Lining Continued To Become Popular In The First Half Of The Year, Up 32.7%

In August 14th, Lining released the group's interim results in 2019.

In the first half of 2019, the group's revenue reached 6 billion 255 million yuan, an increase of 32.7% over the same period in 2018 and a net profit of 795 million yuan, up 196% from the same period last year. Even after deducting the one-time gains and losses from holding the shares of red double happiness, net profit still stands at 561 million yuan, up 109.1% over the same period last year. The net assets yield is 13%, and the cash and cash reserves are as high as 4 billion 725 million yuan. In the case of weakening consumption growth, it is particularly rare.

"China Lining" continues to become popular. It has established the brand status of Lining's "national tide". Its influence on young consumers has been transformed into real gold and silver. Sports fashion, including China's Lining, has grown by 55%, accounting for 29% of retail sales and the first time in nuclear core category. Li Ning Co has also taken the opportunity to vigorously promote the construction of the "China Lining" fashion store channel, which has 70 in the first half of 2019, and is expected to reach 100-120 in the whole year.

As of June 30, 2019, in the domestic market, the number of Lining sales points (excluding Lining YOUNG) totalling 6422, a net increase of 78 in the first half, and a small increase in store sales, but the same store grew by 10-20%, and the discount rate of new products improved by more than 1 percentage points. The selling rate increased by more than 2 percentage points, significantly outperforming peers, and the total number of Lining YOUNG sales outlets totaled 872.

Lining's branded product orders for the first quarter of 2020, excluding Lining YOUNG and China Lining, were bookings for the first quarter of 2020 in 2019, which boosts the growth of 10%-20% in the first quarter of June.

Lining increased investment in product innovation. In the first half of this year, R & D investment grew by 115% to 137 million, for example, the electricity supplier department is focusing on creating an independent product line "Counterflow- retrospective" series. Lining himself said, "continue to take products as the core, persist in professionalism and innovate at the same time, combine professional movement with trend culture."

The scale of China's sporting goods market is expanding. It is expected that the composite annual growth will be 10% from 2018 to 2023. Lining is in a leading position on a broad track. It is worth noting that Lining mentioned in particular that in the earnings report, it is expected that in 2020, the electricity race ecosystem will account for 27.8% of the Chinese electricity market, up to 37 billion 500 million yuan. In view of the extraordinary acquisition and acquisition of Snake club by the associated company, it will be reorganized into LNG team, and will continue to open up the market for young leisure sports products by electronic competition, or become an important direction for the future development of Lining. Author: Chen Xiaoping