Li Ning continues to struggle

Li Ning, China’s leading domestic sporting goods brand, saw a sales increase of 16 percent to 6.72 billion yuan renminbi (€1,015 million) in 2014 over the previous year. During the second half of the financial year ended Dec. 31, turnover soared by 23 percent. Nevertheless, the company is struggling to become profitable again. It has seen three consecutive years of net loss, which turned even worse in 2014. In 2014, the negative result was RMB 781 million (€117.9 million) – significantly greater than the RMB 391.5 million (€59.1 million) it had on the negative side in 2013. As part of the reorganization program Li Ning introduced two years ago, the group has reduced store numbers in China by 289 to 5,626.

 

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