Chinese sportswear company Li Ning profit dips on weak domestic demand

Chinese sportswear and sports equipment maker Li Ning (2331) reported a profit of 3.01 billion yuan (HK$3.11 billion) last year, down 5.5 percent from one year ago on the weak domestic demand 

After excluding non-operating related one-off gains, the profit was 3.05 billion yuan.

Li Ning declared a final dividend of 20.73 fen per share, leading the full-year distribution to reach 58.48 fen, up by 12 percent and 7 percent respectively.

During the period, revenue amounted to 28.7 billion yuan, 3.9 percent higher from the previous year. 

Gross profit margin edged up by 1 percentage point to 49.4 percent, benefiting from the continued expansion of online channels, a larger share of higher margin e-commerce channels and improved discounts in offline directly-managed stores.

Li Ning said overall retail sales remained flat last year while the inventory increased at a high single-digit rate.

The company expects there will be greater potential for growth in consumer spending in the mainland this year with strong policy support. 

STAFF REPORTER