Li Ning, the Chinese sportswear company, had a 25.4 percent increase in sales to 8.39 billion renminbi (€907.9m-$1,227.2m) for the 2009 fiscal year ended Dec. 31. Annual net income rose by 31.0 percent to CNY 945 million (€102.3m-$138.2m). The gross profit margin slipped by 0.8 percentage points to 47.3 percent.
Sales of the core Li Ning brand rose by 21.1 percent to CNY 7.69 billion (€832.2m-$1,124.8m) on more distribution in second- and third-tier cities; it makes up 91.7 percent of total sales for the company. Li Ning brand footwear grew by 19.1 percent, apparel increased by 22.3 percent and accessories were up by 27.4 percent.
The Double Happiness label grew to CNY 427 million (€46.2m-$62.5m) and the licensed product line of Lotto came in at CNY 76 million (€8.2m-$11.1m). Other brands, which include Aigle, Z-Do and Kason, had sales of CNY 190.4 million (€20.6m-$27.9m).
Li Ning said that 2009 was challenging, given the economic circumstances worldwide and the slump after the Beijing Olympics.
The company operated more than 7,200 Li Ning branded retail doors across China at year-end, with a total of 8,156. This total is an increase of 1,239 over 2008. Meanwhile, the company confirmed that first and second quarter orders were up by 11.6 percent and 15.4 percent, respectively.
In Europe, Li Ning continues to use distributors and licensees to develop its business in specific countries. It now has a presence in Spain, Italy, Greece, Macedonia and Serbia.
