Core Viewpoint - Li Ning Company Limited reported steady revenue growth for the first half of 2025, with a focus on solidifying its operational foundation and business development [2][4]. Financial Performance - The company's revenue reached 14.817 billion RMB, a 3.3% increase compared to 14.345 billion RMB in the same period of 2024 [2]. - Gross profit was 7.415 billion RMB, up 2.5% from 7.236 billion RMB year-on-year, with an overall gross margin of 50.0%, down 0.4 percentage points from 50.4% [2]. - Profit attributable to equity holders was 1.737 billion RMB, down from 1.952 billion RMB in the previous year, with a profit margin of 11.7% [2]. - Basic earnings per share were 0.6743 RMB, compared to 0.7580 RMB in the same period last year [2]. - The interim dividend declared was 0.3359 RMB per share, down from 0.3775 RMB in the previous year, with a payout ratio of 50% [2]. Cash Flow Management - Net cash generated from operating activities was 2.411 billion RMB, a decrease from 2.730 billion RMB in the previous year [3]. - As of June 30, 2025, cash and cash equivalents totaled 11.798 billion RMB, an increase of 4.299 billion RMB from December 31, 2024 [3]. - The total cash balance, including fixed deposits, was 19.190 billion RMB, a net increase of 1.050 billion RMB from the end of 2024 [3]. Operational Overview - The company continued to implement its "single brand, multi-category, multi-channel" strategy, focusing on product upgrades, brand marketing, and channel optimization [4]. - Li Ning signed a partnership with the Chinese Olympic Committee for the 2025-2028 period, enhancing its brand image as a supporter of Chinese sports [4]. - The company is focusing on six core categories: running, basketball, cross-training, badminton, table tennis, and sports leisure, while also exploring new segments like outdoor sports and tennis [4]. Channel Development - The company is enhancing its multi-dimensional channel network, with a total of 7,534 sales points as of June 30, 2025, a net decrease of 51 from December 31, 2024 [5]. - Retail operations are being optimized through improved market models and consumer engagement activities [5]. - The company is also focusing on digital upgrades in its new retail business to enhance operational efficiency [5]. E-commerce and Supply Chain - The company is maintaining a steady operational strategy in e-commerce, leveraging online and offline synergies to drive growth [6]. - Supply chain optimization is a priority, focusing on quality control, delivery assurance, cost optimization, and sustainability [6]. - The logistics system is being enhanced to improve efficiency and reduce costs, with the launch of a national logistics network [6]. Children's Wear Business - Li Ning YOUNG is making steady progress in product optimization, channel development, and brand marketing, with a total of 1,435 sales points as of June 30, 2025, a net decrease of 33 from December 31, 2024 [7]. Future Outlook - The company plans to continue executing its core strategy while enhancing product competitiveness and deepening cooperation with the Chinese Olympic Committee [8]. - Focus areas include improving business quality and efficiency across channels, products, and supply chains [9]. - The company aims to strengthen its foundation for growth through talent development, financial governance, and digital empowerment [9].

Core Viewpoint - Li Ning Company Limited reported a 3.3% year-on-year increase in revenue for the first half of 2025, reaching 14.817 billion yuan, while maintaining a steady growth trajectory across various channels [1] Group 1: Financial Performance - Revenue increased by 3.3% year-on-year to 14.817 billion yuan, with gross profit approximately 7.415 billion yuan, reflecting a 2.48% year-on-year growth [1] - EBITDA was around 3.513 billion yuan, showing a 2% year-on-year increase, while net profit reached approximately 1.737 billion yuan, with basic earnings per share at 0.6743 yuan [1] - The interim dividend declared was 0.3359 yuan per share [1] Group 2: Revenue Channel Performance - Online sales grew by 7.4% year-on-year, driven by optimized e-commerce operations and enhanced customer engagement [1] - Revenue from authorized dealers increased by 4.4% year-on-year, contributing to 46.5% of total revenue, indicating its role as a core pillar [1] - Retail channel revenue faced challenges, declining by 3.4% year-on-year due to adjustments in direct store layouts and shifts in consumer scenarios [1] Group 3: Product and Brand Strategy - The company is committed to a "single brand, multiple categories, multiple channels" strategy, increasing R&D investment and technological innovation [2] - Collaborations with the China Olympic Committee and the Palace Museum aim to enhance brand recognition and integrate traditional cultural elements into sports products [2] - The focus is on consolidating competitive advantages in six core categories while innovating and expanding into niche markets for long-term growth [2] Group 4: Channel Optimization - The company is building a resilient and growth-oriented omnichannel matrix, enhancing online and offline collaboration [3] - Efforts include improving channel efficiency through governance and control, as well as exploring new retail business models [3] - Offline strategies focus on optimizing single-store performance and service quality, while expanding into emerging market channels [3]

2025年8月21日晚间，李宁（02331.HK）披露2025年中期业绩，整体保持稳健，符合预期。2025年上半 年，李宁收入达148.2亿元人民币，同比增长3.3%，毛利为74.1亿元人民币，同比增长2.5%。权益持有 人应占净溢利17.4亿元，净利率为11.7% 。截至2025年6月30日，李宁现金余额为191.9亿元人民币。 ...

2025年8月21日晚间，李宁（02331.HK）发布2025年中期业绩：2025年上半年，李宁收入达148.2亿元人 民币，同比上升3.3%，毛利为74.1亿元人民币，同比上升2.5%。权益持有人应占净溢利17.4亿元，权益 持有人应占溢利率为11.7% ，整体保持稳健，符合预期。 董事会决议宣派末期股息每股33.59分人民 币，中期派息率为50%。 本文源自：金融界AI电报 ...

(本文来自第一财经) 李宁在港交所公告，2025年上半年收入148.17亿元，同比增长3.3%；毛利率下降0.4个百分点至50％； 权益持有人应占净溢利为17.37亿元，净利率为11.7%。 ...

智通财经APP讯，李宁(02331)发布公告，将于2025年9月5日派发截至2025年6月30日止六个月的中期股 息每股0.3359元人民币。 该信息由智通财经网提供 ...

格隆汇8月21日｜李宁上半年营收148.2亿元，同比增加3.3%，预估145.7亿元；上半年毛利率50％，预 估49.7％；上半年净利润17.4亿元，同比下降11%，预估16.7亿元； 每股中期派息0.3359元。 ...

李宁(02331)发布公告，将于2025年9月5日派发截至2025年6月30日止六个月的中期股息每股0.3359元人 民币。 ...

EF001 發行人所發行上市權證/可轉換債券的相關信息 發行人所發行上市權證/可轉換債券 不適用 其他信息 其他信息 不適用 發行人董事 於本公告日期，本公司的執行董事為李寧先生、高坂武史先生和李麒麟先生；本公司的獨立非執行董事為顧福身先生、王亞非女 士、陳振彬博士和王雅娟女士。 第 2 頁 共 2 頁 v 1.1.1 EF001 免責聲明 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 | | | --- | --- | | 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 | | | 股票發行人現金股息公告 | | | 發行人名稱 | 李寧有限公司 | | 股份代號 | 02331 | | 多櫃檯股份代號及貨幣 | 82331 RMB | | 相關股份代號及名稱 | 不適用 | | 公告標題 | 截至2025年6月30日止六個月的中期股息 | | 公告日期 | 2025年8月21日 | | 公告狀態 | 新公告 | | 股息信息 | | | 股息類型 | 中期（半年期） | | 股息性質 | 普 ...

