Summary of Li Ning Co. (2331.HK) Corporate Day Insights Company Overview - **Company**: Li Ning Co. (2331.HK) - **Industry**: Consumer & Leisure Key Points and Arguments 1. Financial Guidance and Performance - Management reiterated FY2025 guidance with expectations of flat year-over-year sales and a net profit margin (NPM) growth at high single digits (HSD%) [2][7] - The company anticipates challenges to gross profit margin (GPM) due to ongoing discount pressures throughout the year [2][10] 2. Sales Trends - Year-to-date (YTD) trading and operational expenditure (OPEX) investments are largely on track, with inventory levels under control [2] - Positive growth in online and offline sales was recorded in April, while offline sales declined initially but turned positive during May and the Dragon Boat Festival [2][10] - Discounts have deepened, with management expecting similar trends during the 618 festival [2][10] 3. Category Performance - The adult business is expected to see small positive growth, while adjustments in the kids' wear segment and the international business transitioning to a joint venture (JV) will offset this growth [2] - The running category showed over 20% year-over-year growth in Q1 2025, driven by the popularity of core products [11] - The outdoor category is identified as a growth driver, with expectations of low to mid-single digit (LSD-MSD%) contribution for the year [11] 4. Store Network and Strategy - Plans to close 10-20 directly-operated adult stores while increasing distributor stores by 30-40 to target third-tier cities [10] - The company aims to net open 100 Li Ning Young stores in 2025, focusing on higher-tier cities through direct-to-consumer (DTC) channels [10] 5. Marketing and Sponsorship - Marketing efforts will focus on events and athlete sponsorships, particularly in relation to the Milan Winter Olympics in 2026 [10] 6. Shareholder Returns - The company has been gradually increasing shareholder returns and sees potential for further improvement, considering dividends based on free cash flow (FCF) [12] 7. Risks and Valuation - The current price target is set at HK$14.5, with a neutral rating based on a 12x 2026E price-to-earnings (P/E) ratio [13] - Key risks include slower or higher-than-expected same-store sales growth (SSSG), promotional activities, and operational expenditures on brand investments [13] 8. Additional Insights - The company is facing challenges in the basketball and lifestyle categories, with unclear demand trends among younger consumers [11] - The management expects a decrease in store-related right-of-use (ROU) asset impairments in 2025, although investment property impairments may vary based on asset revaluation [10] Conclusion Li Ning Co. is navigating a complex retail environment with a focus on maintaining sales growth amidst discount pressures. The company is strategically adjusting its store network and enhancing its marketing efforts to bolster its position in key categories while managing shareholder expectations through potential returns.

来源：新华网 新华网北京6月5日电（刘品彤）6月3日，2025年服贸会"高管谈服贸"系列采访活动走进李宁公司。活动 实地走访了位于北京经济技术开发区的北京李宁中心，探索李宁公司在科技创新与绿色环保方面的前沿 实践。 从实验室到生产线：环保科技的"全链路魔法" 图为北京 李宁中心园区内的李宁运动科学研究中心。新华网 毕尚宏 摄 在北京李宁中心旗舰店内，一双双"会呼吸的跑鞋"揭开环保科技的神秘面纱。鞋面采用的䨻丝科技，提 取自蓖麻油等生物基材料，这种"源于自然"的创新让超1000万双跑鞋兼具透气性与可持续性。 李宁中心园区内的门店。新华网 毕尚宏 摄 图为北京 在产品染色工艺环节，李宁秉持对水资源的节约理念，采用"自然而染"的无水染色技术，单件产品节水 40升。而采用传统植物染色匠艺的服装，从植物中萃取天然色彩，以蓝颜色为例，使用植物染色工艺能 使电力消耗降低42.2%，水耗降低53.4%。 令人震撼的当属一款全降解专业运动鞋，埋入土壤中180天的降解周期演示了"从自然中来，到自然中 去"的循环。作为国内首个联合合作伙伴攻克可降解橡胶大底技术的品牌，李宁通过20年的持续研发投 入和不断突破技术难关，让专业运动鞋告 ...

