How Is Li Li'S Share Price?

In the first half of the year, Li Ning's revenue decreased slightly by 1% to 6.181 billion yuan, and its gross profit decreased by 1.65% to 3.057 billion yuan;

Net profit after deducting one-off non operating profit and loss in the same period of last year increased by 22% to 683 million yuan.

After hitting an all-time high of HK $32.3 on the last trading day of last week (August 14), Li Ning, a sports brand, once again surged to HK $32.7 today (August 17). Compared with the stock price of HK $8.86 on August 17, 2018, the share price of Li Ning has risen nearly four times in two years, and its total market value has exceeded HK $80 billion.

Behind the continuous high share price is Li Ning's performance in 2020, which was first announced by Li Ning: in the first half of the year, under the background that many retail enterprises suffered from the impact of the epidemic, sales fell by as much as double-digit in the first half of the year, Li Ning achieved a slight drop of 1% to 6.181 billion yuan in revenue, a slight decrease of 1.65% in gross profit to 3.057 billion yuan, and a net profit of 683 million yuan, a year-on-year decrease of 14%, but deducting a one-off profit and loss unrelated to operation in the same period of last year After that, net profit increased by 22% year on year.

In spite of the pressure on market sales, Li Ning still achieved low single digit growth of average customer price. At the fourth quarter of 2020 ordering meeting held in April this year, the order of Li Ning brand products also achieved a medium unit growth.

In terms of cash flow, the cash cycle of Li Ning in 2020 will be further improved, which will be shortened from 32 days in 2019 to 30 days, and the operating cash flow will reach 479 million yuan.

According to the interim report, in the first half of the year, Li Ning's footwear product income was 2.925 billion yuan, accounting for 47.3% of the total enterprise income, with a slight increase of 0.1%; the income of clothing products was 2.941 billion yuan, accounting for 47.6% of the total income of the enterprise, with a year-on-year decrease of 3.9%; the income of equipment and accessories was 315 million yuan, accounting for 5.1% of the total income of the enterprise, with a year-on-year increase of 15.3%.

As most of the stores directly operated by Li Ning are established in the first, second and third tier mainstream cities, the sharp decrease of passenger flow under the influence of the epidemic has a more obvious impact on the consumption of these cities, resulting in a greater impact on the sales of Li Ning's offline stores, which directly affected the decline of business income by about 24%.

In the first half of the year, Li Ning also strengthened the adjustment of retail channels. On the basis of traditional commercial streets, department stores and Sports City stores, Li Ning diversified layout of shopping center stores and outlets stores, further optimized the efficiency of stores and enhanced the quality of market coverage. By the first half of this year, the total number of stores of Li Ning brand (including Li Ning core brand and Li Ning young) regular stores, flagship stores, Chinese Li Ning fashion stores, factory stores and multi brand collection stores was 6983, a net decrease of 567 compared with the end of last year, and a net decrease of 1 to 62 dealers compared with the end of last year.

In terms of regions, there were 3619 Li Ning brands and Li Ning young stores in Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia, Shandong, Henan and other northern regions, with a net decrease of 334 compared with the end of last year. The revenue in the first half of the year was 3.25 billion yuan, accounting for 52.6% of the total revenue, with a year-on-year increase of 1.8%;

Including Shanghai, Jiangsu, Zhejiang, Anhui, Jiangxi, Hubei, Hunan and other southern regions of Li Ning brand and Li Ning young stores, a total of 2658, a year-on-year net decrease of 126, the first half of the revenue of 2.135 billion yuan, accounting for 34.5% of the total revenue, a year-on-year decline of 1.9%;

There were 706 Li Ning brands and Li Ning young stores in Guangdong, Guangxi, Fujian, Hainan and other South China regions, with a net decrease of 107 compared with the end of last year. The revenue in the first half of the year was 728 million yuan, accounting for 11.8% of the total revenue, with a year-on-year decrease of 7.8%;

In the first half of the year, revenue reached 68.27 million yuan, accounting for 1.1% of the total revenue, with a year-on-year decrease of 30%.

In order to minimize the loss of revenue from various channels caused by the epidemic, Li Ning actively opened up sources and cut expenditure in the first half of the year, and made great efforts to improve the flat efficiency of stores. During the period, the distribution expenditure decreased by 74.7 million yuan compared with the same period of last year, and the administrative expenditure decreased by 1.6 percentage points to 346 million yuan, and focused on the sales rebound after the domestic epidemic situation was well controlled. Overall, the performance of its e-commerce channel was significantly better than that of the physical store channel, and the revenue of e-commerce channel increased by 23% in the first half of the year.

According to the information disclosed, in the first half of the year, Li Ning e-commerce platform built an independent product line with culture as the theme based on sports fashion, including launching Dunhuang series products with Dunhuang Museum, launching a variety of marketing around Hua Chenyu, spokesman of sports and fashion products, breaking through the fan circle, continuously draining online consumption, focusing on specific categories, price segments and target consumers, and cooperating Offline advantages improve the online sales performance of sportswear and other products, and enhance female consumers' attention and interaction on the e-commerce platform.

In Li Ning's opinion, although the external objective environment has brought a lot of pressure, China's economy still shows strong resilience. In this context, despite the short-term pressure, China's sports consumption market still has a good prospect. With the enhancement of people's awareness of healthy life, it will further promote the development and prosperity of the sports industry, with huge market potential in the future. In view of the increasingly diversified sports consumption demand, Li Ning will continue to improve its brand power and product strength, and deeply focus on the Li Ning style experience value, meet the personalized consumption demand through precise marketing strategy, innovate service mode, continuously improve the satisfaction of consumption experience, and maintain tenacious profitability.