(Yicai) March 20 -- Shares of Li Ning gained after the founder of the sportswear retailer said that the Chinese firm that is rumored to plan on going private intends to increase investor returns following a more than 20 percent slump in net profit last year.

Li Ning's stock price [HKG: 2331] advanced by 5.7 percent to close at HKD21.45 (USD2.74), still more than 60 percent down from a year ago.

"The firm will consider any plan which will hike returns to its investors, such as paying stock dividends, but has nothing to announce about privatization," Li Ning, executive chairman, said during the 2023 earnings conference today.

Net profit dropped by 22 percent to CNY3.2 billion (USD444.5 million) last year from 2022 while revenue rose by 7 percent to CNY27.6 billion (USD3.8 billion), the Beijing-based firm wrote in its annual report.

Reuters reported on March 12 that billionaire and Olympic champion Li Ning is considering taking his namesake company private from the Hong Kong Stock Exchange, resulting in a 20 percent stock price surge that day.

The maker of sports clothing, footwear, and rackets will pay final dividends of CNY0.1854 (3 US cents) per share, it said today. In September, the firm distributed interim dividends of CNY0.3620 per share so the total paid for last year made up 45 percent of net profit, per the report.

Editor: Emmi Laine