Core Insights - In 2024, Li Ning reported a revenue increase of 3.9% to 28.676 billion yuan, while net profit attributable to shareholders decreased by 5.46% to 3.013 billion yuan, indicating a relatively stable performance compared to competitors like Anta Sports and Xtep International [1][2] - The company's management emphasized a strategy of "steady operation, solid foundation, and pragmatic development," aiming to balance growth and profitability [1][2][5] Financial Performance - Li Ning's revenue for 2024 reached 28.676 billion yuan, a 3.9% year-on-year increase, while net profit fell by 5.46%, a slight improvement from the previous year's decline of 21.58% [2] - The gross profit margin improved by 1 percentage point to 49.4%, although it remains lower than Anta Sports but higher than Xtep International and 361 Degrees [2][4] Business Strategy - The company is focusing on the running category, which saw a 21% growth in 2024, building on a 40% increase in 2023, while intentionally reducing investment in the basketball category due to a 21% decline in sales [3][5] - Li Ning's online sales grew by 10.27%, while direct operating income decreased by 0.35% due to store closures in underperforming locations [3][4] Inventory and Channel Management - Li Ning's inventory management has improved, with a stock turnover period of 64 days, significantly better than competitors [4] - The total number of sales points decreased to 7,585, with a net reduction of 83 stores, while the number of Li Ning YOUNG stores increased [4] Investment in Sports Resources - The company is increasing investment in sports resources, including a partnership with the Chinese Olympic Committee, to enhance brand recognition and product competitiveness [5][6] - Research and development expenditure rose to 676 million yuan, accounting for 2.4% of total revenue, reflecting a commitment to innovation [6] Future Outlook - Li Ning aims to maintain stable revenue and high single-digit net profit margins in 2025, with continued investment in brand building and core categories [6]

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]