2015 Investors Optimistic About The Development Of Lining'S Future, Fund-Raising Efforts

In recent days, the Li Ning Co announced that, according to the benchmark of 5 issued securities issued by every 12 shares of existing common stock, it would issue publicly issued securities to eligible shareholders at a subscription price of HK $2.60 per share, and raise funds from HK $1 billion 518 million to HK $1 billion 695 million to fund the next stage of operation of the company and optimize the company's capital structure.

For the public offering, Li Ning Co performance funds will be used to support the company to deepen new product development, continuously enhance the competitiveness of products, and enhance the overall retail operation capacity of channels and companies.

Lining's diligent efforts on the road of pformation gained the firm support of investors in the placement financing.

Optimistic about Lining's investment people did not leave the field, but expressed through the overweight.

Confidence in future development.

According to market analysis, Lining, the biggest shareholder of the company, including TPG, is optimistic and positive to Li Ning Co. It is also a recognition of Li Ning Co's wholesale business pformation as a business mode dominated by sports marketing, product and retail operation capability.

Merrill Lynch Securities analysis pointed out that "as a result of positive retail revenue and new product discount, while operating leverage and operating costs cut, we expect group revenue to grow again and reach balance of payments by 2015".

Deutsche Bank believes that "after two years of restructuring, the group will enter the second growth phase in fiscal year 2015".

At the same time, media reports show that in support of the company's future development level, the major shareholders of Li Ning Co have reached agreement, optimistic about the company's established strategy.

In this time

Lining, founder and executive chairman of Li Ning Co, said: "2015 will be the first year of the company's redevelopment.

A series of adjustments made by management in the past two to three years have resulted in a modest improvement in operation and clear the next line of growth.

The company adheres to the three focus strategies: focusing on the Chinese market, the Lining brand and the five major sports categories that are most marketable in China basketball, badminton, running, training and sports.

In the face of the growing sports consumption group of the middle class in the Chinese market, our new products developed for professional and popular sports enthusiasts have shown unique competitiveness in the market.

We have set up a platform dominated by sports marketing, product and retail operation, which is ready for the company to enter a new stage of growth.

Lining himself can see his firm belief in the development of the company. As a world champion, I believe that the prince of gymnastics said that he also had his courage.

Some media think that the prince of gymnastics has decided to let go of his hands and feet, and a considerable proportion of the new shares issued this time is subscribed by Lining and his family members.

{page_break}

In the announcement, Lining added: "the board and myself attach great importance to the continuing support of major investors in the pformation of the company from the wholesale operation to the business model dominated by sports marketing, product and retail operations.

We are confident of entering the new development journey and the vision of building a leading sports brand. "

The more perfect business scale is the "strong needle" of enterprises in pformation. The development strategy that the enterprises adhere to in the future is the key to the prosperity of the enterprise. The validity of the Li Ning Co development trend has also been confirmed from the semi annual report in 2014.

According to Lining's 2014 China Daily report, in the first half of 2014, Lining's operating income was 3 billion 137 million yuan, an increase of 8% over the same period last year.

Gross profit in the first half of 2014 was 1 billion 400 million yuan, an increase of 10.5% compared with the same period last year, and the gross profit margin remained at 44.6%.

Lining's pformation is in the great change of China's sports products industry, and is also the leader in the pformation of the industry.

Reshaping business channels, grasping core sports products and differentiated product strategies to create strategic advantages have made Lining's pformation initially successful.

Li Ning Co said that the focus of 2015's development is to enhance product competitiveness, optimize channel efficiency, promote O2O strategy development and improve retail operation capability.

In 2015, Li Ning Co will continue to focus on the Chinese market, focus on the Lining brand, focus on the five core sports categories, and focus on optimizing the product structure and channel innovation, through the digital marketing and online offline interaction to build a healthy e-commerce ecosystem, to provide better shopping experience for customers.

According to the disclosure, the contribution of Lining's new products to performance has already appeared in the first half of 2014.

In the war, double eleven and two dozen Lining Tmall flagship store sales were ranked second in the sports industry, leaving other domestic sports brands behind.

Whether it is financial data or investor confidence in Lining, these are the corresponding support for Lining's next stage of development, which is enough for 2015.