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The Sun
05-08-2025
- Business
- The Sun
AsiaInfo Technologies Expects to Achieve Accelerated Growth from the Three Core Growth Engines in 2025H2, with Full Year Profit Exceeding Last Year[1]
Future prospects in 2025H2: The results for 2025H2 is expected to improve significantly compared to the 2025H1, and the Group is determined to achieve its full-year targets. The annual performance is expected to remain stable. In 2025H2, the three core growth engines are projected to achieve accelerated growth, while the revenue decline in the ICT support business is anticipated to narrow significantly. Profit for the year is expected to exceed that of the previous year (excluding the impact of one-off severance compensation due to personnel restructuring optimisation). The Group will adhere to a steady and progressive development strategy, continue to consolidate the foundation of its core telecommunications business to promote a steady recovery of its fundamental operations in ICT support business, and continue to focus on cultivating three core growth engines, including AI large model application and delivery, 5G private network and application, and digital intelligence-driven operation. The Group will also accelerate the pace of signing contracts, to maintain a stable and healthy annual performance. The Board has attached great importance to the shareholders' interests and returns, and after giving due consideration to the Group's business development, profitability, and cash flow level, the Board has recommended the guideline of the final dividend for the year 2025 is 40% of the annual net profit attributable to shareholders. Results highlights & business review: In 2025H1, the Group's overall revenue and profit declined due to the effects brought by the ongoing cost-reduction and efficiency-enhancement within the telecommunications sector. The Group managed to effectively control costs through its mature cost control mechanism and optimised personnel restructuring optimisation. - Revenue[2] amounted to approximately RMB2,598 million. - Gross profit was approximately RMB783 million, representing a year-on-year increase of 6.1%, with a gross profit margin of 30.1%, representing a year-on-year increase of 5.4 percentage points. Net operating cash outflow improved by 35.3% year-on-year. - Net loss was approximately RMB202 million compared to a loss of approximately RMB70 million in the same period of the previous year. Excluding the impact of one-off severance compensation due to personnel restructuring optimisation, net loss was approximately RMB48 million. AI large model application and delivery business achieved explosive growth, with revenue of approximately RMB 26 million, representing a year-on-year increase of 76 times; the order amount for 2025H1 was approximately RMB 70 million, representing a year-on-year increase of 78 times, demonstrating strong market demand. Through collaborations with Alibaba Cloud, Baidu Intelligent Cloud, NVIDIA, AsiaInfo Security and others, the Group has constructed end-to-end industrial large model solutions. Revenue from the 5G private network and application business was approximately RMB47 million; the order amount for 2025H1 was approximately RMB82 million, representing a year-on-year increase of 51.7%, which reflects growth potential in the market. Revenue from the ICT support business was approximately RMB2,118 million, representing a year-on-year decrease of 14.7%. Revenue from the digital intelligence-driven operation business was approximately RMB408 million, representing a year-on-year decrease of 8.8% which was mainly driven by cost reductions from operators, but with continued growth in the non-telecommunications industry. HONG KONG SAR - Media OutReach Newswire - 5 August 2025 - AsiaInfo Technologies Limited ('AsiaInfo Technologies' or the 'Company', which together with its subsidiaries, is referred to as the 'Group'; HKEX stock code: 01675), is pleased to announce its interim results for the six months ended 30 June 2025 (the 'Period'). In the first half of 2025 ('2025H1'), the Group's current overall operating scale is under pressure due to the ongoing cost-reduction and efficiency-enhancement in the telecommunications sector. Revenue was approximately RMB2,598 million, representing a decrease of 13.2% year-on-year. However, amid the wave of new AI technologies, the Group's AI large model application and delivery business has achieved explosive growth, while the 5G private network and application business has continued to gain momentum, and it has kept optimising the business structure of digital intelligence-driven operation. Meanwhile, the Group has strengthened internal cost management to support sustainable development, and its business fundamentals will continue to be sound in the long term. To cope with challenges of the ICT support business transformation, the Group implemented a series of cost-reduction and efficiency-enhancing measures proactively, such as personnel restructuring optimisation, applying AI tools to enhance