Li Ning Company (2331) H2 2025 earnings summary

Executive summary

• Revenue increased by 3.2% year-over-year to RMB29,598 million, with net profit attributable to equity holders at RMB2,936 million and a net profit margin of 9.9%.

• Gross profit margin declined by 0.4 percentage points to 49%, while EBITDA margin was 20.8%.

• Retail sell-through remained flat across online and offline channels; offline new product sell-through accounted for 83% of overall offline sales.

• The Group maintained a healthy working capital position, with a cash conversion cycle of 37 days.

• The Board recommended a total dividend payout ratio of 50% for the year.

Financial highlights

• Revenue rose to RMB29,598 million from RMB28,676 million year-over-year.

• Net profit attributable to equity holders was RMB2,936 million, down 2.6% from the prior year.

• EBITDA decreased by 3.4% to RMB6,161 million.

• Gross profit margin was 49.0%, down from 49.4% year-over-year.

• Operating profit margin improved to 13.2% from 12.8%.

• Basic earnings per share were RMB113.91 cents, down from RMB116.98 cents.

Outlook and guidance

• Focus on technology-driven product upgrades and expansion into emerging sports segments.

• Continued Olympic marketing and deepening cooperation with the Chinese Olympic Committee.

• Emphasis on improving operational quality and efficiency, optimizing channel layout, and accelerating inventory turnover.

• Strengthening talent, finance, and digital intelligence as core support capabilities.