Li Ning issues positive-profit alert
Li Ning has issued a positive-profit alert after a preliminary review of its half-year results.
The alert bodes well for the company which has emerged from a troubling era after its founder, Li Ning himself, reasserted control of the business as interim CEO.
Last year, the company’s first-half profit soared 42 per cent as the effects of the long-term restructure continued to pay dividends. This year is shaping up to be even better with Li Ning saying profit attributable to shareholders will be no less than RMB440 million (US$63.9 million), considerably higher than the RMB268.6 million ($39 million) for the corresponding period last year.
Li Ning said the improvement was due to increased profit from continuing operations of not less than RMB240 million thanks to higher sales and a stronger operating margin.
A one-off non-operating income (mainly derived from investments) of not less than RMB200 million also contributed to this year’s result.
With the half year not yet over, the figures are only provisional. The company expects to release results in August.