Firmly Implementing the “Single Model, Multi-categories, Diversified Channels” Technique; Tremendous BOOM Capsule Know-how Achieves Full Commercialization; Deepens World Skilled Sports activities Sources Along with Curry
FINANCIAL HIGHLIGHTS
- Within the first half of the yr, the Group recorded the next working outcomes:
- Income rose by 2.8% to RMB15,235 million; gross revenue margin elevated by 0.9 share factors to 50.9%
- Internet working money influx was RMB954 million
- Internet revenue attributable to fairness holders was RMB1,816 million with web revenue margin of 11.9%, and EBITDA margin was 22.1%
- Working capital remained at a wholesome stage:
- The proportion of gross common working capital to income was 7.8%
- The money conversion cycle was 35 days, a rise of 4 days in contrast with the identical interval final yr
- The Board resolved to declare an interim dividend of RMB35.12 cents per unusual share of the Firm issued or to be issued upon conversion of convertible securities for the six months ended 30 June 2026.
OPERATIONAL HIGHLIGHTS
- The retail sell-through for the general platform elevated by low-single-digit from final yr, together with on-line and offline channels.
- Offline channel new merchandise sell-through accounted for 83% of general offline channel sell-through, sustaining a wholesome and affordable stage.
- Channel inventory-to-sales ratio of 4 months; and stock stage and ageing construction remained at a wholesome stage.
HONG KONG SAR – Media OutReach Newswire – 20 August 2026 – Li Ning Firm Restricted (“Li Ning” or the “Firm”, along with its subsidiaries, collectively the “Group”; Hong Kong Inventory Alternate inventory codes: 2331 (HKD counter) and 82331 (RMB counter)) at this time introduced the unaudited interim outcomes of the Group for the six months ended 30 June 2026 (the “Reporting Interval”).
FINANCIAL RESULTS
Within the first half of 2026, the Group continued to boost product expertise efficiency, optimise channel effectivity and deepen its skilled model mindset, sustaining regular operations. Through the interval, the Group’s income reached RMB15,235 million, up 2.8% year-on-year (2025: RMB14,817 million). Gross revenue was RMB7,751 million, up 4.5% year-on-year (2025: RMB7,415 million), and the Group’s general gross revenue margin was 50.9%, up 0.9 share factors year-on-year (2025: 50.0%).
Through the interval, revenue attributable to fairness holders of the Group was RMB1,816 million (2025: RMB1,737 million); the margin of revenue attributable to fairness holders was 11.9% (2025: 11.7%); and return on fairness attributable to fairness holders was 6.5% (2025: 6.5%). Fundamental earnings per share have been RMB70.40 cents (2025: RMB67.43 cents). The Board resolved to declare an interim dividend of RMB35.12 cents per unusual share of the Firm issued or to be issued upon conversion of convertible securities for the six months ended 30 June 2026 (2025: RMB33.59 cents).
When it comes to money movement administration, web money generated from working actions in the course of the interval amounted to RMB954 million (2025: RMB2,411 million). As at 30 June 2026, money and money equivalents (together with money at banks and in hand, and stuck time period deposits with unique maturity of no more than three months) amounted to RMB13,003 million, a lower of RMB3,713 million in contrast with 31 December 2025. Including again quantities recorded in financial institution time deposits, the money stability was RMB19,389 million, a web lower of RMB585 million in contrast with 31 December 2025. Through the interval, income elevated year-on-year whereas money bills corresponding to advertising and marketing bills and taxes elevated, leading to a year-on-year lower in web money generated from working actions; a rise in time deposits led to a major enhance in web money utilized in investing actions. The Group will proceed to prioritise money movement administration to make sure the secure improvement of the Firm in the long run.
BUSINESS OVERVIEW
Within the first half of 2026, the Group firmly carried out its core improvement technique of “Single Model, Multi-categories, Diversified Channels”. On one hand, it constantly strengthened the core {of professional} sports activities expertise and product efficiency, consolidating the model’s skilled mindset in area of interest segments; alternatively, it constantly deepened its extremely environment friendly working mannequin, sustaining strong working fundamentals and a wholesome stock stage.
When it comes to product upgrades, the Group drove iterative upgrades within the efficiency of its core class merchandise by way of technological innovation, and coordinated the synergistic improvement of the core classes of working, basketball, coaching, badminton, desk tennis and sports activities informal. The Group launched its “Tremendous BOOM Capsule” expertise, utilized to racing working shoe collection corresponding to Feidian and Crimson Hare, overlaying the full-scenario wants of aggressive coaching, elite and mass runners; the LI-NING Aerospace Dynamic Thermal Know-how was utilized to the award gear of the Chinese language Sports activities Delegation on the 2026 Milan Winter Olympics. The Group additionally expanded its outside product matrix and accelerated its structure within the outside market.