efficiency, strengthening centralised procurement, and the one-stop official consumption platforms, which have achieved significant results in cost control. In 2025H1, gross profit was approximately RMB783 million, representing a year-on-year increase of 6.1%, with a gross profit margin of 30.1%, representing a year-on-year increase of 5.4 percentage points. Net operating cash outflow improved by 35.3% year-on-year. Excluding the impact of one-off severance compensation due to personnel restructuring optimisation, net loss for the period was approximately RMB48 million, and the Group expected that net profit will continue to rebound in the second half of the year ('2025H2'), with full-year profit better than last year. The Board has attached great importance to the shareholders' interests and returns, and after giving due consideration to the Group's business development, profitability, and cash flow level, the Board has recommended the guideline of the final dividend for the year 2025 is 40% of the annual net profit attributable to shareholders. AI Large Model Application and Delivery Business Achieves Explosive Growth In 2025, the industrial application of AI large models witnessed explosive growth. In 2025H1, the Group secured orders worth approximately RMB70 million, representing a year-on-year increase of 78 times. In addition, the Company entered into a framework agreement that accounted for more than RMB40 million with a company. Revenue from the AI large model application and delivery business reached approximately RMB26 million, representing a year-on-year increase of 76 times. Through collaborations with Alibaba Cloud, Baidu Intelligent Cloud, NVIDIA, AsiaInfo Security and others, the Group has constructed end-to-end industrial large model solutions covering energy and power, industrial manufacturing, transportation, smart retail, and other large enterprises. The Group has become a partner in Alibaba Cloud's AI Large Model Galaxy Program, jointly developed nearly 100 projects and created numerous benchmark cases for large model delivery. With a robust pipeline of business opportunities, the Group is driving the industrialisation of large models. 5G Private Network and Application Business Continues to Gain Momentum The Group's 5G private network and application business provides an important emerging telecommunications network for energy industries such as the power and mining industries. By providing customised 5G private network products and advanced industry solutions, as well as offering professional one-stop services and turnkey projects, the Group created differentiation in its competitive advantage and became a leading company in the field of 5G private network. In 2025H1, the Group signed orders for the 5G private network and application business amounted to approximately RMB82 million, representing a year-on-year increase of 51.7%, while revenue amounted to approximately RMB47 million, representing a year-on-year decrease of 26.3%, which was mainly attributable to the delay in some nuclear power orders and the delay in revenue recognition. In 2025H2, the Group will expedite order conversion, which is expected to drive rapid performance growth. In terms of nuclear power, in 2025H1, on the basis of maintaining the continued market leadership of CNNC, the Group has successfully achieved a breakthrough in Huaneng Group and signed a contract for the 5G private network project for units 3 and 4 of the Changjiang Nuclear Power Plant in Hainan. Up to this point, the Group's nuclear power 5G private network projects have covered 29 units in seven national nuclear power bases, further consolidating its top one position in the market share of nuclear power 5G private network. In 2025H1, the country's investment in the new nuclear power sector exceeded RMB200 billion, and the Group's 5G private network in nuclear power business is expected to grow continuously. In the field of new energy, the Group continues to make efforts in wind power and photovoltaic markets, and has currently covered more than 210 new energy stations and achieved project breakthroughs for a number of energy group customers. In the field of mining, the Group established an associated company with Zhengzhou Coal Mining Machinery Group Company Limited to explore the new model of 'digital and intelligent operation of mines and equipment manufacturing'. In 2025H1, the Group acquired projects such as Zhengzhou Coal Smart Supervision Platform, China Coal AI Management and Control Platform, China Coal Pingshuo Open-pit Mining Smart Transportation and others. In addition, the Group's launch of intrinsically safe 5G private network base stations has obtained network access authorisation, and the Group has entered into cooperation with multiple 5G intrinsically safe certifiers, including CCTEG Changzhou Research Institute and China Coal. Meanwhile, the Group signed a framework procurement agreement with Hangzhou Jiaoyang Communications Technology Ltd. for intrinsically safe 5G private network base stations. Optimisation of Digital Intelligence-driven Operation