Core Viewpoint - Li Ning has launched its first "Dragon Store" in Beijing, themed "Dragon Glory Begins," alongside the release of the new Honor Gold Label product series, aiming to integrate sports spirit, cultural exchange, and immersive product experiences [1][6][14]. Group 1: Dragon Store Concept - The Dragon Store is a new retail format that embodies the spirit of the "Dragon," a symbol of Chinese culture and a design hallmark of the Li Ning brand [3]. - The store aims to create a space for consumers that combines product experience, emotional resonance, and cultural exchange, focusing on themes of "Award Moments," "Competition Moments," and "Life Moments" [6]. Group 2: Honor Gold Label Product Series - The Honor Gold Label series is designed to reflect sports spirit and is intended for various daily scenarios, promoting a lifestyle that embraces quality and active living [7][10]. - The product line features high-quality, multifunctional apparel and footwear, integrating advanced sports technology with minimalist design to cater to urban consumers [8][10]. - The series includes shoes inspired by the "refinement of gold" concept, utilizing black and white color schemes to symbolize the journey of athletes, and incorporates innovative technologies for comfort and performance [10][12]. Group 3: Strategic Importance - The launch of the Dragon Store and the Honor Gold Label series is seen as a significant milestone for Li Ning, enhancing its retail channel and expanding its consumer base across various sports categories [14]. - The collaboration with the Chinese Olympic Committee, featuring the official emblem on the Honor Gold Label products, underscores Li Ning's commitment to promoting sports culture and spirit [9][14].

Core Insights - The Chinese sportswear brands Anta, Li Ning, and Xtep are experiencing a significant shift from rapid expansion to a phase of contraction, indicating a response to market saturation and growth bottlenecks [1][2] - The industry is transitioning from a focus on store quantity and channel leverage to a deeper transformation centered on brand value, product innovation, and operational efficiency [2] Anta - Anta's success is attributed to its "single focus, multi-brand" strategy, which has allowed it to build a diverse brand portfolio through strategic acquisitions [3] - Despite a revenue increase of 14.3% to RMB 38.544 billion in the first half of 2025, Anta's core brand revenue grew only 5.4%, indicating a slowdown in growth [5] - The company is facing a "revenue growth without profit" dilemma, with net profit declining by 8.94% due to increased competition and the need for discounts to maintain market share [6][7] Li Ning - Li Ning has established a unique position in the market through a single-brand focus, leveraging technology and brand assets, but is now facing growth challenges as market conditions change [8][9] - The company's revenue grew only 3.29% in the first half of 2025, with net profit declining by 11%, highlighting the limitations of its single-brand strategy [9][11] - Li Ning's brand positioning conflicts with consumer perceptions of value, leading to discounting practices that undermine its premium branding efforts [9][11] Xtep - Xtep has focused on becoming the "first choice for Chinese runners," establishing a strong reputation in the running segment through technology and event sponsorship [12] - However, its heavy reliance on the running category has created a "category dependency syndrome," limiting its growth potential in other sports segments [12][14] - The company's market value has been declining, reflecting investor concerns about its narrow growth narrative and limited expansion opportunities [14] Industry Trends - The collective challenges faced by Anta, Li Ning, and Xtep signify a broader industry trend where brands must transition from growth driven by store expansion to creating value and recognition [15] - The future of the industry lies in establishing a brand moat based on core technological advantages and unique cultural expressions, moving beyond cost advantages associated with "Made in China" [15]

Core Viewpoint - The company Non-Fan Lingyue, controlled by the Li Ning family, has made significant investments in Li Ning Company, signaling strong confidence in its value despite the company's stock price decline [2][4]. Group 1: Investment Actions - Non-Fan Lingyue has increased its stake in Li Ning Company four times in 2025, spending approximately HKD 15.61 billion, raising its ownership from 10.53% to 14.27% [3][4]. - The latest purchase involved acquiring 19.16 million shares at an average price of HKD 16.80 per share, totaling around HKD 3.22 billion [3][4]. - The investment strategy has been consistent, with the first purchase occurring between January 10 and June 19, followed by subsequent increases in June and July, culminating in the December acquisition [3][4]. Group 2: Market Context - Li Ning's stock price has dropped over 70% since the beginning of 2023, currently trading at a price-to-earnings ratio of approximately 14.7, significantly lower than industry leaders [4][5]. - The stock price reaction to the announcements has been positive, with Li Ning's shares rising by 3.12% to HKD 17.49, and Non-Fan Lingyue's shares increasing by 3.23% to HKD 0.64 [5]. Group 3: Strategic Implications - Non-Fan Lingyue's strategy contrasts with Li Ning's focus on a "single brand" approach, as it aims to operate as a multi-brand operator, acquiring various brands since 2020 [6][7]. - The company has faced challenges in integrating acquired brands, with past profits heavily reliant on selling Li Ning shares, but recent acquisitions like Clarks have started to change this dynamic [7][8]. - The appointment of a former Zara executive as co-CEO indicates a commitment to enhancing brand management capabilities, which is crucial for balancing the single brand focus of Li Ning with Non-Fan Lingyue's multi-brand strategy [8].

