Lining Group 2012 Revenue In The First Half Of 3 Billion 880 Million, Down 9.5%

Zhong Yiqi, chief financial officer and executive director of the company: the income of the group in the first half of 2012 was 3 billion 880 million, down 9.5 percentage points from the same period last year, mainly affected by the overall economic environment and the industry environment, coupled with the further slowing down of the development of China's sporting goods industry. Therefore, the group voluntarily reduced the shipment to the distributors and reduced the pressure on the channel inventory. On the other hand, the group also took the initiative to recover some old stocks from the distributors, so as to speed up the cleaning up of the inventory at the retail end.

Gross profit fell by 15.5%, mainly due to intensified market competition, and the comprehensive discount rate of retail outlets continued to rise.

The receivables were increased by about 45 days over the same period last year, mainly because of the group

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Stock turnover days increased by 13 days, mainly due to returns and lower futures execution rates, as well as increased inventories of finished products.

The internal fund increased by 21 days. On the whole, the overall turnover rate increased by 47 days, which has a great impact on the group's cash flow. The group is actively taking measures to improve the cash situation thoroughly.

As the company focuses its efforts on improving channel construction, strengthening channel efficiency, and selling through factory shop discount stores, it speeds up the inventory clearing of retail terminal and optimizes the terminal inventory structure, so that channel inventory can be restored to a healthy level as soon as possible.

Executive vice president of Li Ning Co

To cope with the more severe environment in the industry and avoid new inventory pressure, according to the results of the 2012 annual orders and the current business environment, the management expects the year-on-year income in 2012 to be negative year-on-year.

In addition, while we are actively dealing with the realistic business environment, we have made a series of short-term profits and financial support adjustments for long-term sustainable development, and we can not avoid some pressure on short-term profits. Management expects 2012 of the rights holders to account for losses. But we are confident that the current management reform and strategic adjustment will enhance the core competitiveness of the future.