Business Structure and Continued Growth in the Non-Telecommunications Industry Leveraging over 30 years of practical experience in business support and data governance in the telecommunications sector, along with an extensive network of industry experts, the Group has expanded its offerings to major industries with large end-user bases, such as finance, automobile and consumer sectors. It provides data operation services based on 'data aggregation + scenario insights + AI empowerment', continuously creating and enhancing value for clients. This approach has further strengthened the Group's leading position in the results-based charging commerce models. In the non-telecommunications industry, the Group achieved an overall year-on-year order growth of 18.2% in 2025H1. Among them, orders in the finance sector increased significantly by 48.3% year-on-year, orders in the automobile sector increased by 5.3% year-on-year, and orders in the consumer sector increased by 4.4% year-on-year. In the telecommunications sector, the Group leveraged a 'scenario + AI Agent' strategy to enhance operational efficiency of clients and drive business revenue growth. Firstly, through joint innovation with operators, the Group supported clients in implementing value-based operations at scale, securing projects such as an intelligent marketing service assistant agent for operators' household customers, an AI solution advisor for government and enterprise clients, and a frontline AI sales assistant. Secondly, the Group actively integrated the rights resources and technical capabilities of leading internet enterprises, and united with operator customers to develop operational innovations in areas such as households and business enterprise customers, and help customers to generate revenue by obtaining projects such as AI intelligent marketing, AI intelligent recommendation, and the introduction of rights to cooperative operations with a carrier. In 2025H1, revenue from digital intelligence-driven operation business reached approximately RMB408 million, representing a year-on-year decrease of 8.8%, primarily driven by increased cost control efforts by operators. However, the business structure continued to improve, with revenue from results-based and commission-based charging models accounting for 33.4%, up by 6.7 percentage points year-on-year. The Group will accelerate order conversion and revenue realisation in 2025H2 to ensure the achievement of full-year targets. I CT Support Business Proactively Responds to Industry Transformation and Accelerates Expansion in New Customers and Projects The Group has clearly positioned itself as a software service provider, acknowledging the structural adjustments occurring in the traditional operator industry while basing itself on its operator's base of business, stabilising the ICT support business in the telecommunications sector, and laying a solid foundation for the Group's overall business enhancement and transformation. In 2025H1, the Group's ICT support business maintained a leading market share, with revenue reaching approximately RMB2,118 million. However, due to factors such as reduced overall investment by operators, revenue declined by 14.7% year-on-year. To offset the downward pressure in the BSS business, the Group implemented a series of measures, including AI empowerment, expansion into new services for existing customers, expansion of new clients, and joint market development in the government and enterprise sector. Meanwhile, the Group continued to restructure its organisational model from an 'olive-shaped' to a 'pyramid-shaped' structure to reduce delivery costs. The Group also leveraged AI large models and other new tools to empower internal operations to achieve cost reductions and enhance operational efficiency in order to significantly narrow the decline in full-year revenue of the ICT support business. In 2025H1, the Group accelerated the application of AI in the BSS and OSS businesses, and 48 new projects were signed, including the R&D project of an operator's intelligent platform and the project of technological innovation platform, etc. The deployment of AI tool platform exceeded 10 provinces, and more than 10 metahuman projects have been implemented, including product sales and assisted acceptance. In addition, the Group has been steadily sourcing new customers and projects, the first phase of the HKT project has been successfully launched. In terms of joint market development in the government and enterprise sectors, the Group focused on data governance, trusted data space, public services, low altitude economy and other areas, and collaborated with operators to open up the market and break the ceiling of traditional business. Several projects have been successfully delivered, including data governance of an energy central enterprise, digital network of a province's energy bureau, a province's construction supervision and public service platform, a city's health service platform, a province's Forestry and Grassland Bureau's digital forestry platform, and a city's intelligent tourism service