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Li-Ning

Li-Ning Company Limited is a Chinese sportswear and sports equipment company founded in 1990 by Li Ning, a retired artistic gymnast who earned six Olympic medals, including three golds, at the 1984 Summer Olympics in Los Angeles—the first Games in which the People's Republic of China competed. The company, initially established in Sanshui County, Guangdong Province, began mass production of athletic apparel under the Li-Ning trademark and expanded into footwear with products like the "001" sneaker in 1991, aiming to foster a sports culture in China drawing from its founder's experience. Headquartered in Beijing and listed on the Hong Kong Stock Exchange since 2004 (stock code: 2331), Li-Ning has become a prominent domestic brand, sponsoring events such as the 2008 Beijing Olympics and partnering with athletes including NBA players Dwyane Wade and Damon Jones, while debuting at New York Fashion Week in 2018 as the first Chinese sportswear label to do so. Notable innovations include the "Li-Ning Boom" cushioning technology introduced in 2019 for enhanced performance in running shoes, contributing to achievements like podium finishes in international marathons. Amid intense competition from international giants like Nike and Adidas as well as domestic rivals such as Anta, the company has faced profitability pressures, with an 11% interim profit dip reported in 2025, and supply chain scrutiny, including U.S. customs detentions of products in 2022 over alleged North Korean forced labor links—which Li-Ning denied finding in its audits.

Overview

Founding and Founder

Li Ning, a retired Chinese gymnast born on September 8, 1963, founded Li-Ning Company Limited after achieving international acclaim in sports. During the in , he secured three gold medals in floor exercise, , and rings, along with two silver medals and one bronze, earning distinction as the Games' most decorated athlete. Li retired from competitive in 1988, leveraging his celebrity status to enter business. In 1990, Li established the company in Sanshui County, Guangdong Province, initially focused on producing and equipment tailored for Chinese athletes to foster a domestic alternative to imported . The "Li-Ning" was officially registered in April of that year, enabling the start of and . This venture capitalized on Li's firsthand experience with athletic needs, positioning the brand as a patriotic symbol in China's burgeoning sports goods market amid economic reforms.

Corporate Governance and Leadership

Li Ning serves as the Executive Chairman, Joint , and an of Li Ning Company Limited, a role he has held since September , following his tenure as founder since the company's inception in 1989. As a former gymnast who won six medals including three golds at the , Li oversees strategic direction and chairs the Nomination Committee. He shares the CEO responsibilities with Kosaka Takeshi, who joined in as Joint and , focusing on operational execution with prior experience as CEO of and extensive work in the market. The board of directors comprises seven members: three executive directors—Li , Kosaka Takeshi, and Li Qilin (Li Ning's nephew, appointed in an unspecified recent capacity with background)—and four independent non-executive directors, including Koo Fook Sun Louis, Wang Ya Fei, Chan Chung Bun, and Wang Yajuan, providing oversight on , , and . The board emphasizes in gender, age, and expertise, maintaining a balanced composition to support decision-making on policies, investments, and internal controls. Corporate governance is structured around board-level committees, including the Nomination Committee (chaired by Li Ning, responsible for board composition and succession), the Audit Committee (overseeing financial reporting, risk management via the COSO framework, and internal audits), and the Remuneration Committee (establishing executive pay policies, updated in June 2024). The company, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange (stock codes 2331 and 82331), adheres to the Hong Kong Listing Rules' Corporate Governance Code (Appendix C1), with the exception of not separating the Chairman and CEO roles—both held by Li Ning—deemed appropriate for leadership continuity without identified material weaknesses. Annual board evaluations confirm directors devote sufficient time to company affairs, supported by training and external auditors.

Historical Development

Inception and Early Expansion (1989–2000)

Li Ning, a retired Olympic gymnast renowned for securing six medals—including three golds—at the 1984 Games, established Li-Ning Company Limited in April 1990 in Sanshui County, Province, . The venture began with the registration of the "Li-Ning" and immediate of sporting apparel, capitalizing on Ning's national fame as the "Prince of " to position the brand as a domestic alternative to imported sportswear. Within months of inception, the company secured sponsorship rights for the 11th held in , providing official uniforms that enhanced its visibility and credibility in the nascent Chinese sports market. In 1991, Li-Ning expanded its product line beyond apparel by launching the "" sneaker model, marking its entry into the athletic footwear sector and broadening its appeal to consumers seeking affordable, locally produced gear. This move aligned with the company's strategy to develop a full range of , leveraging Guangdong's manufacturing base for cost-effective production. Early growth focused on domestic distribution through partnerships with sports organizations, as the brand filled a gap in China's market dominated by foreign brands like and . By the mid-1990s, Li-Ning solidified its role as a key supporter of athletics, serving as the official awards ceremony apparel and footwear provider for the delegation at the Barcelona Olympics and the 1996 Atlanta Olympics. These endorsements drove brand recognition and sales expansion across , with the company emphasizing quality improvements and national pride in its offerings. Culminating the decade, Li-Ning became the exclusive provider for the team at the 2000 Sydney Olympics, where its "Loong Uniform" and "Butterfly Shoes" received accolades as the best award ceremony kit, further entrenching its position as 's leading homegrown firm.

