The company’s turnover went up by 39.2 percent to 1.91 billion renminbi (€183.7m-$255.0m) and its net profit increased 52.6 percent to CNY198.3 million (€19.1m-$26.5m) for the six months ended June 30.

Sales of Li-Ning branded products rose by 37.5 percent to CNY1.88 billion (€180.7m-$251.1m). Revenues under the licensed Aigle brand instead shrank by 23.9 percent to CNY6.2 million (€0.6m-$0.8m) , although the number of Aigle stores has increased to 41, but the group plans to adjust its product range and the pricing while trying to optimize the supply chain for the French outdoor label. Aigle’s performance was within the group’s plan. Li-Ning has reduced the speed with which it opens new franchised retail outlets while focusing on better store efficiency. The new Z-Do brand, whose outlets replaced 245 Li-Ning points of sale in hypermarkets during the period, recorded CNY28.0 million (€2.7m-$3.7m) in revenues from April to June.

For the Li-Ning brand, footwear sales rose by 44.5 percent to CNY761.6 million (€73.2m-$101.7m), while apparel sales improved by 36.3 percent to CNY993.6 million (€95.5m-$132.7m), and accessory sales went up 11.4 percent to CNY120.0 million (€11.5m-$16.0m). Sales outside China rose by 33.2 percent to CNY20.8 million (€2.0m-$2.8m), but still represented only 1.1 percent of total revenues. Li-Ning’s sales are concentrated in China’s second- and third-tier cities, with an eye on maximizing future growth. Aigle and Z-Do products focus on the country’s first-tier cities.

The gross margin for footwear edged up to 48.3 percent from 47.5 percent. In apparel and accessories the margins declined to 48.7 percent and 51.8 percent, respectively, but the group’s overall margin was steady at 48.7 percent.

Over the period, Li Ning cemented sponsorship deals with the Swedish and Spanish Olympic delegations, the Argentinian basketball team, the Tanzanian track and field team and the second Asian Indoor Games. The agreement with the Swedish Olympic Delegation allows the brand to sell Olympic-related products in Sweden.

The group now has 4,582 points of sale in China, 394 of which are directly managed. This compares to 4,333 and 458 on Dec. 31. The group released 52 of its own stores to other retailers to better concentrate on flagship stores and factory outlets.