platform, among others. Strengthening the Technological Leadership of Products such as Cloud Network and Digital Intelligence In 2025H1, AsiaInfo Technologies continued to focus on the three major product systems of 'Cloud Network', 'Digital Intelligence' and 'IT', comprehensively promoting the evolution and innovation of the product system towards AI Native, and continuously strengthening its technological leadership to provide strong support for the Group's three growth engines. In 2025H1, the Group's R&D investment amounted to approximately RMB415 million, with continued efforts to strengthen technological leadership in cloud and digital-intelligent products. Future Prospects Dr. TIAN Suning, Chairman and Executive Director of AsiaInfo Technologies, said, 'We expect the results for 2025H2 to improve significantly compared to 2025H1, and we are determined to achieve our full-year targets by optimising the rhythm of signing contracts. In this regard, the Group will adhere to a steady and progressive development strategy. On one hand, we will continue to consolidate the foundation of our core telecommunications business to promote a steady recovery of our fundamental operations in ICT support business. On the other hand, we will continue to focus on cultivating three core growth engines, including AI large model application and delivery, 5G private network and application, and digital intelligence-driven operation. We will also accelerate our pace of signing contracts, to maintain a stable and healthy annual performance. Meanwhile, we will accelerate the commercialisation of AI large model application and delivery, 5G private network and application business orders, to achieve high performance growth for the year. Combining digital intelligence-driven operation business with AI and intelligent agent technology, we will continue to promote the innovative results-based charging commerce models, and optimise the business structure.' [1] Excluding the impact of one-off severance compensation due to personnel restructuring optimisation. [2] Revenue includes revenue from the ICT support business, the AI large model application and delivery business, the 5G private network and application business and the digital intelligence-driven operation business.
New York Times
24-07-2025
- Sport
- New York Times
Eugenio Suárez trade scenarios: If D-Backs sell, which teams (and packages) could land him?
Eugenio Suárez looms as the biggest bat — by far — who could be available at the trade deadline. With a National League-leading 36 home runs and a majors-leading 86 RBIs, the 33-year-old slugger would provide a huge boost to any lineup. But which teams are the most motivated to land him, and will the Arizona Diamondbacks, who remain on the outskirts of the wild-card race, decide to trade him? Advertisement Diamondbacks general manager Mike Hazen has said he hopes the team has a strong finish leading up to the July 31 trade deadline, so that trading away key players — including Suárez, who will be a free agent after this season — becomes a moot point. 'I would love nothing more than to really help the 'sellers' by choking out the supply because D-Backs players aren't available,' Hazen recently told me. However, the Diamondbacks (50-53) enter Thursday 5 1/2 games out of the final NL wild-card spot, and they face an uphill climb after dealing with numerous injury setbacks, including Corbin Burnes' season-ending Tommy John surgery. Hazen doesn't want to sell, but he also knows that he holds several big trade chips if he does, players who could bring back valuable talent to propel his team in future seasons. Front and center among them is Suárez, an All-Star third baseman with 312 career homers and a .254/.325/.598 (150 OPS+) slash line this season. At least six contending teams have contacted the Diamondbacks with interest in Suárez, according to major-league sources. If traded, despite being a two-month rental, Suárez would secure a significant trade haul in return for Arizona. What could it take to land him in this seller's market? Here are six teams that have shown interest in Suárez and what the trade return could look like from each of them. The Yankees will not be trading top prospects Spencer Jones and George Lombard Jr. I'm told both are off limits. However, they probably would be willing to part with a package highlighted by middle infielder Roderick Arias and left-handed pitcher Brock Selvidge. If the Diamondbacks wanted to expand a Suárez trade to include an impending-free-agent starter, either Zac Gallen or Merrill Kelly, then perhaps the Yankees would be willing to add recently promoted right-hander Cam Schlittler or outfield power hitter Everson Pereira. There's certainly a path to a package that could make sense for both sides. Advertisement The Cubs should be able to land Suárez in a straight-up deal for pitching prospect Jaxon Wiggins, who was a second-round pick in 2023. The right-hander has dominated at High A and Double A this season, posting a 2.02 ERA in 14 appearances (13 starts). He has 78 strikeouts and only 33 hits allowed