Core Viewpoint - Li Ning announced that its retail sales (excluding Li Ning YOUNG) recorded low single-digit growth year-on-year in the first quarter across all platforms [1] Group 1 - The company reported a low single-digit growth in retail sales for the first quarter [1]

（李宁门店环保陈列区域） 华夏时报（www.chinatimes.net.cn）记者 黄兴利 北京报道 在全球可持续发展浪潮下，ESG（环境、社会与治理）理念已从概念层面深度嵌入企业战略，成为衡量企业长期 价值的核心指标。对于服装产业这一全球碳排放与资源消耗大户而言，绿色转型已升级为"必答题"——尤其是中 国作为全球最大服装生产国与消费市场，行业可持续发展直接影响全球供应链的绿色化进程。 在消费者环保意识觉醒、资本市场ESG评级敏感度提升多重驱动下，中国运动鞋服品牌如何推进可持续发展实 践？就行业绿色转型路径热点话题，《华夏时报》记者在近日对李宁（02331.HK）相关负责人进行了采访，解码 这家国产运动龙头企业如何通过全产业链绿色重构，走出一条从单点突破到系统化布局的进阶之路。 鞋服业绿色转型思路 2024年，我国规模以上纺织企业交出了一份亮眼成绩单：工业增加值同比增长4.4%，营业收入达49532.1亿元，展 现出产业稳健发展的强劲韧性。而与此同时，在"双碳"目标上升为国家战略的时代语境下，中国鞋服产业正集体 站在绿色转型的十字路口。 全球报告倡议组织（GRI）董事局董事、中国管理学学会可持续发展管理专委 ...

香港交易所信息显示，贝莱德在李宁的持股比例于4月9日从4.91%升至5.13%。 ...

EQUITY: CONSUMER RELATED Not the time to revisit yet FY24 results in line; FY25F sales and earnings to face headwinds; downgrade to Neutral FY24 results largely in line; continued headwinds for FY25F Li Ning announced its FY24 results (on 28 March), largely in line with the capital market's expectation: 2H24 revenue increased by 6% y-y to CNY14.3bn, 3% ahead of Bloomberg consensus, while its 2H24 net profit decreased by 0.4% y-y to CNY1.06bn, 3% lower than consensus; excluding one-off gains & losses, Li Nin ...

EPS (UBS, diluted) (Rmb) ab 28 March 2025 Fast Take Li Ning Headline H224 OP better than expectations Our Take H224 NI largely in line with UBSe. H224 OP was 5% higher than UBSe from higher revenue (4% above) and better GPM (0.7pppt higher) partially offset by Rmb333mn impairment of investment properties. Excluding that, H224 OP was 32% higher than UBSe. Global Research Equities China Footwear 12-month rating Neutral 12m price target HK$15.90 Price (27 Mar 2025) HK$17.10 RIC: 2331.HK BBG: 2331 HK Trading da ...

Core Viewpoint - Li Ning has demonstrated steady growth amidst market fluctuations, with a revenue increase of 3.9% to 28.68 billion yuan in 2024 and a net profit of 3.01 billion yuan [1] Financial Performance - Li Ning's gross profit rose by 6.0% to 14.16 billion yuan, with a gross margin improvement of 1 percentage point to 49.4% [1] - The company's operating cash inflow increased by 12.4% to 5.27 billion yuan, with total cash and cash equivalents reaching 7.5 billion yuan, an increase of 2.06 billion yuan from the previous year [9] Operational Strategy - The company emphasizes "steady operation" which does not equate to conservative management, focusing on strategic actions such as controlling inventory and enhancing product competitiveness [3][4] - Li Ning is actively managing its basketball business by controlling shipment volumes to improve core product competitiveness [5] - Cost control measures have been implemented, including the establishment of a centralized purchasing system to enhance efficiency [6] Channel Management - Li Ning is adjusting its channel strategy by improving single-store efficiency and closing underperforming stores, resulting in a net reduction of 83 sales points to 7,585 by the end of 2024 [7] Research and Development - Over the past decade, Li Ning has invested more than 3.5 billion yuan in R&D, with a 9.3% increase in R&D spending in 2024, outpacing revenue growth [12] - The company has developed proprietary technologies in footwear, enhancing its competitive edge in the market [12][14] Product Performance - In 2024, Li Ning's footwear revenue reached 14.3 billion yuan, accounting for 50% of total revenue, with significant sales in running shoes and basketball products [14][22] - The running category saw a retail revenue growth of 25%, with core running shoe models achieving substantial sales increases [22] Market Positioning - Li Ning has established a strong presence in multiple sports categories, including running, basketball, and table tennis, and is expanding into outdoor and emerging sports segments [20][22] - The company has long-term partnerships with national sports teams and has been a key player in the Chinese sports market [16][17] Future Outlook - Li Ning is prepared for pragmatic growth, focusing on solidifying its foundation while exploring future opportunities [18][23]

