Ge Long Hui·2025-07-19 11:28Group 1: Company Performance - Li Ning's retail revenue (excluding Li Ning YOUNG) recorded low single-digit growth compared to the same period last year [1] - Offline channels (including retail and wholesale) saw a low single-digit decline in retail revenue year-on-year, with direct retail channels experiencing a mid single-digit decline and wholesale channels showing low single-digit growth [1] - Online channel retail revenue for Q2 2025 showed mid single-digit growth compared to the same period last year [1] Group 2: Store Network Adjustment - As of June 30, 2025, Li Ning had a total of 6,099 sales points in China (excluding Li Ning YOUNG), a net increase of 11 from the previous quarter, but a decrease of 18 year-to-date [1] - The net decrease of 18 sales points included a net reduction of 19 in retail business, while wholesale business saw a net increase of 1 [1] Group 3: Strategic Partnerships and Marketing - Li Ning signed a partnership with the Chinese Olympic Committee, becoming the sportswear partner for the 2025-2028 Olympic events, which may enhance its brand recognition and support international expansion [2] - The company has focused on local talent, signing CBA stars and recently securing a five-year contract with NBA player Yang Hanshen, who was selected 16th overall in the NBA draft, marking a significant milestone for domestic sports brands [2] Group 4: Financial Forecast Adjustments - Due to anticipated increased marketing investments in the second half of the year, net profit margins are expected to weaken, but marketing expenses related to COC and NBA partnerships are expected to enhance brand visibility [3] - Revenue forecasts for 2025-2027 have been adjusted to 28.9 billion RMB, 29.6 billion RMB, and 30.7 billion RMB respectively, with net profits revised to 2.4 billion RMB, 2.6 billion RMB, and 2.7 billion RMB [3]