Recently, Li Ning handed in a brilliant financial report.
On March 22, Li Ning, a listed company in Hong Kong, released its performance report for fiscal year 2018. As of December 31, 2018, the annual business income increased by 18.45% to RMB 105.11 billion yuan, and the net profit increased by 39% to RMB 715 million yuan.
Before that, Li Ning's highest revenue was 9.778 billion yuan in fiscal 2010. Now, for the first time, Li Ning's revenue has exceeded 10 billion yuan.
By the end of 2018, the number of Li Ning sales points in China (excluding Li Ning YOUNG) totaled 6344, a net increase of 82 in the year. Among them, retail business decreased by 35 and wholesale business increased by 117. In addition, the number of sales points of YOUNG, a children's wear brand, totals 793.
In terms of cost, advertising accounted for 10.4% of revenue, down from 11.1% in 2017, which led to a 1.6 percentage point drop in the proportion of annual distribution expenditure.
Li Ning's R&D expenditure increased from 1.9% to 2.2%. However, after fiscal year 2017, this proportion still lags behind in the local industry. By contrast, Anta, 361 degrees and special steps accounted for 5.2%, 4.1% and 2.6% respectively.
With the disclosure of Li Ning's financial report, the four major local brands have issued performance sheets for fiscal year 2018 - Anta, Tebu and 361 degrees of annual revenue of 24.1 billion yuan, 6.383 billion yuan and 5.187 billion yuan respectively. Anta continues to consolidate the leading position of domestic brands, while Li Ning remains the second largest in the country.
With Anta and Tebu's multi-brand strategy going further. Li Ning said:Not through acquisition to expand business rapidly, "Li Ning Company will develop various categories and products based on its brand. In the future, from the group level, it will consider developing into a multi-category and multi-brand, but still Li Ning brand, rather than acquiring other brands."