On March 19, LI NING Company Limited announced its audited consolidated results for the year ended December 31, 2025. The performance met expectations, demonstrating a solid operational foundation and strong cash reserves.
Throughout 2025, the Group consistently enhanced its product technology and performance, optimized channel efficiency, and deepened its brand's professional image, maintaining stable operations for the full year. Annual revenue reached RMB 29.598 billion, a 3.2% increase compared to 2024. Gross profit was RMB 14.489 billion, up 2.4% year-on-year, resulting in an overall gross profit margin of 49.0%. Profit attributable to equity holders was RMB 2.936 billion, with a corresponding profit margin of 9.9%. Return on equity was 10.9%. Basic earnings per share were RMB 1.1391.
The Board has recommended a final dividend of RMB 0.2336 per ordinary share for the 2025 financial year. Combined with the interim dividend of RMB 0.3359 per share paid in September 2025, the total annual dividend amounts to RMB 0.5695 per ordinary share, representing a payout ratio of 50%.
Regarding cash flow management, net cash generated from operating activities for the year was RMB 4.852 billion. As of December 31, 2025, cash and cash equivalents totaled RMB 16.717 billion, an increase of RMB 9.218 billion from December 31, 2024. After adding back amounts recorded in bank time deposits, the cash balance was RMB 19.973 billion, a net increase of RMB 1.833 billion from the end of 2024. The year-on-year decrease in net operating cash flow was attributed to increased market and tax expenses alongside timing differences in e-commerce platform settlements. A significant increase in net cash from investing activities resulted from the redemption of matured time deposits. The Group will continue to prioritize cash flow management to ensure long-term stable development.
In 2025, the Group anchored its strategy on "Single Brand, Multiple Categories, Multiple Channels," driving development through product upgrades, channel optimization, and brand marketing. It focused on six core categories—running, basketball, training, badminton, table tennis, and sports leisure—while seizing opportunities in emerging areas like outdoor sports, tennis, and pickleball. The Group empowered product upgrades through technological innovation, increased investment in professional sports resources, and conducted multi-dimensional marketing activities to strengthen its professional sports image, lead sports fashion, and promote Eastern aesthetics, thereby continuously enhancing brand recognition and influence.
As an official partner of the Chinese Olympic Committee, the Group leveraged its strong reputation in professional sports. Through the narrative theme "China's Glory, LI NING Together," it actively integrated sports spirit with cutting-edge technology and Eastern aesthetics. During the year, it opened its first global "Dragon Store" and launched the "Glory Gold Label" product series, transforming top-tier sports resources into enhanced brand reputation and market recognition, reinforcing consumer perception of LI NING's professional strength and product reliability.
In terms of channels, the Group advanced a multi-dimensional network layout, expanding market coverage while improving operational efficiency. In high-tier markets, it deepened collaboration with top commercial complexes and leading outlet malls to jointly plan and launch innovative store formats. The successful opening of the standalone outdoor store "COUNTERFLOW溯" marked a significant milestone in the brand's formal entry into the outdoor segment. The Group actively pursued crossover collaborations with top IPs rich in Chinese cultural heritage, such as the Palace Museum, and partnered with channel partners to execute diverse marketing activities, effectively boosting brand reach and conversion.
For efficiency optimization, the Group continued to refine its channel structure and implemented strategic measures, including improving rental structures and partnership models, to enhance overall channel health and operational sustainability. As of December 31, 2025, the number of LI NING brand points-of-sale reached 7,609, a net increase of 24 from the end of 2024.
In retail operations, the focus was on building a highly profitable, efficient, and replicable single-store business model. In high-tier markets, targeted brand strategies were implemented in key regions, strengthening the brand image and improving merchandise operation efficiency through adjustments in channel structure, product assortment, and shopping experience. The Group established a distribution management model to increase distribution efficiency and sustainability. It enhanced coordination between retail endpoints and the logistics system, achieving omni-channel inventory turnover and full lifecycle product management through refined management, flexible supply chain construction, and digitalization, thereby comprehensively improving operational quality and efficiency.
In e-commerce, the Group strategically positioned itself during major promotional events like "Tmall Happy Day" and "Tmall Super Brand Day," consolidating consumer loyalty and increasing market share. Core IP products such as "追风," "DLO," "ULTRALIGHT," and "利刃" performed excellently, successfully penetrating diverse consumer segments including Gen Z, professional athletes, and fashion enthusiasts, and ranking high in sales and reputation charts across various sub-segments. By linking top athletes, celebrities, hot topics, and omni-channel resources, the Group not only boosted product visibility and achieved sales conversions during promotions but also provided traffic support for offline business, driving overall revenue growth.
