Sportswear brand Li Ning CEO steps down

The Group's go-forward plan has been designed to improve overall performance and growth. The management plans to enact a number of initiatives in three stages, and has already begun Phase One short-term initiatives around improving channel inventory, right-sizing cost structures, strengthening the organization and execution capabilities, enhancing channel profitability, focusing on core products in the domestic market, and investing in the brand and improving marketing effectiveness.

Phase Two will focus on improving the Group's supply chain, marketing and product planning model, including product development and consumer experience, and is currently in its pilot and concept stages. Phase Three will ensure the Group has in place the right business model to achieve its objectives of improving the profit structure and channels, sell-through, retail productivity and return on cash and investment.

With the enhanced management team and new leadership, as well as TPG's sector knowledge and operational capabilities, the Group is committed to capitalizing on its strong brand value and industry leadership to achieve profitable and sustainable growth.

"The announcements we are making today are the result of months of hard work by the Board and management after carefully listening to all related parties, internally and externally, and evaluating the business as it stands today, the challenges both inside and outside the Group, as well as where we want it to be in the medium to long term," Mr. Li continued. "The Board unanimously supports the new leadership and is confident that the initiatives we set out will move the Group in the right direction to return Li Ning to sustainable and profitable growth."

Mr. Kim, Executive Vice Chairman of Li Ning, commented, "The LI-NING brand is the leading domestic sportswear brand in China, with great brand value and growth potential. We believe the three-stage blueprint will give the Group the focus and clarity it needs to execute its development strategy. I am honored that the Li Ning Board has given me this role. I am confident that with the collective efforts of the Chairman and a strengthened management team, supported by TPG's wealth of operational know-how, we will build a platform for the Group with world-class operational capabilities."

Li Ning Company Limited