Li Ning Company Limited · HKEX:2331
Li Ning — H1 2026 Earnings Presentation
38 slides from Li Ning's earnings presentation, 2026
Slide 1: 2026 Interim Results
2026 INTERIM RESULTS L I N I N G C O M P A N Y L I M I T E D (INCORPORATED IN THE CAYMAN ISLANDS WITH LIMITED LIABILITY) STOCK CODES：2331 (HKD counter) and 82331 (RMB counter)
Slide 2: Disclaimer
DISCLAIMER This presentation incorporates information contained in the interim results announcement (the “Results Announcement”) for the six months period ended 30 June 2026 of Li Ning Company Limited (the “Company”). This presentation should be read in conjunction with the Results Announcement and
Slide 3: Table of Contents
TABLE OF CONTENTS RESULTS 01 HIGHLIGHTS FINANCIAL 02 REVIEW STRATEGIC 03 DIRECTION OPERATIONAL 04 PROGRESS 05 APPENDIX
Slide 4: Results Highlights
RESULTS HIGHLIGHTS
Slide 5: 2026 interim results highlights: Proactive positioning with disciplined execution
2026 interim results highlights: Proactive positioning with disciplined execution Financial highlights（in RMB） Operational highlights Revenue Gross margin Omni-channel retail sell-through3 15,235 ↑ 2.8% YoY 50.9% ↑ 0.9 YoY p.p. ↑ low-single-digit YoY million Net profit1 Net operating cash inflow Off
Slide 6: Financial Review
FINANCIAL REVIEW
Slide 7: Revenue: Ongoing multi-category strategy driving steady business growth
Revenue: Ongoing multi-category strategy driving steady business growth Footwear Apparel Equipment & Accessories Change YoY 2.8% （RMB million） 15,235 14,345 14,817 14,781 14,331 1,146 1,393 1,228 1,126 1,199 5,193 5,805 5,375 7,134 6,675 7,844 8,231 8,284 6,457 6,419 2024H1 2024H2 2025H1 2025H2 2026
Slide 8: Revenue and sell-through mix: Balanced, stable channel mix
Revenue and sell-through mix: Balanced, stable channel mix, product efficiency yet to improve Channel revenue mix Sell-through mix （incl. retail and wholesale） E-commerce Retail Wholesale Old product New product (current and last season) 100% 100% 45% 44% 46% 46% 46% 84% 84% 81% 83% 87% 25% 24% 23%
Slide 9: Online and offline: Retail operating environment under pressure
Online and offline: Retail operating environment under pressure POS number Sell-through growth，YoY% (six months end) （excl. LN YOUNG） LN Brand LN YOUNG Offline channel Online and offline channels 7,677 7,585 7,609 7,579 7,534 1,438 1,468 1,435 1,518 1,516 Low- Low- Low- single- Low- single- single-
Slide 10: Wholesale business: Deeper discounts weigh on sell-through performance
Wholesale business: Deeper discounts weigh on sell-through performance Business performance Sell-through and revenue change, YoY% Revenue（RMB million） Wholesale Revenue No. of POS (six months end) Wholesale Revenue (excl. sell-in to specialty stores) 4,853 4,891 4,820 4,821 Wholesale Sell-through (e
Slide 11: Direct retail business: Store mix optimization to strengthen channel efficiency
Direct retail business: Store mix optimization to strengthen channel efficiency Business performance Revenue change analysis Revenue（RMB million） No. of POS (six months end) 1,495 1,297 1,278 1,238 1,172 Change YoY 3.4% +154 -169 3,343 3,234 +96 +28 3,380 3,253 3,234 3,343 3,121 2024H1 2024H2 2025H1
Slide 12: GP margin analysis: Margin expansion driven by cost optimization
GP margin analysis: Margin expansion driven by cost optimization 2025H1 Direct retail Wholesale E-commerce 2026H1 reported gross gross gross Others reported GP margin margin margin margin GP margin +0.8p.p. +0.2p.p. +0.2p.p. 50.9% 50.0% -0.3p.p. Gross profit margin: net changes in major items L I N
Slide 13: Profitability analysis: Investing in brand resources to support long-term value creation
Profitability analysis: Investing in brand resources to support long-term value creation (RMB million) Other 2025H1 2026H1 Gross Platform operation income# reported Sales related variable costs Tax reported profit costs & net profit net profit Interests Retail EC Logistics Advertising Other business
Slide 14: Channel inventory: Inventory turnover and ageing structure remained healthy