Core Viewpoint - Li Ning Company has achieved LEED v4.1 O+M:EB Platinum certification for its Shenzhen Li Ning Center, highlighting its commitment to sustainability and energy efficiency [1][2] Group 1: Certification and Achievements - The Shenzhen Li Ning Center is recognized with LEED certification, a prestigious global green building certification that only 5% of buildings worldwide achieve [1] - The center has upgraded its central air conditioning system and implemented VRV multi-split technology, resulting in a 30% increase in energy efficiency and an annual electricity saving of 490,000 kWh [1] Group 2: Management Innovations - The center has introduced waste classification management measures, significantly improving the recycling rate of recoverable resources [1] - It has established a smart energy management system that utilizes algorithm optimization for precise energy supply matching while meeting energy demands [1] Group 3: Environmental and Community Engagement - The landscaping at the center retains transplanted trees and uses locally sustainable plants to create an eco-friendly landscape [1] - The center integrates Li Ning's brand ethos with a 2,800 square meter sports-themed park, fostering community engagement through activities focused on sports, culture, and environmental awareness [1][2] Group 4: Sustainable Development Strategy - Li Ning Company has embedded sustainability into its corporate strategy, covering areas such as eco-friendly products, green operations, supply chain management, employee care, and social responsibility [2] - The company actively explores practices in energy management, clean energy application, and energy conservation across its operational sites [2]

Core Viewpoint - Li Ning Company regards ESG (Environmental, Social, and Governance) as a core long-term strategy, emphasizing the importance of sustainable development through governance, product innovation, and comprehensive operational practices [1][3]. Group 1: ESG Implementation - The company has established a governance model led by top management, integrating ESG into daily operations and decision-making processes [3]. - Li Ning focuses on product innovation by utilizing sustainable materials, such as bio-based fibers extracted from castor oil, and implementing biodegradable technologies [3][5]. - A comprehensive operational model is in place, connecting green products, supplier management, employee welfare, and social responsibility to support sustainable development [3]. Group 2: Long-term Value Creation - Li Ning aims to create both commercial and social value, balancing shareholder returns with contributions to sustainable consumption and environmental stewardship [3]. - The slogan "Every step forward" reflects the company's commitment to long-termism and the pursuit of challenging yet correct actions in sustainability [3]. Group 3: Technological Innovation - The company launched China's first fully biodegradable professional sports shoes in May 2024, showcasing a breakthrough in environmental and technological integration [5]. - Over 190 million plastic bottles have been transformed into recycled yarn for use in sports apparel, demonstrating significant progress in sustainable product applications [5]. Group 4: Employee Engagement and Culture - Li Ning's employee care system, which combines health and humanistic concern, aims to enhance team cohesion and collaboration through various sports clubs and community activities [5]. - The company integrates ESG principles into its talent strategy by fostering a culture of sustainability, building capabilities through specialized recruitment, and incorporating ESG metrics into performance evaluations [7]. Group 5: Future Collaborations - Li Ning looks forward to the 2025 China International Fair for Trade in Services, aiming to connect with top research institutions and enhance collaboration in professional and environmentally friendly product development [8][9].

Core Viewpoint - The event "Walk into Li Ning Company" highlighted the company's commitment to ESG (Environmental, Social, and Governance) practices, showcasing its long-term efforts and achievements in sustainable development [1][3]. Group 1: ESG Initiatives - Li Ning Company has been exploring ESG practices for 20 years, transitioning from initial exploration (2006-2019) to systematic layout (2020-2023), and now accelerating platform development since 2024 [3]. - The establishment of an ESG management committee has led to significant achievements in the development of environmentally friendly products across the entire supply chain [3]. - Li Ning's ESG rating has improved to BBB level according to MSCI, reflecting its commitment to sustainability [3]. Group 2: Leadership and Governance - The company emphasizes a sustainable development slogan "Every step forward," aiming for harmony among employees, the enterprise, society, and nature [4]. - A complete ESG governance structure is in place, with the board of directors as the highest decision-making body, ensuring ESG goals are integrated into business operations [4]. Group 3: Product Innovation - Li Ning focuses on product innovation through four stages: raw materials, processes, recycling, and ecological circulation, promoting a full chain of environmentally friendly products [4]. - The company has utilized over 190 million recycled plastic bottles to create regenerated yarn, demonstrating its commitment to sustainability [4]. Group 4: Comprehensive Sustainability - Li Ning promotes green operations by using renewable energy and implementing low-carbon transformations across its supply chain [4]. - The company prioritizes employee well-being and social welfare, particularly in supporting youth sports initiatives [4][5]. Group 5: Future Commitment - Li Ning is dedicated to continuing its sustainable development journey, aiming to set an industry benchmark and contribute to the collective growth of society, the environment, and the enterprise [5].

