Product And Brand Introduction

Li-Ning achieved good performance growth in the first half of 2024 by focusing on the professional sports sector. The revenue from the core categories of running, basketball, and fitness accounted for 66%, reaching a five-year high for the same period. Especially in the running category, the revenue increased by 25% year-on-year, becoming the fastest-growing category. The revenue from footwear products reached 7.84 billion yuan, accounting for 54.7% of the total revenue, which is about 3.6 times that of the same period in 2018. The three core running shoe series, Ultra Light, Chi Tu, and Fei Dian, sold over 5 million pairs in the first half of 2024, with the professional running shoe Chi Tu 7PRO selling over 1.9 million pairs. Li-Ning’s “running” field shows strong growth potential, with the proportion of footwear product revenue increasing from 46.5% in the first half of 2018 to 54.7% in the same period of 2024. In addition, Li-Ning’s professional running shoes helped elite athletes achieve 30 championships and 56 podiums in the first half of 2024, setting multiple national records and personal bests. Li-Ning Group continues to delve deeper into the Chinese market and, with the support of national policies, is expected to gain broader growth space.

On August 16, Li-Ning released its interim results for H1 2024, emphasizing “steadiness” as the core theme. The running category saw a 25% revenue increase, making it the fastest-growing segment. Li-Ning’s shoe business revenue reached 7.84 billion yuan, 3.6 times that of the same period in 2018. Despite focusing on running, Li-Ning is diversifying into women’s, outdoor, and youth markets. Co-CEO Qian Wei highlights the pursuit of sports demand and performance as the main growth drivers. H1 2024 revenue was 14.345 billion yuan, up 2.3% YoY, with a gross profit of 7.236 billion yuan, a 5.8% increase. The gross profit margin rose to 50.4%, up 1.6% from the previous year. Li-Ning attributes this to a “steady” development approach, focusing on stable operations and expense control to ensure profits. The company faces market pressures from consumption downgrade but has shown its capabilities with sports technology, building five core categories and maintaining a “single-brand, multi-category, multi-channel” strategy. Li-Ning’s technology was also showcased at the Paris Olympics, where teams it cooperated with won 18 of China’s 40 gold medals, reinforcing its professional sports image.

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