Financial Performance - The company's revenue increased by 3.9% year on year, reaching 28.68 billion RMB, with a gross profit margin up by one percentage point to 49.4% [3][35] - Net profit was 3.13 billion RMB, with a net profit margin of 10.5%, reflecting a decrease of 0.5 percentage points compared to the previous year [3][15] - Operating cash flow rose by 12.4% to 5.27 billion RMB, with a healthy operating cash over revenue ratio of 7.4% [4][19] Business Line Performance - Footwear accounted for 50% of total revenue, growing by 7% year on year, which was a key driver of overall business growth [6] - The online business environment improved, leading to a 2 percentage point increase in revenue share from e-commerce to 31% [6] - Direct retail revenue decreased by 1% year on year, primarily due to the optimization of store structure [10][11] Market Performance - Offline retail sales declined by a low single digit, while online sales grew by 10% to 20% [9] - The number of points of sale (POS) decreased by 83 to a total of 7,585, with a notable reduction in direct retail stores [7][8] - The company maintained a healthy inventory turnover of four months, with inventory aging structure stabilizing at 80% for new products [15][16] Strategic Direction and Industry Competition - The company aims to enhance brand value through sports marketing and product innovation, focusing on core categories such as running, basketball, and fitness [24][25] - The strategy includes a single brand with multiple categories and channels to improve market competitiveness [24] - The company is committed to innovation in new sports segments and enhancing its professional product matrix [25][30] Management Commentary on Operating Environment and Future Outlook - The management expressed confidence in the medium to long-term growth of China's athletic footwear and apparel industry, despite current challenges [21][20] - For 2025, the company expects flat revenue growth and plans to increase investment in brand building and core categories [21] - The management highlighted the importance of maintaining operational efficiency and adapting to market changes [39][42] Other Important Information - The company recommended a final dividend of 20.73 cents per share, increasing the total dividend payout from 45% to 50% [4] - The company has been recognized as the official apparel partner of the Chinese Olympic Committee for the period of 2025 to 2028 [33] Q&A Session Summary Question: What are the expectations for revenue growth in 2025? - The company expects full-year revenue to remain flat year on year, focusing on sustainable growth in core categories [21] Question: How is the company addressing challenges in offline retail? - The company is optimizing channel structures and enhancing operational efficiency to adapt to declining customer traffic [39] Question: What is the strategy for e-commerce growth? - The company is investing in differentiated strategies for various e-commerce platforms to improve customer traffic and sales conversion rates [42]