Growth and International Push (2001–2009)

During the early 2000s, Li-Ning experienced accelerated domestic expansion in , driven by increasing consumer demand for amid rising participation in and activities. The company opened an average of 721 stores annually throughout the decade, focusing on and footwear and apparel, which helped solidify its position as a leading national brand competing with international giants like and . By 2007, Li-Ning operated 4,297 outlets across , comprising both directly owned and franchised stores. This store network growth was supported by revenue increases, with annual turnover reaching RMB 1,878.1 million in 2004, a 47.2% rise from 2003, fueled by 44% growth in apparel sales. A pivotal milestone came with Li-Ning's on the on June 28, 2004, which raised up to HK$550 million (approximately $70.5 million) at an offer price of HK$2.15 per share, at the high end of the indicative range. The IPO proceeds funded further manufacturing upgrades, , and initiatives, contributing to sustained : from approximately $0.40 billion in 2006 to US$0.59 billion in 2007 (46.3% increase), US$0.98 billion in 2008 (64.7% increase), and US$1.22 billion in 2009 (25.1% increase). Between 2001 and 2005, overall grew at a compound annual rate of 35.1%, with net profit expanding at 39.3% annually, reflecting efficient scaling and . International efforts during this period remained nascent, primarily leveraging the 2004 IPO capital to explore overseas opportunities while prioritizing domestic consolidation. In the late 2000s, Li-Ning initiated targeted expansions in , opening its first flagship store outside in in July 2009 as a strategic foothold. The company announced plans to establish 70 to 100 stores in , , , and by the end of 2009, capitalizing on the region's enthusiasm for by stocking specialized equipment and apparel. Additionally, Li-Ning signaled ambitions , planning its inaugural outlet there for 2010 to test Western market viability, though substantive operations were limited prior to this. These moves built on earlier brand strategies outlined around 2000, including joint with NBA tours in to enhance global visibility, but overseas revenue remained marginal compared to domestic sales.

Rebranding Crisis and Recovery (2010–2015)

In 2010, Li-Ning initiated a major rebranding effort to reposition itself as a premium brand competing directly with and , introducing a new logo inspired by a running silhouette and replacing its longstanding "Anything is Possible" with "Make the Change." This , launched with significant marketing expenditure including television advertisements targeting younger consumers, aimed to shift away from the brand's association with affordable gear and founder Li Ning's Olympic legacy toward a more fashionable, urban image. The rebranding, however, alienated Li-Ning's core customer base of price-sensitive, middle-aged consumers who valued its nationalistic and accessible identity, leading to confusion over the brand's direction and a sharp decline in sales. Revenue, which had reached 9.479 billion RMB in , fell to approximately 6.739 billion RMB in 2011 amid inventory buildup and weakening demand. in China's sector dropped from 8% in to 5.4% by 2012, while net profit plunged, with first-half 2012 earnings declining 84.9% to 64.3 million RMB on sales of 3.88 billion RMB. The company recorded a full-year net loss in 2012, exacerbated by overexpansion into franchises and unprofitable outlets, prompting a price drop of over 80% from 2010 peaks. Facing the crisis, Li-Ning announced a three-stage, four-year turnaround plan in July 2012, beginning with the resignation of long-serving CEO Zhang Zhiyong, who had overseen the rebranding, and the founder's temporary assumption of the role. TPG Capital provided strategic support and appointed Jin-Goon as CEO in late 2012, shifting focus to core and running categories while divesting non-essential segments. Key actions included aggressive inventory clearance via buybacks costing up to 1.8 billion RMB, closure of 1,821 underperforming stores in 2012 (reducing total outlets from over 8,000 to 6,434), and further cuts to 5,915 by year-end 2013, alongside trimming distributor networks. The company also ended its 23-year sponsorship of the Chinese national team in December 2013 to redirect resources toward higher-growth areas like . These measures yielded initial recovery signs by 2013–2015, with 2013 revenue at 5.82 billion RMB (down 12.8% year-over-year but stabilized through cost controls) and gross margins improving to 45.5% from inventory reductions. Net losses narrowed in 2013 due to restructuring efficiencies, though the firm still reported a 781 million RMB loss in 2014 amid ongoing store optimizations. By early 2015, founder Li Ning reassumed CEO duties to accelerate refocusing on professional sports positioning, setting the stage for later growth while avoiding full reversal of the premium aspirations.

