During a year it called extremely challenging, management at China-based Li Ning Group Limited said revenues improved by 25.4% to RMB 8.39 billion ($1.22 bn) for the year ended December 31. Management said results were satisfactory despite a global financial crisis and tough year-ago comparisons from the post-Olympic effect.
Profit attributable to equity holders rose by 31.0% to RMB 944.5 million ($138.3 million), or RMB 90.75 cents a share. The board of directors recommended payment of a final dividend of RMB 22.54 cents per ordinary share versus RMB 11.14 cents in 2008, accretive to a full-year payout of RMB 36.12 cents per ordinary share.
For Li-Ning, the Groups core brand whose sales accounted for 91.7% of the total revenue, sales grew 21.1% to RMB 7.69 billion ($1.1 billion). Sales of Li-Ning brand footwear products, apparel products and accessories grew by 19.1%, 22.3% and 27.4% respectively.
The Group continued to develop its multi-brand strategy during the year. Revenue from Double Happiness and Lotto brands amounted to RMB 427.1 million ($62.6 mm) and RMB 76. 2 million ($11.2mm) accounting for 5.1% and 0.9% of the Group’s total.
Total revenue generated by AIGLE, Z-DO and Kason brands was RMB 190.4 million ($27.9 mm).
Management added that the Group continues to expand its sales channel coverage, especially in second- and third-tier cities that have the strongest growth potential. Meanwhile, the Group said it has also enhanced the management of retail store operations in metropolitan and first-tier cities by establishing uniform retail operation standards.
As of December 31, the Group had 8,156 retail outlets in China (7,249 of which were Li-Ning brand stores), representing a net addition of 1,239 stores as compared to last year. For the LI-NING brand, the Group had approximately 128 distributors operating a total of 6,854 franchised retail stores nationwide as well as a total of 395 directly-managed retail stores in Beijing, Shanghai and 15 other provinces in China.