Channel inventory: Inventory turnover and ageing structure remained healthy Over 12 months Inventory level (tag price) 7-12 months Turnover months (offline, e-commerce and warehouse） 6 months or less (new products) 5% 6% 6% 6% 6% 100% 12% 9% 12% 9% 10% 3.9 4.0 4.0 4.0 4.0 83% 85% 82% 85% 84% 2024 Ju
Slide 15: Company inventory: Healthy inventory level and ageing structure
Company inventory: Healthy inventory level and ageing structure At cost, before provision （RMB million） Over 12 months 7-12 months Change 6 months or less (new products) YoY 10% 5% 5% 100% 6% 8% 7% 2,852 2,870 2,765 19% 14% 15% 14% 18% 2,616 2,457 76% 80% 77% 79% 77% 2024 Jun 2024 Dec 2025 Jun 2025
Slide 16: Trade receivables: At a reasonably healthy level
Trade receivables: At a reasonably healthy level At gross amount, before provision （RMB million） Change YoY flat 90 days or less 91-180 days Over 180 days 3% 3% 2% 2% 2% 1,427 100% 1,394 1,389 1% 2% 3% 5% 12% 1,259 1,046 96% 93% 96% 95% 85% 2024 Jun 2024 Dec 2025 Jun 2025 Dec 2026 Jun 2024 Jun 2024
Slide 17: Working capital efficiency: Remained a healthy level
Working capital efficiency: Remained a healthy level Inventory^ Trade receivables^ Payables Working capital~ Working capital~ as % of revenue* （RMB million） 4,000 3,000 2,282 2,368 2,046 2,134 2,162 2,000 7.1% 7.3% 7.7% 7.8% 7.4% 1,000 0 -1,000 -2,000 2024 Jun 2024 Dec 2025 Jun 2025 Dec 2026 Jun ~ S
Slide 18: Balance sheet summary: Strong cash position with sustained dividend payout
Balance sheet summary: Strong cash position with sustained dividend payout Net cash position^ （RMB million） 19,191 19,974 19,391 17,581 18,164 2024 Jun 2024 Dec 2025 Jun 2025 Dec 2026 Jun Cash conversion cycle (days) 31 35 31 37 35 Net operating cash inflow 2,730 5,268# 2,411 4,852# 954 Dividends 97
Slide 19: Strategic Direction
STRATEGIC DIRECTION
Slide 20: Leveraging policy dividends to drive LI-NING's experience value
Leveraging policy dividends to drive LI-NING's experience value 1 Shopping Advancement of national experience fitness policies Ongoing policy implementation continues to strengthen sports participation, providing long- term support for sports equipment demand. 2 LI-NING’s New dividends from consumpt
Slide 21: Advancing "single brand, multi-categories, diversified channels" strategy
Advancing “single brand, multi-categories, diversified channels” strategy Diversified Multi-categories channels sports & fashion LI-NING 1990 China LI-NING Loong Store LI-NING outdoor Super LI-NING Outlets YOUNG Omni-category flagship stores Table Sports Basketball Running Training Badminton Outdoor
Slide 22: Retail sell through mix
Leveraging expertise to expand into sub-segments and drive growth Retail sell-through* - Total YoY change （2026H1） value 2% Running 32% 3% Training Retail sell 16% 5% Basketball through mix 15% 13% Sports casual 27% Flat Others（including outdoor） 10% *Including online and offline L I N I N G 2 0 2 6
Slide 23: Running — Leading among the Top 100, steadily pressing to the front
Running — Leading among the Top 100, steadily pressing to the front Breaking speed records, BOOM ARC integration for stable reinforcing future leadership cushioning and forward momentum After 15 years of dedicated R&D, with 9 rounds of upgrades, LI-NING introduces the newly evolved LI-NING ARC PRO c
Slide 24: Basketball — Multi-dimensional strategy for continued growth
Basketball — Multi-dimensional strategy for continued growth • Entered into a long-term partnership with US basketball player Stephen Curry and • Further strengthening LI-NING’s professional Curry Brand. Building on brand co-creation, the partnership will jointly explore more basketball credentials,
Slide 25: Training — Powered by aerospace technology, precisely adapted to diversified scenarios
Training — Powered by aerospace technology, precisely adapted to diversified scenarios • Men’s Training builds a professional, athletic, and premium product identity, driven by functional technologies to enhance the user experience and strengthen market share. • The new “Versa Flow” IP features a “d
Slide 26: Sports casual — Expanding women's business, unlocking cultural potential