[Financial Performance Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) [Operating Performance Summary](index=1&type=section&id=%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) Li Ning Company Limited's H1 2025 revenue grew 3.3% to RMB 14.817 billion, with healthy operating cash flow and declared interim dividend, despite a slight gross margin decline H1 2025 Operating Results | Metric | H1 2025 (RMB) | | :--- | :--- | | Revenue | 14.817 billion (up 3.3% YoY) | | Gross Profit Margin | 50% (down 0.4 percentage points) | | Net Operating Cash Inflow | 2.411 billion | | Net Profit Attributable to Equity Holders | 1.737 billion | | Net Profit Margin | 11.7% | | EBITDA Margin | 23.7% | - Working capital remained healthy, with average total working capital accounting for **7.3% of revenue**, and cash conversion cycle stable at **31 days** compared to the same period last year[5](index=5&type=chunk) - The Board resolved to declare an interim dividend of **RMB 33.59 cents per share** for the six months ended June 30, 2025[5](index=5&type=chunk) - Overall retail sell-through (including online and offline) increased by **low single digits** year-on-year, channel inventory also rose by **low single digits** year-on-year, maintaining a healthy inventory turnover and aging structure[5](index=5&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, revenue increased by 3.3% to RMB 14.817 billion, but profit for the period and basic earnings per share decreased, mainly due to higher income tax expense Interim Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 14,816,763 | 14,345,288 | | Gross Profit | 7,414,803 | 7,235,602 | | Operating Profit | 2,438,485 | 2,401,895 | | Profit before Income Tax | 2,606,516 | 2,613,130 | | Income Tax Expense | (869,094) | (661,098) | | Profit for the Period | 1,737,422 | 1,952,032 | | Basic Earnings Per Share (RMB cents) | 67.43 | 75.80 | | Diluted Earnings Per Share (RMB cents) | 67.19 | 75.49 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, total comprehensive income for the period was RMB 1.696 billion, a decrease from the prior year, primarily due to negative foreign currency translation differences from overseas operations Interim Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit for the Period | 1,737,422 | 1,952,032 | | Exchange differences on translation of foreign operations | (41,697) | 12,493 | | Total Comprehensive Income for the Period | 1,695,725 | 1,964,525 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets increased to RMB 36.78 billion, with a significant rise in total current assets, mainly driven by a substantial increase in cash and cash equivalents, while total equity and liabilities also increased Interim Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Assets | 36,780,388 | 35,708,406 | | Total Non-current Assets | 14,637,412 | 15,180,164 | | Total Current Assets | 22,142,976 | 20,528,242 | | Total Equity | 27,168,693 | 26,103,689 | | Total Liabilities | 9,611,695 | 9,604,717 | | Cash and Cash Equivalents | 11,798,043 | 7,498,596 | | Inventories | 2,428,290 | 2,598,226 | | Trade Receivables | 1,352,242 | 1,004,591 | | Trade Payables | 1,872,089 | 1,625,132 | [Notes to the Interim Financial Statements](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [General Information](index=6&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The Group primarily engages in brand development, design, manufacturing, retail, and wholesale of sports footwear, apparel, equipment, and accessories in China, with the company incorporated in the Cayman Islands and listed on the HKEX, reporting unaudited interim results in RMB - The Group's principal activities are brand development, design, manufacturing, retail, and wholesale of sports products, primarily in China[10](index=10&type=chunk) - The company is incorporated in the Cayman Islands, its shares are listed on the Hong Kong Stock Exchange, and the interim condensed consolidated results are presented in RMB and are unaudited[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) [Basis of Preparation and Accounting Policies](index=6&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and should be read with the 2024 annual consolidated financial statements; the revised IAS 21, applied for the first time this period, had no impact due to the Group's convertible transaction currencies - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'[13](index=13&type=chunk) - The revised International Accounting Standard 21 'Lack of Exchangeability' was first applied during this period, but as all the Group's transaction currencies are convertible, this revision had no impact on the interim condensed consolidated financial information[14](index=14&type=chunk)[15](index=15&type=chunk) [Segment Information and Revenue](index=7&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99%E5%8F%8A%E6%94%B6%E5%85%A5) The Group operates a single business segment primarily in China; H1 2025 revenue saw footwear as the largest contributor and equipment/accessories as the fastest-growing product category, while franchised dealers and e-commerce were key sales channels, with e-commerce growing fastest - The Group has only one reportable segment, with its primary market in China, and revenue from overseas customers not exceeding **10%**[16](index=16&type=chunk) Revenue Breakdown by Product Category (For the six months ended June 30) | Product Category | 2025 (RMB '000) | % of Total Revenue | 2024 (RMB '000) | % of Total Revenue | Revenue Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Footwear | 8,230,716 | 55.6 | 7,844,159 | 54.7 | 4.9 | | Apparel | 5,192,797 | 35.0 | 5,375,222 | 37.5 | (3.4) | | Equipment and Accessories | 1,393,250 | 9.4 | 1,125,907 | 7.8 | 23.7 | | Total | 14,816,763 | 100.0 | 14,345,288 | 100.0 | 3.3 | Revenue Breakdown by Sales Channel (For the six months ended June 30) | Sales Channel | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Sales to Franchised Dealers | 6,883,188 | 6,590,009 | | Directly Operated Sales | 3,383,162 | 3,502,705 | | E-commerce Channel Sales | 4,300,337 | 4,004,262 | | Other Regions | 250,076 | 248,312 | | Total | 14,816,763 | 14,345,288 | [Other Income and Other Gains – Net](index=8&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%EF%BC%8D%E6%B7%A8%E9%A1%8D) H1 2025 other income and other gains, net, decreased significantly to RMB 93.90 million, primarily due to an RMB 106 million impairment loss on investment properties and changes in government grants and royalty income Other Income and Other Gains – Net (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Government grants | 173,673 | 141,552 | | Rental income | 52,188 | 47,198 | | Depreciation and related expenses of investment properties | (65,015) | (53,286) | | Impairment of investment properties | (105,938) | – | | Royalty income | 21,747 | 30,621 | | Investment income from wealth management products at FVTPL | 17,240 | 14,971 | | Fair value gains on investments at FVTPL | – | 2,685 | | Total | 93,895 | 183,741 | - Due to challenges in the real estate markets in mainland China and Hong Kong, the Group recognized an impairment loss of **RMB 105,938,000** on investment properties[19](index=19&type=chunk) [Finance Income – Net](index=9&type=section&id=%E8%9E%8D%E8%B3%87%E6%94%B6%E5%85%A5%EF%BC%8D%E6%B7%A8%E9%A1%8D) H1 2025 net finance income significantly decreased to RMB 34.31 million, primarily due to increased foreign exchange losses and higher interest on borrowings Finance Income – Net (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Finance income (interest income from bank balances and deposits) | 193,993 | 221,238 | | Finance expenses (total) | (159,686) | (120,863) | | Of which: Net foreign exchange losses | (70,921) | (27,446) | | Of which: Interest on borrowings | (24,245) | (12,525) | | Net finance income | 34,307 | 100,375 | [Expenses by Nature](index=9&type=section&id=%E6%8C%89%E6%80%A7%E8%B3%AA%E5%88%97%E7%A4%BA%E4%B9%8B%E9%96%8B%E6%94%AF) In H1 2025, the Group saw increased inventory costs recognized in cost of sales, advertising and marketing, commission and trade fair expenses, transportation and logistics, and R&D expenses, alongside significant impairment charges for intangible assets, property, plant and equipment, and right-of-use assets Expenses by Nature (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of inventories recognized as expense in cost of sales | 7,180,828 | 6,911,525 | | Advertising and promotion expenses | 1,335,904 | 1,248,791 | | Staff costs | 1,140,452 | 1,217,301 | | Research and product development expenses | 344,797 | 317,257 | | Depreciation of property, plant and equipment | 344,022 | 470,250 | | Impairment of intangible assets | 76,428 | – | | Impairment of property, plant and equipment | 48,430 | 18,389 | | Impairment of right-of-use assets | 104,311 | 50,820 | [Income Tax