Focusing on Five Strengths: Li-Ning’s Net Profit Exceeds 4 Billion Yuan in 2021

March 20,2022

On March 18^th, the Hong Kong-listed Chinese sportswear giant Li-Ning Company Limited (HK: 02331, thereafter referred to as the “Company” or “Li-Ning Company”) released its 2021 annual report. It reported an annual revenue of 22.572 billion yuan, a 56.13% year-on-year growth and a 136.14% jump in net profit attributable to equity holders at 4.011 billion yuan.

As a result, the Company’s 2021 increase in revenue and Attr. Net Profit both surpassed those of the last three years. Revenue increase: (2020: 4.2%, 2019: 32.0%, 2018: 18.4%); Attr. Net Profit: (2020: CNY ¥ 1.698B, 2019: CNY ¥ 1.499B, 2018: CNY ¥ 715 M).

Luxe.CO puts forth five strengths of the Company by summing up adjustments and optimizations carried out throughout 2021 and taking into consideration its product categories, customer groups and geographical elements.

New Products for Skateboarding, Camping and Skiing

In July 2021, the Li-Ning Brand (“LN Brand”) simultaneously launched its first Li-Ning x Erik Ellington signature model shoes at 180 USD both in China and the U.S. under the collaboration with legendary skateboarder Erik Ellington, which marked LN Brand’s first foray into skateboarding.

In August 2021, LN Brand paired with New York streetwear brand CHINATOWN MARKET (recently changed its name into MA®KET) to roll out their first collaboration that combined hip and expressive streetwear style with functional attributes of outdoor camping products.

In January 2022, LN Brand promoted a new collection LI-NING SKATEBOARDING when the Beijing 2022 Olympic Winter Games were under way. This series of products were also embedded with RECCO rescue chip reflectors for avalanche rescue. It can be used to locate people trapped in avalanche areas.

LN Brand also teamed up with professional skiers from home and abroad, including Olympic champion Max Parrot and Jiahao Zhang from China.

Women’s Sports

In October 2021, the Company announced Elaine Zhong (Zhong Chuxin) as its fashion ambassador for women’s sports and launched official social media accounts named “Li-Ning Women's Fitness” on several platforms targeting the women’s fitness market. It also unveiled a women’s fitness collection involving yoga wear such as soft yoga pants made of technical fabric INNOSOFT™.

In 2021, the Company launched products adopting renowned DISNEY and LINE FRIENDS IPs. For instance, Toy Story Lotso Strawberry Bear shoes were produced under the collaboration with DISNEY and were showcased on multiple social media platforms targeting female consumers, such as Xiaohongshu (Little Red Book) and Dewu.

Kid’s Sneakers Equipped with Li-Ning BOOM Technology for the First Time

In 2010, the Company established another product line Li-Ning KIDS and in 2017 children’s wear division was set up. To reshape the original Li-Ning KIDS, Li-Ning YOUNG was launched to target the mass market with children and teenagers aged between 3 to 14 as its customer group.

Till December 31, 2021, Li-Ning YOUNG has set up 1,202 stores in 30 provinces, municipalities and autonomous regions.

Li-Ning YOUNG positioned itself as a “stylish and professional children’s sportswear brand in China” and continued to increase its investment in 2021. Last August, the Company rolled out “Lie Feng”, the first kid’s performance shoes equipped with Li-Ning BOOM technology.

Debut of BADFIVE City-limited Models of Chongqing and Nanjing

In 2018, the Company’s street basketball collection BADFIVE partnered with streetwear brand 1807 and design agency WED.CREW for its limited Chengdu city collection “Shao Bu Ru Chuan” featuring Sichuan Culture. The collection was so well-received that ever since then, BADFIVE city-limited collections have become regular staples.

Another two cities Chongqing and Nanjing inspired BADFIVE city-limited collections in 2021. In April 2021, BADFIVE’s Chongqing collection “Fog City” was revealed in a Li-Ning pop-up store at Raffles City, Chongqing. In September the same year, motifs such as iconic buttonwood leaves and Yunjin (also known as brocade) patterns were adopted in its Nanjing limited collection titled “Jiang Zuo Feng Liu.” An updated version 2.0 of the Changsha city collection further delved into indigenous culture of the Miao ethnic group in Hunan Province.

Premium Brand LI-NING 1990 Launched

In November 2021, the Company unveiled its independent premium sportswear brand LI-NING 1990 whose price tag was 30% to 50% higher than its counterpart LN Brand.

In the same month, LI-NING 1990 aligned with luxury shoemaker Corthay to issue their first collaboration. In March 2022, it teamed up with PIERRE HARDY.

Within a month of its establishment, LI-NING 1990 opened its first store in China at Beijing Parkview Green FangCaoDi and the first store in Southwest China at Raffles City, Chongqing. Currently, the brand owns five brick-and-mortar stores domestically.