Li Ning's H1 revenue in 2022 was 12.41 billion yuan, and the net profit of the revenue doubled year -on -year

Xinhuanet, Beijing, August 12th. On the morning of the 12th, China's well -known sports brand Li Ning Co., Ltd. issued a performance announcement in the first half of 2022. The financial report shows that in the first June of this year, Li Ning's revenue was 12.41 billion yuan, an increase of 21.69%year -on -year; the business profit was 2.644 billion yuan, an increase of 4.14%year -on -year; 100 million yuan, a year -on -year increase of 8.8%; the overall gross profit margin of the company was 50.0%, a decrease of 5.9 percentage points from the same period last year (in the first half of 2021: 55.9%).

The influence of overcoming the adverse factors, and the new indicators will hit the new high

In the first half of the year, affected by the frequent occurrence of domestic epidemics, the consumer market was greatly impacted, residents' consumption power and consumption willingness decreased, and market sales decreased year -on -year. Facing the complex and changeable external environment, Li Ning has achieved a double -digit growth of revenue and net profit. Compared with the growth of high bases in the same period last year, many key business indicators in the first half of this year hit a record high.

According to the financial report, Li Ning's H1 revenue in 2022 was 12.41 billion yuan, which was 6.255 billion yuan from H1 revenue in 2019 before the epidemic, which was close to doubles. ; In 2022, the total amount of H1 assets was 310.58 billion yuan, a significant increase of 185.98%from the total amount of H1 assets in 2019, a significant increase of 185.98%.

As of June 30, 2022, the total sales point of Li Ning brand (including Li Ning's core brand and Li Ning Young) regular stores, flagship stores, China Li Ning fashion stores, factory stores, etc. , Reduced by 25, compared with 6,745 H1 in 2021, an increase of 367. Among them, the number of Li Ning sales points (excluding Li Ning Young) total 5,937, an increase of 65 from the net at the end of the previous quarter, and the net increase has increased by 2 to date. It has decreased by 27 this year.

In terms of cash flow, a certain decline in cash flow. The company's net cash generated by the company's operating activities in the first half of the year was 1.583 billion yuan, and the same period in 2021 was 3.325 billion yuan, a year -on -year decrease of 52.4%. In this regard, Zhao Dongsheng, vice president and chief financial officer of Li Ning Group, said that this is due to the rise in raw materials and labor costs, which brings a significant increase in procurement costs. The payment cycle has reduced the net cash amount generated by operating activities.

Continue to optimize the "single brand, multi -product, multi -channel" strategy

The sports shoes and clothing industry has high certainty growth space. From vertical reading, Li Ning's H1 revenue performed well in 2022, far better than the 2020 H1 performance that was also plagued by the epidemic. From the horizontal observation, the sales volume of H1 Li Ning's sneakers in 2022 caused Nike and Adidas and other overseas brands.

At the end of June, Nike announced the fourth quarter of fiscal year and annual financial report as of May 31 of this year. In the fourth quarter of the Chinese market, revenue fell by 19%. This is the third consecutive quarter of Nike in the Chinese market. Close down. The revenue of Adidas Greater China has continued to decline in five consecutive quarters, and revenue in the second quarter of this year has fallen sharply by 35%year -on -year.

In this regard, the financial report attributed the achievements achieved in the first half of the year to implement the strategy of implementing the "single brand, multi -product, and multi -channel" strategy, continuously optimizing the value of Li Ning -style experience, strengthening product layout, improving retail operation capabilities and channel efficiency, and making the supply chain management system day. Improve and provide long -term motivation for the sustainable development of the brand.

In terms of products, in the first half of the year, Li Ning continued to cultivate the five core categories of basketball, running, fitness, badminton, and sports life, focusing on sports scientific and technological innovation, continuously accelerating the layout of functional products, strengthening brand sports genes; exploring Chinese culture and sports culture elements, creating creation New image of professional sports products. For professional functions and sports living categories, continue to deepen the comprehensive marketing resources layout. Professional products rely on sports stars and professional events to continue to be exposed, and at the same time, combined with hot topics, they will further expand the consumer group. The entertainment marketing model of sports life is more diversified. Pay attention to the field of sports trends that young consumers are keen on the sports trend, and realize multi -dimensional exposure of products.

Innovative capabilities have been strengthened, and the growth rate of R & D investment has increased significantly

The space in the sports shoes and clothing industry is large enough. If you want to be invincible in the industry for a long time, it does not require fast speed, but the point is that it takes a long time. This competition is endurance, and endurance is the company's competitiveness for the company, and it has been invested in product research and development innovation.

After more than thirty years of development, the brand positioning of the local sports shoes and clothing has gradually developed maturity, inventory and channel operations have been improved, and the management capabilities of head brands have narrowed and international brands. In this context, the importance of product competitiveness is prominent. Because no matter how good the marketing and channels are, it is difficult to sell a poor product.

According to the financial report, H1 Li Ning's research and development fee in 2022 was 236 million yuan, an increase of 28.26%year -on -year compared with 184 million yuan in the same period last year, and R & D proportion reached 1.9%. Under unfavorable external factors such as the impact of the epidemic and weak consumption, we unswervingly choose to increase investment in product research and development innovation. Taking running shoes as an example, the company focuses on the technical research and development and performance optimization of professional running shoes, and continues to expand the professional running shoes matrix. The full series of high -end racing shoe "Flying Electric" is equipped with innovative "Silk" technology. It takes the lead in the exploration of upper technology to make innovation breakthroughs, helping top athletes to improve their sports performance, which greatly improves the professionalism of Li Ning's racing series products Successfully establish a brand technology -driven image. And through the blessing of "Li Ningzhang" technology, with differentiated midsole design, it not only guarantees the runner's experience of the professional function of daily jogging, but also meets the demands of ordinary consumers for wearing and commuting. Become a product sales champion of the phenomenon of running market in the first half of the year.

Qian Wei, executive director and joint CEO of Li Ning Group, said that the "ultra -light 19" running shoe plan has a 3 million double target. The sales in the first half of the year are close to 2 million pairs. It is expected that this running shoe will become the first explosion in Li Ning's history. Copy this successful experience to the product matrix of professional categories such as running and basketball, which greatly enhances the market share of professional products.

With good performance, Li Ning's stock price closed at HK $ 70.1 on the 12th, an increase of 4.78%, and its market value reached 183.5 billion Hong Kong dollars.

[Editor in charge: Diao Wenjing, Jiebingxin]

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