Expense](index=10&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) H1 2025 income tax expense significantly increased to RMB 869 million, with the effective tax rate rising to 33.3%, primarily due to the company's strategic planning of domestic and overseas capital structures and corresponding withholding tax provisions Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current income tax | 872,901 | 795,206 | | Deferred income tax | (3,807) | (134,108) | | Income tax expense | 869,094 | 661,098 | - The effective tax rate increased from **25.3% in 2024** to **33.3% in 2025**, primarily due to the provision for withholding income tax[22](index=22&type=chunk)[25](index=25&type=chunk)[54](index=54&type=chunk) [Dividends](index=10&type=section&id=%E8%82%A1%E6%81%AF) The Board resolved to declare an H1 2025 interim dividend of RMB 33.59 cents per share, a decrease from the prior year, with the 2024 final dividend paid in June 2025 Dividends Declared and Paid (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Final dividend declared and paid for 2024 (per share) | 536,148 (20.73 RMB cents) | 473,560 (18.54 RMB cents) | | Interim dividend resolved to be declared (per share) | 868,711 (33.59 RMB cents) | 976,016 (37.75 RMB cents) | [Earnings Per Share](index=11&type=section&id=%E6%AF%8F%E8%82%A1%E6%94%B6%E7%9B%8A) H1 2025 basic earnings per share were RMB 67.43 cents and diluted earnings per share were RMB 67.19 cents, both decreasing from the prior year, primarily due to changes in profit attributable to equity holders and weighted average shares outstanding Earnings Per Share Calculation Data (For the six months ended June 30) | Metric | 2025 (RMB '000/shares) | 2024 (RMB '000/shares) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company for basic EPS calculation | 1,737,422 | 1,952,032 | | Weighted average number of ordinary shares outstanding for basic EPS calculation | 2,576,734 | 2,575,186 | | Basic earnings per share (RMB cents) | 67.43 | 75.80 | | Diluted earnings per share (RMB cents) | 67.19 | 75.49 | [Inventories](index=12&type=section&id=%E5%AD%98%E8%B2%A8) As of June 30, 2025, total inventories were RMB 2.428 billion, a decrease from year-end 2024, with inventory provisions increasing to RMB 188 million, reflecting the company's ongoing control over inventory aging and turnover Inventory Details (As of June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Raw materials | 25,857 | 19,355 | | Work in progress | 22,341 | 19,486 | | Finished goods | 2,568,026 | 2,726,202 | | Total | 2,616,224 | 2,765,043 | | Less: Provision for write-down of inventories to net realizable value | (187,934) | (166,817) | | Net | 2,428,290 | 2,598,226 | - For the six months ended June 30, 2025, the cost of inventories recognized as expense and included in cost of sales was **RMB 7.181 billion**, including inventory provisions of **RMB 21.12 million**[28](index=28&type=chunk) [Trade Receivables](index=12&type=section&id=%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables increased to RMB 1.352 billion from year-end 2024, with expected credit loss provisions remaining stable, as the company continues to monitor aging structure and collection status Trade Receivables Details and Aging Analysis (As of June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables | 1,393,873 | 1,046,249 | | Less: ECL provision for trade receivables | (41,631) | (41,658) | | Net | 1,352,242 | 1,004,591 | | **Aging Analysis (based on invoice date):** | | | | 0 to 30 days | 898,439 | 578,293 | | 31 to 60 days | 273,902 | 395,312 | | 61 to 90 days | 125,925 | 28,912 | | 91 to 180 days | 62,531 | 13,085 | | Over 180 days | 33,076 | 30,647 | Movement in Expected Credit Loss Provisions for Trade Receivables (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | As at January 1 | 41,658 | 38,215 | | ECL provision for trade receivables recognized | 2 | 10,282 | | Irrecoverable trade receivables written off during the period | (30) | (121) | | Exchange difference on foreign currency translation | 1 | 18 | | As at June 30 | 41,631 | 48,394 | [Trade Payables](index=13&type=section&id=%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables increased to RMB 1.872 billion from year-end 2024, primarily concentrated within the 30-60 day aging period Trade Payables Aging Analysis (As of June 30) | Aging | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 30 days | 1,311,861 | 1,256,889 | | 31 to 60 days | 504,913 | 324,869 | | 61 to 90 days | 52,541 | 23,734 | | 91 to 180 days | 1,646 | 19,364 | | 181 to 365 days | 974 | 28 | | Over 365 days | 154 | 248 | | Total | 1,872,089 | 1,625,132 | [Contingent Liabilities](index=14&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) Li Ning Information (Hong Kong) Limited, a wholly-owned subsidiary, received a statutory demand from a liquidator claiming a short-term loan of HKD 500 million with an outstanding total of HKD 1.955 billion; although the demand was withdrawn, a writ of summons was served, and the Group intends to vigorously defend against the claim, believing the target company has no obligation to repay the loan - Li Ning Information (Hong Kong) Limited received a statutory demand from a liquidator, claiming a short-term loan with a principal of **HKD 500 million** and an outstanding total of **HKD 1.955 billion**[33](index=33&type=chunk) - The statutory demand has been withdrawn, but the liquidator has served a writ of summons on the target company, case number **HCA 770/2025**[33](index=33&type=chunk) - The company was previously unaware of the loan's existence and believes the target company has no obligation to repay it, and will vigorously defend the claim[34](index=34&type=chunk) [Events After the Reporting Period](index=14&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, the company granted restricted shares and share options to certain directors and eligible participants in July 2025 - On July 15 and 17, 2025, the company granted a total of **14,174,100 restricted shares** and **11,017,500 share options**, with an exercise price of **HKD 16.14 per share**[35](index=35&type=chunk) [Dividend Policy and Distribution](index=15&type=section&id=%E8%82%A1%E6%81%AF%E6%94%BF%E7%AD%96%E8%88%87%E6%B4%BE%E7%99%BC) The Board resolved to declare an H1 2025 interim dividend of RMB 33.59 cents per share, payable on September 5 or 10, 2025, with share and convertible securities transfer registration suspended from August 27-28, 2025, to determine eligible shareholders and convertible securities holders - The Board resolved to declare an interim dividend of **RMB 33.59 cents per share** for the six months ended June 30, 2025 (H1 2024: **RMB 37.75 cents per share**)[36](index=36&type=chunk) - The interim dividend will be converted into HKD at the official benchmark exchange rate of RMB to HKD reported by the People's Bank of China on **August 21, 2025**, and will be distributed free of withholding tax[36](index=36&type=chunk) Details of Suspension of Share and Convertible Securities Transfer Registration | Item | Date/Time | | :--- | :--- | | Latest time for lodging transfer documents | August 26, 2025 (Tuesday) 4:30 p.m. | | Period of closure of register of members and convertible securities | August 27, 2025 (Wednesday) to August 28, 2025 (Thursday) | | Record date for interim dividend | August 28, 2025 (Thursday) | [Management Discussion and Analysis](index=16&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Financial Review](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) In H1 2025, the Group achieved steady revenue growth, but profit attributable to equity holders and basic earnings per share decreased due to lower gross margin, increased administrative expenses (goodwill impairment), and a significantly higher effective tax rate, while the company continued to optimize channel layout, enhance marketing, and actively manage liquidity and material investments Key Operating and Financial Indicators (For the six months ended June 30) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue (RMB '000) | 14,816,763 | 14,345,288 | 3.3 | | Gross Profit (RMB '000) | 7,414,803 | 7,235,602 | 2.5 | | Operating Profit (RMB '000) | 2,438,485 | 2,401,895 | 1.5 | | Profit Attributable to Equity Holders (RMB '000) | 1,737,422 | 1,952,032 | (11.0) | | Basic Earnings Per Share (RMB cents) | 67.43 | 75.80 | (11.0) | | Gross Profit Margin (%) | 50.0 | 50.4 | (0.4) | | Operating Profit Margin (%) | 16.5 | 16.7 | (0.2) | | Effective Tax Rate (%) | 33.3 | 25.3 | 8.0 | | Profit Margin Attributable to Equity Holders (%) | 11.7 | 13.6 | (1.9) | | Return on Equity Attributable to Equity Holders (%) | 6.5 | 7.8 | (1.3) | [Key Operating and Financial Indicators](index=16&type=section&id=%E4%B8%BB%E8%A6%81%E7%B6%93%E7%87%9F%E5%8F%8A%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) In H1 2025, company revenue grew 