will fully support the Chinese Sports Delegation in competing on the international stage through high-quality products and highly efficient services. At the same time, the Group will further orderly launch online and offline marketing activities around this top-tier cooperation. It plans to release the 2026 Milan Winter Olympics apparel in the second half of the year, and initiate themed marketing campaigns for the Winter Olympics, continuously deepening LI-NING's professional sports image.
3. Focusing on Business Quality and Efficiency Enhancement: The Group will coordinate efforts across three key areas, channels, products, and supply chain, to achieve dual improvement in business quality and efficiency. Channel efficiency upgrades will be pursued through dual breakthroughs in offline and online operations. Offline, the Group will enhance terminal competitiveness through initiatives such as efficiency improvement in high-tier markets, strengthening distribution capabilities, and deep cultivation of emerging markets. Online, the Group will unleash sales potential through overall ecosystem governance and brand marketing integration, aiming to achieve maximised online and offline sales. On the product side, by enhancing the full-chain system and improving the accuracy of omnichannel product planning, the Group will achieve significant optimisation of supply-demand matching, flexible production, and inventory turnover. In terms of supply chain, the Group will focus on three core indicators: cost control, quality improvement, and delivery timeliness, and deepen strategic integration with product and merchandise operations to enhance overall efficiency.
4. Consolidating Foundations to Drive Growth: To consolidate the foundation for corporate development, the Group will focus on enhancing talent-driven development, financial governance and digital-intelligence empowerment as three core pillars. In terms of talent-driven development, the Group will build talent teams based on strategic business needs, continuously optimize organisational effectiveness, and establish a flexible and efficient operational structure. In terms of financial governance, the Group will strengthen target management, establish more rigorous budget management and risk control mechanisms, enhance financial transparency and capital utilisation efficiency, and provide robust financial assurance for strategic implementation. In terms of digital-intelligence empowerment, the Group will deeply apply cutting-edge AI technologies, build a digitalised operational support system, and enhance market insight and consumer analysis capabilities, laying a solid foundation for high-quality development.
Mr. Li Ning, Executive Chairman and Joint CEO of the Group, concluded, "Driven by policy promotion, technological iteration, and changes in consumer demand, the industry overall possesses potential for high-quality growth, with opportunities and challenges intertwined. Looking ahead to the second half of the year, the Group will maintain a prudent attitude, continue to consolidate its business foundation. At the same time, the Group will closely monitor market dynamics, actively capture and seize potential structural opportunities, and promote long-term sustainable growth through a series of strategic initiatives, striving to become consumers' preferred professional sports brand."
Hashtag: #LiNing #Sportswear #2331.HK
The issuer is solely responsible for the content of this announcement.
About Li Ning Company Limited
Li Ning Company Limited is one of the leading sports brand companies in China, mainly operating professional and leisure footwear, apparel, equipment and accessories under the LI-NING brand. The Group has comprehensive research and development, design, manufacturing, marketing, distribution and retail management capabilities. It has established an extensive retail distribution network and supply chain management system in China. We are committed to be the most prominent, stylish, world-leading sports brand from China.
In addition to its core LI-NING brand, the Group also manufactures, develops, markets, distributes, sells various sports products which are self-owned by or licensed to the Group, including Double Happiness (table tennis), AIGLE (outdoor sports) and Kason (badminton), which are operated through joint venture/associate with third parties of the Group.
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In response to queries from CNA, an administrator who did not provide a name said the group is currently managed by 10 to 15 moderators aged from their early 30s to late 40s. Besides pursuing personal interests, the admin added that the moderators are "getting old" and have decided to hand over the reins to someone who can "take over the legacy" of the group. "Quite a few" queries and offers have come in, the admin said, but declined to share details, citing confidentiality. The group, the admin added, offers a community service, providing 'an online platform to allow legitimate complaints and getting resolutions from involving parties and agencies'. WHAT IS THE MONETARY VALUE OF A FACEBOOK GROUP? Several social media experts questioned why the group – a community platform – is being sold at all. 'This being a community site, (its purpose) is to serve, not really in trying to make money,' said tech observer and media consultant Oo Gin Lee. 'The fact they're offering it for sale raises questions.' He said the admins should explain whether the group generates income through ads or whether users' data may be involved. He added that transparency over the sale price is important. 'If they are selling it for value, the community deserves to know how much they are selling this for and what's the value to this,' he said. 'If it's to cover the cost (of operation), then that's okay, but if it's a million dollars, then it's a red flag.' In response, the Complaint Singapore admin said that buyers can have "substantial monetary gains via advertisements, website and various social media monetisation programs". Asked if the platform is already monetised, the admin declined to provide specifics, citing confidentiality. However, a September 2023 post mentions an 'advertising package' across the group's platforms, with quotes given on request. WORRIES OVER CONTENT AND TRUST Associate Professor Tan Ern Ser from the National University of Singapore's Department of Sociology questioned whether the platform could be repurposed in ways that harm users. 'Could the new owner change the objectives of the platform to be replaced by materials that could prove harmful to both subscribers or members and to Singapore?" he asked. He also warned of the risk of content shifting towards radicalisation or polarisation, depending on the new owner's intent and capabilities. Mr Lars Voedisch, a communications expert with over two decades of experience, agreed that trust could be eroded. 'The minute a group like this changes hands, trust is on the line. People signed up for a community, not to be someone's asset flip,' he said. 'In the wrong hands, it could easily turn into a propaganda machine, a scam funnel or just a spammy mess. Poor moderation might also lead to legal troubles for the new owner or group members, he added. The admin said the group receives 30 to 100 post submissions a day, with moderators screening out sensitive topics such as politics, race and gender. The main concern, the admin emphasised, is not the monetary offer but 'suitability' of the buyer. 'Our priority is definitely about suitability – someone, company or organisation that is serious about the operations and can bring Complaint Singapore to greater heights in the future,' said the admin. Assoc Prof Tan also questioned whether group members would be assured that their names or personal details would not be used without consent. In response, the Complaint Singapore admin said the social media platforms they operate on have built-in mechanisms to guard against scam and data breaches. 'In the event where a social media page is found to have violated any terms and conditions, the said page will be suspended and eventually be removed permanently,' the admin said. LEGAL AND CONTRACTUAL ISSUES In addition to the ethical issues, Meta's terms prohibit the sale, license or purchase of Facebook or Instagram accounts, including data obtained from them. Meta can suspend, disable or delete accounts found to be in breach of these terms, said Mr Fong Wei Li, managing director at Forward Legal. 'If someone sells an account and Meta later disables or deletes it for breaching the terms, the buyer may have paid a sum of money for an account they can no longer access,' said Mr Fong, whose expertise is in technology and communications law. 'In the worst case, the account could be wiped out entirely, leaving the buyer with nothing.' However, Mr Fong added that there are no Singapore laws explicitly prohibiting the sale of social media accounts. The Complaint Singapore admin argued that the sale is akin to transferring business ownership. 'There are many sales of businesses in Singapore and the rest of the world, where new buyers take over the business they bought and all its related assets, including their social media presence,' the admin said. Mr Lester Lin, a partner specialising in intellectual property, digital assets and technology at RHTLaw Asia, noted that while Meta's terms are clear, platforms may veer from these terms. This includes instances where admin rights are moved as part of a legitimate business sale or acquisition. 'In such contexts, platforms like Facebook and Instagram are frequently pragmatic, and there have been numerous instances in which no enforcement action was taken notwithstanding a transfer of admin control as part of the wider deal,' said Mr Lin.