In supply chain management, the Group continued to optimize its supplier matrix, matching high-quality suppliers with product lines for premium sports, outdoor, and Glory series, as well as sponsored products. Aligned with its master merchandise plan, it employed segmented production planning and data-driven management to achieve high coordination between merchandise planning, supply chain, logistics, and sales endpoints. To enhance operational efficiency, measures such as fabric resource integration, process structure optimization, bulk material procurement, and staggered production schedules were implemented to further improve the cost structure. Furthermore, the Group continued to integrate sustainable development concepts into supply chain management, promoting the launch of green products, with the proportion of eco-friendly products exceeding targets.
In logistics, the Group initiated an omni-channel logistics project, connecting order systems with logistics operations to improve product flow efficiency and fulfillment timeliness. Digitally, it introduced a goods receipt coordination system and adopted SKU-level refined management. Automation equipment was deployed in warehouses to enable multi-scenario coverage and visual data management. In December 2025, the East China and North China warehouses率先 adopted RFID for full-process warehouse management, achieving traceability throughout the logistics chain and significantly enhancing inventory management precision. Full deployment across all warehouses is expected by the first quarter of 2026, driving continued cost reduction and efficiency gains.
For the children's wear business, LI NING YOUNG focused on professional sports and children's growth needs, advancing product optimization and exclusive IP development. Channel development emphasized strengthening the outlet channel, improving single-store operational efficiency, optimizing the overall channel structure, and accelerating expansion on e-commerce platforms. LI NING YOUNG maintained a coordinated development strategy between wholesale and direct retail, achieving scale and quality improvements through refined management and strategic planning. Marketing efforts centered on three cores: event cooperation, user stories, and IP collaborations, aiming to establish professional recognition and build a user base, successfully expanding influence among youth and family customer segments. As of December 31, 2025, the number of LI NING YOUNG points-of-sale totaled 1,518, a net increase of 50 from the end of 2024.
Looking ahead to 2026, the Group will seize market opportunities presented by the new Olympic cycle. It will capitalize on the potential of domestic demand, adhere to its core value of "serving the public with sports spirit," meticulously craft the "LI NING-style experience value," and strive to become the most trusted professional sports brand of choice for consumers.
1. **Technology-Driven Product Upgrades:** The Group will firmly implement its "Single Brand, Multiple Categories, Multiple Channels" strategy, using technology to empower product iteration and build core competitiveness and market differentiation. Leveraging the LI NING Technology Innovation Platform, it will focus on deepening core categories and actively explore emerging segments like outdoor sports to meet increasingly diverse and personalized consumer demands, achieving full-scenario coverage from professional competition to daily wear. By integrating cutting-edge technology with fashion design, it will create products with superior functionality, technological quality, and aesthetic value, while strengthening the efficiency of translating technological achievements into product competitiveness.
2. **Olympic Marketing to Empower the Brand:** The Group will use sports marketing to drive value creation, build emotional connections with consumers, and steadily enhance brand value. Through continued partnership with the Chinese Olympic Committee, it will facilitate a transition from resource cooperation to value co-creation. LI NING will fully explore the diverse value of this partnership, using systematic marketing layouts and support with professional sports equipment to tell the story of shared growth with Chinese sports, showcasing the technological strength of a national brand.
3. **Enhancing Business Operational Quality and Efficiency:** The Group will continue to focus on comprehensive quality and efficiency improvements across its business. By deepening channel布局, strengthening merchandise operations, and optimizing supply chain management, it will build a highly efficient operational system to simultaneously提升 operational quality and efficiency, laying a solid foundation for high-quality growth. Offline channels will focus on efficiency in high-tier markets and penetration in emerging markets, exploring new business models. Online channels will strengthen overall coordination and resource integration to promote online-offline complementarity. Merchandise operations will optimize full-chain planning accuracy and flexible supply capabilities to accelerate inventory turnover. The supply chain will achieve协同 optimization across cost, quality, and delivery timelines to enhance overall operational efficiency.
4. **Strengthening the Foundation for Development:** The Group will continue to reinforce three core supporting capabilities: talent, finance, and digital intelligence, solidifying the foundation for high-quality development. In talent strategy, the focus will be on selection, motivation, and effectiveness. Financial management will emphasize precise resource allocation and risk control. Digital construction will promote the deep integration of AI and big data with business operations to enhance efficiency and decision-making科学性, providing systematic support for the Group's long-term development.
Mr. Li Ning, Executive Chairman and Co-CEO, concluded, "2026 marks the beginning of the 15th Five-Year Plan period. Guided by the national strategy of accelerating the building of a leading sports nation, which will further unleash sports consumption potential and promote the transformation of the sports goods manufacturing industry, the continuous释放 of domestic demand potential will provide solid support and a broad stage for the sports industry. We will base ourselves locally while looking to the future, seizing the opportunities of the era with a more forward-looking vision and efficient action. The Group will continue to deepen its 'Single Brand, Multiple Categories, Multiple Channels' strategy, optimize and upgrade its core category matrix, explore and布局 emerging sub-segments, and continuously strengthen the core advantages of its products in professional performance, technological strength, and sports experience. We will empower products with innovative technology and design aesthetics to repay consumer trust."