3.3% year-on-year, but profit attributable to equity holders and basic earnings per share both decreased by 11.0%; gross profit margin and operating profit margin slightly declined, while the effective tax rate significantly increased by 8 percentage points, with asset efficiency showing slightly shorter average inventory turnover and improved trade receivables and payables turnover Key Financial Ratios (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Gross Profit Margin (%) | 50.0 | 50.4 | | Operating Profit Margin (%) | 16.5 | 16.7 | | Effective Tax Rate (%) | 33.3 | 25.3 | | Profit Margin Attributable to Equity Holders (%) | 11.7 | 13.6 | | Return on Equity Attributable to Equity Holders (%) | 6.5 | 7.8 | | Staff Costs as % of Revenue (%) | 7.7 | 8.5 | | Advertising and Promotion Expenses as % of Revenue (%) | 9.0 | 8.7 | | Research and Product Development Expenses as % of Revenue (%) | 2.3 | 2.2 | | Average Inventory Turnover Period (days) | 61 | 62 | | Average Trade Receivables Turnover Period (days) | 14 | 15 | | Average Trade Payables Turnover Period (days) | 44 | 46 | | Debt-to-Equity Ratio (%) | 35.4 | 36.8 | | Net Asset Value Per Share (RMB cents) | 1,054.73 | 1,013.56 | [Revenue Analysis](index=18&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) H1 2025 revenue increased by 3.3% year-on-year to RMB 14.817 billion, with e-commerce contributing the largest growth at 7.4%, franchised dealer revenue growing steadily by 4.4%, and retail channel revenue declining by 3.4% due to store adjustments and shifting consumption scenarios; footwear and equipment/accessories revenue grew, while apparel revenue decreased, and southern market revenue grew slightly faster than northern - Revenue grew steadily by **3.3%** year-on-year to **RMB 14,816,763,000**[43](index=43&type=chunk) - E-commerce channel revenue increased by **7.4%** year-on-year, contributing the largest increment; franchised dealer revenue grew steadily by **4.4%** year-on-year, with its proportion rising to **46.5%**; retail channel revenue decreased by **3.4%** year-on-year[43](index=43&type=chunk) Revenue Breakdown by Product Category (For the six months ended June 30) | Product Category | 2025 (RMB '000) | % of Total Revenue | 2024 (RMB '000) | % of Total Revenue | Revenue Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Footwear | 8,230,716 | 55.6 | 7,844,159 | 54.7 | 4.9 | | Apparel | 5,192,797 | 35.0 | 5,375,222 | 37.5 | (3.4) | | Equipment and Accessories | 1,393,250 | 9.4 | 1,125,907 | 7.8 | 23.7 | Percentage of Revenue by Sales Channel (For the six months ended June 30) | Sales Channel | 2025 % of Revenue | 2024 % of Revenue | Change (%) | | :--- | :--- | :--- | :--- | | Sales to Franchised Dealers | 46.5 | 46.0 | 0.5 | | Directly Operated Sales | 22.8 | 24.4 | (1.6) | | E-commerce Channel Sales | 29.0 | 27.9 | 1.1 | Revenue Breakdown by Region (For the six months ended June 30) | Region | 2025 (RMB '000) | % of Revenue | 2024 (RMB '000) | % of Revenue | Revenue Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | North | 7,034,893 | 47.5 | 6,841,952 | 47.7 | 2.8 | | South | 7,531,794 | 50.8 | 7,255,024 | 50.6 | 3.8 | [Cost of Sales and Gross Profit Margin](index=20&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) H1 2025 cost of sales increased to RMB 7.402 billion, with gross profit margin decreasing by 0.4 percentage points to 50.0%, primarily due to channel structure adjustments leading to a lower proportion of direct-to-consumer channel revenue and increased promotional competition in direct retail resulting in higher discounts - Overall cost of sales was **RMB 7,401,960,000**, with an overall gross profit margin of **50.0%** (2024: **50.4%**)[46](index=46&type=chunk) - The decrease in gross profit margin was mainly due to channel structure adjustments (lower proportion of direct-to-consumer channel revenue) and increased promotional competition in direct retail leading to higher discounts[46](index=46&type=chunk) [Selling and Distribution Expenses](index=20&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E7%B6%93%E9%8A%B7%E9%96%8B%E6%94%AF) H1 2025 selling and distribution expenses were RMB 4.293 billion, accounting for 29.0% of total revenue, a slight decrease of 0.8% year-on-year, primarily due to optimized channel layout and closure of inefficient directly operated stores, reducing operating costs, while strategically increasing marketing investment - Selling and distribution expenses were **RMB 4,292,730,000**, accounting for **29.0%** of total revenue (2024: **30.2%**), a year-on-year decrease of **0.8%**[47](index=47&type=chunk) - The decrease in expenses was primarily due to continuous optimization of channel layout, closure of inefficient directly operated stores, reducing operating costs such as store renovation and fixture amortization; simultaneously, strategic increases in marketing investment were made to strengthen brand competitiveness[47](index=47&type=chunk) [Administrative Expenses](index=20&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) H1 2025 administrative expenses increased to RMB 777 million, accounting for 5.2% of total revenue, up 0.5 percentage points year-on-year, primarily due to the full impairment of RMB 72.39 million in goodwill from the 2009 acquisition of Kason brand - Administrative expenses were **RMB 776,642,000**, accounting for **5.2%** of total revenue (2024: **4.7%**), a year-on-year increase of **0.5 percentage points**[48](index=48&type=chunk) - The increase in administrative expenses was mainly due to the full impairment of goodwill of **RMB 72,387,000** arising from the acquisition of the Kason brand in 2009, recognized in this period[48](index=48&type=chunk) [Share of Profits of Joint Ventures and Associates](index=20&type=section&id=%E4%BA%AB%E6%9C%89%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E5%8F%8A%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E7%9A%84%E6%BA%A2%E5%88%A9%E4%BB%BD%E9%A1%8D) H1 2025 share of profits of joint ventures and associates increased to RMB 134 million, a growth from the same period last year - Share of profits of joint ventures and associates was **RMB 133,724,000** (2024: **RMB 110,860,000**)[49](index=49&type=chunk) [EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization)](index=21&type=section&id=%E6%81%AF%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4%E5%8A%A0%E6%8A%98%E8%88%8A%E5%8F%8A%E6%攤%E9%8A%B7(EBITDA)) H1 2025 EBITDA was RMB 3.513 billion, an increase of 2.0% year-on-year, with reconciliation items including income tax expense, net finance income, and various depreciation and impairment charges - EBITDA was **RMB 3,512,607,000** (2024: **RMB 3,443,608,000**), a year-on-year increase of **2.0%**[50](index=50&type=chunk) Reconciliation of EBITDA to Profit for the Period (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit for the period | 1,737,422 | 1,952,032 | | Income tax expense | 869,094 | 661,098 | | Finance income | (193,993) | (221,238) | | Finance expenses | 159,686 | 120,863 | | Depreciation of property, plant and equipment | 344,022 | 470,250 | | Impairment of property, plant and equipment | 48,430 | 18,389 | | Amortization of land use rights and intangible assets | 33,236 | 31,145 | | Impairment of intangible assets - trademark rights | 4,041 | – | | Depreciation of right-of-use assets | 250,817 | 319,210 | | Impairment of right-of-use assets | 104,311 | 50,820 | | Depreciation of investment properties | 49,603 | 41,039 | | Impairment of investment properties | 105,938 | – | | EBITDA | 3,512,607 | 3,443,608 | [Net Finance Income](index=22&type=section&id=%E8%9E%8D%E8%B3%87%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D) H1 2025 net finance income significantly decreased to RMB 34.31 million year-on-year, primarily due to increased exchange losses and lower interest income from declining interest rates - Net finance income was **RMB 34,307,000** (2024: **RMB 100,375,000**), a year-on-year decrease[53](index=53&type=chunk) - The decrease was mainly due to increased exchange losses in the current period and lower interest income resulting from declining interest rates[53](index=53&type=chunk) [Income Tax Expense](index=22&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) H1 2025 income tax expense was RMB 869 million, with an effective tax rate of 33.3%, a significant increase from the prior year, primarily due to the company's strategic planning of domestic and overseas capital structures and corresponding withholding tax provisions - Income tax expense was **RMB 869,094,000** (2024: **RMB 661,098,000**), with an effective tax rate of **33.3%** (2024: **25.3%**)[54](index=54&type=chunk) - The increase in tax rate was primarily due to comprehensive factors such as exchange rate fluctuations and capital yield rates, leading the company to make more reasonable plans for its domestic