When it comes to model communication, the Group centered on constructing an all-round sports activities useful resource system represented by its cooperation with the Chinese language Olympic Committee (the “COC”) and high worldwide athlete IPs. Through the interval, the Group continued to strengthen its strategic partnership with the Chinese language Olympic Committee, growing podium put on for the Chinese language sports activities delegation competing on the 2026 Milan Winter Olympics, and establishing a presence on the “China Home” in Milan, working alongside the Chinese language Olympic Committee to showcase the power of Chinese language sports activities. As well as, the Group entered right into a long-term strategic partnership with NBA celebrity Stephen Curry and his model “Curry Model”, cooperating on the analysis and improvement {of professional} basketball gear, the promotion of occasion tradition, and the growth of new-generation shopper teams, enhancing LI-NING’s skilled sports activities model notion and worldwide publicity.
When it comes to channels, the Group continued to deepen strategic synergy with main industrial complexes and orderly carried out the planning and roll-out of revolutionary retailer codecs. Through the interval, the standalone outside retailer “COUNTERFLOW” formally opened in Chongqing, laying the muse for the Group’s outside class to deepen its presence within the Southwest regional market; the Group’s cooperation with high quality industrial assets additionally entered a brand new stage, creating beneficial situations for the concentrated opening of a number of “Loong Shops” within the second half of the yr. On the similar time, the Group continued to optimise its rental constructions and industrial cooperation fashions, enhancing the general working well being of its channels.
When it comes to retail operations, the Group promoted dual-driven development in merchandise and model by establishing a high-tier market working mannequin and a distribution enterprise working mannequin. In high-tier markets, the Group strengthened its model picture round three dimensions, specifically channel construction optimisation, refinement of retailer product combine and upgrading the buying expertise, driving incremental seize of brand name elevation and class depth. When it comes to distribution enterprise, the Group concurrently established a distribution administration mannequin to boost distribution effectivity and the sustainable working functionality of the channel. When it comes to terminal working functionality, the Group continued to drive the implementation of retail requirements on a challenge foundation, strengthened coordination effectivity between headquarters and terminals, and enhanced sports activities advisors’ buyer reception functionality {and professional} service requirements, comprehensively bettering customers’ buying expertise in LI-NING shops and laying the muse for enhanced single-store working effectivity.
When it comes to e-commerce operations, the Group leveraged key promotional alternatives together with Tmall Celebration Day, Goddess Competition and 618 to exactly goal new-customer acquisition and deeply attain feminine shopper teams, successfully driving simultaneous development in gross sales scale and model affect. The Group additionally transformed cutting-edge expertise into high quality product experiences, coordinated Olympic champions and superstar spokesperson assets, and labored with trend magazines, pattern occasions and social media platforms to constantly consolidate its skilled sports activities mindset. Flagship merchandise together with basketball sneakers Gamma 2, LI REN 6V2 and DLO 2, in addition to the working shoe matrix of Wushi, Youzhi and Zhui Feng, all achieved notable ends in increasing consciousness and growing gross sales, whereas the Feeling household remained ranked first in searches within the thin-soled shoe phase.
When it comes to new retail enterprise, the Group established a brand new retail division to concentrate on mapping out its omni-channel development enterprise mannequin. By means of the O2O mannequin, it related on-line and offline merchandise swimming pools, offering customers with a extra constant and environment friendly buying expertise. The Group additionally accelerated its structure on mainstream instant-retail platforms, making concerted efforts throughout three areas: channel retailer growth, merchandise matching and refined single-store operations. On the one hand, it totally leveraged the Group’s multi-category benefits, increasing product protection on the idea of core classes corresponding to trainers, basketball sneakers and life-style attire together with sports activities and life-style state of affairs wants; alternatively, it strengthened the availability of seasonal classes corresponding to outside and solar safety round consumption nodes corresponding to vacation journey, driving secure development in gross sales scale for the instant-retail channel.
When it comes to product administration, to reply to market competitors, the Group elevated its expertise funding in high-end skilled trainers, leveraging the “Feidian” household pushed by “Tremendous BOOM Capsule” expertise and the brand-new “Crimson Hare ULTRA” collection to consolidate the model’s product mindset and market place amongst skilled runners. Whereas the basketball shoe market confronted challenges, the Group relied on core signature fashions mixed with an e-commerce-channel-led promotion technique to maintain basketball shoe gross sales secure throughout directly-operated and e-commerce channels. The Group additionally actively utilized versatile provide fashions corresponding to segmented manufacturing and rolling replenishment orders, dynamically adjusting order scale in accordance with precise gross sales and, particularly, finishing up refined management of the stock construction for the working shoe class, sustaining wholesome stock ranges amid a difficult market setting.
