Xin Lang Cai Jing·2025-08-22 12:00Core Insights - The article highlights the positive transformation of Li Ning, a well-established sports brand, as it re-establishes its partnership with the Chinese Olympic Committee (COC) for the 2025-2028 period, marking a significant milestone after 16 years [1][3] - Li Ning's revenue for the first half of 2025 reached 14.817 billion yuan, a year-on-year increase of 3.3%, while net profit attributable to equity holders decreased by 11% to 1.737 billion yuan [1][4] Company Developments - Li Ning has outlined a strategic plan for major upcoming events, including the 2028 Olympics and the 2026 Winter Olympics, to enhance brand visibility and consumer engagement [3][4] - The company has increased its advertising and marketing expenses by 87 million yuan, with a cost ratio rising by 0.3 percentage points to 9%, primarily due to new Olympic sponsorship costs [4][6] Market Environment - The sports consumption market is highly competitive, leading to a slight decline in Li Ning's gross margin by 0.4 percentage points, attributed to intensified promotional discounts [6][8] - Li Ning is adapting to the challenging market by optimizing its offline store structure, reducing the number of stores from 7,585 to 7,534, and exploring new retail formats like pop-up stores [8][9] Product Strategy - Li Ning continues to focus on its core product categories, particularly running, which has seen a compound annual growth rate of over 20% in the past three years, with over 14 million pairs of professional running shoes sold in the first half of 2025 [8][9] - The basketball segment has faced a 20% decline in retail sales, prompting Li Ning to adjust its shipping plans to ensure healthy terminal sales without pursuing low-quality growth [9][11] Future Outlook - The company anticipates a challenging market environment in the latter half of 2025, with preparations in place to navigate potential difficulties [11][12] - Li Ning aims to maintain a cautious approach while solidifying its business foundation and seizing structural opportunities for sustainable long-term growth [12]