and overseas capital structure, thus providing for corresponding withholding income tax[54](index=54&type=chunk) [Consolidated Profitability Indicators](index=22&type=section&id=%E7%B6%9C%E5%90%88%E7%9B%88%E5%88%A9%E6%8C%87%E6%A8%99) In H1 2025, despite steady revenue growth and optimized expense ratios, profit attributable to equity holders, profit margin, and return on equity all decreased due to lower gross profit margin and a significantly higher income tax rate Consolidated Profitability Indicators (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders (RMB '000) | 1,737,422 | 1,952,032 | | Profit margin attributable to equity holders (%) | 11.7 | 13.6 | | Return on equity attributable to equity holders (%) | 6.5 | 7.8 | [Inventory Provisions](index=22&type=section&id=%E5%AD%98%E8%B2%A8%E6%92%A5%E5%82%99) As of June 30, 2025, cumulative inventory provisions increased to RMB 188 million from year-end 2024, as the company continues to manage inventory aging and turnover - As of June 30, 2025, cumulative inventory provisions amounted to **RMB 187,934,000** (December 31, 2024: **RMB 166,817,000**)[56](index=56&type=chunk) [Expected Credit Loss Provisions](index=22&type=section&id=%E9%A0%90%E6%9C%9F%E4%BF%A1%E8%B2%B8%E虧%E6%90%8D%E6%92%A5%E5%82%99) As of June 30, 2025, cumulative expected credit loss provisions totaled RMB 46.48 million, with trade receivables provisions at RMB 41.63 million, as the company continues to monitor aging structure and collection status - As of June 30, 2025, cumulative expected credit loss provisions amounted to **RMB 46,484,000** (December 31, 2024: **RMB 45,678,000**)[57](index=57&type=chunk) - Of which, cumulative expected credit loss provisions for trade receivables amounted to **RMB 41,631,000**[57](index=57&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=%E8%B3%87%E9%87%91%E6%B5%81%E5%8B%95%E6%80%A7%E5%8F%8A%E8%B2%A1%E6%94%BF%E8%B3%87%E6%BA%90) H1 2025 net cash generated from operating activities decreased to RMB 2.411 billion year-on-year; cash and cash equivalents increased by RMB 4.299 billion, primarily due to net cash inflow from investment activities from matured time deposits, with cash flow management remaining a key focus - Net cash generated from operating activities was **RMB 2,411,101,000** (2024: **RMB 2,730,305,000**), a year-on-year decrease[58](index=58&type=chunk) - As of June 30, 2025, cash and cash equivalents amounted to **RMB 11,798,043,000**, a net increase of **RMB 4,299,447,000** from December 31, 2024[58](index=58&type=chunk) - Net cash generated from investment activities significantly increased due to the redemption of matured time deposits[60](index=60&type=chunk) [Use of Net Proceeds from Placing of Existing Shares and Subscription of New Shares](index=24&type=section&id=%E5%85%88%E8%88%8A%E5%BE%8C%E6%96%B0%E9%85%8D%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E6%B7%A8%E9%A1%8D%E4%BD%BF%E7%94%A8%E6%83%85%E6%B3%81) As of June 30, 2025, RMB 382 million of the 2021 placing net proceeds have been used, with RMB 529 million remaining, primarily for investing in infrastructure restructuring and supply chain system enhancement, expected to be fully utilized by December 31, 2026; other investment plans have been fully utilized - For the six months ended June 30, 2025, **RMB 382,187,000** of the net proceeds from the placing of existing shares and subscription of new shares has been utilized[61](index=61&type=chunk) - As of June 30, 2025, **RMB 529,434,000** remained unutilized, primarily for investing in infrastructure restructuring and further enhancing the supply chain system, with expected utilization by **December 31, 2026**[61](index=61&type=chunk) - Plans for investing in newly launched product categories and future business investments, brand/IT system construction, and general working capital have been fully utilized[61](index=61&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group primarily operates in mainland China, with most transactions settled in RMB; some cash and bank balances are denominated in various foreign currencies, and dividend payments and certain expenses involve foreign currencies, with no hedging undertaken during the period, making the Group susceptible to foreign exchange fluctuations - The Group primarily operates in mainland China, with most transactions settled in RMB, and the reporting currency is RMB[63](index=63&type=chunk) - The Group holds some cash and bank balances denominated in HKD, USD, EUR, KRW, GBP, MOP, and SGD, pays dividends in HKD, and settles certain royalty fees, sponsorship fees, and consulting fees in USD or EUR[63](index=63&type=chunk) - No hedging arrangements were undertaken during the period for foreign exchange fluctuation risks, and any significant exchange rate fluctuations may have a financial impact on the Group[63](index=63&type=chunk) [Material Investments](index=25&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) In January 2024, the Group completed the acquisition of a property in Hong Kong comprising commercial/office space and retail areas for approximately RMB 2.013 billion; a portion will serve as the Hong Kong headquarters, with an investment cost of RMB 2.021 billion and a carrying value of RMB 1.847 billion as of June 30, 2025 - The Group completed the acquisition of a property in Hong Kong comprising **22 floors of commercial/office space** and **two floors of retail area** in January 2024, with a total consideration of approximately **HKD 2.221 billion** (approximately **RMB 2.013 billion**)[64](index=64&type=chunk)[65](index=65&type=chunk) - A portion of the property will be used as the Group's Hong Kong headquarters, with an investment cost of **RMB 2,021,450,000**[65](index=65&type=chunk) - As of June 30, 2025, the carrying value of the property after depreciation and impairment was **RMB 1,847,079,000**, accounting for approximately **5.0%** of the Group's total assets[65](index=65&type=chunk) [Material Acquisitions and Disposals](index=26&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%92%8C%E8%99%95%E7%BD%AE) For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[66](index=66&type=chunk) [Future Plans for Material Investments and Capital Assets](index=26&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%92%8C%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) The Group plans to build a high-end intelligent manufacturing and flexible supply chain base, along with a high-level R&D and experience center, in Guangxi Zhuang Autonomous Region, with an estimated maximum investment of RMB 3.3 billion; as of June 30, 2025, relevant land use rights have been acquired and investments made, with non-current assets carrying value of RMB 1.945 billion, and remaining investment to be funded by net proceeds from placing and internal resources - The Group plans to build a supply chain base in Guangxi Zhuang Autonomous Region to increase capacity and output of differentiated sports products, and for R&D and experience, with an estimated maximum investment of approximately **RMB 3.3 billion**[67](index=67&type=chunk) - As of June 30, 2025, the carrying value of non-current assets within this investment, after depreciation and impairment, was **RMB 1,945,279,000**, accounting for approximately **5.3%** of the Group's total assets[68](index=68&type=chunk) - The remaining investment amount will be funded by the Group's unutilized net proceeds from the placing of existing shares and subscription of new shares, as well as internal resources[68](index=68&type=chunk) [Pledge of Assets](index=26&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, and December 31, 2024, the Group had no assets under pledge - As of June 30, 2025, and December 31, 2024, the Group had no assets under pledge[69](index=69&type=chunk) [Contingent Liabilities](index=27&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) Li Ning Information (Hong Kong) Limited, a wholly-owned subsidiary, faces a claimed short-term loan lawsuit totaling HKD 1.955 billion; although the statutory demand was withdrawn, a writ of summons was served, and the Group intends to vigorously defend against the claim, believing the target company has no obligation to repay the loan - Li Ning Information (Hong Kong) Limited received a statutory demand from a liquidator, claiming a short-term loan with a principal of **HKD 500 million** and an outstanding total of **HKD 1.955 billion**[71](index=71&type=chunk) - The statutory demand has been withdrawn, but the liquidator has served a writ of summons on the target company, case number **HCA 770/2025**[71](index=71&type=chunk) - The company was previously unaware of the loan's existence and believes the target company has no obligation to repay it, and will vigorously defend the claim[72](index=72&type=chunk) [Business Review](index=28&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) In