Sports casual — Expanding women’s business, unlocking cultural potential Bai Lu x Feeling Girl Rich Everyday series China LI-NING Kung Fu series Building on the existing “Rich Everyday” series, the Centered on the spirit of Chinese martial arts, the With the Feeling retro thin-soled shoes as the cor
Slide 27: Brand marketing — Building a top-tier sports event matrix
Brand marketing — Building a top-tier sports event matrix COC Running Award Ceremony Apparel for the Chinese Sports Delegation at the 2026 Asian Games Wuxi Marathon Hangzhou Marathon Shenzhen Marathon Chinese Delegation Parade Uniform — Milano Cortina 2026 The 6th Asian Beach Winter Olympics Games O
Slide 28: Brand marketing — Forging a world-class athlete roster
Brand marketing — Forging a world-class athlete roster National Teams China Shooting China Diving China Table China Fencing China Water Team Team Tennis Team Team Polo Team Running Basketball Table Tennis Badminton Chen Long Wang Shixian Chiharu Shida Wang Wenjie Mao Jinhu Xia Yuyu Stephen Curry Dwy
Slide 29: Operational Progress
OPERATIONAL PROGRESS
Slide 30: Interim results broadly in line, operating pressure persists
Interim results broadly in line, operating pressure persists E-commerce Revenue in 2026H1 Product Merchandising Channel 15,235 million Business BUSINESS Up 2.8% PERFORMANCE development strategy Kidswear Retail Net profit margin in 2026H1 11.9 operation % Supply chain In line with expectations L I N
Slide 31: Product operations: Efficiency yet to improve
Product operations: Efficiency yet to improve Product efficiency Product inventory Channel Professional Inventory Ageing Product sales inventory to product matrix cost structure sales ratio New product New product Professional Professional Overall Inventory cost Ageing seasonal seasonal product runn
Slide 32: Retail operations: Heightened offline operating pressure
Retail operations: Heightened offline operating pressure Offline retail sell-through Offline footfall Offline retail Average daily sell-through footfall per store increased by declined by low-single-digit Retail KPIs* mid-single-digit Discount rate Average selling price Offline discount rate Average
Slide 33: Channels: Ongoing channel mix adjustment
Channels: Ongoing channel mix adjustment Store performance Sell-through structure Total selling Average single- Average monthly Sell-through contribution Core commercial square footage store selling store productivity of high-tier market# occupancy rate at square footage at Unchanged 238 sq.m. RMB 2
Slide 34: E-commerce: Operating metrics largely in line with expectations
E-commerce: Operating metrics largely in line with expectations Retail sell-through Online traffic Online direct retail sell-through Online traffic increased by increased by mid-single-digit E-commerce 12% KPIs Conversion rate Retail discount Conversion rate Average discount remained flat deepened b
Slide 35: Kidswear business: Overall in line, with continued improvement in operating efficiency
Kidswear business: Overall in line, with continued improvement in operating efficiency Retail Channel efficiency efficiency Retail sell-through* No. of stores increased by mid-teens 1,516 Offline discount rate Average monthly store productivity at improve by 0.6 p.p. RMB 160,000 Average selling pric
Slide 36: Appendix
APPENDIX
Slide 37: Appendix 1 — Summary of income statement and balance sheet
Appendix 1 — Summary of income statement and balance sheet 2026 2025 Better/ 30 Jun 31 Dec Better/ （RMB million） （RMB million） Six months ended 30 June (Worse) 2026 2025 (Worse) Revenue 15,235 14,817 2.8% Cash and Cash Equivalents 13,003 16,717 (22.2%) Gross Profit 7,751 7,415 4.5% Time Deposits 6,3
Slide 38: Appendix 2 — Profit margins and key operating indicators
Appendix 2 — Profit margins and key operating indicators 2026 2025 Better/ 2026 2025 Better/ （RMB million） Six months ended 30 June (Worse) Six months ended 30 June (Worse) Gross Profit Margin 50.9% 50.0% 0.9p.p. Inventory Turnover (Days) 65 61 (4) Trade Receivables Turnover Operating Profit Margin