Li Ning Company Limited ( (LNNGF) ) has released its Q4 earnings. Here is a breakdown of the information Li Ning Company Limited presented to its investors.
Li Ning Company Limited, a leading Chinese sportswear company, is engaged in the development, design, manufacture, sale, and distribution of sport-related footwear, apparel, equipment, and accessories primarily in the People’s Republic of China. The company recently released its annual earnings report for the year ended December 31, 2024, highlighting steady growth and strategic advancements.
The company reported a 3.9% increase in revenue, reaching RMB28,676 million, with a gross profit margin improvement to 49.4%. Net profit attributable to equity holders was RMB3,013 million, reflecting a net profit margin of 10.5%. The company also maintained a healthy working capital level and announced a total dividend payout ratio of 50% for the year.
Key financial metrics include a 12.4% increase in net operating cash inflow and a stable cash conversion cycle of 35 days. The company’s e-commerce business saw significant growth, contributing to a 10.3% increase in revenue from online channels. Despite a slight decrease in retail revenue, the company optimized its channel structure and improved profitability through strategic discounting.
Looking ahead, Li Ning Company Limited aims to continue optimizing its business structure and enhancing operational efficiency. The company plans to focus on expanding its online presence, improving customer experience, and exploring new growth opportunities to drive sustainable development in the competitive sportswear market.