Li Ning Company (2331) H2 2024 earnings summary

Executive summary

• Revenue grew 3.9% year-on-year to RMB 28.68 billion, with net profit at RMB 3.013 billion and net profit margin of 10.5%.

• Gross profit margin improved by 1 percentage point to 49.4%.

• EBITDA rose 3.6% to RMB 6,379 million; net operating cash inflow increased 12.4% to RMB 5,268 million.

• Dividend payout ratio increased to 50%, with total dividends of RMB 58.48 cents per share.

• Business performance was stable, supported by product innovation and channel optimization.

Financial highlights

• Operating profit margin was 12.8%, down slightly year-on-year; EBITDA margin at 22.2%.

• Gross profit increased 6% to RMB 14,156 million.

• Cash and cash equivalents increased 37.7% to RMB 7,499 million.

• E-commerce revenue share rose to 31%, with online sales up 10.3–20%.

• Dividend payout maintained at 50% of net profit.

Outlook and guidance

• 2025 full-year revenue expected to remain flat year-on-year.

• Net profit margin for 2025 projected at high single digits.

• Focus on core categories, innovation, and leveraging Olympic partnership to boost brand value.

• Emphasis on operational efficiency, digital transformation, and cost control.