(24 August 2011 – Hong Kong) – Li Ning Company Limited ("Li Ning" or the "Group"; HKSE stock code: 2331), one of the leading sports brand enterprises in China, announces the conclusion of LI-NING Brand Products Trade Fair ("Trade Fair") for the first quarter of the financial year 2012. Order value grew at a mid-single digit pace year-on-year, an improvement from the growth recorded for the fourth quarter Trade Fair of the financial year 2011. The average retail price of new products and order volume both recorded low-single digit increases. Since the Group no longer adjusts the wholesale discount rate for the financial year 2012, there will no longer be discrepancies between the order growth rates as calculated by tagged retail prices versus sell-in prices.
Mr., Zhang Zhi Yong, CEO of the Group, commented, "The results of this Trade Fair are within our expectations. Despite overall growth has not shown pronounced acceleration in relation to the past few quarters, there are two developments that warrant particular attention. First, the order volume has reversed the downward trend from the past three quarters and posted a positive growth. Second, the order value of footwear products grew faster than that of apparel products. We consider these good indications. The reform measures that the Group proactively implemented are gradually yielding harvests. This has further strengthened our management’s confidence. Nevertheless, the industry is still undergoing transformation, notable improvements have yet to emerge in the macro environment and we are going through a period of proactive adjustment. We will persist to implement reforms along this correct direction, while reviewing and enhancing our execution on an ongoing basis."
About Li Ning Company Limited
Li Ning Company Limited is one of the leading sports brand enterprises in China, possessing brand marketing, research and development, design, manufacturing, distribution and retail capabilities. The Group’s products mainly include footwear, apparel, equipment and accessories for sports and leisure uses under its own LI-NING brand. The Group has established an extensive supply chain management system, and a retail distribution network in the PRC primarily through outsourcing of manufacturing operations and distribution via franchised agents. The Group also directly manages retail stores for the LI-NING brand.
The Group adopts a multi-brand business development strategy. In addition to its core LI-NING brand, the Group (i) distributes sports products under its Z-DO brand via hypermarket channels; (ii) manufactures, markets, distributes and sells outdoor sports products under the French brand AIGLE in China, the exclusive rights of which were granted to a joint venture established with Aigle International S.A.; (iii) engages in the manufacture, research and development, marketing and sale of table tennis and other sports equipment under the Double Happiness brand through a subsidiary in which the Group has a 57.5% interest; (iv) develops, manufactures, markets, distributes and sells licensed products under the Italian sports fashion brand Lotto in China under an exclusive license granted by a company owned by Lotto Sport Italia S.p.A.; and (v) engages in the research and development, manufacture and sale of professional badminton equipment under the Kason brand.