over 62 1/3 innings. That would be quite a return for two months of Suárez. The Diamondbacks' biggest need is starting pitching, so it would be hard for them to turn that offer down. The Cubs could offer outfield prospect Kevin Alcántara first to see if they bite. Alcántara, 23, has slashed .264/.349/.457 this season with 11 homers and nine steals in Triple A. The Cubs match up well with the D-Backs on a Suárez deal due to their strong farm system. The Tigers' most-pressing need is in the back of the bullpen, and if they swing big at the deadline, that's probably what they should address. However, they continue to be linked to Suárez as well as the Cardinals' Nolan Arenado, who would need to waive his no-trade clause, so it seems they could want to upgrade at third. Adding Suárez's power behind Gleyber Torres, Kerry Carpenter, Riley Greene and Spencer Torkelson for a playoff run would be huge for their lineup in terms of power and balance. Detroit is not going to part with its trio of top prospects: middle infielder Kevin McGonigle, shortstop Bryce Rainer and outfielder Max Clark. All three would be off the table. However, I think the Tigers would include catcher/first baseman Thayron Liranzo, whom they acquired from the Los Angeles Dodgers last year in the Jack Flaherty deadline trade, and right-hander Jaden Hamm, who profiles as a future middle-of-the-rotation starter. Liranzo, 22, has a .349 on-base percentage with 10 home runs in 230 at-bats this season at Double A. Hamm, 22, has a 4.27 ERA over 14 starts this season between Low A and Double A; he could be major-league-ready by September of next year. The Brewers have been the hottest team in baseball, and with GM Matt Arnold, the reigning MLB executive of the year, at the helm, don't be surprised if they make a big splash at the deadline. They have the pitching staff to run the table in October, and adding a power bat like Suárez would be a game-changer for the lineup. The Brewers' front office has made it clear that their biggest weakness has been the lack of offense on the left side of the infield; they would love to upgrade there, and Suárez is the best-available solution. Advertisement The Brewers could offer minor-league starter Bishop Letson, who has a 1.33 ERA and 0.85 WHIP with 30 strikeouts in 27 innings this season at High A. The 20-year-old is on the 60-day injured list with right shoulder inflammation, so a review of his medical reports would be an important part of any deal. In addition, the Diamondbacks could also ask Milwaukee to include Caleb Durbin, who could fill in at third base for Suárez until prospect Jordan Lawlar is fully healthy and major-league-ready. (Durbin has a 106 OPS+ over 249 at-bats this season and has been worth 2.1 WAR, according to Baseball Reference.) If those two for Suárez didn't work, perhaps the Brewers would greenlight a straight-up trade for righty Logan Henderson, considering their starting pitch depth. Henderson, 23, is 3-0 with a 1.71 ERA over four major-league starts and has logged a 3.36 ERA over 15 appearances (14 starts) with 82 strikeouts in 72 1/3 innings this season in Triple A. The Mariners regret trading Suárez to the Diamondbacks in 2023, so nothing would be better than to reacquire him at this year's deadline. He would seriously upgrade their lineup and perhaps be the missing piece needed for a deep October run. A package highlighted by middle infielder Michael Arroyo and right-hander Ryan Sloan could be enough to get a deal done. Arroyo, 20, has reached base at a .417 clip this season between High A and Double A. He has 17 homers and 49 RBIs. A second-round pick in 2024, Sloan has a 3.43 ERA over 15 starts this season at Low A. The 19-year-old has logged a strikeout-to-walk ratio of 5.82. The Reds seem like a long shot to land Suarez, but they have the farm system to do it if they are motivated. Options abound. They could offer Arizona two of the following three pitching prospects — lefty Adam Serwinowski, righty Ty Floyd, righty Luke Holman — or one of those pitchers along with middle infielder Peyton Stovall or infielder/outfielder Tyler Callihan, who is currently on the injured list. However, based on the offers Arizona should get from the rest of the field, it might take one of Cincinnati's top prospects, third baseman/second baseman Sal Stewart or corner infielder Cam Collier, to get a deal done; I doubt the Reds would do that for a two-month rental, especially since acquiring bullpen and outfield help is their top priority at the deadline. On Wednesday night, The Athletic's C. Trent Rosecrans reported that there is mutual interest between the Reds and Diamondbacks in a potential Suárez trade, according to major-league sources, with right-hander Chase Petty named as a player who could interest Arizona. So, how will this play out? With a week until the deadline, it's still unclear. None of us know if Suárez will be traded, but teams are submitting offers to the Diamondbacks, and at some point, I expect they'll get an offer so good they'll trade him. If so, it will be among the deals that define this deadline.
