Lining'S Business Sales Increased By 100% Over The Same Period

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After a few years of loss and inventory, the company's 2016 net profit of 113 million yuan was officially announced by Lining.

A new return.

According to the insiders, Lining's net profit in the first half of 2016 amounted to 113 million yuan, which represents the recovery of the company's performance.

More institutions assess Lining's stock as a "buy" rating.

Lining saved "Lining"?

Li Ning Co reported that in the first half of 2016, the company's operating income reached 3 billion 596 million yuan, an increase of 13% over the same period last year, and its operating profit was 153 million yuan, a 167% rise compared with the operating profit of 57 million yuan in the same period in 2015, a net profit of 113 million yuan, and a loss of 29 million yuan in the same period in 2015.

It is worth noting that in the Li Ning Co's operating income and net profit rose sharply, the company's first half of 2016 gross profit margin also increased.

According to the China Daily, the gross profit margin of the company was 46.7% at the end of June this year, compared with 45.2% in 2015.

Li Ning Co explained that sales of new products with higher gross profit margins increased.

The retail discount rate has improved by more than 2 percentage points, especially in direct retail business.

At the order meeting, the Lining brand from the franchised dealer.

Orders for 11 consecutive quarters of growth.

Orders in the first quarter of 2017 showed a high single digit growth.

From the point of view of Lining brand sales, as of June 30, 2016, the sales growth of Lining brand products in the same store (including e-commerce) increased year by year.

As far as channels are concerned, the retail (direct) and wholesale (franchised dealer) channels have increased by the number of units per annualized year. The annual growth of e-commerce virtual shop business is slightly higher than 70%.

It is understood that Li Ning Co's electricity business sales grew by more than 100% over the same period, rising from 7% to 12.8% in total revenue of Lining.

Li Ning Co's rapid development in the electricity business has benefited from Lining's attention to the electricity supplier.

According to reports, Lining had taken the lead of his electricity supplier and made a special trip to visit the Alibaba's Xixi Park in Hangzhou.

During this period, Lining met with the front line staff of Tmall fashion and outdoor sports.

According to Li Ning Co, the company has revealed to reporters that the company will use the mobile terminal network platform to approach the target consumer groups, develop more competitive features, optimize online and offline shopping experience, enhance the overall user experience of multi-channel and cross platform, continue to promote multi brand development strategies, optimize sales network channels, and maintain the target of 300 to 500 points for the planned net sales increase in 2016.

In fact, in order to revive the Li Ning Co, the former "gymnastic Prince" did not hesitate to appear in public again and communicate with the public.

Its efforts to brush micro-blog have attracted nearly 2 million fans.

At the same time, Lining also held many sports activities, including people and fans to participate in the the Great Wall event, for the company sponsored 2015 to 2016 season China Men's Basketball League (CBA) All Star game kick-off, appeared in the Tencent Guardian baby charity program site, and even took her daughter to participate in the Shenzhen marathon and so on.

Li Ning Co pformation

So is Li Ning Co's performance recovery all Lining's credit?

In the industry view, the recovery of Li Ning Co's performance is not only the star benefit brought by Lining's frequent appearance, but also the effect brought by the innovation of Lining's products.

And the most talked about product by the industry is Li Ning Co's most intelligent product.

"We are wearing smart running shoes, with chips inside the shoes."

A person close to Lining said to reporters.

In fact, as long as we open Lining's official website, we can see a big picture of "smart running core life" on the front page of the company, advertising for Li Ning Co's smart running shoes in 2016.

However, according to the reporter, although Lining vigorously promotes the intelligent running shoes, there are still consumers who do not quite understand the function of these shoes.

Some consumers said, "it is not clear how to use chips in running shoes."

More consumers take chips out of use.

In order to solve consumers' problems and understand their products better, Li Ning Co began to open "experience shops" throughout the country.

Data show that as of June 30, 2016, the number of Lining cards (including LNG and spring label regular shops, flagship stores, factory stores and discount stores) was 6169, representing a net increase of 36 compared to December 31, 2015.

50 dealers, a decrease of 6 compared to December 31, 2015.

Among them, LNG and spring marked two brands increased by 21 and 19 respectively.

As a new business development, the spring mark will remain a prudent channel development plan in the second half of 2016. The main task is to conduct product testing and channel testing based on new shops.

It is understood that Lining's goal is changing from traditional sports equipment suppliers to "Internet + sports life experience" service providers.

People close to Li Ning Co told reporters that Li Ning Co will increase experience items in the newly opened stores, hoping to better understand the products and promote them through the consumer experience.

It is understood that in 2016, Lining continued to promote the opening of flagship store Corner, Lining iRun club and Lining running category store, and with the sales department's multi store strategy for targeted product planning and distribution.

The announcement shows that at present, the two iRun clubs in Beijing and Shanghai have been set up to provide tens of thousands of runners with professional teaching, physical training, running posture test, running group meeting and running.

At the same time, Lining also opened the first running category store in Shanghai, which combines professional running equipment, running posture test and sports social interaction, and brings professional running services to runners.

For the future development of Li Ning Co, Lining said: "the support of national policies will continue to promote the development of sporting goods industry.

Lining's value road is still the direction for the company to see in the future.

In the future, the company will enhance its operational capability in many ways, and strive to surpass the limitations of "cost-effective" win, and attract consumers of sports through "performance" and "function".

Taking sports as the DNA, integrating technology, culture and other elements into products, advocating sports as a concept of education and a happy lifestyle, and promoting the development of the concept of "sports +".