Bei Jing Shang Bao·2025-08-22 11:45Core Viewpoint - Li Ning reported a stable performance in the first half of 2025, with revenue reaching 14.82 billion yuan, a year-on-year increase of 3.3%, and gross profit rising by 2.5% [1][4] Financial Performance - In the first half of 2025, Li Ning's revenue increased by 3.3% to 14.82 billion yuan, with a gross profit margin of 50% [4] - Net profit attributable to equity holders was 1.74 billion yuan, resulting in a net profit margin of 11.7% [4] - The company generated a net cash flow from operating activities of 2.41 billion yuan, with total cash and cash equivalents amounting to 11.8 billion yuan, an increase of 4.3 billion yuan from the end of 2024 [4] - Inventory turnover days were 61 days, a decrease of 1 day year-on-year, indicating healthy inventory management [4] Market Context - The Chinese sports market is projected to reach approximately 5 trillion yuan by 2025, driven by policy support, increased health awareness, and consumption upgrades [3] - The number of existing sports-related enterprises in China exceeded 414,000 as of July 1, 2025, with a significant increase in registrations over the past five years [3] Product and Brand Strategy - Li Ning's professional products accounted for over 60% of revenue in the first half of 2025, with a 5% increase in footwear sales [8] - The company focuses on six core categories: running, basketball, cross-training, badminton, table tennis, and sports leisure, while also expanding into new sports categories [12] - Li Ning has established itself as a leading domestic sports brand, ranking 9th in the "Global Brand China Online 500" list [8] Partnerships and Marketing - Li Ning has become the official partner of the Chinese Olympic Committee for the 2025-2028 period, providing professional sports equipment for various international events [9][11] - The brand actively promotes Olympic culture and encourages public participation in sports through events like Olympic Day and National Fitness Day [11] Long-term Strategy - Li Ning emphasizes a long-term strategy focused on professional development and technological innovation, with over 3.8 billion yuan invested in R&D over the past decade [13] - The company aims to maintain its competitive edge through continuous investment in product technology, such as the "Super Light" technology used in its running and basketball shoes [13][15]