Associated Press
28-03-2025
- Business
- Associated Press
Li Ning Company Limited Announces 2024 Annual Results
Strengthen the 'Single Brand, Multi-Categories, Diversified Channels' Strategy | Solidify Brand and Product Competitiveness, Ensure Steady Operations, and Achieve Pragmatic Growth HONG KONG SAR - Media OutReach Newswire - 28 March 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 2024 annual results for the year ended 31 December 2024 (the 'Year'). Financial Results In 2024, the Group's annual performance was generally in line with expectations, a result of robust operational resilience and effective strategic execution. During the Year, the Group's revenue amounted to RMB28,676 million, representing an increase of 3.9% as compared to that of 2023 (2023: RMB27,598 million). Gross profit amounted to RMB14,156 million, representing an increase of 6.0% compared to that of 2023(2023: RMB13,352 million). The overall gross profit margin increased by one percentage point to 49.4%(2023: 48.4%). During the year, the net profit attributable to equity holders was RMB3,013 million (2023: RMB3,187 million). The margin of net profit attributable to equity holders was 10.5% (2023: 11.5%). Return on equity attributable to equity holders was 11.9% (2023: 13.1%). Basic earnings per share was RMB116.98 cents (2023: RMB123.21 cents). The Board has recommended the payment of final dividend of RMB20.73 cents per ordinary share for the year ended 31 December 2024, together with the interim dividend of RMB37.75 cents per ordinary share paid in September 2024, the total dividend for the year ended 31 December 2024 will amount to RMB58.48 cents per ordinary share or a total dividend payout ratio of 50%(2023: 45%). In terms of cash flow management, the Group's net cash generated from operating activities during the year amounted to RMB5,268 million (2023: RMB4,688 million). As at 31 December 2024, cash and cash equivalents (including cash at banks and in hand, and fixed term deposits with original maturity of no more than three months) amounted to RMB7,499 million, representing an increase of RMB2,055 million, as compared with the position as at 31 December 2023. Adding back the amount recorded as fixed-term deposits held at banks, cash balance amounted to RMB18,141 million, which represented a net increase of RMB166 million as compared to 31 December 2023. During the year, the Group maintained a healthy level of operating capital, and the net cash generated from operating activities increased compared to the previous year. The Company will continue to prudently assess its capital plan in light of market conditions and capital requirements to ensure maximum efficiency in the use of capital and to support its long-term development objectives. Operational Summary During the Year, the Group maintained its focus on the core strategy of 'Single Brand, Multi-categories, Diversified Channels' to enhance product strength through continuous research and development and technological innovation. Furthermore, the Group made significant progress across various aspects of its business including product innovation, brand building, and channel optimization. In 2024, the Group made multi-dimensional breakthroughs in the research and development of technologies. During the Year, the Group launched the new midsole technology 'Super BOOM"(超䨻), which is not only lighter and more elastic but also boasts an exceptional elasticity-to-weight ratio, representing the pinnacle of performance for supercritical foaming materials. The BOOM technology platform has achieved four application breakthroughs within six years, evolving from a 'single technology' to 'four major technologies'. This progression demonstrates the Group's commitment to exploring materials and manufacturing processes and exceptional ability to deploy and broaden their application, further enhancing its ability to diversify product offerings and iterate product lines. In respect of branding and marketing, the Group continued to focus on the six core categories of running, basketball, training, badminton, table tennis, and sports casual. It also actively explored emerging sports and subcategories, such as outdoor sports, golf, tennis and pickleball. The Group leveraged technological innovation capabilities to drive product upgrades underpinned by 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 and enhance brand influence through diversified and comprehensive marketing campaigns. Capitalizing on the market opportunities presented by a year distinguished major sporting events, the Group delved into the essence of its brand spirit and gained insights into the younger generation's attitudes towards sports. Through these efforts, it articulated the brand spirit of 'Dare to Imagine, Create Excellence, Anything is Possible"(敢於想像，創造精彩，一切皆有可能) and launched the 'In My