Modern Era and Competitive Revival (2016–Present)

In 2016, Li-Ning intensified its revival efforts through the "Internet+" initiative, integrating smart hardware, fitness tracking, and training platforms to modernize consumer engagement in and . The company launched the Li-Ning 10K Online League that year, fostering virtual running communities and data-driven fitness experiences to rebuild among younger demographics. This digital pivot complemented a broader strategy emphasizing Chinese cultural motifs in , aligning with rising domestic and the guochao trend, which propelled stock gains exceeding 45% in early 2021 amid renewed investor confidence. Revenue reflected this momentum, rising 13% to 8.015 billion CNY in 2016 from the prior year, with operating income compounding at 15.32% annually to reach 14.457 billion CNY by 2020. Competitive positioning strengthened via targeted sponsorships and product innovations, particularly in and . Li-Ning secured a five-year deal with the (CBA) to supply kits, enhancing visibility in domestic leagues, while signing NBA player in 2020 to endorse basketball footwear lines like Speed and Shining series. Internationally, endorsements expanded with athletes such as Egor Dëmin in October 2025 under the Way of Wade roster, and earlier pacts like the 2016 sponsorship of Vietnam's Athletics Federation. By 2021, Li-Ning held an 8.2% share of China's market, ranking fourth behind , , and Anta, bolstered by co-branding and expanded categories beyond core athletics. Financial growth moderated in recent years amid intensifying ; first-half 2025 revenue increased 3.3% to 14.817 billion CNY, but net profit fell 11% to 1.74 billion CNY due to margin pressures and market saturation. The company pursued global expansion with a purpose-driven identity, adapting domestic success in cultural resonance for international markets while maintaining focus on diversified sales channels and emerging segments. Trailing-year stood at approximately 3.92 billion USD as of October 2025, underscoring sustained scale despite headwinds.

Products and Innovation

Core Product Categories

Li-Ning's core product categories encompass apparel, performance , , and accessories, aligned with its of focusing on and segments in key sports. The company prioritizes five primary areas—running, , , , and sports casual—while expanding into , , and broader offerings to cater to diverse athletic needs. This multi-category approach under a single supports diversified channels, including and online distribution. Apparel forms the foundation of Li-Ning's offerings, including technical such as jerseys, shorts, pants, hoodies, jackets, and tops designed for moisture-wicking, breathability, and durability in like and running. and casual lines feature versatile items blending performance fabrics with everyday wear, emphasizing lightweight materials and ergonomic fits. Badminton-specific apparel, including shorts and shirts, incorporates anti-sweat technologies tailored for high-movement activities. Footwear represents a key growth area, with performance engineered for specific disciplines; running shoes like the and Yueying series prioritize cushioning and propulsion, while models such as the Wade 808 emphasize anti-slip soles and shock absorption. and training shoes focus on lightweight construction and lateral stability, supporting the brand's emphasis on core sports categories. Casual integrate elements with functional tech, such as the Furious Rider line for urban versatility. Sports Equipment includes specialized gear like badminton rackets (e.g., Axforce series), shuttlecocks, paddles, and balls, often featuring carbon fiber reinforcements for enhanced power and control. This category underscores Li-Ning's heritage in racket sports, with over 60 racket models available as of recent listings. While less emphasized than apparel and , it targets professional and recreational users in Asia-centric sports. Accessories complement core lines with items such as bags, socks, strings, and protective gear, designed for portability and sport-specific utility; for instance, accessories include grip tapes and sets meeting tournament standards. These products reinforce Li-Ning's ecosystem approach, enabling full-kit solutions across categories. Overall, the portfolio reflects a shift toward high-tech, sport-focused since 2016, driving revenue through targeted professional segments.

