Li Ning Company Limited Strengthens Competitive Edge with 3.2% Revenue Growth in 2025 Annual Results
Li Ning Company Limited has announced its audited annual results for the year ending December 31, 2025, revealing a 3.2% increase in revenue, reaching RMB 29,598 million. This growth underscores the company’s commitment to enhancing its technological capabilities and optimizing its operational strategies. The results reflect a stable performance amid evolving market dynamics and consumer preferences.
Financial Performance Overview
The financial highlights for 2025 indicate a strategic focus on maintaining robust operational health. The gross profit margin experienced a slight decline of 0.4 percentage points, settling at 49%. Despite this, the net profit attributable to equity holders was RMB 2,936 million, representing a net profit margin of 9.9%. The company’s net operating cash inflow stood at RMB 4,852 million, demonstrating effective cash flow management.
Working capital remained healthy, with gross average working capital to revenue at 7.7%. The cash conversion cycle extended to 37 days, two days longer than the previous year. The Board has recommended a final dividend of RMB 23.36 cents per ordinary share, bringing the total dividend for the year to RMB 56.95 cents per share, maintaining a payout ratio of 50%.
Operational Highlights and Strategic Initiatives
Li Ning’s operational strategies have been pivotal in navigating the complexities of the retail landscape. The overall retail sell-through remained flat across both online and offline channels. Notably, offline new product sell-through constituted 83% of total offline sales, indicating a stable demand for new offerings.
The company has emphasized a “Single Brand, Multi-categories, Diversified Channels” strategy, focusing on six core categories: running, basketball, training, badminton, table tennis, and sports casual. This approach has allowed Li Ning to explore emerging fields such as outdoor sports and tennis, thereby broadening its market reach.
As part of its commitment to technological innovation, Li Ning has launched the “Glory Gold Label” product series and opened the world’s first LI-NING “Loong Store.” These initiatives aim to enhance brand reputation and consumer perception regarding the company’s professional capabilities.
E-commerce and Supply Chain Optimization
In the realm of e-commerce, Li Ning has executed targeted strategies during major shopping events, significantly boosting consumer awareness and market share. The performance of core products like “Zhui Feng” and “ULTRALIGHT” has been commendable, successfully appealing to diverse consumer segments, including Gen Z and professional athletes.
From a supply chain perspective, the company has optimized its supplier matrix to align high-quality resources with its premium product lines. The integration of data-driven management practices has facilitated better coordination across product planning, logistics, and retail operations. This strategic alignment aims to enhance operational efficiency and reduce costs.
Future Outlook and Strategic Goals
Looking ahead to 2026, Li Ning plans to capitalize on the growing domestic demand for sports products. The company aims to refine its “LI-NING’s experience value” and solidify its position as a leading professional sports brand. Key strategic initiatives include:
-
Technology-Driven Product Upgrades: Li Ning will focus on leveraging technology to enhance product offerings, ensuring they meet the evolving needs of consumers.
-
Olympic Marketing Initiatives: By deepening its partnership with the Chinese Olympic Committee, Li Ning aims to create emotional connections with consumers and enhance brand value through strategic marketing efforts.
-
Operational Efficiency Improvements: The company will continue to optimize its channel layout and supply chain management to achieve simultaneous improvements in quality and efficiency.
-
Talent and Digital Intelligence Development: Strengthening its capabilities in talent management, financial oversight, and digital integration will be crucial for sustaining long-term growth.
According to publicly available www.zawya.com reporting, Li Ning’s Executive Chairman and Joint CEO, Mr. Li Ning, emphasized the importance of local market roots while pursuing broader opportunities. The company is poised to enhance its core advantages, including professional performance and technological capability, to foster consumer trust and loyalty.
Li Ning Company Limited remains committed to its vision of becoming a prominent global sports brand, leveraging its extensive research and development capabilities alongside a robust retail distribution network.
Follow the latest cybersecurity developments, threat intelligence and breaking updates from across the Middle East.
