Li Ning reported earnings in 2018 rose 39 percent on an 18 percent revenue gain.
- 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
- 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).
- 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
- Direct retail new product gross margin improved over 1 percentage point.
The full report is here.