Lining Went Out Of The Mountains And Lost 780 Million Internal Integration Problems.

The high profile of the mountain did not stop the Lining group from losing its performance immediately, and it was surprising that it lost another 780 million yuan in 2014.

It is understood that this is Lining's first performance after Lining's operation. Although the company's gross profit margin remained at 45%, gross profit amounted to 3 billion yuan, many journalists interviewed questioned whether it was too early to say that Li Ning Co's performance had hit bottom and 2015 was the first year of the Lining group.

Lose 780 million again

Lining's first annual report after losing the mountain has lost 780 million of his report card, which has aroused the agitation of investors in the industry.

In March 19th, Li Ning Co announced its 2014 earnings report. Although the company's operating income increased by 16% to 6 billion 730 million over the same period last year, the rights and interests holders lost 780 million, compared with a loss of about 390 million yuan in the same period last year.

In this regard, Li Ning Co explained that the main source of earnings pressure from the early stage of investment.

According to relevant information, the dilemma is

So far, it has been in a period of change, especially the 5 year recovery plan formulated by the former chief executive officer Kim Chun Chun's drastic reform, which once again led to Lining's counterattack conditions in the predicament.

The departure of Kim Chun Jun's queer past also made Lining, who had not been able to continue to stir up the burden of Li Ning Co, once again returned to the public view.

On the same day, the board of directors announced that Lining was appointed Deputy Chief Executive Officer.

In March 20th, the reporter confirmed the matter in an interview with Lining responsible person, and the person in charge told reporters that 2015 was the first year of Li Ning Co's reentry into development. All previous plans were implemented step by step. However, the relevant person in charge of the company did not directly respond to the bottom of the company's performance.

In fact, this is the third consecutive year of loss for Li Ning Co.

According to relevant earnings reports, the company continued losses in 2012 and 2013, losing 1 billion 979 million yuan and 392 million yuan respectively.

This contrasts sharply with Anta, which has been on top of the past two years.

According to Anta's 2014 results, Anta's net profit was about 1 billion 700 million, up 29.3% from the same year.

As the performance of many sports brands continues to pick up, why is it so hard to stop the Li Ning Co's loss as a pride of domestic sports brands?

In this regard, a number of reporters interviewed by the industry, frankly, this has a great relationship with the company's high inventory.

Although the company has repeatedly announced a high inventory of inventory measures, but at present it seems that the effect is not obvious.

According to the recent data released by Li Ning Co, in terms of inventory, the share of Li Ning Co accounts for more than 12 months has dropped from about 40% in 2012 to about 25% in 2014.

Internal integration problems

2015

In March 19th, when Lining interviewed several media outlets, he also said, "we hope to turn around the deficit this year". The company's current electricity business accounts for about 5% of its revenue, and there is still room for growth.

Will there be multiple counterattacks? For this reason, many journalists who interviewed the industry questioned that if the Li Ning Co with a lack of leaders had diversified development again, it would not only burden the Li Ning Co in the deep reform and pformation, but also make the busy Lining who was looking for the new leader busy.

According to the reporter, in 2015, Lining launched a series of vertical integration measures based on the core category business cluster as the main content. He tried to form vertical integration management from seven aspects of market analysis and commodity planning, so as to make the core category a profit center for the development of the company.

At the same time, Lining also plans to open 500 new stores and strategically lay out the South market.

But it is worth mentioning that East China, North China and northeast markets have been Lining's dominant sites, and South market is the base of Jinjiang's brand.

According to an insider close to the Li Ning Co, the reformed Li Ning Co seems to be lagging behind the rigid market reaction mechanism of other sports brands although it appears to be taller and more internationalized. Its reaction speed and the ability to deal with emergencies are relatively weak and bureaucratic is serious. At this time, Lining's high profile coming out of the mountain is still the key and the biggest challenge for how to perfect the mechanism in an instant.