Technological Advancements and R&D

Li-Ning Company Limited emphasizes research and development (R&D) through its LI NING Technology Innovation Platform, which drives product optimization and technological barriers in core sports categories including running, basketball, training, badminton, and table tennis. In 2025, the company deepened innovations in table tennis footwear and apparel while exploring subcategories such as pickleball, outdoor gear, and women's sports products to integrate technology with full-scenario consumer needs. Globally, Li-Ning holds 373 patents, with 279 granted and 86% active, predominantly in sports footwear, apparel, and accessories developed at its China-based R&D facilities. Key footwear advancements include the Carbon Core-Drive System, a midsole with carbon plate-BOOM structure that increases running by 4.1% and rate by 12% for applications. The SUPER BOOM midsole achieves a under 0.07 g/cm³, elasticity-to-weight ratio exceeding 1200, and 89% energy return. LI-NING JIANG delivers 27% rebound enhancement and 26% shock absorption, improving by 3%. For marathon running, DUAL-STAGE ASSIST CURVES boost economy by 8.4%, while GCU outsoles provide 50% greater slip resistance and fivefold wear resistance. Apparel innovations feature XTRM-BOOM Fiber uppers with 700% strength gain, 4700N toughness, and 240% wear resistance. In 2025, Li-Ning launched China's first sports science laboratory with the Beijing Humanoid Robot Innovation Center to advance testing methodologies. By September 11, 2025, the company initiated trials using Tien Kung robots for evaluations at its research center. On September 8, 2025, Li-Ning and established a joint centre for and research, targeting elite athlete performance, youth musculoskeletal health, and optimized high-performance gear design.

Marketing and Branding Strategies

Evolution of Brand Positioning

Founded in 1989 by Olympic gymnast , the brand initially positioned itself as a provider of high-performance emphasizing functionality and athlete-endorsed quality, drawing directly from the founder's competitive credentials to target serious sports enthusiasts in . This core sports-oriented identity supported early domestic expansion through endorsements and product lines focused on , running, and team sports. By the mid-2000s, amid rapid market growth and international ambitions, Li-Ning refined its positioning to inspire broader aspiration, adopting the slogan "Anything is Possible" in to signal empowerment and limitless potential, aligning with the company's public listing and global outreach efforts. This era emphasized in apparel and while maintaining a performance-driven image, though it began incorporating elements to compete with foreign giants like and in urban markets. A pivotal shift occurred in 2010, when Li-Ning executed a comprehensive to reposition as a trendy, youth-centric , replacing "Anything is Possible" with "Make the Change" and updating its logo to a more dynamic, Western-inspired design following extensive into consumer maturity and competition. The strategy aimed to capture younger demographics by pivoting toward fashion-forward products and urban , but it diluted the brand's sports heritage, alienated loyal customers, and contributed to declining sales and amid intensified rivalry from international and domestic peers. From 2015 onward, Li-Ning reversed course through a recovery-focused repositioning that reaffirmed its roots in while integrating modern and cultural resonance, shifting toward an "Internet + sports" lifestyle provider that blended performance gear with elements like traditional motifs in contemporary designs. This adjustment, informed by prior missteps, emphasized premium quality, R&D-driven tech (e.g., proprietary cushioning systems), and national pride, enabling the brand to differentiate as a high-end domestic alternative rather than a direct imitator of global leaders. By the late and into the , Li-Ning capitalized on China's "guochao" (national tide) trend, positioning itself as a symbol of confident that fuses athletic functionality with cultural storytelling, driving revenue resurgence through targeted digital channels and co-branding. This evolved stance has solidified its status among China's top players, with a focus on mid-to-high-end consumers seeking over imported prestige.

Major Campaigns and Slogans

Li-Ning adopted the slogan "Anything is Possible" (一切皆有可能) in 2002, positioning the brand around themes of ambition, perseverance, and inclusivity to inspire consumers amid its expansion in China. This tagline drew inspiration from global competitors but emphasized a motivational ethos tied to the founder's athletic background, appearing in advertisements across CCTV sports channels by 2004 to leverage patriotic sentiment during major events. In 2010, as part of a comprehensive effort to rejuvenate its image and challenge international rivals like and , Li-Ning unveiled a new and shifted to the slogan "Make the Change" (让改变发生), aiming to convey youth, self-confidence, and transformation for a younger demographic. This campaign included updated marketing visuals and was recognized for its bold attempt to modernize the brand's aging perception, though it faced criticism for echoing Adidas's "" phrasing. By around , following sales challenges, the company reactivated "Anything is Possible" to reaffirm its foundational motivational core after 25 years of operation. More recently, in 2024 ahead of the , Li-Ning launched the "In My Name" campaign, focusing on empowering individuals as protagonists in their personal narratives of achievement and self-expression, aligning with the brand's and lifestyle evolution. This initiative built on prior efforts to integrate fashion-forward elements, such as endorsements and appearances, to broaden appeal beyond traditional athletics.

