Li Ning IC information map
The domestic sports brand Li Ning Group is expected to increase the number of units in revenue this year.
On the morning of March 20, Li Ning Co., Ltd. (Li Ning, 02331.HK) disclosed the annual results as of 2023. In 2023, Li Ning Group achieved revenue of 27.598 billion yuan, an increase of 7%year -on -year.The group’s equity holders should account for 3.187 billion yuan in net profit, a year -on -year decrease of 21.6%, and the net interest rate was 11.5%.
Regarding the reasons for changes in performance, the group management mentioned at the financial report on March 20 that the main reason for the unpredictable income was not reached. Due to the challenge of the overall environment of e -commerce operations, the environmental changes of the overall online platform caused the store to enter the store to enter the store.The passenger flow has fallen sharply.In addition, due to government subsidies such as government subsidies to reduce operating income.
In terms of other financial indicators, the gross profit of Li Ning Group rose 6.9%to 13.352 billion yuan last year, and the gross profit margin remained at a level of 48.4%.Among them, in the second half of last year, due to the improvement of offline discounts year -on -year, the gross profit margin improved year -on -year.In terms of discounts, the overall discount trend was stable last year, and it improved slightly year -on -year. The direct -operated discounts improved the number of low units year -on -year, and the wholesale discounts were flat.In terms of cash flow, the net cash inflow rose 19.8%to 4.688 billion yuan.
In addition, the board of directors suggested that the final dividend of 18.54 points/share, along with the paid interim dividend of 36.20 points/share, the annual dividend of 54.74 points/share, the dividend rate of dividends increased from 30%in the same period last year to 45%.
Li Ning Co., Ltd. is one of the leading sports brand companies in China. It mainly operates Li Ning brand and leisure sports shoes, clothing, equipment and accessories products.The Li Ning brand was a professional sports brand founded by Li Ning in 1990. The company was listed in Hong Kong in June 2004. It is the first Chinese sports goods company listed in Hong Kong stocks.
As of the closing of March 20, Li Ning reported to HK $ 21.5/share, up nearly 6%, and rose 2.87%since the beginning of the year.
Last year, the super Ole channel achieved a major breakthrough. In the future, it will focus on emerging market expansion stores.
In terms of operating performance, Li Ning Group’s overall retail current (including online and offline) recorded 10%to 20%of the low segment growth.Specifically, according to the type of product types, the shoe business still contributes half of the revenue to the Li Ning Group, but the revenue of the shoe category decreased by 0.7%year -on -year; the proportion of clothing business increased by 3.5 percentage points, and the income increased by 15.9%year -on -year;The income of accessories also rose 11.3%.
According to the high -level sharing data of the performance meeting, in 2023, thanks to the strategic focus of professional categories, Li Ning basketball, running, and fitness of the three professional categories accounted for 64%, a 4 -year high.Among them, running categories increased by 40%, and fitness categories increased by 25%.
It is understood that in the sports supplies industry, the technology and product development capabilities of sports shoes are the core competitiveness of the company, and it is an important barriers for sports products and track brand companies.Last year, Li Ning Group’s scientific and technological content revenue accounted for 49%, maintaining more than the proportion of clothing business.New product offline retail flow has been recorded by 10%to 20%of low segments, and the proportion of new products accounted for 87%.
In addition, when it comes to Chinese Li Ning and Li Ning in fashion sports 1990, Qian Wei, joint CEO of Li Ning Group, said that so far, as a product line under the Li Ning brand, China Li Ning’s income accounts for 5%of the company’s operation. Li NingThe group is also a professional sports brand, and is constantly expanding this proportion. “As an indispensable product line of the Li Ning brand, China Li Ning will always exist. In the future, it will not be a proportion and role of professional movements, but it will become Li Ning to promote Li NingOne of the motivations for a single brand to move forward. Li Ning 1990 is not to do for it, but to hope to bring greater growth space and influence to the Li Ning brand. “
According to channels, Li Ning Group’s direct business completed a strategic channel layout last year, and effectively expand the construction of the Orari channels, driving the direct -operated business to increase by nearly 30%year -on -year, accounting for 4.3 percentage points to 25%.According to the financial report, last year, the Group actively handled inefficient stores and improved the overall store structure.At the same time, it has also continuously expanded the business territory of high -quality shopping malls and Olay channels.During the year, the group achieved major breakthroughs in the super Ole channel.
In terms of distribution channels, the financial report states that in order to support the healthy development of dealers, maintain a healthy operating state, fully communicate with the dealers and reduce some futures orders to reduce the operating pressure of the scriptures, which will affect the wholesale income last year.A slight year -on -year increased by 0.6%, and the proportion decreased by three percentage points to 45.8%.
In terms of e -commerce channels, due to the relief of the epidemic and the gradual return of the people’s lives, the popularity of online shopping has decreased, and the proportion of e -commerce revenue has decreased by 1.7 percentage points to 27.3%, and the revenue of e -commerce has remained stable by 0.9%year -on -year.
