Li Ning Company Limited · HKEX:2331
Li Ning — FY2024 Earnings Presentation
38 slides from Li Ning's earnings presentation, March 2025
Slide 1: Annual Results
ANNUAL RESULTS LI NING COMPANY LIMITED 李 寜 有 限 公 司 (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 annual results announcement (the “Results Announcement”) for the year ended 31 December 2024 of Li Ning Company Limited (the “Company”). This presentation should be read in conjunction with the Results Announcement and is qualifi
Slide 3: Table of Contents
TABLE OF CONTENTS: RESULTS HIGHLIGHTS 01 FINANCIAL REVIEW 02 STRATEGIC DIRECTION 03 OPERATIONAL PROGRESS 04 L I N I N G 2 0 2 4 A N N U A L R E S U L T S APPENDIX 05
Slide 4: Results Highlights
RESULTS HIGHLIGHTS LI NING 2024 ANNUAL RESULTS
Slide 5: 2024 annual results highlights: strong foundations, steady growth
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 5 2024 annual results highlights: strong foundations, steady growth Financial highlights (in RMB) Operational highlights Revenue Gross margin Omni-channel retail sell-through3 28,676 ↑3.9% 49.4% Improved by 1.0 p.p. YoY Flat YoY million Net profit1
Slide 6: Financial Review
FINANCIAL REVIEW LI NING 2024 ANNUAL RESULTS
Slide 7: Revenue: product expertise driving business growth
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page Page 77 Revenue：product expertise driving business growth Footwear Apparel Equipment & Accessories (RMB million) YoY +3.9% 28,676 27,598 25,803 2,325 1,799 1,616 22,572 1,242 12,410 12,050 10,708 14,457 11,824 754 7,365 13,479 13,389 14,301 9,506 6,
Slide 8: Revenue and sell-through mix
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 8 Revenue and sell-through mix：balanced channel revenue and healthy new product mix to mitigate risk Channel revenue mix Sell-through mix (incl. direct retail and wholesale） E-commerce Direct retail Wholesale Old product New product (current and las
Slide 9: Online and offline: optimizing store strategy to stabilize sales
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 9 Online and offline：optimizing store strategy to stabilize sales No. of POS (year end) Sell-through growth, YoY%（excl. LN YOUNG） LN Brand LN Young Offline channel Online（E-commerce) and offline channels 7,603 7,668 7,585 6,933 7,137 1,308 1,428 1,4
Slide 10: Wholesale business: rationally planning shipment flows
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 10 Wholesale business：rationally planning shipment flows for healthy channel growth Wholesale performance (RMB million) Sell-through and revenue, YoY% Wholesale revenue Revenue No. of POS (year end) Wholesale revenue (excl. sell-in to specialty stor
Slide 11: Direct retail business: optimizing store structure
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 11 Direct retail business: optimizing store structure to improve channel efficiency Direct retail performance (RMB million) Revenue change analysis Revenue No. of POS (year end) 1,430 1,498 1,149 1,165 1,297 +514 -545 6,693 -125 +96 6,633 ↑ ↑ ↑ ↑ Yo
Slide 12: GP margin analysis
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 12 GP margin analysis：gross margin improved through enhanced discount and channel mix optimization 2023 E-commerce Direct retail Channel 2024 reported gross gross mix Others reported GP margin margin margin GP margin +0.8p.p. +0.2p.p. +0.1p.p. -0.1p
Slide 13: Profitability analysis: strategic expense management
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 13 Profitability analysis: strategic expense management, enhanced risk management (RMB million) 2023 Other 2024 Gross Platform operation reported Sales related variable costs income# Tax reported profit costs net profit & Interests net profit Direct
Slide 14: Channel inventory: turnover and aging structure healthy
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 14 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) Turnover months (offline sotres)
Slide 15: Company inventory: healthy inventory level and aging structure
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 15 Company inventory：healthy inventory level and aging structure At cost, before provision Over 12 months （RMB million） 7-12 months 6 months or less (new products) YoY +5% 6% 5% 6% 6% 100% 2,765 13% 2,628 2,549 12% 15% 14% 14% 15% 1,866 1,459 82% 80
Slide 16: Trade receivables: at a reasonably healthy level
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 16 Trade receivables：at a reasonably healthy level At gross amount, before provision （RMB million） 90 days or less 91-180 days Over 180 days YoY -16% 1,244 1% 3% 100% 10% 1% 1,173 15% 13% 24% 6% 2% 1,111 4% 1,046 939 96% 83% 84% 86% 72% 2020 Dec 202
Slide 17: Working capital efficiency
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 17 Working capital efficiency: healthy operational capital efficiency drives long-term sustainable growth Payables^ Receivables^ （RMB million） Inventory^ Working capital Working cpaital~ as % of revenue 4000 3000 2,109 2,134 1,758 2000 1,154 1,275 8
Slide 18: Balance sheet summary: healthy operating cash flow
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 18 Balance sheet summary: healthy operating cash flow 18,482 19,050 17,976 18,164 Net cash position^ （RMB million） 7,443 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024 Dec Cash conversion cycle (days) 20 20 30 35 35 Net operating cash inflow 2,763 6,525 3
Slide 19: Strategic Direction
STRATEGIC DIRECTION LI NING 2024 ANNUAL RESULTS
Slide 20: Leveraging partnership with the Chinese Olympic Committee
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 20 Leveraging partnership with the Chinese Olympic Committee (“COC”) to fully elevate LI-NING’s experience value The national policies to build a strong sports nation and deepen reforms present major opportunities for sports products Product experie
Slide 21: Omni-category flagship stores
