In the first half of the first year of the new strategy, Li Ning announced to the market a good year-on-year revenue growth of 32.4% and a net profit of 41.6%.
Not long ago, adidas second quarter earnings report shows that its stockpile too hard to extricate themselves. Analysts predict that as the largest local brand Li Ning is expected to replace "Adidas" in the Chinese market position this year, came in "Nike" behind.
Yesterday, Zhang Zhiyong, CEO and President of Li Ning, made a clear performance at the Hong Kong performance meeting: "To attack the second Chinese brand, we were the youngest ones and now challenge this goal." He believes that the overall growth of the Chinese market next year will be 16%, Li Ning has confidence in more than this figure.
In the first half of this year, Li Ning added 564 new stores, same-store sales basically the same as last year, and last year as the Olympic year, the base is quite large. Li Ning plans to total the number of stores by the end of next year, expected to be no less than 7,800, adding at least 700 stores, of which 77% will be located in second and third tier cities in China.
Li Ning will also develop badminton as a benchmark project. Last month, it opened its first flagship store in Singapore and plans to open 70 to 100 badminton shops in Southeast Asia by the end of the year.
Chief Financial Officer Zhong Yi Qi performance yesterday in the meeting said the first quarter of 2010, held in July orders at the company footwear priced goods increased by 3.3%, the number grew by 1.9%, clothing price increase of 8.7%, growth in the number 7.7 %, The total amount of orders increased by 11.6%. However, this figure has slowed down from 12.7% and 14.5% in the third and fourth quarters of this year.
Chung Yi Kee estimated that the company's gross margin this year, roughly 46.5% ~ 47.5%, slightly lower than the 47.8% in the first half. Among all its brands, the "Lotto" brand went to inventory, dragging the company's overall gross profit margin by 0.6 percentage point in the first half of the year and expects a gross margin of 60% after the launch of the new product.