Name"(以我為名)-themed marketing campaign, aiming to solidify LI-NING's professional image and establish a deeper emotional connection with consumers. In respect of channel, the Group consolidated and enhanced operational efficiency for high-end markets and accelerate expansion into emerging markets. In the high-end markets, the Group focused on improving the efficiency of single store sales through a series of refined management processes and the orderly closure of stores with substantial losses to make the channel layout more reasonable, effectively enhancing overall channel efficiency. At the same time, the Group actively expanded its presence in emerging markets. Diversified sales strategies and flexible market response capabilities enable the Group to gradually expand its market share in emerging markets. As of 31 December 2024, the number of conventional stores, flagship stores, China LI-NING stores, factory outlets and multi-brand stores under the LI-NING brand (including LI-NING Core Brand and LI-NING YOUNG) amounted to 7,585, representing a net decrease of 83 POS as compared to 31 December 2023. The number of distributors was 41 (including sales channels of China LI-NING stores), representing a net decrease of 5 as compared to 31 December 2023. In terms of retail operations, the Group intensified efforts to promote a single-store operational model with solid profit and efficiency. It established standard profit and loss models for stores at all levels, standardizing and quantifying core store metrics to link them with management objectives across departments. This formed an efficient and coordinated management system, contributing to improved overall operational efficiency. The Group also strengthened the synergies between inventory and sales planning for single-stores and was committed to achieving improvements in both operational efficiency and supply chain management, ensuring efficient and accurate resource allocation and profitability. In terms of new retail business, the Group continued to deepen the construction of its new retail business system, focusing on enhancing digitalization and all-channel operational capabilities. The aim is to efficiently convert private traffic and steadily improve sales performance. The Group actively explored diversified business models such as acquiring traffic through popular social media platforms like Douyin (抖音) and collaborating online with core channels to broaden sales, increase the proportion of out-of-store sales, and empower stores with new retail capabilities. In terms of e-commerce operations, facing intensified market competition and a sluggish consumption environment, the Group continued to deepen e-commerce reform and strengthened its core competitiveness in the e-commerce sector across the board through online and offline interaction, diversified marketing campaigns, and precise capture of major sales promotions. In terms of supply chain, the Group focused on exploring and matching high-quality supply chain resources, gradually improving the supplier matrix for high-end and outdoor products to ensure precise alignment between products and supply chain resources. The Group also implemented a flexible supply chain strategy to closely monitor market demand. Initiatives to refine management and analyse digital information support interoperability and transparency, improve the level of automation, and significantly enhance inventory efficiency along the supply chain. While flexibly responding to market changes, the Group strived to achieve dual improvements in production efficiency and economic benefits. In 2024, the Group made remarkable achievements in logistics. Four major regional logistics centres across the country underwent comprehensive automation upgrades and began operations. The Nanning central warehouse is set to begin operations in 2025, which will improve delivery efficiency and logistics and warehousing operational capabilities in the southwest of the country. The Group is also proactively promoting refined logistics plan management across its divisions. Through the optimization of digital tools, the Group catered to the specific needs of its sales teams, improved the efficiency of goods distribution, and reduced logistics costs. In terms of kidswear business, LI-NING YOUNG refined its youth product offerings, leveraging the core competitiveness of its clothing and accessories, while actively expanded into emerging markets, improved single-store efficiency, strengthened construction of clearance channels, promoted product distribution, and expanded the customer base. In terms of retail operations, LI-NING YOUNG continued to enhance operational efficiency and actively acquire and convert customers. Meanwhile, the Group actively built a community marketing system to strengthen member interaction and provide exclusive