Core Viewpoint - Badminton is a popular sport with low risk and high skill, increasingly adopted in schools, leading to a rise in badminton racket market demand. Technological advancements in racket design and materials enhance user experience, expanding the market significantly. The Chinese badminton racket market is projected to grow from approximately 2.553 billion yuan in 2024 to 3.79 billion yuan by 2030, driven by health consciousness and sports popularity [1][17]. Industry Overview - The badminton racket typically consists of the racket head, shaft, handle, and the joint between the shaft and frame. The development of rackets has focused on reducing weight, increasing frame stiffness, improving shaft elasticity, and minimizing air resistance [3][10]. - The badminton racket market is expected to reach approximately 5.55 billion yuan globally in 2024, with projections of growth to 8.24 billion yuan by 2030, fueled by rising health awareness and fitness culture [16]. Key Parameters of Badminton Rackets - Important parameters include racket length, weight, handle thickness, frame cross-section, head shape, balance point, shaft stiffness, maximum tension, and materials used. The standard length for international rackets is 665mm, with most domestic rackets being 675mm [6][9]. - The materials used in rackets have evolved from wood to aluminum and now to advanced composites like carbon fiber, which offers superior strength and lightweight properties [14][26]. Industry Development History - The design of badminton rackets has evolved from simple wooden designs focused on durability to modern rackets made from lightweight materials like carbon fiber, enhancing performance and aesthetics [10][20]. Industry Chain - The upstream of the badminton racket industry includes raw material suppliers (carbon fiber, graphene, titanium alloys, etc.), the midstream involves manufacturing processes (frame molding, handle processing, etc.), and the downstream consists of sales channels (sports specialty stores, e-commerce, supermarkets) [12]. Competitive Landscape - Major domestic brands in the badminton racket market include Li Ning, Victor, and Hong Shuangxi, while international brands like Yonex and Kawasaki dominate the high-end market. The competition is intensifying as brands increase R&D investments to enhance product performance and quality [20][21]. Future Trends - Material technology upgrades will drive high-end development, with a focus on optimizing composite materials and integrating smart technologies into rackets for enhanced user experience [26][27]. - The market is expected to see segmentation, with high-end products led by international brands and local brands focusing on mid-range offerings, catering to diverse consumer needs [28].

Core Viewpoint - The company is positioning itself as a leader in green and sustainable practices within the sportswear industry, emphasizing its commitment to environmental, social, and governance (ESG) principles through innovative product development and operational strategies [1][4]. Group 1: ESG Commitment and Strategy - The company adopts a core ESG philosophy of "high-level leadership, long-term commitment, product innovation, and full-chain drive" to achieve sustainable development [1]. - The company has established a comprehensive governance structure that supports ESG initiatives, involving all levels from the board to operational teams [4]. Group 2: Product Innovation - The company has launched a series of eco-friendly sports products, including professional footwear that meets both performance and environmental standards [2]. - An example of innovation includes the use of castor oil-derived bio-based materials in shoe production, which has led to the sale of over 10 million pairs of bio-based running shoes [3]. Group 3: Environmental Impact - The company has facilitated the recycling of over 190 million plastic bottles through the use of recycled materials in its products [3]. - In May 2024, the company showcased fully biodegradable shoes, achieving over 80% biodegradability, marking a significant milestone in the Chinese sports footwear market [3]. Group 4: Operational Sustainability - The company is enhancing its operations through smart equipment upgrades and renewable energy initiatives, such as a 1.16MW solar power station in Beijing, which is expected to provide 25% of its total electricity needs by 2024 [5]. - The company has completed social responsibility audits for 140 suppliers and environmental audits for 60 material suppliers, achieving a 100% pass rate for all audited suppliers [5]. Group 5: Future Vision - The company aims to integrate sustainable development deeply into its business operations, focusing on creating both commercial and social value [5].