When it comes to provide chain and logistics, the Group continued to advance the constructing of a big supply-chain system throughout 5 instructions: planning administration, high quality management, value administration, improvement administration and digital-intelligence transformation. The Group actively superior the event of its Glory Gold Label collection to safeguard the availability of top-tier occasion gear, whereas additionally selling the implementation of AI and 3DVR design and improvement processes for footwear, considerably shortening the R&D cycle. On the logistics entrance, the Group superior omni-channel logistics integration, connecting on-line and offline stock, and continued to drive warehouse automation and the applying of RFID expertise, bettering the effectivity of products movement and the precision of stock administration.
OUTLOOK
Looking forward to the second half of 2026, the Group will proceed to grab the event alternatives arising from the continued launch of home demand potential, uphold its core worth of ” Serve With Sportsmanship “, constantly refine the “LI-NING’s expertise worth”, and try to grow to be the popular skilled sports activities model trusted by customers within the sports activities consumption sector.
- Know-how-driven product upgrades: The Group will proceed to stick to technological innovation as its core driving power, strengthening the core competitiveness of its merchandise by way of the three main levers of its expertise innovation platform, a full-scenario class matrix and Japanese aesthetics, whereas reinforcing its structure in high-potential tracks corresponding to skilled sports activities and concrete outside.
- High-tier assets empowering the model: The Group will coordinate its home and abroad advertising and marketing assets. By leveraging core useful resource deployments corresponding to its partnership with the Chinese language Olympic Committee and collaborations with celebrity IPs, the Group will construct a multi-dimensional, long-term and high-conversion communication system. The Group will proceed to deepen its long-term cooperation with the Chinese language Olympic Committee, supporting the Chinese language sports activities delegation because it competes in worldwide occasions such because the 2026 Asian Video games, and can deepen its strategic cooperation with Stephen Curry and “Curry Model”.
- Elevating each the standard and effectivity of enterprise operations: The Group will concentrate on the three core pillars of channel structure, merchandise techniques and provide chain integration, accelerating online-offline integration, prioritising the scalable replication of revolutionary retailer codecs corresponding to “Loong Retailer”, and constructing a versatile provide chain system that’s high-efficiency, low-cost and fast-response.
- Strengthening the muse to safeguard improvement: The Group will reinforce its working basis throughout expertise, finance and digital intelligence, constructing out its expertise pipeline, sustaining ample money movement and a rigorous threat management mechanism, and advancing the deep penetration of synthetic intelligence and digital applied sciences throughout the complete eventualities of R&D, manufacturing and channels.
Mr. Li Ning, Government Chairman and Joint Chief Government Officer of the Group, commented,“The yr 2026 marks the opening yr of the ’fifteenth 5-12 months Plan’. Though the exterior commerce panorama was complicated and risky within the first half of the yr and structural divergence within the home shopper market persevered, consumption in purposeful area of interest segments corresponding to skilled sports activities and concrete outside remained resilient, supported by a collection of nationwide insurance policies to develop home demand and promote consumption. Going through a difficult exterior setting, the Group firmly carried out its core improvement technique of ‘Single Model, Multi-categories, Diversified Channels’, attaining regular development in each income and revenue whereas sustaining wholesome stock and dealing capital ranges, a transparent demonstration of the resilience of the Group’s working fundamentals.
Looking forward to the second half of the yr, we’ll keep rooted domestically whereas trying to the longer term, seizing the structural alternatives introduced by the ’fifteenth 5-12 months Plan’ insurance policies to develop home demand and construct a number one sports activities nation, advancing the scalable replication of revolutionary retailer codecs corresponding to ‘Loong Retailer’, deepening the twin drivers of technological innovation and top-tier sports activities assets, in order to ship higher-quality and extra sustainable regular operations in return for the long-term belief of our customers and shareholders.”
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The issuer is solely chargeable for the content material of this announcement.
About Li Ning Firm Restricted
Li Ning Firm Restricted is without doubt one of the main sports activities model corporations in China, primarily working skilled and leisure footwear, attire, gear and equipment below the LI-NING model. The Group has complete analysis and improvement, design, manufacturing, advertising and marketing, distribution and retail administration capabilities. It has established an in depth retail distribution community and provide chain administration system in China. We’re dedicated to be probably the most distinguished, fashionable, world-leading sports activities model from China.
Along with its core LI-NING model, the Group additionally manufactures, develops, markets, distributes, sells numerous sports activities merchandise that are self-owned by or licensed to the Group, together with Double Happiness (desk tennis), AIGLE (outside sports activities) and Kason (badminton), that are operated by way of three way partnership/affiliate with third events of the Group.