benefits to strengthen member loyalty and sales conversion rates. In terms of marketing, LI-NING YOUNG planned a series of offline youth activities and cross-border collaborations, focusing on popular sports including basketball, football, running and outdoor activities to showcase the brand's diverse appeal. Meanwhile, LI-NING YOUNG leveraged social media platforms, ensuring that its messaging reaches target audiences, drives engagement, and reinforces the concept of being a 'professional youth sports brand'. As at 31 December 2024, the total number of LI-NING YOUNG POS amounted to 1,468, representing a net increase of 40 POS since 31 December 2023. Outlook Looking ahead, the Group will continue to fulfil its commitments by focusing on its core strategy of 'Single Brand, Multi-categories, Diversified Channels', and ensure its effective implementation by strengthening operational systems and consolidating foundational support. 1. Strengthen the implementation of core strategies. By maintaining the healthy development of its core businesses, the Group will further integrate resources and leverage the LI-NING technology platform to further improve its professional product offerings in subcategories such as running, basketball, training, badminton, table tennis and sports casual. It will also deepen the fusion of the sporting spirit and its brand to enhance its competitiveness and influence in core business areas. Meanwhile, in addition to active efforts to optimize its product structure, the Group will expand diversified dressing scenarios with a commitment to the single-brand strategy, deeply integrate sports fashion culture, and launch sports products that combine technology and fashion. In addition, it will take the lead in laying out new pathways for sports consumption, especially in the markets for women, outdoor and youth, striving to achieve breakthrough progress in these emerging fields and drive diversified business expansion. Moreover, the Group is committed to expanding its presence in all target markets, with the aim to create business opportunities in each channel, continuously enhance brand influence, and drive sustained business growth. 2. Optimize operational efficiency. The Group will focus on boosting operational efficiency to ensure the effective implementation of its 'Single Brand, Multi-categories, Diversified Channels' strategy. Deepened cross-departmental collaboration and streamlined business processes will empower the Group with efficient product management operations and allchannel integration and supply chain collaboration. Meanwhile, the Group will adopt refined management practices and strictly control costs and benefits, to ensure optimal allocation of resources. At the organizational level, the Group will endeavour to streamline management levels, optimize talent structure, cultivate efficient teams, and promote collaboration among organizations, in order to accelerate the decision-making process, enhance execution, and build a flexible and efficient operational structure. 3. Reinforce underlying support. In terms of underlying support, the Group will ensure sound operations of its financial systems, strengthen fund management and optimize capital structure, and improve financial transparency in a way that provides a solid financial foundation for long-term development. At the same time, the Group will deepen the integration of digital and smart tools by applying digital and intelligent technologies to make more scientific business decisions and adapt with agility to market changes. Through data analysis, artificial intelligence and automation tools, the Group will enhance its insight into market trends and understanding of consumer behaviour, thereby driving innovation in products and services and providing strong support for sustained development. Mr. Li Ning, Executive Chairman and Joint CEO of the Group, concluded, 'Looking ahead to 2025, with strong policy support, consumer spending has the potential to grow decently in China. As a company with long-term roots in China market and a focus on professional products for sports, we are confident in our future development and will seize this opportunity to drive high-quality growth. Notably, LI-NING will once again partner with the Chinese Olympic Committee and the Chinese Sports Delegation from 2025 to 2028, which underscores the full trust and responsibility bestowed by the General Administration of Sport of China and the Chinese Olympic Committee and the high recognition of the Group's professionalism and innovation. By adhering to its core value of 'serving the public with sportsmanship', LI-NING is committed to becoming the most prominent and stylish sports brand from China and the preferred sports brand of Chinese consumers.' Hashtag: #LiNing #Sportswear 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.
