Li Ning Company Limited Announces 2026 Interim Results

Li Ning Company Limited has released its unaudited interim financial results for the six months ended 30 June 2026. According to the company’s announcement, revenue for the reporting period totaled RMB15,235 million, representing a year-on-year increase of 2.8%. This follows a previous year’s revenue of RMB14,817 million. Gross profit for the period came in at RMB7,751 million, up 4.5% compared to RMB7,415 million in the same period of 2025. The group’s overall gross profit margin improved by 0.9 percentage points to 50.9%. The company noted that net profit attributable to equity holders reached RMB1,816 million, up from RMB1,737 million in the prior year period. The net profit margin stood at 11.9%, slightly higher than the 11.7% recorded in 2025. Return on equity attributable to equity holders remained unchanged at 6.5%. Basic earnings per share were RMB70.40 cents, compared to RMB67.43 cents in the previous year. In addition to financial performance, Li Ning highlighted operational achievements. The firm continued to implement its “Single Brand, Multi-categories, Diversified Channels” strategy, which focuses on expanding its product range and enhancing distribution networks. A key innovation was the full commercialization of its Super BOOM Capsule Technology, which appears to have contributed positively to both product differentiation and sales performance. Collaborations with global professional sports figures, notably Stephen Curry, were also emphasized as part of the company’s efforts to strengthen its presence in international markets. These partnerships are believed to have helped drive brand awareness and consumer engagement, particularly among younger demographics who are active in digital platforms and social media. Retail performance showed a slight improvement, with the overall platform experiencing a low-single-digit increase in sell-through compared to the previous year. Online and offline channels both saw growth, although the offline channel demonstrated stronger performance, with new products accounting for 83% of total offline sales. Inventory levels remained at a healthy level, with a channel inventory-to-sales ratio of four months. The company also reported that inventory aging structures were well-managed, ensuring efficient turnover and reducing potential obsolescence risks. Cash flow management was another focus area. Net cash generated from operating activities during the period was RMB954 million, down significantly from RMB2,411 million in the previous year. This decline was attributed to increased marketing expenses and tax obligations, despite a rise in revenue. On the other hand, net cash used in investing activities surged due to an increase in time deposits, reflecting the company’s strategic move to bolster liquidity reserves. As of 30 June 2026, cash and cash equivalents, including fixed-term deposits with an original maturity of not more than three months, totaled RMB13,003 million, a decrease of RMB3,713 million compared to 31 December 2025. When considering amounts recorded in bank time deposits, the cash balance was RMB19,389 million, showing a net decrease of RMB585 million from the end of the previous fiscal year. The board of directors decided to declare an interim dividend of RMB35.12 cents per ordinary share of the company, either issued or to be issued upon conversion of convertible securities, for the six-month period ending 30 June 2026. This represents a slight increase from the RMB33.59 cents declared in the corresponding period of 2025. Looking ahead, Li Ning stated that it would continue to prioritize cash flow management to support the company’s long-term stability and growth. The company remains committed to its core strategies, including technological innovation, market expansion, and strengthening its position in the global athletic wear industry.