Mar 27, 2013
Translated by Liu Jingyue

Li Ning Company Limited (Li Ning), one of China's largest sportswear suppliers, yesterday announced almost 2 billion yuan in losses last year - the first time that the company has been in the red since it first listed on the Hong Kong stock exchange eight years ago.

According to data contained in the company's annual results report, Li Ning said the company lost 1.98 billion yuan in 2012.

According to the financial statement, Li Ning collected 6.74 billion yuan in revenue last year, a 24.5 percent decline on the 2011 figure. The company said that a decline in wholesale volume, receivables, inventory provisions and company reforms all contributed to the loss.

The company launched a restructuring plan in July last year and also introduced more reforms in December. As part of these efforts to turn the company around, 1,821 retail outlets had been closed by the end of last year.

Company CEO Li Ning, a retired gymnast, told the press that the worst period is now over.    

The sporting industry in China is facing a tough environment. Domestic sporting brands including Li Ning，XTEP and Anta all reported profit declines last year.

The company's shares fell by more than 4 percent during yesterday's trading.

Links and Sources
Beijing News: 李宁去年巨亏20亿 运动品牌入寒冬
Economic Observer Online: Sticking With the Plan - An Interview with the CEO of Li Ning