Li Ning reported earnings in 2018 rose 39 percent on an 18 percent revenue gain.

Financial Highlights 

  • Reported net profit attributable to equity holders increased by 39 percent to RMB715 million, net profit margin
    raised from 5.8 percent to 6.8 percent:
  • Revenue increased by 18 percent to RMB10,511 million
  • Gross profit margin expanded 1 percentage point
  • Enhanced operating leverage notwithstanding investment in new initiatives and an increase of
    organization costs
  • Operating cash flow increased by 44 percent to RMB1,672 million.
  • Significant improvement in working capital continued:
  • Gross average working capital improved (reduced) by 12 percent while revenue increased by 18 percent
  • Cash conversion cycle further improved (shortened) by 9 days (2017: 49 days/2018: 40 days)
  • The board has recommended payment of a final dividend of RMB8.78 cents per ordinary share of the
    company issued or to be issued upon conversion of convertible securities for the year ended 31 December
    2018 (2017: Nil).

Operational Highlights

  • The retail sell-through for the overall platform increased by mid-teens, including online and offline channels.
  • Channel inventory turnover further improved.
  • Overall same-store-sales growth accelerates to low-teens.
  • Offline channel new product sell-through increased by mid-teens with new product mix increased by 2
    percentage points:
  • Direct retail new product gross margin improved over 1 percentage point.

The full report is here.