Role in 2008 Beijing Olympics

Li-Ning sponsored several high-performing Chinese national teams at the 2008 Beijing Olympics, including , , , and , which collectively contributed to 33 of China's 51 gold medals. These sponsorships focused on apparel and equipment for athletes in medal-contending disciplines, enhancing the brand's visibility amid China's dominant performance, where it topped the gold medal tally. Although Li-Ning had provided award ceremony clothing for Chinese athletes since the 1992 Barcelona Olympics, it lost the broader sponsorship of the entire Chinese Olympic delegation to in early 2007 after a 12-year run, with Adidas securing the deal for an undisclosed sum. In 2008, Li-Ning extended its reach by outfitting four specific national teams for competition and ceremonies, leveraging these partnerships to promote its products during the Games. The company's founder, , further amplified the brand's association by lighting the cauldron on August 8, 2008, during the , running 500 meters on a harnessed track while appearing to levitate. This symbolic role, drawing on his status as a former gymnast with six medals from , generated significant media exposure for Li-Ning, though it drew accusations of from competitors, as the firm had not paid for official IOC sponsorship rights. The exposure contributed to a post-Games stock surge of over 3% and broader profit growth of 54% for the year.

Sponsorships and Partnerships

Olympic and National Team Endorsements

Li-Ning Company Limited secured a four-year partnership as the official provider for the Chinese Olympic Committee (COC) and the Chinese sports delegation on January 15, 2025, covering apparel needs through 2028 and succeeding Anta after its 16-year tenure. This agreement positions Li-Ning to equip Chinese athletes at major international events, including the in Milan-Cortina and the in , marking the brand's return to the role since its earlier involvement two decades prior. The company maintains a full sponsorship of the Chinese National Badminton Team, supplying equipment and apparel to support its competitive efforts in international tournaments. Historically, Li-Ning sponsored key Chinese national teams for the 2008 Olympics, including those in , , , and ; these "gold medal teams" contributed 33 of China's 51 total gold medals during the Games. Internationally, Li-Ning has extended endorsements to select national teams and Olympic bodies, such as the Swedish Olympic Committee via a cooperation agreement announced in 2007 to bolster its global brand presence. Additional partnerships include the National Track and Field Team and the National Men's Basketball Team, reflecting targeted expansions into African and European markets.

Athlete Sponsorships by Sport

Li-Ning focuses athlete sponsorships on core sports including , , , and running, often tying endorsements to signature product lines and performance achievements. Basketball
Li-Ning endorses several NBA players through direct deals and the Way of Wade sub-brand, established with Dwyane Wade's 2012 signing as a three-time and 13-time promoting the Way of Wade series. joined in 2020, leveraging his Most Improved Player award (2014–15), steals leadership (2020–21), and Eastern Conference Finals MVP (2022–23) for a signature sneaker line. Other NBA endorsers include D’Angelo Russell (signed 2019, with DLO 1 shoe released in 2024), (2020, endorsing Speed and Shining series), and C.J. McCollum (2017, with series signature line). In domestic leagues, Yang Hansen (CBA Defensive Player of the Year 2023–2025) signed in 2023 for the YuShuai series. Prospect Egor Dëmin joined the Way of Wade roster in October 2025.
Badminton
Li-Ning supports the Chinese national team since 2010 and individual players using series like AXFORCE, HALBERTEC, and BLADE MAX. Endorsers include Singapore's (top men's singles), Japan's (2019 signing, 2022 All England Mixed Doubles champion), and China's (world champion, co-hosting Li-Ning events). Doubles pairs sponsored are Denmark's and Kim Astrup (world champions), Indonesia's and (2020 and 2022 All England winners), and Hong Kong's and Tse Ying Suet (top pair with 2025 victories).
Table Tennis
Li-Ning has outfitted China's national team since 2017, extending to Olympic stars who secured multiple golds at 2024. Sponsored athletes include (six-time Olympic gold medalist, men's team gold), (mixed doubles and women's team gold), (mixed doubles and men's team gold), Wang Manyu (women's team gold), and (women's singles and team gold).
Running
Endorsements emphasize marathon and distance events with the FEIDIAN series. Ethiopian , a premier long-distance runner, partners fully with Li-Ning. Samsom Amare holds titles from the 2023 , 2024 , and 2025 Marathons, plus two African Championships half-marathon wins. Kenyan Alex Nzioka Matata won the 2025 Meishan Renshou , setting China's fastest half-marathon time as of August 2025.
Sponsorships in other sports like and are limited or team-focused, with Li-Ning providing apparel to China's delegation (including ) from 2025–2028 but without prominent individual athlete deals highlighted.

