China's Li Ning sees profit rise nearly 39%
Chinese sportswear company Li Ning has reported double-digit earnings growth, with a net profit attributable to equity holders increasing by 38.8 percent to RMB715 million, or over $106 million USD, compared to RMB515 million in 2017.
Earnings per share totalled RMB29.63 cents, compared to RMB21.47 cents in 2017.
In addition, the company reported that revenue increased by 18 percent to RMB10.51 billion, and its net profit margin raised from 5.8 percent to 6.8 percent.
Gross profit margin expanded by one percent, and operating cash flow increased by 44 percent to RMB1.67 billion. Overall same-store-sales growth accelerated to low-teens, it said.
During the year, the company said it focused on design, research and development of its products for athletes and sports enthusiasts, and notably launched its "single-brand, multi-categories, diversified channels" development strategy, implementing the operation of multi-sports categories under its core Li-Ning brand to enable every category to form its own business platform.
The company, which was founded by retired Chinese Olympic gymnast Li Ning, saw its stock rise on March 22, closing at HK$12.70 in Hong Kong. However, stock soon took a plunge of 8.3 percent on March 25 after Viva China, a company also controlled by Li, announced its plans to sell 148 million shares, or about a 6.8 percent stake in Li Ning, at HK$11.72 a share.
As of December 31 of 2018, Li Ning counted a total of 6,344 points of sale in China, excluding its children's brand Li Ning Young. This number represents a net increase of 82 points of sale since the beginning of the year. The total number of China Li Ning namesake stores in China reached 23 by year-end 2018.
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