Li Ning Company Limited provided earnings guidance for the year ended December 31, 2014. The company's financial performance for the second half of 2014 is expected to improve as compared to the first half of 2014, the company will record a net loss attributable to its equity holders for the year ended December 31, 2014, which is expected to be not more than RMB 820 million (while the net loss attributable to equity holders of the company for the six months ended June 30, 2014 was RMB 585.774 million). The net loss for the full year 2014 was principally due to the upfront investment required to implement the Group's transformation plan initiated in July 2012, reduced sell-in due to previous channel inventory de-stocking, provision for doubtful debts and other expenses and in the second half of 2014, the Group's continued investment in the Transformation Plan.

The plan will enable the Group to gradually realize its full earning potential for sustainable long- term growth.