(Yicai Global) March 22 -- Li-Ning's shares surged 11.4 percent after the Chinese sportswear maker's full-year profit topped expectations.
Li-Ning's stock [HKG:2331] ended today at HKD12.70 (USD1.62), the highest since June 2011. The shares have gained more than 50 percent so far this year.
Net profit jumped 39 percent to CNY715 million (USD107 million) in the 12 months ended December, the Beijing-based firm said in an earnings report. That was better than the average forecast for CNY707 million in a Bloomberg survey of analysts. Revenue climbed 18 percent to CNY10.5 billion.
Founded by former Olympic gymnast Li Ning, the eponymous firm achieved a 10.6 percent rise in footwear sales to CNY4.6 billion, while revenue from apparel rose more than a quarter to CNY5.3 billion. Turnover from equipment and accessories gained 13.4 percent to CNY590 million.
Revenue from China's mainland and Hong Kong jumped 19 percent to CNY10.3 billion last year, while e-commerce rose 2.3 percent to make up 21.1 percent of total revenue. Overseas, the company posted an increase in earnings of 3.7 percent to CNY249 million, accounting for 2.4 percent of the total.
The number of Li-Ning's retail outlets in China rose by 82 to 6,344 as of the end of last year while its sub-brand Li Ning Young operates 793 outlets, up from 620.
Li Ning will continue to promote its single brand strategy covering multiple category channels, while consolidating and improving its core business priorities, focusing on its specific values and efficiency to realize profitability and sustainable development in the future, according to the report.
Editor: William Clegg