“In 2024, the group’s entire operating strategy is based on the stable operation and pragmatic development, including the channels including e -commerce.” Zhao Dongsheng, vice president and chief financial officer of Li Ning Group, said at the performance meeting, “Li Ning’s e -commerce incomeIt accounts for nearly 30%. From the perspective of channel structure, it is already a relatively high proportion, and it will not intend to break through in the future. However, on the one hand, e -commerce is still facing the challenge of a large market environment. At the same time, from the product structure of the group, such asLight outdoor, urban shuttle and other products have market demand, so we have enough confidence in the future. “
In terms of number of stores, as of the end of last year, the number of sales points for the sales point of Li Ning brand (including Li Ning’s core brand and Li Ning Young), flagship store, China Li Ning Fashion Store, Li-NING 1990 shop, factory store, and gathering stores were 7,668, compared with65 were increased on December 31, 2022; 46 dealers (including China Li Ning Fashion Store channels), which was reduced by 6 compared with December 31, 2022.
“As of the end of last year, the Group opened a total of more than 230 new and upgraded nine -generation stores. In the future, we will focus on the improvement of operating efficiency in the high -level market, focus on market expansion in emerging markets, and expand business share.” Qian Wei said at the performance meeting meeting.After three years, the group has completed the target of the high -level market channel expansion card layout, and the entry rate of the core business industry has increased to nearly 90%.In addition, last year, the operating capacity of single stores continued to increase, and last year’s average store effect increased year -on -year.
Li Ning’s response to privatization rumors: Any solution that can increase investment returns will consider
Regarding the previous rumors of privatization, Li Ning, the executive chairman and joint executive president of the group, responded again at the financial report performance meeting, “We will consider any solutions that can increase investment returns, including dividends, etc., but there are currently no plans to from everyone to get everyone to everyone.report.”
Li Ning further stated that as a management, we should first provide the best products to make consumers satisfy.The second is to provide a safe and challenging working environment to make employees a sense of accomplishment.Third, let the company get the best economic benefits in the face of competition and different economic environments, and allow investors to obtain ideal investment returns.
On March 12, the rumor of privatization led Li Ning’s stock price to more than 20%on the day.According to foreign media reports, the founder Li Ning is considering leading a consortium to acquire Li Ning Company to consider privatizing it from the Hong Kong Stock Exchange.A number of global and regional private equity companies, including TPG, PAG, and Gaoma, are in contact.After the stock price closed on the same day, Li Ning responded on the other hand that after careful investigation, the company’s board of directors did not discover the specific reasons for the fluctuations and confirmed that inside information that did not need to be disclosed.
The international layout is being prepared in the early stage. This year, Hong Kong and Macau will continue to steadily expand the store plan
“While our core is to work well in the Chinese market, we are preparing to break the situation for the future international market expansion.” Speaking of international progress, Qian Wei said at the performance meeting that Li Ning Group is only starting in Hong Kong and Macao.Do some preparations in the early stage. “It’s not so simple to go to sea. Although the Chinese market has uncertainty and challenges, there is still huge space. Therefore, for the group and Li Ning single brand, overseas markets will do some breakthroughs this year., But it’s not to increase your strength, nor do you press it up. “
According to Li Ning, a surging news reporter learned that since December 2022, Li Ning has opened 9 direct stores in Hong Kong and Macao, including 6 in Hong Kong, China and 3 in Macau.It is understood that Li Ning maintains a certain price in the Mainland in the stores in Hong Kong and Macao.In addition, there are plans to steadily expand new stores this year in Hong Kong and Macao.
At the end of last year, Li Ning announced that it was intended to acquire a company under Hengshi Real Estate in HK $ 2.208 billion. In the future, Li Ning will use part of the property as the headquarters of Li Ning Group in Hong Kong.The acquisition matters were implemented on January 28, 2024.At that time, Li Ning responded that Li Ning’s international strategic layout was in a stage of positive development.Li Ning Group’s business in Hong Kong has huge development potential, which helps Li Ning expand international business.
According to the financial report, as of the end of last year, the net of the Group’s first and new shares has been used by 2.828 billion yuan.By the end of last year, 3.596 billion yuan has not been used.The newly launched product categories that have not been used in the net income of the amount of income and future business investment, including international business expansion, plan to use about 40%of the net amount.
In the first quarter, the flowing water was the same as last year. It is expected that the number of units in revenue growth this year is expected to
Speaking of business performance in the first quarter of this year, Qian Wei said at the performance meeting that compared with the same period last year, because of the rhythm of the Spring Festival, the early peaks and valleys have different places.Overall, the flowing water is the same as last year. “This year we still have to develop in a stable way to advance.”
“The Group is also convinced that the long -term development potential of the Chinese sports shoes and clothing industry and the sustainable growth momentum of the Li Ning brand.”
Zhao Dongsheng, Vice President and Chief Financial Officer of Li Ning Group, said that the current basic trend of China’s economy has retracted a good recovery, and at the same time, it also faces challenges of consumer demand and weak expectations.It is expected that the number of units in revenue growth throughout the year is expected, and the net profit margin is expected to remain at a low two -digit level.
Specifically, looking forward to the future, the group will strengthen the strategic direction of “single brands, multi -product, multi -channel”, and continuously deepen the layout of the core sports categories of the public. At the same time, we will continue to pay attention to the market segment.Investment and expand new sports scenes represented by outdoor.In terms of market and channel expansion, Li Ning will build a multi -dimensional channel network to achieve comprehensive coverage of high -level markets and vertical expansion of emerging markets, and overseas business will be broken.
“The purpose of my creation of Li Ning is to hope to be a professional sports brand to serve the development of China’s sports.” At the financial report meeting of Li Ning Group, Li Ning said that the company adheresIt is related to the company’s growth gene and his athlete experience. I hope that Li Ning can continue to enter various sports categories, such as running, basketball, table tennis, badminton, etc., and there are professional products in each category.
