Li Ning Company (2331) H1 2026 earnings summary

Executive summary

• Revenue grew 2.8% year-over-year to RMB 15.24 billion, with net profit attributable to equity holders up 4.5% to RMB 1.816 billion and net profit margin at 11.9%.

• Gross profit margin improved to 50.9%, up 0.9 percentage points year-over-year, driven by cost optimization and product upgrades.

• Apparel revenue rose 11.8% year-over-year, footwear grew 0.6%, and accessories declined 17.7%.

• Operating pressure persisted in offline retail, with heightened discounting and declining footfall, but e-commerce and direct retail channels showed solid growth.

• Strategic focus on product innovation, channel optimization, and brand partnerships, including new deals with the Chinese Olympic Committee and Stephen Curry.

Financial highlights

• Gross profit rose 4.5% year-over-year to RMB 7.75 billion; EBITDA was RMB 3.37 billion with a margin of 22.1%.

• Net operating cash inflow was RMB 954 million, down from previous periods due to higher cash outlay and prepayments.

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

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

• Net cash position remained strong at RMB 19.39 billion.

Outlook and guidance

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

• Focus on “Single Brand, Multi-categories, Diversified Channels” strategy, leveraging policy tailwinds and investing in technology and product innovation.

• Ongoing multi-category strategy, Olympic partnerships, and omni-channel expansion expected to support long-term growth.

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

• Continued emphasis on high-quality, sustainable growth and brand building.