Li Ning Company Limited Announces Unaudited Consolidated Earnings Results for the Six Months Ended June 30, 2017; Provides Earnings Guidance for the Year 2017
August 10, 2017 at 11:05 pm
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Li Ning Company Limited announced unaudited consolidated earnings results for the six months ended June 30, 2017. For the period, the company reported revenues of RMB 3,996,051,000 compared with RMB 3,595,635,000 for the same period a year ago. Operating profit was RMB 201,776,000 compared with RMB 152,647,000 for the same period a year ago. Profit before income tax was RMB 244,906,000 compared with RMB 88,588,000 for the same period a year ago. Profit for the period from continuing operations was RMB 189,170,000 or 7.93 cents per diluted share compared with RMB 68,309,000 or 3.11 cents per diluted share for the same period a year ago. Profit for the period attributable to equity holders of the company was RMB 189,170,000 or 7.50 cents per diluted share compared with RMB 113,421,000 or 5.16 cents per diluted share for the same period a year ago. Return on equity attributable to equity holder was at 4.3% against 3.5% reported last year. Net asset value per share was at 219.60 cents against 200.56 cents last year. For the six months ended 30 June 2017, the Group's EBITDA amounted to RMB 415,626,000, representing a year-on-year increase of 29.2%. This was mainly attributable to the increase in revenue and gross profit margin as well as the decrease in expense ratio resulting from control of various expenses. Net cash generated from operating activities was at RMB 588,718,000. During the first half of 2017, the company's revenues rose 11%, primarily driven by a 12% growth in the LI NING brand.
For the year 2017, the company expects net profit to be RMB 80 million to RMB 90 million effect from these 3 new businesses. The impact is from these new businesses, of course, will not be as efficient as the company's other lines, but the company will continue to build on them and develop these new businesses and to also come up with an energetic LI NING brand and model for all.
Li Ning Company Limited is specialized in designing, manufacturing and marketing clothing, shoes and sports equipment. The group offers products under its own brand (LI-NING) and licensed brands (Double Happiness, AIGLE, Danskin, Kason and Lotto). Net sales are divided by activity as follows:
- clothing (52.4%): T-shirts, polo shirts, sweatshirts, shorts, tracksuits, sports jerseys etc.;
- shoes (42.1%): basketball shoes, badminton shoes, running shoes, walking shoes etc.;
- equipment and accessories (5.5%): in particular, caps, socks and badminton rackets.
Products are marketed primarily by franchised distributors (48.1% of net sales), via Internet (28.4%) and through direct sales (17.8%).
At the end of 2021, Li Ning Company Limited had 7,137 stores (of which 4,770 franchised) located in China.
98.7% of net sales are generated in China.
Li Ning Company Limited Announces Unaudited Consolidated Earnings Results for the Six Months Ended June 30, 2017; Provides Earnings Guidance for the Year 2017