China’s leading sportswear and footwear company plans to open a total of 497 corporate and franchised stores in its home country this year, after adding 960 of them during 2006, particularly in second- and third-tier cities. As of last Dec. 31, Li-Ning had 3,860 franchised stores, an increase of 29 percent year-on-year. The number or directly-managed stores grew by 24 percent to 138, while the number of concessions increased by 16 percent to 299. The company still plans to hit a total of 5,700 stores of different kinds by 2009.

For the year ended Dec. 31, Li-Ning reports a 57 percent increase in net profits 295.1 million renminbi (€28.9m-$38.2m) on 30 percent higher turnover of CNY 3.18 billion (€311.8m-$411.6m). The gross margin improved by 140 basis points to 47.4 percent. Sales of Li-Ning branded footwear expanded by 48 percent to CNY1.25 billion (€122.6m-$161.9m). Apparel sales grew by 31 percent to CNY 1.67 billion (€164.1m-$216.6m) and accessories were up by 15% to CNY 243.2 million (€23.9m-$31.5m).

To further enhance its brand name and the visibility of its logo, the company is vowing to strike agreements with African running teams and add two NBA stars to its portfolio. Its contract with the Swedish Olympic team for the 2008 Summer Games in Beijing and the 2010 Winter Games in Vancouver covers only training and medals ceremonies. It does not extend to competitions.