Club and League Deals

Li-Ning signed a memorandum of cooperation with the () on June 11, 2012, establishing itself as the official equipment sponsor for the men's professional league starting in the 2012/13 season. This partnership positioned Li-Ning as the league's primary apparel and footwear provider, marking one of the largest sponsorship commitments for a Chinese sports property at the time. The agreement was renewed in August 2017 for a five-year term through the 2021/22 season, granting Li-Ning exclusive sponsorship rights for shirts and shoes at a reported value of approximately 2 billion RMB. Li-Ning also secured a parallel deal with the (WCBA) in 2017, though specific terms were not disclosed. In (soccer), Li-Ning agreed to sponsor Mexican club in May 2018, replacing domestic brand as the team's kit provider. On the collegiate level, forward facilitated a Li-Ning and sneaker sponsorship for Tyler Junior College's team in December 2024, where Butler began his playing career. This deal extended Li-Ning's presence in U.S. circuits.

Terminated or Former Sponsorships

In July 2013, Li-Ning suspended its sponsorship contract with Jamaican sprinter following his positive test for the banned stimulant , with the company stating it would terminate the deal if his involvement was confirmed. Li-Ning ended its 23-year sponsorship of the Chinese national team in December 2013, shifting focus amid competitive pressures in the domestic market. The terminated its technical supplier agreement with Li-Ning in June 2021, citing national security concerns amid heightened India-China border tensions, thereby withdrawing the brand's role in providing kits for the 2020 Olympics.

Financial Performance

Li-Ning Company Limited recorded revenue of 28,676 million RMB for the fiscal year ended December 31, 2024, reflecting a 3.9% year-over-year increase from 27,598 million RMB in 2023. Gross profit for 2024 reached 14,156 million RMB, up 6.0% from the prior year, while operating profit stood at 3,678 million RMB. The company achieved a net profit margin of 10.5%, supported by net operating cash inflow of 5 billion RMB, underscoring maintained financial health amid moderating growth. Historically, Li-Ning's financial performance exhibited volatility tied to strategic shifts and market dynamics. Post-IPO in 2004 on the (ticker: 2331.HK), the company pursued aggressive wholesale expansion, driving revenue to a peak of approximately 10.2 billion RMB in 2011. However, excessive store openings and inventory buildup, coupled with rising competition from domestic rivals like , eroded , leading to revenue contraction to 4.4 billion RMB by 2016 and consecutive net losses from 2015 to 2017. A turnaround initiated around 2018 emphasized direct retail channels, premium product positioning under sub-brands like China Li-Ning, and enhanced efficiency, reversing losses and fueling revenue rebound to 7.0 billion RMB in 2018 and accelerating growth thereafter. The recovery gained momentum during the COVID-19 period, with athleisure demand propelling revenue to 24.8 billion RMB in 2021, though net income peaked in 2022 before declining amid post-pandemic normalization and intensified competition. From 2022 to 2024, revenue growth slowed to single digits annually, with net income dropping 25.4% to 3.0 billion RMB in 2023 from 2022 levels, reflecting challenges like consumer spending slowdowns in China and valuation pressures—stock price hit an all-time high closing of 311.93 HKD in September 2021 but traded lower thereafter. Key profitability metrics as of 2024 include a return on equity of 11.95% and profit margin of 9.6%, with enterprise value to revenue at 0.89.

Recent Developments (2020–2025)

During the period from 2020 to 2022, Li-Ning experienced robust revenue growth driven by its "China Li-Ning" brand repositioning, which emphasized nationalist themes and appealed to domestic consumers amid rising and reduced foreign brand appeal following geopolitical tensions. Revenue rose from RMB 14.46 billion in 2020 (a 4.2% year-over-year increase) to RMB 22.57 billion in 2021 (up 56%) and RMB 25.80 billion in 2022 (up 14.3%), reflecting expanded presence and strong rates for new products. Growth moderated significantly thereafter amid intensified from peers like Anta and a cooling consumer market, with revenue increasing to RMB 27.60 billion in 2023 (up 7%) before edging to RMB 28.68 billion in 2024 (up 3.9%). Net profit attributable to shareholders peaked in 2022 before declining, falling 25% to approximately RMB 3.1 billion in 2023 and a further 7% to RMB 3.0 billion in 2024, pressured by higher expenses and adjustments. Gross margins improved slightly to 49.4% in 2024, supported by a focus on higher-margin core product categories such as running, , and gear. In early 2025, Li-Ning announced interim results for the first half ended June 30, showing of 3.3% to RMB 14.82 billion and gross up 2.5% to RMB 7.42 billion, with R&D expenses rising 8.7% year-over-year to bolster in lines. The company projected flat full-year 2025 amid economic headwinds but anticipated a high single-digit improvement in net margins through cost controls and channel optimization. Key strategic moves included securing the official apparel partnership with the Chinese Olympic Committee for 2025–2028, replacing Anta, and forming a in October 2024 to accelerate overseas expansion beyond . US enforcement of sanctions under the Countering America's Adversaries Through Sanctions (CAATSA) in 2022 disrupted Li-Ning's US market access, with shipments detained at ports due to findings of North Korean forced labor in the supply chain; imports required importer-provided evidence of no such involvement, contributing to limited Western exposure during the period.

