On August 13, after Li Ning released its 2021 semi-annual report, the entry “Li Ning’s net profit in the first half of the year was nearly 2 billion” instantly became a hot search on Weibo. The super performance made many netizens shout: “Domestic products” Rise up!”
Earn more than 50 million yuan per day
Li Ning released 2021 on August 13 Semi-annual report. In the first half of 2021, Li Ning’s revenue reached 10.197 billion yuan, a year-on-year increase of 65%. This means that in the first half of the year, Li Ning earned more than 50 million yuan a day.
The growth in operating income has also brought huge profits to Li Ning. In the first half of the year, the profit attributable to equity holders of Li Ning Group was 1.96 billion yuan, a year-on-year increase of 187.2%, which exceeded the entire previous year.
Li Ning said that there are two main reasons for the surge in performance: on the one hand, under effective epidemic prevention and control, the domestic epidemic situation is relatively stable, and the group has improved various sales during the epidemic. The measures continue to pay off; on the other hand, it also benefits from domestic consumers’ increasing requirements for healthy living and their full recognition and strong support for domestic sports brands.
Specifically, Li Ning achieved gratifying results in various channels in the first half of the year. In terms of directly-operated stores, the sales volume directly operated by offline terminals increased significantly by 88.5%. In addition, during the reporting period, Li Ning’s e-commerce channel also achieved a rapid growth of 77.8%; the order volume of franchised dealers increased significantly, and sales revenue increased by 47.7%.
Li Ning’s impressive performance also led Goldman Sachs to give a high target price. On August 13, Goldman Sachs released a research report stating that Li Ning’s performance in the first half of the year exceeded expectations and its gross profit margin was strong. It gave the company a 12-month target price of HK$103. As of the close of trading on August 13, Li Ning’s stock price was HK$87.4 per share, with a total market value of HK$218.06 billion.
Domestic brands performed strongly
After the Xinjiang cotton incident in March, many consumers Consumers began to shift their focus from international brands to domestic brands, which led to the growth of domestic brand sales.
Except for Li Ning, domestic brands such as Xtep, Anta, and 361 Degrees all performed well in the first half of 2021.
In June, Anta released a performance forecast for the first half of 2021. The company’s operating profit in 2021 will increase by at least 55% compared with the same period last year. In July, Xtep International issued a profit forecast, saying that comprehensive profit in the first half of 2021 will increase significantly by no less than 65% year-on-year. In August, 361 Degrees also issued a positive profit forecast stating that due to revenue growth of more than 15% and operating profits continuing to improve, the profit attributable to the company’s equity holders is expected to increase by approximately 30% year-on-year, to approximately 393 million yuan.
In addition, some domestic brands such as Hongxing Erke and Guirenniao, which have been out of the sight of netizens, donated money to aid Zhengzhou during the floods in Henan. Netizens called them conscientious enterprises, and many netizens rushed to Hongxing Erke. He Guirenniao’s “Wild Consumption” live broadcast has once again ignited consumers’ enthusiasm for domestic products.
The good performance has driven up the stock price.
Since this year, Xtep International’s stock price has risen by 224.11%; Li Ning has risen by 63.98%; Anta Sports has risen by 35.39%. Guirenniao also achieved 5 consecutive daily limits from July 26th to 30th.
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