GIC-bcked Li Ning posts first annual loss since 2004 listing

[Confuseous]

HONG KONG, March 26 (Reuters) - Chinese sportswear group Li Ning Co Ltd reported on Tuesday a steeper-than-expected 1.98 billion yuan ($318.8 million) loss for 2012, its first annual loss since it listed in 2004, hit by inventory charges and fierce competition from domestic and foreign brands.

The result compared with a profit of 385.8 million yuan in 2011 and was deeper than the average forecast of analysts for a 1.09 billion yuan loss, according to Thomson Reuters Starmine SmartEstimate.

China's economic slowdown had resulted in inflated stock levels and depressed earnings for retailers, including local and foreign sportswear players - a sharp reversal of fortune after an expansion blitz that followed the 2008 Beijing Olympics.

Li Ning, backed by Singapore sovereign fund GIC and U.S. private equity firm TPG Capital, had warned in December of a big loss in 2012 as it racked up as much as $288 million in expenses by buying back inventory from distributors. The company had said it expected inventory charges to cut its full-year earnings by up to 1.8 billion yuan.

"Market and industry conditions continue to be difficult, and the Group's financial performance is expected to remain challenging at least in the first half of 2013," company founder and Chairman Li Ning said in a statement on Tuesday.

 

[Brightkid]

It is consistent with every investment GIC or Temasick touched. No surprise.

They will say it is for the loooonnnnnnnggggggggg term outlook. So looonnnnnngggggg that after company closed down that they cannot see it anymore!

 

[Crane]

HONG KONG, March 26 (Reuters) - Chinese sportswear group Li Ning Co Ltd reported on Tuesday a steeper-than-expected 1.98 billion yuan ($318.8 million) loss for 2012, its first annual loss since it listed in 2004, hit by inventory charges and fierce competition from domestic and foreign brands.


Li Ning, backed by Singapore sovereign fund GIC and U.S. private equity firm TPG Capital, had warned in December of a big loss in 2012 as it racked up as much as $288 million in expenses by buying back inventory from distributors. The company had said it expected inventory charges to cut its full-year earnings by up to 1.8 billion yuan.

Whatever GIC or Temasek does, do the opposite. This is a reliable 'reverse indicator'. Sure make money.

 

[laksaboy]

Once I went inside a Li Ning shop (ION Orchard?). I took a look at those insane prices and I chuckled to myself.

For that kind of money I can get the top-of-the-line Yonex equipment, with plenty of spare change after the purchase.

A silly upstart Tiong brand being generously given prime retail locations and advertising endorsements... you can be sure that the imbecilic PAP govt was behind it.

 

[Leepotism]

Losing is one of their traits.

 

[Scrooball (clone)]

High prices for sub-par brand name and so-so quality. Only some silly ah tiong will buy Li Ning.

 

[Scrooball (clone)]

<iframe width="420" height="315" src="http://www.youtube.com/embed/snJe6ZVeAQ0" frameborder="0" allowfullscreen></iframe>

This is the origins of Li Ning the founder

 

[Narong Wongwan]

Li Ning is a Nike copycat....their 361 campaign is one.
Only 'patriotic' tiongs would wear this brands....others are sponsored athletes.....usually from 3rd world nations too poor to complain.
I wonder how it can even be considered a branded product.

 

[I_Hate_Pappies]

Freakishly overpriced sports apparatus = Li Ning. Only the Chinks in China took pride in these craps.....

 

[zeddy]

Seriously speaking, you don't go to a club like Zouk wearing a Li Ning sports shoes when others are wearing Lacoste, Nike, Puma..

 

[Crane]

I wear 'Great Wall' brand boxer underwear.

I use 'Panda' brand toilet paper.

I play with 'Aeroplane' brand shuttlecocks.

I used 'Double Happiness' table tennis bat.

I use 'Seagull' brand SLR camera.

I wear 'Peony' brand long sleeve office shirts.

I drink 'TsingTao' brand beer.

I watch free movies at 'Funshion'

I use 'Lenovo' brand for computer.

I take 'Air China' when I visit my mei meis.

I utilise 'Ctrip.com' when booking china hotels.

But for safety reasons: I don't drive china-made cars. I don't eat china-made canned food.

 

[shctaw]

My iPhone 5, iPad mini all from China.

Should I throw it away and jump off my apartment.

 

[shctaw]

Those pigs found in Shanghai river......

Will it end up as 午餐肉 on our dining table?

 

[Dark Knight]

Li Ning is the only copy cat brand that Ah Tiong adore.
No local Sillyporeans will want to retail it or even Chatuchak Weekend market want to sell it's imitation.

 

[halsey02]

Those pigs found in Shanghai river......

Will it end up as 午餐肉 on our dining table?

A few thousand ducks were found dead too, so wax duck from PRC is out, have to be careful with Ma Ling or any luncheon meat from PRC, or Narcisssus or Gu Long Can meat products, manufacture date...March 2013, must avoid for safety sake.:p

 

[Narong Wongwan]

Seriously speaking, you don't go to a club like Zouk wearing a Li Ning sports shoes when others are wearing Lacoste, Nike, Puma..

I might don a pair of feiyue though....

 

[Cestbon]

Li Ning product are more expensive than Yonex/Nike/Adidas/Puma................... or same level pricing.
Now most Li NIng product sell at 50% off from it peak .

Racket that Li Dan use now SG$170 before selling $380.

 

[Cerebral]

Once I went inside a Li Ning shop (ION Orchard?). I took a look at those insane prices and I chuckled to myself.

For that kind of money I can get the top-of-the-line Yonex equipment, with plenty of spare change after the purchase.

A silly upstart Tiong brand being generously given prime retail locations and advertising endorsements... you can be sure that the imbecilic PAP govt was behind it.

They have no inkling of "Brand Equity". Just because other brands can charge insane prices, they think they can too. But then again, in CN, people buy based on price.....

 

[Cerebral]

My iPhone 5, iPad mini all from China.

Should I throw it away and jump off my apartment.

Don't be silly. There is a big difference between being manufactured in China vs. Chinese branded products. Foreign products manufactured in China uses processes set in their home country as the basis of quality control, whereas Chinese companies have no idea how to market.

 

[OrLanChowHorFun]

High prices for sub-par brand name and so-so quality. Only some silly ah tiong will buy Li Ning.

those got no money one will buy lah so they thought got massive customer base, the richer PRCs will never buy their own brands or things made in China becoz they wanna show off their wealth - they buy US or European brands only