Li Ning to sink into the red
Chinese sports goods retailer Li Ning continues to struggle financially, warning of a widened net loss in the first half.
Li Ning, whose backers include US private equity firm TPG Capital Management, expects a net loss of at least 550 million yuan ($88.66 million) on costs on sales network expansion and operation shake up.
That’s higher than its net loss of 184 million yuan during the first half of 2013.
However, executive chairman Li Ning said the company’s reforms will improve its financial performance in the near future.
“The group is in the process of transforming from a traditional wholesale model to a retail-oriented model to meet the demands of the increasingly sophisticated consumers in China,” he said.
“The direct retail platform in which the group has been investing is also building a foundation for increasing retail’s contribution to the group’s revenue in future,” he added.