H1 2025, Li Ning Group steadily advanced its 'single brand, multi-category, multi-channel' strategy amidst a volatile market, making progress in product upgrades, brand marketing, and channel optimization; the company deepened its Olympic marketing strategy, solidified its professional sports brand positioning through technological innovation and a diversified product matrix, and continuously optimized its omni-channel layout, enhancing operational efficiency and strengthening human resources to support business development - In H1, the macroeconomic economy operated steadily, and the consumer market experienced a moderate recovery, but consumer confidence fluctuated, with increased attention to value for money[73](index=73&type=chunk) - The Group steadily strengthened its operational foundation, actively prepared for business development, achieved results largely in line with expectations, and advanced product upgrades, brand marketing, and channel optimization as planned[73](index=73&type=chunk) - Firmly implementing the core 'single brand, multi-category, multi-channel' strategy, continuously increasing R&D investment and technological innovation, promoting aerospace technology to empower sports innovation, and launching value-for-money products based on consumer demand[73](index=73&type=chunk) [Overall Market and Strategic Layout](index=28&type=section&id=%E6%95%B4%E9%AB%94%E5%B8%82%E5%A0%B4%E8%88%87%E6%88%B0%E7%95%A5%E4%BD%88%E5%B1%80) In H1 2025, facing a volatile external environment and a moderately recovering consumer market, Li Ning Group steadily strengthened its operational foundation, actively prepared for business development, and achieved results largely in line with expectations; the Group firmly implemented its core 'single brand, multi-category, multi-channel' strategy, continuously increased R&D investment and technological innovation, and steadily advanced brand marketing and channel optimization as planned - In H1, the macroeconomic economy operated steadily, and the consumer market experienced a moderate recovery, but consumer confidence fluctuated, with increased attention to value for money[73](index=73&type=chunk) - The Group firmly implemented the core 'single brand, multi-category, multi-channel' strategy, continuously increasing R&D investment and technological innovation, promoting aerospace technology to empower sports innovation[73](index=73&type=chunk) - In brand marketing, the Group successfully implemented its cooperation rights with the Chinese Olympic Committee and integrated traditional cultural elements with products through collaboration with the Palace Museum[74](index=74&type=chunk) [Deepening Olympic Marketing Strategy, Solidifying Professional Sports Brand Positioning](index=29&type=section&id=%E6%B7%B1%E5%8C%96%E5%A5%A7%E9%81%8B%E7%87%9F%E9%8A%B7%E6%88%B0%E7%95%A5%EF%BC%8C%E5%A0%85%E5%AF%A6%E5%B0%88%E6%A5%AD%E9%81%8B%E5%8B%95%E5%93%81%E7%89%8C%E5%AE%9A%E4%BD%8D) Li Ning Group successfully signed as the official sportswear partner for the Chinese Olympic Committee and Chinese Sports Delegation for 2025-2028, reinforcing its professional brand image with 'Chinese Glory, Li-Ning Together' as the core marketing theme, and continuously deepening its professional sports brand positioning and influence through store visual upgrades, mini-program interactive experiences, International Olympic Day activities, and aerospace technology innovation application laboratories - The Group successfully signed as the official sportswear partner for the Chinese Olympic Committee and Chinese Sports Delegation for **2025-2028**[75](index=75&type=chunk) - Reinforcing the brand's professional image with the new Olympic marketing theme 'Chinese Glory, Li-Ning Together' as the core leverage point[75](index=75&type=chunk) - Jointly established an aerospace technology innovation application laboratory with an aerospace technology innovation application platform, applying advanced aerospace technology to professional sports equipment, launching 'Aerospace Quick-Dry' and 'Aerospace Sun Protection' technological achievements[76](index=76&type=chunk) [Deepening 'Single Brand, Multi-Category, Multi-Channel' Strategy, Enhancing Li-Ning Experience Value](index=30&type=section&id=%E6%B7%B1%E5%8C%96%E3%80%8C%E5%96%AE%E5%93%81%E7%89%8C%E3%80%81%E5%A4%9A%E5%93%81%E9%A1%9E%E3%80%81%E5%A4%9A%E6%B8%A0%E9%81%93%E3%80%8D%E6%88%B0%E7%95%A5%E4%BD%88%E5%B1%80%EF%BC%8C%E6%8E%A8%E5%8B%95%E6%9D%8E%E5%AF%A7%E5%BC%8F%E7%B6%93%E9%A9%97%E5%83%B9%E5%80%BC%E5%8D%87%E7%B4%9A) Li Ning Group continues to deepen its 'single brand, multi-category, multi-channel' strategy, focusing on six core categories like running, basketball, and training, while expanding into new segments such as outdoor and tennis; through technological innovation, product iteration, and omni-channel marketing, it continuously enhances product strength, brand influence, and consumer experience, with key products and marketing activities across all categories, and Li-Ning YOUNG achieving steady development in children's sports - Focusing on six core categories: running, basketball, training, badminton, table tennis, and sports casual, while actively expanding into new niche sports categories such as outdoor sports, tennis, and pickleball[77](index=77&type=chunk) - Empowering product strength upgrades with technological innovation capabilities, increasing professional sports resource allocation, and strengthening differentiated brand advantages from three standpoints: solidifying professional sports mindset, showcasing sports fashion aesthetics, and inheriting Chinese cultural values[77](index=77&type=chunk) [Running Category](index=30&type=section&id=%E8%B7%91%E6%AD%A5%E5%93%81%E9%A1%9E) Li-Ning Running category, driven by technology, launched upgraded products for its three core running shoe IPs 'Featherlight,' 'Chitu,' and 'Feidian,' with total sales exceeding 5.26 million pairs; running apparel focused on marathon and daily road running needs, introducing 'Longque' racing vests and 'Chuanshanjia' trail running jackets, while marketing successfully secured Wuxi and Beijing Half Marathon sponsorships and helped athletes achieve excellent results - The three core running shoe IPs 'Featherlight,' 'Chitu,' and 'Feidian' achieved total sales exceeding **5.26 million pairs** during the period, with the 'Feidian' family fully upgrading to 'BOOM' midsole technology, offering an energy return rate of up to **89%**[78](index=78&type=chunk) - Running apparel launched the racing 'Longque' vest and 'Chuanshanjia' trail running jacket, enhancing the product experience for core consumers[79](index=79&type=chunk) - Successfully signed sponsorship for 'Wuxi Marathon' and 'Beijing Half Marathon' events, and helped athletes achieve a total of **44 championships** in international and domestic competitions[80](index=80&type=chunk) [Basketball Category](index=31&type=section&id=%E7%B1%83%E7%90%83%E5%93%81%E9%A1%9E) Li-Ning Basketball focuses on three series: Professional Basketball, 'Wade' Basketball, and 'Badfive' Basketball; Professional Basketball enhanced brand exposure through CBA League and NBA Draft, launching the 'ULTRALIGHT 2025' bestseller; Wade Basketball released the new 'Wade 808 ULTRA' and signature shoe 'DLO1,' successfully debuting at Fanatics Fest; Badfive Basketball targets Chinese outdoor enthusiasts, launching 'Guerrilla,' 'Pursuit,' and 'Badfive' series, strengthening street basketball brand recognition - Professional Basketball enhanced brand exposure through the CBA League and NBA Draft, launching the new bestseller 'ULTRALIGHT 2025,' with cumulative omni-channel sales exceeding **100,000 pairs**[81](index=81&type=chunk) - 'Wade' Basketball released the new generation 'Wade 808 ULTRA' and signature shoe 'DLO1,' with the 'DLO1 × KICKCREW' limited edition colorway achieving **100% sell-out** on the international stage[82](index=82&type=chunk) - 'Badfive' basketball shoes target Chinese outdoor basketball enthusiasts, launching 'Guerrilla,' 'Pursuit,' and 'Badfive' series, equipped with 'BOOM' technology and ultra-wear-resistant rubber, enhancing practical performance[83](index=83&type=chunk) [Training Category](index=32&type=section&id=%E7%B6%9C%E8%A8%93%E5%93%81%E9%A1%9E) Li-Ning Training category, centered on technological innovation, builds a sports equipment product matrix with both tech empowerment and market advantages; women's fitness products target multi-scenario needs, launching windbreakers with 'intelligent protection technology' and 'air-cool sensation T-shirts'; men's training products focus on functional technology, with core 'functional pants' achieving million-level shipments and 'instant-dry T-shirts' high sell-through rates; marketing leverages the dual endorsement of aerospace technology and professional athletes - The women's fitness exclusive IP