Core Viewpoint - Li Ning (02331.HK) experienced a price increase of over 3% at one point, currently trading up 2.83% at HKD 17.44, with a trading volume of HKD 194 million [2] Summary by Category - **Stock Performance** - Li Ning's stock rose by more than 3% during trading, currently showing a gain of 2.83% [2] - The current stock price is HKD 17.44 [2] - The trading volume reached HKD 194 million [2]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **China Sportswear** industry, particularly the performance and outlook of major brands including **Nike**, **Anta**, **Topsports**, and **Li Ning** [1][2][3][4]. Core Insights and Arguments - **Nike's Market Position**: Nike retains its No.1 ranking in both "intent to purchase" and "most innovative brand" categories, despite a slight decline of 1 percentage point quarter-over-quarter (QoQ) [2][3]. - **Anta's Performance**: Anta's Net Promoter Score (NPS) increased by 11 points QoQ, moving from 10 to 4 in rankings, indicating a solid brand equity among Chinese consumers [3][10]. - **Topsports' Recovery**: Anticipated support from Nike, due to organizational changes, is expected to aid Topsports in recovering sales, which are heavily reliant on Nike products (50-60% of sales) [3][4]. - **Promotional Environment**: 65% of survey respondents noted an increase in promotional activity for sports footwear and clothing, up from 60% in September [19][20]. Financial Performance and Projections - **Anta's Sales Guidance**: Anta is expected to meet its full-year retail sales guidance, projecting low single-digit year-over-year growth for its business [3][4]. - **Topsports Valuation**: The target price for Topsports shares is set at HK$3.75, based on a 16x calendarized year 2025E P/E, reflecting a 45% discount to Nike's historical trading P/E [40][42]. - **Li Ning's Growth Outlook**: Despite anticipated weak growth in 2025, Li Ning is expected to resume earnings growth in 2026 due to enhanced brand equity and new product rollouts [35][36]. Additional Important Insights - **Consumer Sentiment**: The survey indicates a shift in consumer preferences, with Nike leading in "intent to purchase" at 21%, followed by Li Ning at 17% and Anta at 13% [12][14]. - **Discount Trends**: The percentage of consumers receiving discounts greater than 10% on recent purchases increased to 29% in November, indicating a competitive pricing environment [23][24]. - **Nike's Organizational Changes**: Nike's recent restructuring aims to enhance operational flexibility and brand support in China, which is expected to positively impact Topsports [3][26]. Conclusion - The China sportswear market is experiencing dynamic shifts, with Nike maintaining a strong position, while Anta and Li Ning show promising growth potential. The promotional landscape is becoming increasingly competitive, which may influence pricing strategies and consumer purchasing behavior in the near future.

Core Insights - Li Ning has opened a new outdoor independent store named "COUNTERFLOW" in Beijing, showcasing a full range of outdoor products, including specialized waterproof gear and limited edition collections [1][3] - The store features a "community corner" aimed at connecting urban outdoor enthusiasts through regular offline activities [2] - The launch of this store marks a significant step for Li Ning in promoting its outdoor line, which targets the light outdoor segment focusing on hiking, camping, and urban commuting [3] Product Strategy - Li Ning's main products are priced to appeal to the mass market, with items like the "Xiao Zhan" model waterproof jacket priced around 1500 yuan, and outdoor shoes priced between 699 and 899 yuan [3] - The outdoor business is seen as both an offensive and defensive strategy for Li Ning, aiming to cultivate a standalone category that can drive business growth despite its current small market share [4] Market Context - The light outdoor segment, while past its explosive growth phase, continues to see rapid growth and increasing consumer demand for outdoor activities [4] - Li Ning's late entry into the outdoor market raises questions about its ability to capture market share in a highly competitive environment [5] Historical Background - Li Ning's involvement in the outdoor sector dates back to 2005 with a joint venture with French brand AIGLE, focusing on waterproof products [7] - Despite early entry, outdoor business remained a minor focus for Li Ning as the company shifted its strategy towards the broader sports fashion market [9] Recent Developments - The company has faced challenges in the changing consumer environment, with a decline in gross margin and increased inventory turnover days [10][11] - In response to market pressures, Li Ning is expanding its product categories, including a renewed focus on outdoor products, and has established a dedicated team for this segment [11] Competitive Landscape - The outdoor market is becoming increasingly competitive, with established players like Anta and international brands like Nike intensifying their presence [18][19] - Li Ning's recent partnerships, including collaborations with the Chinese Olympic Committee, aim to enhance brand visibility and credibility in the outdoor market [19]