Financial Performance - Revenue increased by 3.9% to RMB 28.68 billion, with a gross margin improvement of 1 percentage point to 49.4%[5] - Net profit attributable to equity holders was RMB 3.01 billion, with a net profit margin of 10.5%[5] - Operating cash inflow rose by 12.4% to RMB 5.27 billion, maintaining a healthy level of working capital at 7.4% of revenue[5] - The company reported a decrease in net profit from RMB 3.19 billion in 2023 to RMB 3.01 billion in 2024[9] - Basic earnings per share decreased to RMB 116.98 from RMB 123.21 year-on-year[8] - The profit attributable to equity holders for 2024 is RMB 3,012,918,000, a decrease of 5.4% from RMB 3,186,910,000 in 2023[38] - The basic earnings per share for 2024 is RMB 116.98, down from RMB 123.21 in 2023, reflecting a decline of 3.5%[38] - The diluted earnings per share for 2024 is RMB 116.52, compared to RMB 122.66 in 2023, indicating a decrease of 5.0%[40] - The total proposed dividend for 2024 is RMB 1,506,459,000, which represents approximately 50% of the profit attributable to equity holders, up from 45% in 2023[41] - The interim dividend declared for 2024 is RMB 37.75 per share, an increase from RMB 36.20 per share in 2023[45] - The proposed final dividend for 2024 is RMB 20.73 per share, compared to RMB 18.54 per share in 2023, marking an increase of 6.4%[45] Revenue Breakdown - Total revenue for the year ended December 31, 2024, reached RMB 28.68 billion, an increase of 3.91% from RMB 27.60 billion in 2023[23] - Revenue from footwear sales amounted to RMB 14.30 billion, up from RMB 13.39 billion in the previous year, while apparel sales decreased to RMB 12.05 billion from RMB 12.41 billion[23] - The company reported a significant increase in revenue from equipment and accessories, rising to RMB 2.33 billion from RMB 1.80 billion, reflecting a growth of 29.3%[23] - E-commerce revenue grew by 10.3% due to enhanced online channel development and cost control[54] - Retail revenue saw a slight decline of 0.3%, but profitability in retail stores improved through optimized discount strategies[54] - Footwear sales accounted for 49.9% of total revenue in 2024, up from 48.5% in 2023, with a revenue increase of 6.8%[56] - E-commerce sales grew to 29.0% of total revenue in 2024, compared to 27.3% in 2023, marking a 1.7% increase[56] Asset and Liability Management - Total assets increased to RMB 35.71 billion from RMB 34.21 billion, while total liabilities decreased to RMB 9.60 billion from RMB 9.80 billion[7] - Non-current assets decreased to RMB 15.18 billion from RMB 20.55 billion, while current assets increased to RMB 20.53 billion from RMB 13.65 billion[6] - The company maintained a cash conversion cycle of 35 days, indicating efficient inventory management[5] - Accounts receivable decreased from RMB 1,243,747,000 in 2023 to RMB 1,046,249,000 in 2024, a reduction of approximately 15.9%[28] - Trade payables decreased from RMB 1,789,796,000 in 2023 to RMB 1,625,132,000 in 2024, a decline of approximately 9.2%[31] - The debt-to-equity ratio improved to 36.8% from 40.2%, reflecting better financial leverage management[53] Investment and Acquisitions - The company completed the acquisition of Vansittart Investment Limited for a total consideration of HKD 22.21 billion (approximately RMB 20.13 billion), with an initial payment of HKD 2.21 billion (approximately RMB 2.00 billion) made in December 2023 and the remaining HKD 20.00 billion (approximately RMB 18.13 billion) paid in January 2024[12] - The acquired assets primarily consist of investment properties valued at RMB 16.99 billion and property, plant, and equipment valued at RMB 3.22 billion, indicating a significant concentration of value in a single identifiable asset[13] - The investment cost of the acquired property is RMB 2,021,450,000, with a carrying value after depreciation and impairment of RMB 1,939,060,000 as of December 31, 2024, representing about 5.4% of the company's total assets[76] Operational Efficiency - The company has no single external customer contributing more than 10% of total revenue, indicating a diversified customer base[24] - The company is currently evaluating the impact of new accounting standards on its consolidated financial performance, which may affect reporting and disclosures in the future[20] - The company is actively seeking legal advice regarding a claim related to a loan, asserting that it has no obligation to repay the claimed amount[44] - The company plans to continue optimizing its asset structure to mitigate risks associated with market volatility[67] - The company aims to enhance operational efficiency by streamlining business processes and improving resource allocation, focusing on a "single brand, multiple categories, and multiple channels" strategy[127] Research and Development - Research and product development expenses rose from RMB 618,183,000 in 2023 to RMB 675,955,000 in 2024, an increase of approximately 9.3%[32] - The company has established a strong lineup of six unique innovative technologies, including "Carbon Core," "Fast Curve System," and "Super Bounce," covering various sports categories[86] - The launch of the new midsole technology "Super Bounce" showcases the company's dual innovation capabilities in materials and processes, achieving a performance peak with supercritical foaming materials[87] - The company introduced six new products featuring "Super Bounce" technology, including basketball and running shoes, reflecting a deep understanding of athlete and consumer needs[88] Marketing and Brand Strategy - The company launched the "In My Name" campaign in 2024, enhancing brand competitiveness and user engagement[84] - The company emphasizes a brand spirit of "Dare to Imagine, Create Splendor, Anything is Possible," targeting the younger generation through diverse marketing activities[90] - The "反伍" series achieved significant results in cultural expression and market expansion, with the online marketing campaign "Finding the Angry Tear" garnering 440 million views on Douyin, enhancing brand visibility[95] - The company signed a sponsorship deal for the "2024-2026 Li Ning Hong Kong Open Badminton Championships," enhancing product exposure and market attention through event promotion[101] Employee and Organizational Development - As of December 31, 2024, the company employed 5,022 individuals, an increase from 4,845 employees on December 31, 2023[123] - The company emphasizes the importance of employee satisfaction and engagement through various initiatives and feedback mechanisms[123] - The company will continue to optimize its talent structure and management levels to foster a high-efficiency team and promote organizational collaboration[127]