Core Insights - Shanghai is becoming a central hub for trendy sneaker culture, with multiple international brands establishing flagship stores and headquarters in the city [1][4][5] Brand Expansion - Adidas has opened its first global flagship store in Shanghai, showcasing its highest level of design, product, and service [1] - HOKA has launched its global first brand experience center in the New天地商圈, emphasizing its commitment to the Asian market [2] - Other brands like Craft, ECCO, and Brooks are also expanding their presence in Shanghai, indicating a growing trend of high-performance and lifestyle brands entering the market [1][2][4] Market Dynamics - The influx of international brands has transformed Shanghai into a starting point for sneaker culture, with significant consumer engagement, as evidenced by Adidas' flagship store attracting over 10,000 visitors daily during the holiday period [3] - The establishment of brand headquarters in Shanghai allows for a broader consumer reach across China and the Asia-Pacific region, with brands like ANTA and Li Ning also setting up their global operations in the city [4][5] Cultural Integration - The sneaker culture in Shanghai is being enriched by a variety of new retail formats, including concept stores and cafes, creating vibrant consumer experiences [6] - Online platforms like 得物 are fostering community engagement and innovative collaborations, such as the partnership between ANTA and pop culture brand Pop Mart [7]

Core Viewpoint - The central government is taking action to address the issue of "black mouths" on the internet that harm businesses, with a two-month nationwide campaign aimed at rectifying malicious attacks and marketing practices against companies [1][2][3]. Group 1: Government Actions - The Central Cyberspace Administration of China launched a two-month campaign to tackle four major issues, including malicious defamation and harmful marketing practices against enterprises [1]. - The campaign aims to protect the legitimate rights and interests of businesses and entrepreneurs, which are crucial for high-quality economic development [2][3]. - New regulations and guidelines have been established to clarify the handling of online infringement information related to enterprises, enhancing legal frameworks to combat misleading and defamatory content [3][4]. Group 2: Company Responses - Companies like Pang Donglai and Huiyuan Juice have publicly responded to false information, emphasizing their operational transparency and commitment to legal recourse against defamation [1][2]. - Li Ning has also taken legal action against malicious rumors, asserting its rights and defending its brand reputation [4]. - The proactive stance of these companies in addressing online misinformation is seen as a necessary step to maintain their market positions and protect their interests [4].

机构：长江证券 库存折扣保持稳健，4 月短期承压。2025Q1 预计库销比~5 保持健康，折扣小幅改善，但预计4 月线下 流水下滑且折扣同比加深，短期零售仍面临挑战。 短期来看，公司针对奥运相关宣传营销的效果仍有待后续观察，需进一步平衡费用与增长，但零售端仍 有压力，短期预计收入增长难以见效且费用存在显著拖累。中长期角度而言，在竞争加剧的态势下，安 踏渠道改造/李宁品牌发力皆为公司针对自身优势寻找增长的努力，虽费用投入效果仍需观察，但2023 年至今李宁经营层面持续磨底，优化经营质量，后续有望重启健康向上路径，彼时或存在较高弹性。综 合预计公司2025-2027 年实现归母净利24.3/25.8/28.0 亿元，同比-19%/+6%/+8%，对应PE 为15/14/13X， 维持"买入"评级。 风险提示 1、下沉市场不及预期； 2、专业运动品类增速不及预期； 3、零售流水增长不及预期。 研究员：于旭辉/柯睿 事件描述 李宁发布2025Q1 运营数据，Q1 全渠道流水低单位数增长，直营渠道低单下滑，批发渠道低单增长，电 商渠道低双位数增长，零售表现符合预期。 事件评论 零售符合预期，月度趋势波动。零售运营平稳， ...