Li Ning reported earnings from continuing operations nearly doubled in 2017 on an 11 percent revenue gain.

FINANCIAL HIGHLIGHTS

  • Revenue increased by 11 percent to RMB 8.87 billion
  • Gross profit margin expanded 0.9 percentage point
  • Enhanced operating leverage through disciplined cost management
  • Operating cash flow increased by approximately 40 percent to RMB1,159 million (relating to continuing operations only)
  • Significant improvement in working capital continued:

– Gross average working capital improved (reduced) by over 10 percent while revenue increased by 11 percent

– Cash conversion cycle further improved (shortened) by 10 days (2016: 59 days/2017: 49 days)

– Gross trade receivables improved (reduced) by 14 percent

OPERATIONAL HIGHLIGHTS

• High-single digit growth for total platform retail sell-through, including online and offline channels.

• Channel inventory turnover further improved to 6 months.

• Overall Same-Store-Sales recorded mid-single digit growth.

• Retail capabilities improvement continued:

– Sell-out rate was up by approximately 4 percentage points

– Discount rate improved by over 1 percentage point

Profit for the year from continuing operations improve to RMB 515.2 million from RMB 255.5 million. The year-ago period included losses from discontinued operations of RMB 445.5 million. As a result, net profits for the year were down to RMB 515.2 million from RMB 700.9 million.