Core Viewpoint - The research service "Asia Value & Moat Stocks" targets value investors looking for Asia-listed stocks that exhibit a significant disparity between market price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1] Group 1: Investment Focus - The service emphasizes deep value balance sheet bargains, which include net cash stocks, net-nets, low price-to-book (P/B) stocks, and sum-of-the-parts discounts [1] - It also highlights wide moat stocks, which are characterized by strong earnings power at a discount, including high-quality businesses and hidden champions [1] Group 2: Market Emphasis - The primary focus of the investment ideas is on the Hong Kong market, providing a range of watch lists with monthly updates for investors [1]

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][5]. Core Views - The company has become the official sportswear partner for the Chinese Olympic Committee and the Chinese sports delegation for the 2025-2028 period, which is expected to enhance its brand image and marketing efforts [2][4]. - In the fourth quarter, the company's e-commerce sales growth accelerated, with a reported increase of 26% compared to the previous quarter [3][7]. - The company launched a new midsole technology called "超䨻" in November, introducing six new basketball and running shoe models featuring this innovation [11][12]. - Despite short-term pressures on profitability due to increased marketing expenses related to the Olympic partnership, the company maintains a cautiously optimistic outlook for its product competitiveness and growth potential in the mid to long term [3][16]. Summary by Sections Company Partnership - On January 15, 2025, the company was announced as the official sportswear partner for the Chinese Olympic Committee and the sports delegation for the upcoming Olympic and Asian Games [2][4]. Sales Performance - The fourth quarter saw a significant improvement in sales performance across various platforms, with the company’s e-commerce sales growing by 26% compared to the previous quarter [3][7]. - The overall sales growth for the sports brand sector in the fourth quarter showed a positive trend, with other brands also reporting improved sales figures [7]. Product Innovation - The introduction of the "超䨻" technology is expected to lead the industry in innovation, with new products designed to enhance performance for athletes [11][12]. Financial Forecast - The company has slightly adjusted its profit forecasts for 2024-2026, expecting net profits of 3.06 billion, 3.06 billion, and 3.42 billion yuan respectively, reflecting a year-on-year change of -4.1%, 0.0%, and +11.9% [3][18]. - The target price remains at 17.9-19.2 HKD, corresponding to a PE ratio of 14-15x for 2025 [3][16].