Core Insights - The combination of "instant retail" and professional sports brands is addressing consumer pain points related to product availability and delivery speed [1][3][5] - Li Ning has officially entered the instant retail market by partnering with major platforms like Meituan and JD, enabling rapid delivery of sports equipment across nearly 100 cities [1][9] Group 1: Instant Retail Growth - Instant retail is characterized by online ordering and offline fulfillment to meet local immediate needs, with projections indicating that China's instant retail market will exceed 1 trillion yuan by 2026 and reach 2 trillion yuan by 2030 [3][5] - The shift in consumer behavior from planned purchases to immediate needs is driving the growth of instant retail, particularly in the sports equipment sector [3][6] Group 2: Consumer Experience and Service - Speed, quality, and service are critical for brands to succeed in instant retail, with Li Ning focusing on building a new service ecosystem that emphasizes rapid delivery and customer satisfaction [5][6] - Li Ning has restructured its service standards and AI customer service systems to enhance the customer experience in instant retail [6][8] Group 3: Sports Consumption Trends - The increasing participation in sports, with over 540 million people regularly exercising in China, is creating a robust market for sports-related products [8][9] - Instant retail serves as a bridge to integrate brands into consumers' daily sports activities, stimulating demand for sports apparel and equipment [8][9] Group 4: Strategic Response - Li Ning's comprehensive layout in instant retail is a strategic response to market demand and policy support, aiming to convert sporadic purchases into long-term consumer trust [9] - The integration of sports and daily life through instant retail is expected to enhance consumer satisfaction and accessibility to sports experiences [9]

Core Insights - Li Ning brand officially entered JD Instant Delivery on December 5, 2025, marking a significant step in its multi-channel strategy to meet the immediate needs of sports enthusiasts across various demographics and product categories [1][6] Group 1: Strategic Initiatives - The collaboration with JD Instant Delivery allows consumers to experience "online ordering, nearby store shipping, and delivery in as fast as 9 minutes," enhancing the shopping experience [1][3] - Li Ning's entry into the instant retail sector is a proactive response to consumer demand for immediate access to sports equipment, covering a wide range of sports including running, basketball, and outdoor activities [3][4] Group 2: Service and Experience - Li Ning has established service standards and systems for its instant retail business to ensure a consistent and high-quality service experience across different platforms [4] - The brand is focused on enhancing user experience and service efficiency in collaboration with JD Instant Delivery, aiming to provide a more convenient and quality shopping experience for consumers [6]

Core Insights - Li Ning officially launched its presence on JD Instant Delivery, covering nearly 100 cities and 1,000 stores nationwide, offering a shopping experience where products can be delivered in as fast as 9 minutes [1][3] - This collaboration aligns with Li Ning's strategy of "single brand, multiple categories, and multi-channels," ensuring comprehensive coverage of all categories and age groups on a core instant retail platform [1][3] Group 1 - Li Ning's entry into the instant retail sector is a proactive response to consumer demand for immediate access to products [3] - Consumers can purchase a wide range of sports equipment through the JD app, catering to various scenarios such as emergency outfit changes [3][5] - The partnership with JD Instant Delivery allows Li Ning to overcome traditional retail limitations, creating a new instant retail experience characterized by "immediate sports, immediate delivery" [3][5] Group 2 - Instant retail is becoming a significant emerging channel in the retail business and is a crucial part of Li Ning's multi-channel operation model [5] - Li Ning has established service standards and systems for its instant retail business to ensure a consistent and high-quality service experience across different platforms [5] - The brand is continuously improving its after-sales support system to provide consumers with a seamless and reassuring experience [5] Group 3 - Li Ning has always focused on user-centric approaches, aiming to provide the most advanced and convenient sports and shopping experiences [7] - The entry into JD Instant Delivery signifies the completion of Li Ning's full presence on core instant retail platforms [7] - Moving forward, Li Ning plans to collaborate with JD Instant Delivery to enhance service efficiency and improve user experience, creating a more convenient and high-quality shopping experience for consumers [7]

Core Insights - Li Ning brand officially enters JD's instant delivery service, marking a significant step in its multi-channel strategy for instant retail [1] - The collaboration allows consumers to purchase a wide range of sports equipment through the JD app, catering to various needs such as emergency changes and preparation [1] - Li Ning has established service standards and systems for its instant retail business to ensure a consistent and high-quality consumer experience across different platforms [1] Summary by Categories Business Strategy - Li Ning's entry into JD's instant delivery service signifies the completion of its core platform coverage in the instant retail sector [1] - This move aligns with Li Ning's strategy of "single brand, multiple categories, and multi-channels" [1] Consumer Experience - Consumers can now enjoy an instant shopping experience with orders delivered in as fast as 9 minutes [1] - The partnership with JD allows for a one-stop shopping experience for various sports categories, addressing the core consumer demand for immediate availability [1] Service Standards - Li Ning has developed a service standard and system for its instant retail operations to ensure uniform service quality across platforms [1]