3 6 Ke·2025-08-22 10:46Core Viewpoint - In 2025, the Chinese sportswear industry is undergoing significant structural changes amid a slow recovery in the consumer market, as evidenced by Li Ning's mid-term financial report showing revenue growth but pressured profit margins [1][2]. Revenue and Profit Analysis - Li Ning's revenue reached 14.82 billion yuan, a year-on-year increase of 3.3%, aligning with market expectations, especially in a challenging consumer environment where retail sales in the apparel sector grew only 3.1% [2][3]. - The company's gross profit was 7.41 billion yuan, up 2.5%, but the overall gross margin decreased by 0.4 percentage points to 50.0%. Net profit was 1.74 billion yuan, with a net margin decline from 13.6% to 11.7% [3]. Business Structure and Product Focus - The growth was primarily driven by footwear, with professional products accounting for over 60% of revenue, and footwear sales making up 56% of total revenue, highlighting the brand's focus on professional sports [3][4]. - The online sales channel saw a 7.4% increase, while retail channels faced pressure, with a 3.4% decline in revenue due to adjustments in store layouts and shifting consumer behavior towards online shopping [4]. Strategic Initiatives and R&D Investment - Li Ning has entered the "Olympic cycle" as the official sportswear partner for the Chinese Olympic Committee, which is expected to enhance brand positioning and guide product development and marketing strategies over the next three years [5][7]. - R&D investment increased by 8.7% in the first half of 2025, with cumulative R&D spending exceeding 3.8 billion yuan over the past decade, indicating a commitment to enhancing product competitiveness [5][6]. Product Performance and Market Positioning - The running category showed significant growth, with retail sales increasing by 15%, and total sales of running shoes surpassing 14 million pairs, driven by popular series [6][8]. - Li Ning is also exploring niche categories like badminton and table tennis, while identifying emerging markets such as outdoor sports and tennis as strategic growth areas [7][8]. Conclusion - Li Ning's performance in the first half of 2025 reflects a balance of steady growth amid industry challenges, with strategic investments aimed at building a robust professional sports brand [8][9].