On August 20, 2026, Li Ning (02331) released its interim results for the first half of 2026. During this period, the domestic consumer market continued to show structural divergence, intensifying competition within the sporting goods sector. Despite the challenging operating environment, the company's performance largely aligned with market expectations, with key operational metrics demonstrating notable resilience.
According to the financial report, group revenue reached RMB 15.24 billion for the period, representing a year-on-year increase of 2.8%. Gross profit rose 4.5% to RMB 7.75 billion, while the overall gross margin improved by 0.9 percentage points to 50.9%. Profit attributable to equity holders stood at RMB 1.82 billion, translating to a net margin of 11.9%. Net cash increased by RMB 200 million year-on-year to RMB 19.39 billion, reflecting a generally healthy and ample liquidity position.
As of June 30, the company's inventory-to-sales ratio across all channels remained stable at four months, with inventory turnover days at 65. Both inventory levels and age structure continued the trend of meticulous management and healthy status seen over the past several years.
During the first half, total retail sell-through across all channels grew 2% year-on-year. By category, the general training and athleisure segments posted steady gains, driven by functional apparel and the women's business. The general training category saw retail sell-through rise 5% year-on-year, while emerging segments such as outdoor and the gold-label line demonstrated strong growth potential. The three core sports categories—running, basketball, and general training—accounted for 63% of total sell-through. Notably, sales of professional running shoes exceeded 14.8 million pairs in the half, maintaining growth despite a high comparison base.
In the first half, Li Ning actively expanded its premium sports resources, investing consistently in professional platforms including the Chinese Olympic Committee (COC) partnership, national team resources, and multi-category sporting events. The company also entered a long-term strategic collaboration with NBA star Stephen Curry and his Curry Brand. For Li Ning, these strategic investments in resource deployment are primarily geared toward unlocking long-term value—particularly serving as key pillars for strengthening professional sports brand perception, validating product innovation, and exploring new demographics and markets.
On the technology and R&D front, cumulative research and development investment over the past decade has surpassed RMB 4 billion. At the 2026 Milan Winter Olympics, the award ceremony uniforms provided by Li Ning for the Chinese sports delegation incorporated the company's latest technological breakthroughs, including applications of "aerospace thermal insulation cotton" and "basalt far-infrared" technologies. Additionally, the independently developed "Super Beng Capsule" technology has achieved full commercial application, now integrated into core running shoe series such as the Feidian and Chitu lines.
In the first half, the debut application of Resistex Carbon carbon yarn in the "Longque" professional racing apparel series drove product iteration and upgrades, propelling a 200% year-on-year surge in professional racing apparel sales—a clear demonstration of the company's technology commercialization and conversion capabilities.
Mr. Li Ning, Executive Chairman and Co-CEO of the group, commented, "Facing a challenging external environment, the group has firmly adhered to its core development strategy of 'single brand, multiple categories, multiple channels.' Both revenue and net profit achieved steady growth, while inventory and working capital remained at healthy levels, fully validating the resilience of our operational fundamentals. In the second half of the year, the group will continue to seize the structural opportunities arising from the '15th Five-Year Plan' policies on expanding domestic demand and building a sporting powerhouse. We will deepen the dual-engine approach of technological innovation and premium sports resources, maintain firm investment in core professional sports capabilities, and advance our long-term strategy through higher-quality, more sustainable operations."