Li Ning sees revenue grow, profit decline in first half of 2025

For the six months ended June 30, 2025, Li Ning Company Limited achieved a 3.3% year-on-year revenue increase to RMB14.82 bn. This growth was primarily driven by a 7.4% rise in e-commerce revenue and a 4.4% increase in sales from franchised distributors. However, revenue from direct operation decreased by 3.4%. Gross profit also saw a 2.5% increase to RMB7.41 bn, although the gross profit margin slightly declined by 0.4 percentage points to 50.0% due to channel structure adjustments and increased promotional discounts.

Profit attributable to equity holders decreased by 11.0% to RMB1.74 bn, with basic earnings per share falling to RMB67.43 cents from RMB75.80 cents in 2024. This decline was largely impacted by a significant increase in the effective tax rate to 33.3% from 25.3%. The group’s overall selling and distribution expenses decreased by 0.8% to RMB4.29 bn, while administrative expenses rose by 0.5 percentage points to 5.2% of total revenue, partly due to a RMB72.39 m impairment of goodwill.

The company continued to advance its "Single Brand, Multi-categories, Diversified Channels" strategy, deepening its Olympic marketing by becoming the official sportswear partner for the Chinese Olympic Committee from 2025 to 2028. Investment in product innovation, brand marketing, and channel optimisation remains a key focus for future growth.