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 21 Deepening execution of “single brand, multi-categories, diversified channels” strategy LI-NING 1990 Omni-category flagship stores Diversified channels China LI-NING LI-NING YOUNG Premium outlets Single category 在線商城 stores Running Badminton Sport
Slide 22: Focusing on core categories and enhancing technology
L I N I N G 2 0 2 4 A N NNNU U AA LL R EE SS U R U LL T S Page Page 22 22 Focusing on core categories and enhance technology to strengthen market share Retail sell-through* - YoY change (2024） Retail sell-through mix 33% Total value Flat Running 25% 3% 21% Basketball 21% Fitness 6% 28% 15% Sports ca
Slide 23: Running - tech-driven innovation
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page Page 23 23 Running - tech-driven innovation, redefining limits, sustaining BOOM momentum Continuous growth in professionalism u In 2024, the three core series - Super Light, Rouge Rabbit, and Feidian - achieved total sales of over 10.6 million pairs
Slide 24: Basketball - driving professionalism and innovation
L I N I N G 2 0 2 4 A N NNNU U AA LL R EE SS U R U LL T S Page Page 24 24 Basketball - driving professionalism and innovation to lead the industry u Enhanced our professional product lineup with cutting-edge technologies such as Carbon Core and GCU. This lineup includes Yushuai ULTRA, Gamma, and Jim
Slide 25: Fitness - focusing on functionality
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 25 Fitness - focusing on functionality, expanding applications, and enhancing identity u With functional protection technology as the core, the brand delivered multi-scenario fitness solutions, meeting diverse athlete needs and enhancing the competi
Slide 26: Sports casual - combining sporting essence with culture
L I N I N G 2 0 2 4 A N NNNU U AA LL R EE SS U R U LL T S Page Page 26 26 Sports casual - combining sporting essence with cultural inspiration to drive innovation Continuously strengthening women's product With a focus on building brand IPs, women's casual shoes such as Cat Paw, Honey, and multiple
Slide 27: Outdoor - crafting a fashionable outdoor lifestyle
L I N I N G 2 0 2 4 A N NNNU U AA LL R EE SS U R U LL T S Page Page 27 27 Outdoor - navigating between urban life and the wilderness to craft a fashionable outdoor lifestyle u In the first half of the year, we partnered with the Chinese Academy of Sciences to develop 'dual-vent nanotechnology for ra
Slide 28: Brand marketing - infusing brand DNA with sports spirit
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page Page 28 28 Brand marketing - infusing brand DNA with the sports spirit, to support the development of Chinese sports Shooting Table Tennis Diving A diversified approach to integrating professional event resources and LI-NING is the official sportswe
Slide 29: Operational Progress
OPERATIONAL PROGRESS LI NING 2024 ANNUAL RESULTS
Slide 30: Stable business performance with results in line with expectation
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 30 Stable business performance with the results in line with expectation In 2024 u Revenue grew by 3.9% YoY to 2,867.6 million BUSINESS u Gross profit margin PERFORMANCE Business Development Strategy improved by 1.0p.p YoY to 49.4% u Net profit marg
Slide 31: Product operations: sustained footwear performance
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 31 31 Product operations：sustained footwear performance, healthy inventory management, efficient turnover Product operations Product inventory Professional Channel inventory Inventory Aging Product structure product matrix to sales ratio cost struct
Slide 32: Retail operations: offline operations faced challenges
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 32 Retail operations：offline operations faced challenges Retail KPIs* Offline retail Average Offline footfall Conversion rate Discount rate sell-through selling price Offline retail Average daily Overall Offline Average selling sell-through footfall
Slide 33: Channels: structural optimization and emerging markets
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 33 Channels：structural optimization & accelerated expansion in emerging markets Store Sell-through Big store* 9th generation performance structure penetration stores upgrade Total selling square Core commercial Number of big stores The number of 9th
Slide 34: E-commerce: improved business environment
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 34 34 E-commerce：Improved business environment with all key metrics meeting expectations E-commerce Retail sell- Retail Inventory Online Conversion through discount turnover traffic rate Online direct retail Average discount Inventory turnover Onlin
Slide 35: Kidswear business: operating indicators remained stable
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 35 Kidswear business：overall operating indicators remained stable Retail efficiency u Retail sell-through* increased by low-single-digit u Unit per transaction remained flat u Average selling price increased by low-single-digit Channel efficiency u
Slide 36: Appendix
A PPE N DIX LI NING 2024 ANNUAL RESULTS
Slide 37: Summary of income statement and balance sheet
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 37 Appendix 1 — summary of income statement and balance sheet 2024 2023 Better/ 2024 2023 Better/ (RMB million) (RMB million) Year ended 31 December (Worse) Year ended 31 December (Worse) Revenue 28,676 27,598 3.9% Cash and Cash 7,499 5,444 37.7% Eq
Slide 38: Profit margins and key operating indicators
L I N I N G 2 0 2 4 A N N U A L R E S U L T S Page 38 Appendix 2 — profit margins and key operating indicators 2024 2023 Better/ 2024 2023 Better/ Year ended 31 December (Worse) Year ended 31 December (Worse) Gross Profit Margin 49.4% 48.4% 1.0p.p Inventory Turnover 64 63 (1) (Days) Operating Profit