Li Ning Company (2331) investor relations material

Executive summary

• Revenue grew 2.8% year-on-year to RMB 15.24 billion, with net profit at RMB 1.816 billion and a net profit margin of 11.9%.

• Gross profit margin improved by 0.9 percentage point to 50.9%, driven by cost optimization.

• EBITDA margin was 22.1%, with EBITDA at RMB 3,370 million.

• Professional products, especially running and apparel, drove growth; e-commerce and direct retail channels performed well.

• Interim dividend of RMB 35.12 cents per share declared, maintaining a 50% payout ratio.

Financial highlights

• Gross profit rose 4.5% year-on-year to RMB 7,751 million.

• Net operating cash inflow was RMB 954 million, down year-on-year due to increased cash outlay and prepayment for Curry collaboration.

• Basic EPS increased 4.4% year-on-year to RMB 70.4 cents.

• Apparel revenue rose 12% year-on-year, now 38% of total revenue; footwear up 1%, 54% of total.

• Accessories revenue declined 18% year-on-year due to cyclical adjustment in badminton.

Outlook and guidance

• Full-year revenue target adjusted to low single-digit growth; net profit margin target set at medium to high-single-digit.

• Ongoing multi-category strategy, Olympic partnerships, and product innovation expected to support long-term growth.

• Second half expected to face greater operational risks, with increased marketing expenses and cautious outlook.

• Focus on channel optimization, technology investment, and sustainable growth.