Controversies and Criticisms

Product Design Disputes

In October 2022, Li-Ning faced significant public backlash in over elements of its Fall/Winter collection that netizens and media outlets described as resembling uniforms worn by the during , particularly hoodies featuring high collars, epaulets, and olive-green color schemes. The controversy erupted after images from the collection circulated online, prompting accusations of insensitivity toward historical grievances stemming from Japan's wartime occupation of , with critics labeling the designs as potentially glorifying or trivializing aggressor aesthetics amid ongoing Sino-Japanese tensions. Li-Ning responded on October 19, 2022, by issuing a public , acknowledging the "perplexity and doubt" caused by the products and stating that the designs drew inspiration from "contemporary " without intent to evoke historical uniforms; the company committed to removing the offending items from sale and shelves. While other variants in the collection using different colors did not attract similar , the incident highlighted risks in Li-Ning's of blending guochao ( trend) elements with militaristic motifs, as the brand had positioned itself as a to Western . No legal actions ensued, but the dispute underscored cultural sensitivities in for Chinese brands navigating and global fashion influences. Separately, Li-Ning has faced international accusations of design imitation, notably with its Way of Wade 9 shoe released in 2021, which observers claimed closely mirrored elements from 's 28 and 34 models, including midsole cushioning patterns, upper constructions, and overall silhouettes associated with Dwyane Wade's endorsement line. Such claims align with broader critiques of Li-Ning's product development, where similarities to established Western brands' aesthetics have fueled perceptions of reliance on reverse-engineering rather than original innovation, though no formal infringement lawsuits from or Brand were filed. Public discourse, including online forums, has questioned the absence of legal challenges despite visual parallels in logos and motifs, attributing it to insufficient evidence of trademark confusion or under intellectual property laws. In contrast, Li-Ning has pursued its own defenses, as evidenced by a 2021 court victory where it secured 25,000 (approximately $3,900 USD) in compensation from an infringer copying its , demonstrating proactive protection of proprietary elements amid competitive pressures in the market. These episodes reflect ongoing tensions in Li-Ning's philosophy, balancing cost-effective with risks of cultural missteps or perceived unoriginality, without resulting in sustained litigation but impacting reputation among consumers sensitive to historical and competitive contexts.

Allegations of Forced Labor and Supply Chain Issues

In 2021, U.S. lawmakers, including members of the , urged customs authorities to bar imports from Chinese sportswear firms like Li-Ning due to their endorsement of cotton, which has been linked to allegations of forced labor in the region. These concerns stem from supply chain dependencies on cotton produced under conditions documented by U.S. government entities as involving state-sponsored coercive labor transfers and of workers. Li-Ning has publicly affirmed its intent to continue sourcing cotton from despite such claims, contributing to recommendations for divestment by ethical investment bodies. A 2025 investigation by the and identified Li-Ning-owned facilities in connected to labor programs associated with oppression, including and forced assimilation policies, raising risks of indirect forced labor exposure in its apparel production. Independent risk assessments, such as those from supply chain analytics firm Kharon, have traced Li-Ning's suppliers to entities with ties to Xinjiang's processing, where empirical evidence from , records, and defector testimonies supports patterns of coerced labor. The Council on Ethics, advising the Government Pension Fund Global, cited Li-Ning's refusal to mitigate these risks as grounds for exclusion from investments in March 2022, emphasizing the company's acceptance of regional amid credible reports of systemic abuses. Separate supply chain issues emerged in March 2022 when U.S. Customs and Border Protection issued a Withhold Release Order detaining Li-Ning imports, based on findings of North Korean nationals employed under forced labor conditions at a supplier factory in China. The agency required Li-Ning to demonstrate within 30 days that its goods avoided convict, forced, or indentured labor, highlighting vulnerabilities in oversight of subcontractors sourcing from sanctioned regimes. Li-Ning responded by asserting strict opposition to forced labor and implementation of regular supplier audits, though critics noted that such measures have not prevented ongoing linkages identified in subsequent probes. These incidents underscore broader challenges in Li-Ning's global supply chain transparency, particularly given China's regulatory environment limiting independent verification.

