Li Ning (F.Y. 2024-2025)
Executive Summary
Li Ning Company Limited is a leading sportswear company in China. The company is involved in design, development, manufacturing, marketing, distribution, and retail of sportswear, apparel, equipment, etc. under the brand of LI Ning. The company operates other sports brands such as double happiness, AIGLE, etc. During 2025, the company has strong financial performance. The company focuses on its strategy as “Single brand, multi-categories, diversified channels”. The company has strengthened its position in running, basketball, training, badminton, table tennis, etc. The company invests in research and development to improve its product performance.
Company Overview
Li Ning was established in 1990 in China. Is a leading sportswear company in China. The company is involved in design, development, manufacturing, marketing, distribution, and retail of sportswear, apparel, equipment, etc. under the brand of LI Ning. The company operates other sports brands such as double happiness, AIGLE, etc. The company focuses on innovation, Sports technology, and fashion to meet the needs of consumers. The company’s vision is “The most prominent, stylish, world-leading sports brand from China. The company invests in research and development and innovation to improve its product performance.
Industry Overview
Li Ning operates in the sportswear and sporting goods industry. The company’s industry includes sports shoes, clothing, equipment, etc. The government has supported sports development in China which helps the industry to grow. The company invests in research and development and innovation to improve its product performance. The company focuses on innovation, technology, and branding. Online shopping and e-commerce have become important for sales. The company’s consumer demand is growing for high quality and fashionable sports products.
Financial Performance (RMB thousands)
Particulars | 2025 | 2024 |
Turnover | 29,598,417 | 28,675,643 |
Operating profit | 3,89,208 | 3,678,206 |
Profit before income tax | 4,189,223 | 4,109609 |
Profit attributable to equity holders | 2,935,743 | 3,012,918 |
Earnings before interest, tax, depreciation, and amortisation (EBITDA) | 6,160,940 | 6,379,193 |
Source : Annual Report Li Ning of 2025
Key Financial Ratio
Ratio | 2025 | 2024 |
Current ratio | 2.85 | 2.71 |
Gross profit ratio | 49.0% | 49.4% |
Operating margin | 13.2% | 12.8% |
Net profit margin | 9.9% | 10.5% |
ROE | 10.9% | 11.9% |
Debt-to-equity ratio | 36.5% | 36.8% |
Inventory turnover days | 64 days | 64 days |
Trade receivables turnover ratio | 15 days | 14 days |
Trade payables turnover days | 42 days | 43 days |
Source : Annual Report Li Ning of 2025
SWOT Analysis
Strengths 1.Li Ning Company Limited is a leading sportswear company in China. 2.This company has strong financial performance. 3.The company has a strong network of retail stores, distributors, etc. 4. The company focuses on its strategy as “Single brand, multi-categories, diversified channels”. | Weaknesses 1.The company highly depends on the China market. 2.The company has a limited global network. 3. The company business can be affected by change in exchange rate. |
Opportunities 1.The company’s demand is growing for sportswear. 2.The company can expand its business. 3.The company’s sales are rising due to online. 4. The company is adopting advanced technologies. | Threats 1.The company has strong competition from global and domestic sportswear brands. 2.There can be economic slowdown and uncertainty in the market. 3.There can be a rise in raw material price. |
Conclusion
Li Ning Company Limited is a leading sportswear company in China. The company is involved in design, development, manufacturing, marketing, distribution, and retail of sportswear, apparel, equipment, etc. under the brand of LI Ning. The company operates other sports brands such as double happiness, AIGLE, etc. During 2025, the company has strong financial performance. The company faces challenges such as competition, depends on the China market, and changes in consumer needs. The company focuses on technological innovation, etc. Li Ning is a well-established company for future growth.