Core Viewpoint - Li Ning Company reported a revenue of 14.82 billion yuan for the first half of 2025, reflecting a year-on-year increase of 3.3%, while maintaining a healthy cash flow and manageable inventory levels [1] Financial Performance - Revenue reached 14.82 billion yuan, up 3.3% year-on-year [1] - Gross profit was 7.41 billion yuan, an increase of 2.5%, with an overall gross margin of 50.0% [1] - Net profit stood at 1.74 billion yuan, with a net profit margin of 11.7% [1] Strategic Initiatives - The company continues to focus on a "single brand, multiple categories, and multiple channels" strategy, emphasizing professional sports and strengthening its operational foundation [1] - Li Ning has become the official partner of the Chinese Olympic Committee and the Chinese sports delegation for 2025-2028, enhancing its brand image in the professional sports sector [2] Research and Development - R&D investment increased by 8.7% year-on-year, totaling over 3.8 billion yuan in the last decade [4] - Professional product revenue exceeded 60%, with footwear revenue accounting for 56% [4] - New technologies such as "Ultra Light" have been successfully integrated into new products, receiving positive market feedback [4] Product Categories and Market Performance - The company is focusing on six core categories: running, basketball, cross-training, badminton, table tennis, and sports leisure, with running, basketball, and cross-training accounting for 67% of retail sales [7] - Running category sales grew by 15%, with over 14 million pairs of running shoes sold [7] - Basketball and cross-training categories also saw significant growth, with innovative products leveraging space technology [9] Operational Efficiency - Li Ning has optimized its channel structure and inventory management, maintaining a healthy inventory turnover of 61 days [10][12] - The company operates 7,534 stores as of June 30, 2025, and has seen a significant increase in online sales [12] - Supply chain optimization efforts have led to improved flexibility and sustainability in operations [14] Future Outlook - The company plans to continue its core strategy while focusing on product competitiveness, enhancing collaboration with the Chinese Olympic Committee, and improving operational efficiency [14]

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].

Core Viewpoint - Li Ning Company reported a revenue of 14.82 billion RMB for the first half of 2025, reflecting a year-on-year increase of 3.3%, with a net profit of 1.74 billion RMB and a net profit margin of 11.7% [1] Financial Performance - Revenue reached 14.82 billion RMB, up 3.3% year-on-year - Gross profit was 7.41 billion RMB, with a gross margin of 50.0% - Net profit stood at 1.74 billion RMB, with a net profit margin of 11.7% [1] R&D Investment - R&D investment increased by 8.7% year-on-year, totaling over 3.8 billion RMB in the last decade - The company has enhanced its ability to convert technological research into product applications [1][2] Product Development - The introduction of "超䨻科技" technology in new products has been well-received in the market - The "越影5 PRO" running shoes are the first to feature this technology, enhancing the company's product lineup [2] Market Segmentation and Growth - The company focuses on six core categories: running, basketball, cross-training, badminton, table tennis, and sports leisure - Running, basketball, and cross-training categories accounted for 67% of retail sales [2] Sales Performance - The running category saw a retail sales increase of 15%, with over 14 million pairs of professional running shoes sold - The company’s running shoes achieved a 61.35% market share among runners completing the Beijing Half Marathon in under 90 minutes [3] Operational Efficiency - Li Ning Company maintains a channel inventory turnover ratio of 4 months, with an inventory turnover period of 61 days - The company emphasizes systematic inventory management to ensure healthy channel inventory levels [5] Channel Strategy - The company is optimizing its channel structure by collaborating with top commercial entities and expanding into emerging markets - As of June 30, 2025, the total number of Li Ning stores reached 7,534 [4]

Core Viewpoint - Li Ning Company reported a revenue of 14.82 billion yuan for the first half of 2025, reflecting a year-on-year increase of 3.3%, while maintaining a healthy cash flow and manageable inventory levels [1][17]. Financial Performance - The gross profit for the first half of 2025 was 7.41 billion yuan, up 2.5% year-on-year, with an overall gross margin of 50.0% [1]. - The net profit reached 1.74 billion yuan, resulting in a net profit margin of 11.7% [1]. Strategic Initiatives - The company continues to focus on its "single brand, multiple categories, and multiple channels" strategy, emphasizing professional sports and enhancing its operational foundation [1][17]. - Li Ning has become the official partner of the Chinese Olympic Committee and the Chinese sports delegation for 2025-2028, launching the "China Glory, Li Ning Together" marketing campaign across over 5,200 stores [2]. Research and Development - R&D investment increased by 8.7% year-on-year, totaling over 3.8 billion yuan in the last decade [4]. - The proportion of revenue from professional products exceeded 60%, with footwear accounting for 56% of total revenue [4]. Product Performance - The running category saw a 15% increase in retail sales, with over 14 million pairs of running shoes sold, highlighting strong product competitiveness [6]. - The basketball category focuses on professional basketball and has leveraged star athlete endorsements to strengthen market presence [8]. Multi-Category Development - Li Ning is expanding into new sports categories such as outdoor sports, tennis, and pickleball, while maintaining strong performance in core categories like running, basketball, and training [6][11]. - The training category achieved a 15% increase in retail sales, supported by innovative products utilizing aerospace technology [9]. Operational Efficiency - The company maintains a healthy inventory turnover ratio of 4 months and an inventory turnover period of 61 days, indicating strong operational management [13]. - E-commerce operations showed positive growth, with online direct sales increasing significantly, contributing to overall business growth [15]. Supply Chain Optimization - Li Ning is enhancing its supply chain through quality control, delivery assurance, cost optimization, and sustainable practices, achieving significant improvements [17]. - The company has established a nationwide logistics network, with the launch of the Nanning central warehouse marking a key milestone [17]. Future Outlook - Li Ning plans to continue its core strategy of "single brand, multiple categories, and multiple channels," focusing on product competitiveness and operational efficiency to drive sustainable growth [17].