Core Insights - Li Ning reported a revenue of 14.817 billion yuan for the first half of the year, representing a year-on-year increase of 3.3% [1] - The net profit attributable to equity holders was 1.737 billion yuan, a decrease of 11% year-on-year, with a net profit margin of 11.7% [1] - The gross profit margin declined by 0.4 percentage points to 50.0% [1] E-commerce Performance - The company optimized its e-commerce platform operations and enhanced online marketing strategies, leading to a 7.4% year-on-year increase in e-commerce channel revenue, which contributed the largest incremental growth [1] - The membership service system was improved, resulting in increased online sales scale and customer loyalty [1] Distribution Channels - Revenue from authorized distributors grew steadily by 4.4% year-on-year, further increasing their share to 46.5%, continuing to play a core supporting role [1] - Retail channel performance faced pressure, with revenue from direct stores declining by 3.4% due to adjustments in store layout and shifts in consumer scenarios [1] Store Network - As of June 30, the number of sales points for Li Ning brand (including core brand and Li Ning YOUNG) was 7,534, a net decrease of 51 stores compared to December 31, 2024 [1]

Core Viewpoint - In Q2 2025, Li Ning's overall revenue experienced low single-digit growth, with offline revenue declining primarily due to the impact of store closures; e-commerce revenue showed mid-single-digit growth, influenced by competition and consumer sentiment [1][2] Revenue Performance - Q2 2025 revenue growth for Li Ning brand (excluding Li Ning YOUNG) was low single-digit, with offline channels (including retail and wholesale) recording a low single-digit decline; direct retail channels saw a mid-single-digit decline, while wholesale channels experienced low single-digit growth; e-commerce business recorded mid-single-digit growth [1][2] - Revenue performance in Q2 was affected by weather conditions in April, gradual improvement in May, and weak performance in June due to holiday misalignment; July continued the weak trend seen in Q2 [1][2] Inventory Management - Inventory management was effective, with the inventory-to-sales ratio improving to approximately 4 months, down from 5 months in Q1 2025; discounts were deepened both online and offline to ensure healthy channel inventory [2] Store Operations - The number of Li Ning sales points totaled 6,099 (excluding Li Ning YOUNG), a net decrease of 18 from the beginning of the year; direct retail business saw a net decrease of 19, while wholesale business increased by 1; the number of children's clothing sales points (Li Ning YOUNG) was 1,435, a net decrease of 33 [2] Marketing Strategy - In H2 2025, the company plans to increase marketing investments around the NBA (Yang Hansheng) and the Olympics, launching limited edition products and personal logo products in line with the NBA Summer League and the Milan Winter Olympics [3] - The marketing expense ratio in H2 is expected to be higher than in H1 due to increased spending [3] Financial Forecast - Revenue projections for 2025-2027 are set at 28.93 billion, 30.51 billion, and 32.08 billion yuan, with year-on-year growth of 0.9%, 5.4%, and 5.2% respectively; net profit forecasts are 2.43 billion, 2.62 billion, and 2.78 billion yuan, with year-on-year changes of -19.5%, +7.8%, and +6.2% respectively [3]