Core Viewpoint - The company demonstrates a "steady" development approach amidst uncertainties, balancing proactive strategies with a focus on sustainable growth [1][3][12]. Financial Performance - In the first half of 2025, the company achieved revenue of 14.82 billion yuan, a year-on-year increase of 3.3%, with a gross profit of 7.41 billion yuan, up 2.5%, and a gross margin of 50% [1]. - The net profit for the same period was 1.74 billion yuan, and cash and cash equivalents totaled 11.8 billion yuan, an increase of 4.3 billion yuan compared to the end of 2024 [1]. Strategic Focus - The company maintains a single-brand strategy, emphasizing professionalism and avoiding resource dispersion, which contributes to its financial stability [4][11]. - The management's strategy includes aggressive marketing investments in various sports categories and partnerships with top athletes, reflecting a proactive approach [2][4]. Market Environment - The Chinese sports footwear and apparel industry is projected to grow to 598.9 billion yuan by 2025, with an expected annual growth rate of 11.62% from 2021 to 2025, indicating a highly competitive landscape [2]. Product Innovation - The company has increased R&D investment by 8.7% in the first half of 2025, outpacing revenue growth, and has cumulatively invested over 3.8 billion yuan in R&D over the past decade [1][8]. - Key product categories such as running, basketball, and training have shown strong market performance, with running category retail sales growing by 15% [5][6]. Channel Optimization - The company is strategically opening new stores in emerging markets while maintaining high-quality channel management, with a total of 7,534 stores as of June 2025 [10]. - The focus is on innovative store formats and strategic collaborations with top commercial entities, enhancing market presence without blind expansion [10][11]. Long-term Vision - The company's approach combines steady growth with proactive strategies, aiming for sustainable development and maintaining its position as a leading brand in the long term [12].

Core Viewpoint - The company demonstrates a "steady" development approach amidst uncertainties, combining flexibility in strategy with a focus on sustainable growth [1][3]. Financial Performance - In the first half of 2025, the company achieved revenue of 14.82 billion yuan, a year-on-year increase of 3.3% - Gross profit reached 7.41 billion yuan, up 2.5%, with a gross margin of 50% - Net profit stood at 1.74 billion yuan, and cash and cash equivalents totaled 11.8 billion yuan, an increase of 4.3 billion yuan compared to the end of 2024 [1]. Strategic Approach - The company emphasizes a "steady" strategy that is not conservative but involves proactive measures in marketing and operational adjustments [2]. - The management highlights the importance of balancing aggressive marketing investments with systematic control and adjustments in operations [2][3]. Industry Context - The Chinese sports footwear and apparel industry is projected to grow to 598.9 billion yuan by 2025, with an expected annual growth rate of 11.62% from 2021 to 2025 [2]. - The industry is characterized by intense competition, with a multi-brand landscape and a focus on technological innovation and channel integration [2]. Brand Strategy - The company maintains a single-brand strategy, leveraging its founder's athlete background to enhance brand professionalism [4]. - This strategy allows the company to concentrate resources on the "Li Ning" brand, avoiding the risks associated with multi-brand acquisitions [4]. Product Performance - The company reported strong market recognition in categories such as running, basketball, and cross-training, with these categories accounting for 67% of retail sales [5]. - The running category saw a retail sales increase of 15%, with total sales of over 14 million pairs of running shoes in the first half of 2025 [5]. Innovation and R&D - The company has increased R&D investment by 8.7%, outpacing revenue growth, with cumulative R&D investment exceeding 3.8 billion yuan over the past decade [8]. - New technologies, such as the "超䨻" technology, are being developed to enhance product competitiveness [8][9]. Channel Optimization - The company is strategically opening new stores in emerging markets while maintaining high-quality channel standards [10]. - As of June 2025, the total number of stores was 7,534, with a focus on high-level market contributions [10]. Long-term Vision - The company's strategy reflects a commitment to long-term growth, aiming to remain one of China's leading brands over the next decade [12].