Core Insights - The company reported a decline in retail sales for the Li Ning brand (excluding Li Ning YOUNG) in Q3 2025, with offline channels experiencing significant drops due to external factors, while online channels maintained high single-digit growth [1] - The company is actively expanding its offline presence, with a net increase of 33 stores in Q3 2025, totaling 6,132 stores for the Li Ning brand [1] - The signing of player Yang Hansheng, who was selected in the first round of the NBA draft, is expected to boost sales of related products and improve the overall market for basketball in China [2] - The company maintains a strong position in the sports apparel sector, focusing on a "single brand, multiple categories, and multiple channels" strategy, with projected net profits of 2.645 billion, 2.843 billion, and 3.101 billion yuan for 2025-2027 [2] Summary by Category Sales Performance - In Q3 2025, the Li Ning brand's retail sales saw a mid-single-digit decline, with offline channels (including retail and wholesale) experiencing high single-digit declines, while online retail sales recorded high single-digit growth [1] Store Expansion - As of September 30, 2025, the Li Ning brand had 6,132 offline stores, with a net increase of 33 stores from the previous quarter, and a total of 1,480 stores for Li Ning YOUNG, reflecting a proactive approach to offline channel expansion [1] Strategic Developments - The recent signing of Yang Hansheng, who was drafted into the NBA, is anticipated to enhance brand visibility and sales of basketball-related products, potentially improving the overall market for basketball in China [2] Financial Outlook - The company is projected to achieve net profits of 2.645 billion yuan in 2025, 2.843 billion yuan in 2026, and 3.101 billion yuan in 2027, supported by its strong brand position and ongoing investment in product development [2]

Core Viewpoint - The company reported stable performance in H1 2025 despite external environmental disturbances, with a slight increase in revenue and gross profit but a decline in net profit [1] Financial Performance - In H1 2025, the company achieved revenue of 14.817 billion yuan, a year-on-year increase of 3.3% - Gross profit reached 7.415 billion yuan, up 2.5% year-on-year - Net profit attributable to shareholders was 1.737 billion yuan, down 11.0% year-on-year - The gross margin for H1 2025 was 50.0%, a decrease of 0.4 percentage points year-on-year, attributed to a decline in direct sales channel revenue and increased discounting - The net profit margin was 11.7%, down 1.9 percentage points year-on-year, due to increased advertising and marketing expenses as the company focused on core resource investment [1] Dividend Policy - The company declared an interim dividend of 0.3359 yuan per share, with a payout ratio of 50%, indicating a strong willingness to distribute dividends [1] Business Segments - E-commerce contributed the largest revenue growth in H1 2025, with a 7.4% year-on-year increase, accounting for 29.0% of total revenue, up 1.1 percentage points from H1 2024 - Revenue from authorized dealers increased by 4.4% year-on-year, making up 46.5% of total revenue, up 0.5 percentage points from H1 2024 - Revenue from footwear products reached 8.231 billion yuan, a 4.9% increase year-on-year, with sales of key running shoe IPs exceeding 5.26 million pairs - Revenue from equipment and accessories grew significantly by 23.7% year-on-year, reaching 1.393 billion yuan, with a revenue share of 9.4% [2] Market Development - The company signed player Yang Hansheng, who was selected in the first round of the NBA draft, which is expected to enhance the company's brand and product sales in the basketball category - Retail sales for running and cross-training categories showed strong performance, both increasing by 15% year-on-year, while basketball retail sales declined by 20% [3] Growth Outlook - The company is positioned as a leading domestic sports apparel brand, focusing on a "single brand, multiple categories, and multiple channels" development strategy - Continued investment in R&D is expected to enhance core technologies in footwear and apparel, maintaining a balance between professionalism and fashion in product design - Profit forecasts for net profit attributable to shareholders are projected at 2.645 billion yuan, 2.845 billion yuan, and 3.104 billion yuan for 2025, 2026, and 2027 respectively [3]