matrix continues to be enriched, launching products such as windbreakers equipped with 'intelligent protection technology' and hoodies/pants offering exclusive softness, as well as 'air-cool sensation T-shirts' certified by aerospace technology[84](index=84&type=chunk) - Men's training products focus on functional technology, with core 'functional pants' achieving **million-level shipments**, and 'instant-dry T-shirts' driving performance growth with high sell-through rates[85](index=85&type=chunk) - In marketing, Li-Ning meticulously planned its first cross-category women's marketing 'Beautiful as Light' theme event, fully leveraging the dual endorsement advantages of aerospace technology and professional athletes[84](index=84&type=chunk)[85](index=85&type=chunk) [Badminton Category](index=32&type=section&id=%E7%BE%BD%E6%AF%9B%E7%90%83%E5%93%81%E9%A1%9E) Li-Ning Badminton category continuously expands its influence through technological innovation, product upgrades, and precise market positioning; tournament apparel series utilize top-tier fabric technology, badminton shoes optimize classification, and 'War Halberd 2.0' remains a bestseller; in equipment, increased investment in materials, craftsmanship, and automated equipment led to professional products like 'Thunder 80 Light' and 'Thunder 90NEW'; marketing, themed 'Good Products, Made by Li-Ning, Made in China,' sponsors domestic and international events and top athletes, solidifying its professional image - The badminton tournament apparel series applied top-tier fabric technology such as integrated weaving and COOLMAX yarn, receiving positive feedback from Indonesian and Singaporean teams[87](index=87&type=chunk) - Equipment product sales maintained high growth, launching professional badminton rackets like 'Thunder 80 Light' and 'Thunder 90NEW,' enhancing brand competitiveness and market share[87](index=87&type=chunk) - Marketing adopted 'Good Products, Made by Li-Ning, Made in China' as the category communication theme, completing sponsorships for events such as the China (Ruichang) International Badminton Master Tournament and the 2025 Singapore Open, and renewing the contract with the Indonesian national team[88](index=88&type=chunk) [Table Tennis Category](index=34&type=section&id=%E4%B9%92%E4%B9%93%E7%90%83%E5%93%81%E9%A1%9E) Li-Ning Table Tennis category continues to lead the market, driven by product iteration and global event marketing; footwear features 'BOOM FIBER technology' and a zoned midsole tuning system, while apparel applies aerospace material technology; the product matrix covers professional athletes, advanced users, and entry-level enthusiasts; marketing deeply integrates with WTT series events, achieving breakthrough results in the Doha World Table Tennis Championships marketing campaign, establishing 'professional table tennis first choice' brand recognition - In footwear, breakthrough 'BOOM FIBER technology' achieved lightweight design and strong support, with innovative R&D of a zoned midsole tuning system integrating multiple core technologies[89](index=89&type=chunk) - In apparel, aerospace material technology and original yarn antibacterial processes were adopted to enhance moisture-wicking and quick-drying performance[89](index=89&type=chunk) - As an official partner of the WTT series events, deeply tied to **18 international top-tier tournaments**, the Doha World Table Tennis Championships marketing campaign achieved breakthrough results, with Weibo topic readership exceeding **16.08 billion**[90](index=90&type=chunk) [Sports Casual Series](index=35&type=section&id=%E9%81%8B%E5%8B%95%E4%BC%91%E9%96%92%E7%B3%BB%E5%88%97) Li-Ning Sports Casual series, centered on Chinese culture, deeply integrates traditional aesthetics with modern design, reinforcing its 'cultural leader' brand positioning through Forbidden City and Disney co-branded collections; product strategy focuses on scenario-based functional upgrades and cost-performance optimization, with skate shoes and casual shoes exceeding expectations, and 'SOFT' series and women's IP 'Starlight' performing strongly; 'China Li-Ning' deepens collaborations with leading trend brands to expand international influence - Anchored in Chinese culture, the Forbidden City co-branded series innovatively transformed cultural elements like corner towers and mythical beasts into daily apparel, leveraging Spring Festival themed marketing and Shanghai Fashion Week to achieve omni-channel brand penetration[91](index=91&type=chunk) - Sports casual footwear saw steady growth, with key products 'Buou' and 'Maozhua' achieving significant year-on-year sales growth; the 'SOFT' series successfully ranked first in commuter shoe category penetration, and women's IP 'Starlight' achieved a **48% sell-through rate within 60 days of launch**[91](index=91&type=chunk) - 'China Li-Ning' continues to deepen strategic collaborations with leading trend brands such as M.E.D.M, TYAKASHA, G-SHOCK, and CHUMS, and jointly launched a co-branding initiative with STAPLE to expand international influence[92](index=92&type=chunk) [LI-NING 1990](index=35&type=section&id=LI-NING%201990) 'LI-NING 1990', centered on golf, integrates technological innovation with fashion aesthetics, building a brand image that combines professional sports and high-end fashion; in H1, the 'Golf Series' was fully upgraded, launching the 'Qicheng Series' G902 golf shoes with 'Carbon Core' technology; commuter shoes 'Guanlan' and co-branded 'Xinwu G' women's golf shoes performed excellently, with the Group solidifying differentiated brand perception through 'Gold Medal' and 'Blue' series IPs - 'LI-NING 1990', centered on golf, deeply integrates technological innovation with fashion aesthetics, leveraging international events and professional athletes as professional endorsements[93](index=93&type=chunk) - The 'Golf Series' was fully upgraded, utilizing cooling technology and functional fabrics, launching the 'Qicheng Series' G902 golf shoes equipped with 'Carbon Core' technology[93](index=93&type=chunk) - Commuter shoes 'Guanlan' achieved a sell-through rate of over **50% within 60 days of launch**, and the co-branded 'Xinwu G' women's golf shoes gained favor among female consumers[93](index=93&type=chunk) [Outdoor Category](index=36&type=section&id=%E6%88%B6%E5%A4%96%E5%93%81%E9%A1%9E) Li-Ning Outdoor category saw significant omni-channel sales growth in H1, with footwear performing exceptionally; product R&D enriched the 'Wanlongjia' jacket series with exclusive fabrics and craftsmanship; market positioning precisely targets young consumers, completing the footwear price matrix with 'Xingchuan,' 'Xingjing,' and 'Xun' family series; marketing deeply collaborates with light outdoor hiking platforms, showcasing core IP performance and boosting brand search index - In H1, the outdoor category saw significant omni-channel sales growth, with footwear products performing even more remarkably[94](index=94&type=chunk) - Enriched the 'Wanlongjia' jacket series with ultra-light **7D fabric** and industry-exclusive fabrics and manufacturing processes such as 'storm-proof double-permeable nano-technology'[94](index=94&type=chunk) - Market positioning precisely targets young consumers, launching 'Xingchuan' hiking shoes for brisk walking, 'Xingjing' for a general business casual commuter style, and the 'Xun' family series of stream-trekking shoes and sandals for an outdoor relaxed style[94](index=94&type=chunk) [Tennis and Pickleball Category](index=36&type=section&id=%E7%B6%B2%E7%90%83%E5%92%8C%E5%8C%B9%E5%85%8B%E7%90%83%E5%93%81%E9%A1%9E) Li-Ning continuously refines its professional pickleball and tennis product matrix, comprehensively covering multi-level user needs from entry-level to professional; products include competition, club, culture, and youth series, supported by a dedicated tennis technology platform; brand influence is expanded through athlete endorsements, event sponsorships, and online/offline promotions - Continuously refining the professional pickleball and tennis product matrix, comprehensively covering multi-level user needs from entry-level to professional[96](index=96&type=chunk) - Products include tennis competition series, club series, culture series, and youth series, with a dedicated tennis technology platform established[96](index=96&type=chunk) - Continuously expanding brand influence in pickleball and tennis through athlete endorsements, event sponsorships, and online/offline promotions[96](index=96&type=chunk) [Li-Ning YOUNG](index=37&type=section&id=%E6%9D%8E%E5%AF%A7YOUNG) Li-Ning YOUNG steadily developed in children's and youth sports through product optimization, channel expansion, retail efficiency, and brand marketing; product-wise, running shoes launched the 'Agile Tech' platform, basketball shoes leveraged the 'INFINITE' series, and apparel