Li Ning Company Ltd. reported revenue for the six months ended June 30 reached RMB3.596 million, up 13 percent from the corresponding period in 2015.
Operating profit for the period was RMB153 million, an increase of 167 percent year on year from RMB57 million.
The company’s overall gross profit margin was 46.7 percent, up from 45.2 percent a year ago. The margin improvement was mainly due to the increase in the proportion of sales of new products with higher gross profit margin. Profitability also benefited from a reduction in expenses.
Profit attributable to equity holders of the company was RMB113 million, against the RMB29 million loss for the first half of 2015. In terms of channels, the retail (direct operation) and wholesale (franchisee) channels both achieved mid-single-digit growth on a year-on-year basis while, the e-commerce online stores business achieved a low-seventies growth on a year-on-year basis.
Orders from the latest trade fair, which are for the first quarter of 2017, registered a high-single digit growth on a year-on-year basis.
Li Ning, Founder and Executive Chairman of the Group, said: “The supportive national policies will continue to facilitate development of the sporting goods industry. Building the value of LI-NING will remain to be the development theme of the Group in the foreseeable future. Looking forward, the Group will enhance its operation capability in various aspects and strive to go beyond the limit of “Value-for-money” proposition and attract consumers who enjoy sports through providing products with “Performance” and “Fuctionalities”. Making use its sports DNA, the Group will integrate technological, cultural and others elements into its products to promote the idea of sports is a means toward an educated and happy lifestyle, and facilitate the development of a “Sports +” concept.”
