Li Ning Company Limited · HKEX:2331
Li Ning — H1 2025 Earnings Presentation
37 slides from Li Ning's earnings presentation, August 2025
Slide 1: 2025 Interim Results
Chinese Table Tennis Team L I N I N G C O M PA N Y L I M I T E D 2025 INTERIM RESULTS (Incorporated in the Cayman Islands with limited liability) Stock Codes: 2331 (HKD counter) and 82331 (RMB counter) Chinese Diving Team Chinese Shooting Team
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 2025 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: 2025 interim results highlights: consolidated the foundation to achieve pragmatic growth
2025 interim results highlights: consolidated the foundation to achieve pragmatic growth Financial highlights (in RMB) Operational highlights Revenue Gross margin Overall channels retail sell-through3 14,817million 50.0% Increased by Increased by 3.3% YoY Decreased by 0.4 p.p. YoY low-single-digit Y
Slide 6: Financial Review
FINANCIAL REVIEW
Slide 7: Revenue: professional products propelled growth momentum
Revenue: professional products propelled growth momentum Footwear Apparel Equipment & Accessories Change YoY 3.3% (RMB million) 14,817 14,019 14,345 14,331 13,579 1,393 864 1,126 1,199 935 5,375 5,193 5,640 6,675 6,770 7,844 8,231 7,515 5,874 6,457 2023H1 2023H2 2024H1 2024H2 2025H1 Revenue: group t
Slide 8: Revenue and sell-through mix: online consistently outperformed offline
Revenue and sell-through mix：online consistently outperformed offline Channel revenue mix Sell-through mix（incl. retail and wholesale） E-commerce Retail Wholesale Old product New product (current and last season) 100% 100% 48% 43% 45% 44% 46% 87% 87% 87% 84% 84% 26% 25% 24% 23% 25% 27% 31% 30% 32% 3
Slide 9: Online and offline: integrated and optimized store network
Online and offline：integrated and optimized store network to ensure robust retail-end operation POS number (six months end) Sell-through growth，YoY%（excl. LN YOUNG） LN Brand LN YOUNG Offline channel Online and offline channels 7,448 7,668 7,677 7,585 7,534 1,281 1,428 1,438 1,468 1,435 6,167 6,240 6
Slide 10: Wholesale business: rationally adjusted the pace of shipments
Wholesale business：rationally adjusted the pace of shipments to ensure healthy retail channels 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) 4,820 4,821 Sell-through
Slide 11: Direct retail business: optimized store structure
Direct retail business：optimized store structure to enhance retail operational efficiency Business performance Revenue change analysis Revenue (RMB million) No. of POS (six months end) 1,423 1,498 1,495 1,297 1,278 Change YoY -4% 3,380 -55 +145 -232 -4 3,234 3,309 3,384 3,380 3,253 3,234 2023H1 2023
Slide 12: GP margin analysis: margin compression driven by deeper discounts
GP margin analysis：margin compression driven by deeper discounts and channel mix shifts 2024 H1 Direct retail 2025 H1 Channel reported gross Others reported mix GP margin margin GP margin 50.4% -0.2p.p. -0.1p.p. -0.1p.p. 50.0% Gross profit margin: net changes in major items L I N I N G 2 0 2 5 I N T
Slide 13: Profitability analysis: focused on core resource investment
Profitability analysis：focused on core resource investment to drive long-term returns (RMB million) Other 2024 H1 2025 H1 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: turnover and aging structure remained healthy
Channel inventory: inventory turnover and aging structure remained healthy Inventory level (tag price) Over 12 months 7-12 months Turnover months (offline, e-commerce and warehouse） 6 months or less (new products) 3% 4% 5% 6% 6% 100% 10% 9% 4.0 12% 9% 12% 3.8 3.6 3.9 4.0 87% 87% 83% 85% 82% 2023 Jun
Slide 15: Company inventory: healthy inventory level and aging structure
Company inventory：healthy inventory level and aging structure At cost, before provision（RMB million） Over 12 months 7-12 months Change YoY 6% 6 months or less (new products) 6% 5% 6% 100% 7% 8% 2,765 14% 14% 2,628 2,616 19% 15% 2,457 22% 2,263 80% 76% 80% 77% 71% 2023 Jun 2023 Dec 2024 Jun 2024 Dec
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 11% 90 days or less 91-180 days Over 180 days 1% 3% 3% 2% 1,394 100% 9% 1% 5% 1,342 13% 12% 1,259 7% 1,244 1,046 96% 93% 84% 86% 85% 2023 Jun 2023 Dec 2024 Jun 2024 Dec 2025 Jun 2023 Jun 2023 De
Slide 17: Working capital efficiency
Working capital efficiency：robust efficiency drove sustainable business development Payables Trade receivables^ Inventory^ Working capital~ Working capital~ as % of revenue* （RMB million） 4000 3000 2,100 2,109 2,046 2,134 2,162 2000 8% 8% 7% 7% 7% 1000 0 -1000 -2000 2023H1 2023H2 2024H1 2024H2 2025H
Slide 18: Balance sheet summary: healthy operating cash flow
Balance sheet summary: healthy operating cash flow Net cash position^（RMB million） 19,225 18,164 19,191 17,976 17,581 2023 Jun 2023 Dec 2024 Jun 2024 Dec 2025 Jun Cash conversion cycle (days) 30 35 31 35 31 Net operating cash inflow 1,942 4,688# 2,730 5,268# 2,411 Dividends 955 1,434* 976 1,506* 869
Slide 19: Strategic Direction
STRATEGIC DIRECTION
Slide 20: Leveraging industry growth and opportunities to drive experience value
Leveraging industry growth and opportunities to drive LI-NING’s experience value Product experience LI-NING’s Shopping Sports experience experience experience value Nationwide sports enthusiasm and Partnerships with the Chinese supportive policies are unlocking Rising demand for sports products is O
Slide 21: Single brand, multi-categories, diversified channels strategy