saw strong performance from 'Vientiane' IP and summer cooling matrix; channel development expanded into emerging and outlet markets, accelerating e-commerce and campus channel layouts; retail efficiency improved wholesale and direct-to-consumer performance through systematic measures; marketing deeply linked with elementary school basketball leagues and CBA resources, collaborating with industry leaders to significantly boost brand awareness - In product optimization, running shoes launched the 'Agile Tech' platform, with the 'Cloud' series focusing on breathability, lightness, and protection; basketball shoes leveraged the trendy basketball 'INFINITE' series to achieve **tens of millions of exposures**[97](index=97&type=chunk) - In channel development, strategically expanding into emerging markets and strengthening outlet channel layout, accelerating e-commerce platform deployment, focusing on strengthening private domain operation matrices such as Douyin, community marketing, and internal purchase events, and actively expanding campus channels[98](index=98&type=chunk) - In marketing and promotion, deeply linking with popular events such as the Elementary School Basketball League and Xinjiang Li-Ning YOUNG Cup Basketball Tournament, integrating CBA resources, achieving brand exposure exceeding **14 million**[99](index=99&type=chunk) [Deepening Omni-Channel Layout, Enhancing Operational Efficiency](index=38&type=section&id=%E6%B7%B1%E5%8C%96%E5%85%A8%E6%B8%A0%E9%81%93%E4%BD%88%E5%B1%80%EF%BC%8C%E6%8F%90%E5%8D%87%E9%81%8B%E7%87%9F%E8%B3%AA%E6%95%88) In H1 2025, Li Ning Group continuously advanced diversified channel development, retail digitalization, and supply chain/logistics optimization to enhance operational efficiency and market competitiveness; the company optimized high-tier and emerging market layouts, strengthened store operating cost control, and deepened strategic cooperation with business partners; new retail business improved service and conversion efficiency through digital platforms and AI technology, while e-commerce operations grew steadily; supply chain and logistics systems achieved comprehensive upgrades through supplier structure optimization, cost control, flexible supply, and national warehousing network deployment - In channels, actively building a multi-dimensional channel network, deepening strategic synergy with top commercial complexes and leading outlet projects, and implementing deep expansion in emerging markets[100](index=100&type=chunk) - New retail business comprehensively deepened digital upgrades, by upgrading user digital platforms and sales assistant systems, successfully integrating with mainstream ecosystem platforms like Douyin Local Life, and leveraging AI technology to empower the private domain digital management tool 'Ningdaogou'[104](index=104&type=chunk) - The supply chain focuses on four core objectives: quality control, delivery assurance, cost optimization, and sustainable development, deepening dynamic supplier management, accelerating supply chain expansion into inland regions, and achieving breakthrough progress in flexible supply capabilities[106](index=106&type=chunk) - The logistics system launched an omni-channel logistics project, established an advanced inbound goods collaboration system, optimized logistics automation, and completed the activation of the Nanning Central Warehouse, completing the national logistics warehousing network layout[107](index=107&type=chunk) [Number of Sales Outlets](index=39&type=section&id=%E9%8A%B7%E5%94%AE%E9%BB%9E%E6%95%B8%E9%87%8F) As of June 30, 2025, Li-Ning brand (including Li-Ning core brand and Li-Ning YOUNG) had 7,534 sales outlets, a net decrease of 51 from December 31, 2024; Li-Ning YOUNG stores saw a larger decrease, while store count in the southern region remained stable Number of Li-Ning Brand Sales Outlets (As of June 30) | Brand | June 30, 2025 | Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Franchised Dealers | 4,821 | 4,820 | 0.0 | | Directly Operated Retail | 1,278 | 1,297 | (1.5) | | Li-Ning YOUNG | 1,435 | 1,468 | (2.2) | | Total | 7,534 | 7,585 | (0.7) | Number of Li-Ning Brand Sales Outlets by Region (As of June 30) | Region | Li-Ning Core Brand (2025) | Li-Ning YOUNG (2025) | Total (2025) | Li-Ning Core Brand (2024) | Li-Ning YOUNG (2024) | Total (2024) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | North | 3,039 | 842 | 3,881 | 3,076 | 856 | 3,932 | (1.3) | | South | 3,060 | 593 | 3,653 | 3,041 | 612 | 3,653 | 0.0 | [New Retail Business](index=40&type=section&id=%E6%96%B0%E9%9B%B6%E5%94%AE%E6%A5%AD%E5%8B%99) The Group comprehensively deepened its new retail business system, centered on digitalization, by upgrading user digital platforms and sales assistant systems to optimize consumer service experience and off-store sales conversion efficiency; the company actively expanded multi-platform new business cooperation models, integrating with mainstream ecosystem platforms like Douyin Local Life, and leveraging AI technology to empower its private domain digital management tool 'Ningdaogou,' enhancing overall operational efficiency - Through upgrading user digital platforms and sales assistant systems, consumer service experience is continuously optimized, and off-store sales conversion efficiency is continuously improved[104](index=104&type=chunk) - Actively expanding multi-platform new business cooperation models, successfully integrating with mainstream ecosystem platforms like Douyin Local Life, enhancing the precise customer acquisition capabilities of offline stores[104](index=104&type=chunk) - Leveraging AI technology to empower the private domain digital management tool 'Ningdaogou,' significantly strengthening terminal sales assistants' data analysis and service levels, and improving overall operational efficiency[104](index=104&type=chunk) [E-commerce Operations](index=40&type=section&id=%E9%9B%BB%E5%95%86%E9%81%8B%E7%87%9F) The Group's e-commerce operations remained stable amidst industry pressure, continuously enhancing operational efficiency through online-offline synergy, exclusive marketing IP creation, and precise promotional event planning; star products like D'Angelo Russell's first signature shoe 'DLO1' and 'Blade 5V2' basketball shoes performed well, while the new running shoe IP 'Zhuifeng' series captured Gen Z consumer attention; the Group created the 'Malusong' IP concept, leveraged Olympic champion Wang Chuqin's star power, and boosted brand awareness through Tmall Super Brand Day and Douyin Super Product Day events - Star products performed ideally, D'Angelo Russell's first signature shoe 'DLO1' won the sales champion for Li-Ning Basketball's initial launch period, and 'Blade 5V2' basketball shoes remained among the industry's TOP3[105](index=105&type=chunk) - Created the exclusive 'Malusong' IP concept, fully leveraging Olympic champion Wang Chuqin's star power, continuously boosting brand attention[105](index=105&type=chunk) - Omni-channel business, by integrating with various business lines, assisted the Group in inventory optimization, and fully leveraged the explosive potential of e-commerce exclusive products, using online popularity to boost offline business[105](index=105&type=chunk) [Supply Chain](index=41&type=section&id=%E4%BE%9B%E6%87%89%E9%8F%88) The Group continuously advanced deep supply chain optimization and strategic upgrades, focusing on quality control, delivery assurance, cost optimization, and sustainable development; by deepening dynamic supplier management, establishing a core strategic supplier echelon, and accelerating supply chain expansion into inland regions, operational efficiency improved through deep integration and streamlining of key raw materials, achieving successful cost optimization; flexible supply capabilities made breakthrough progress, and sustainability concepts were deeply integrated into supply chain practices - Deepening dynamic supplier management, strategically focusing on high-end sports, outdoor, and premium product line quality resources, and accelerating the promotion of supply chain layout towards inland regions[106](index=106&type=chunk) - Implementing deep integration and streamlining of key raw materials, significantly optimizing procurement and production efficiency, successfully achieving cost optimization[106](index=106&type=chunk) - Breakthrough progress in flexible supply capabilities, successfully expanding to e-commerce exclusive product lines, and establishing a rolling replenishment system and cross-channel collaboration mechanism[106](index=106&type=chunk) [Logistics System](index=41&type=section&id=%E7%89%A9%E6%B5%81%E9%AB%94%E7%B3%BB) The Group vigorously advanced strategic logistics system development, focusing on omni-channel logistics integration, digitalization, and automation; the omni-channel logistics project w