Li Ning Company Limited, one of the leading sports brand companies in China, announced its results for the year ended 31 December 2013. Revenue amounted to RMB5,824 million, representing a year-on-year decrease of 12.8%, mainly due to resizing of the retail network and sell-in related to the Channel Revival Plan as well as inventory clearance. Gross profit was RMB2,594 million, representing a year-on-year increase of 3.2%. Loss attributable to equity holders was RMB392 million compared to a RMB1,979 million loss last year.
During 2013, the Group's inventory, sales network, profitability and operating cash flow significantly improved, while the capital structure was strengthened in the year, with over RMB1 billion reduction in debt. The Group decisively exited unprofitable markets, products and channels and resized its retail network, closing further underperforming stores in the year.
At the same time, the Group has made significant progress in building a differentiated brand, with clear value proposition for premium, core and basic sportswear markets, and focusing on the five fastest growing core sports sectors (basketball, running, badminton, training and sports life), and investing in building in its core operating platform, including increasing the number of direct stores.
Mr. Li Ning, founder and Executive Chairman of the Group, said, "Chinese consumers have become more sophisticated and expect better quality and value, as well as great performance in their sportswear. We are responding to the needs of our customers - by promoting a sports culture and combining sports functionality and fashionable design in our products, we enhanced the overall experience for LI-NING consumers that's quickly resonated with the rapidly growing middle-class consumers.
“Through clear sportswear brand proposition and brand marketing strategies, we are leading the market with several new achievements. Take basketball as an example, the Group swept the sponsorships for China Student Leagues helped bridge the gap with student groups, and created a campus basketball era sponsored by LI-NING brand.
“What we have seen is a great beginning to move forward in realizing our vision of solidifying LI-NING as China's leading sportswear brand with a unique and authentic brand value and proposition through differentiated business and product strategies."