Competitive Practices and Market Challenges

Li-Ning employs competitive strategies centered on cultural resonance and to differentiate itself in China's saturated market, including leveraging "guochao" trends that emphasize national pride in and marketing campaigns tailored to domestic consumers. The company invests in R&D for upgraded product technologies, such as and performance features, while pursuing multi-dimensional marketing that includes endorsements, channels, and retail expansion to capture younger demographics. These efforts aim to strengthen its positioning against rivals like Anta, , and through a focus on mid-to-high-end segmentation, pricing competitiveness, and sales via and flagship stores. Despite these initiatives, Li-Ning faces significant market challenges from intensifying domestic and international competition, where Anta holds the leading position with approximately 20.7% market share in as of early , followed by at similar levels, while Li-Ning trails at around 9.4%. Economic slowdowns and weak consumer sentiment have contributed to sluggish demand, resulting in only modest revenue growth of 3.3% to RMB 14.8 billion in the first half of , coupled with an 11% decline in interim profit due to underperformance in key categories like apparel and direct sales channels. management issues, though improved from prior years with turnover rates reaching 3.6 months, continue to pressure margins amid broader consumption lethargy in . International expansion efforts remain limited, exacerbating reliance on the domestic market where foreign brands like and are ceding some share to local players but still pose threats through premium branding.

Environmental and Sustainability Efforts

Corporate Initiatives

Li-Ning Company Limited integrates environmental into its operations through a structured framework, overseen by the Board and an ESG Management Committee, as detailed in its annual reports. The 2024 ESG Report emphasizes green and low-carbon measures, including assessments and enhancements from design to procurement. This approach aligns with the company's strategy to embed responsible practices across product lifecycles, fostering reduced environmental impact while maintaining operational efficiency. A core initiative involves advancing eco-friendly materials and production technologies. In 2023, Li-Ning incorporated 2,839 tons of recycled into its products, yielding a carbon emission reduction of 2,731 tons. The Production Initiative achieved a 15% reduction in processes through optimized use. Additionally, partnerships like the one with ECOHUES™ introduced waterless , eliminating water and salt consumption while minimizing discharge in fabric coloring. These efforts extend to R&D for low-carbon products, with breakthroughs in innovative materials supporting broader eco-upgrades. Li-Ning promotes supply chain collaboration to amplify these initiatives, working with partners to refine green standards and operational practices. Public engagement includes events like the 2025 sustainability pop-up, which highlighted bio-based materials, recycled plastic bottle yarns, water-efficient dyeing, and biodegradable elements in product demonstrations. The Hong Kong headquarters further supports environmental awareness through participation in tree-planting and waste-reduction activities. Overall, these programs reflect a to measurable progress, though outcomes rely on self-reported metrics from company disclosures.

Assessments and Critiques

Li-Ning's environmental efforts have received mixed external assessments, with improvements noted in some ratings alongside persistent challenges in verification and industry benchmarks. In 2024, upgraded the company's rating to BBB, citing enhanced management of environmental risks and sustainable practices such as increased use of recycled materials. assigned an ESG Score of 32 in August 2024, below the industry average for textiles, apparel, and luxury goods, indicating opportunities for stronger performance in emissions reduction and resource efficiency. rated Li-Ning's overall ESG risk at 19.4 (low risk category), with an environmental pillar score of 4.8 reflecting relatively low exposure to sector-specific issues like and . Critiques of Li-Ning's initiatives often center on oversight in China's sector, where environmental compliance can vary. A 2011 investigation highlighted Li-Ning sourcing from suppliers accused of illegal pollutant discharges into rivers, prompting the company to demand immediate investigations from those vendors, though broader industry accountability remained limited. In response to Greenpeace's 2011 Detox , Li-Ning committed to eliminating hazardous chemicals in production by , aligning with global apparel peers, but independent audits of fulfillment have been sparse, raising questions about efficacy amid China's evolving regulatory landscape. While self-reported data in the 2024 ESG report details reductions like 2,024 tons of recycled usage (12.04% of total ) and Scope 1+2 GHG emissions of 17,011.77 tons, critics in academic reviews of Chinese practices note potential gaps in Scope 3 emissions transparency and third-party verification, which could inflate perceived progress. Overall, Li-Ning's initiatives, including supplier audits covering 89% of factories and goals for carbon neutrality by 2040 at key facilities, demonstrate alignment with UN , yet apparel sector analyses emphasize the need for more rigorous, externally validated metrics to counter skepticism over state-influenced reporting in .

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