Li Ning loss widens
Chinese sports brand company Li Ning saw a net loss of 585.8 million yuan ($95.2 million) in this year’s first half compared to 184.2 million yuan loss last year.
The company blamed the loss on upfront investment to implement the ‘Transformation Plan’ and reduced sell-in following a period of channel inventory stock reduction.
Revenue increased eight per cent to 3.1 billion yuan due to the higher retail sales of new products with the group’s expanding self-owned retail store network.
It says it will continue implement the Transformation Plan, but the benefits will take time to be reflected financially as well as to reach full profit potential and achieve long-term sustainable growth.
“Our transformation is on-track and now entering the build phase, with promising early signs,” said Jin-Goon Kim, executive vice chairman and interim CEO.