Li Ning Company Limited reported first-half 2026 revenue of RMB 15.24 billion, up 2.8 % year-on-year, supported by modest gains across wholesale, direct retail and e-commerce channels. Footwear remained the largest contributor at 54.4 % of sales, while apparel posted the strongest growth, rising 11.8 % to RMB 5.80 billion.

Gross profit increased 4.5 % to RMB 7.75 billion, lifting the gross margin 0.9 percentage points to 50.9 %. Operating profit edged up 0.5 % to RMB 2.45 billion; the operating margin eased to 16.1 % from 16.5 % as the advertising and marketing ratio climbed to 11.2 % of revenue (1H25: 9.0 %).

Profit attributable to equity holders advanced 4.5 % to RMB 1.82 billion, translating into basic earnings per share of RMB 70.40 cents. EBITDA fell 4.1 % to RMB 3.37 billion, reflecting higher selling expenses and lower finance income.

The Board declared an interim dividend of RMB 35.12 cents per share, payable on 16 September 2026 to shareholders on record as of 8 September 2026. The dividend will be settled in Hong Kong dollars.

Cash and cash equivalents stood at RMB 13.00 billion at 30 June 2026, down RMB 3.71 billion from year-end, mainly due to increased time-deposit placements and higher marketing spend. Net cash from operating activities dropped to RMB 0.95 billion (1H25: RMB 2.41 billion). The debt-to-equity ratio improved to 34.1 % (FY25: 36.5 %).

Inventory turnover lengthened to 65 days from 61 days, while trade receivables turnover rose to 16 days. Inventory provisions totalled RMB 168.60 million, up slightly from year-end.

Geographically, Southern China generated 51.2 % of revenue and grew 3.6 %; Northern China contributed 47.6 % with 2.9 % growth. Overseas markets accounted for 1.2 % of sales.

The store network comprised 7,579 points of sale at period-end, a net reduction of 30 locations since December. E-commerce revenue grew 5.1 %, representing 29.7 % of total sales.

Management reaffirmed the “Single Brand, Multi-categories, Diversified Channels” strategy, highlighting continued investment in product technology, marketing tied to Olympic resources and expansion of innovative store formats such as “Loong Store” and standalone outdoor outlets.