Continuing to drive “single brand, multi-categories, diversified channels” strategy Multi- categories Sports & Fashion Diversified channels Basketball Pickleball Running Tennis Training Outdoor Badminton Sports Table casual tennis Omni-category Single category flagship stores LI-NING 1990 China LI-N
Slide 22: Leveraging expertise to expand into sub-segments
Leveraging expertise to expand into sub-segments and drive business growth Retail sell-through* - YoY change （2025H1） Total value 2% Running 34% 15% Training Retail sell- 16% 15% through mix Basketball 17% 20% Sports casual 29% 7% Others (including outdoor） 4% *Including online and offline L I N I N
Slide 23: Running – breakthroughs beyond every step
Running – breakthroughs beyond every step Product Performance Brand Strength Leaps Ahead Professional Recognition Rouge Rabbit 8 Pro Yue Ying 5 Pro In 1H25, total During the period, Through event partnership, Upgraded full-length Equipped with Super BOOM professional running LI-NING provided a signa
Slide 24: Basketball – nurturing rising stars and leading the future
Basketball – nurturing rising stars and leading the future with expertise • At the 2025 NBA Draft, LI-NING’s signed Chinese player Yang Hansen was selected 16th overall in the first round by the Portland Trail Blazers, becoming the third Chinese player ever chosen by NBA in the first round. • Starti
Slide 25: Training – empowered by aerospace technology
Training – empowered by aerospace technology, elevating sports comfort to new dimensions Air-Cooling Advanced moisture-wicking and cooling fabric technology delivers a Clothing fresher, cooler, and more comfortable wearing experience for consumers. Jointly established the Aerospace Technology Innova
Slide 26: Sports casual – partnering with global IPs
Sports casual – partnering with global IPs and drawing on cultural inspiration to create innovative products Disney Pixar Enriching Women's Integration of Chinese Collaboration Series Product Matrix Culture and Brand Inspired by iconic characters of Toy Story, Capturing spring/summer vibes with spor
Slide 27: Brand marketing – aerospace technology and China's sports industry
Brand marketing – enhancing product functionality with aerospace technology and supporting the development of China's sports industry LI-NING and the Chinese Olympic LI-NING and the China National Space Committee held a signing ceremony at Administration News Center jointly the General Administratio
Slide 28: Operational Progress
OPERATIONAL PROGRESS
Slide 29: Steady operations with a solid foundation
Steady operations with a solid foundation E-commerce Channel 2025H1 Product Revenue Business merchandising 14,817 million Development BUSINESS Grew by 3.3% YoY Strategy PERFORMANCE Net profit margin Kidswear 11.7% Aligned with expectation Retail operation Supply Chain L I N I N G 2 0 2 5 I N T E R I
Slide 30: Product operations: professional products drive business growth
Product operations: professional products drive business growth, with healthy inventory levels and turnover efficiency Product Product operations inventory Channel Product Professional Inventory Aging Product Sale inventory to structure product matrix cost structure sales ratio Product Product New p
Slide 31: Retail operations: offline business showing signs of stabilization
Retail operations: offline business showing signs of stabilization Retail KPIs* Offline retail Average Offline footfall Discount rate sell-through selling price Offline retail Average daily Offline discount Average selling sell-through footfall per store rate price declined recorded declined by deep
Slide 32: Channels: continuous structural optimization
Channels: continuous structural optimization and focus on key channels 9th generation Store performance Sell-through structure Big store* penetration stores upgrade Total selling square footage Sell-through contribution The number of 9th Number of big stores unchanged of high-tier market# generation
Slide 33: E-commerce: operating indicators in line with expectations
E-commerce: operating indicators in line with expectations E-commerce Retail sell- Inventory Online traffic Conversion rate Retail discount through turnover Online direct retail Online traffic Conversion rate Average discount Inventory sell-through increased by stayed flat deepened by turnover days
Slide 34: Kidswear business: positive momentum
Kidswear business: positive momentum with stable and well-managed operating metrics Retail efficiency Channel efficiency Retail sell-through* increased No. of stores totalled by low-teens 1,435 Unit per transaction remained flat Average monthly store productivity at Average selling price RMB 140,000
Slide 35: Appendix
G APPENDIX _
Slide 36: Appendix 1 — summary of income statement and balance sheet
Appendix 1 — summary of income statement and balance sheet 2025 2024 Better/ （RMB million） 30 Jun 31 Dec Better/ Six months ended 30 June（Worse） （RMB million） 2025 2024 （Worse） Revenue 14,817 14,345 3.3% Cash and Cash Equivalents 11,798 7,499 57.3% Gross Profit 7,415 7,236 2.5% Distribution costs (4
Slide 37: Appendix 2 — profit margins and key operating indicators
Appendix 2 — profit margins and key operating indicators 2025 2024 Better/ 2025 2024 Better/ （RMB million） （RMB million） Six months ended 30 June（Worse） Six months ended 30 June（Worse） Gross Profit Margin 50.0% 50.4% (0.4p.p.) Inventory Turnover (Days) 61 62 1 Operating Profit Margin 16.5% 16.7% (0.