Lining May Not Be Able To Win. After The Vicious Competition, The Stock Price Failed.

Mainland sports stocks

After the announcement of its annual performance, the stock price could not afford to rise. The company's management said yesterday after its annual general meeting that the industry was vicious.

The situation has not improved, and the May 1 Golden Week has failed to boost sales.

Lining earned less than 6 yuan last year, and the company's share price fell 18.77% in two months after its announcement at the end of March. The company's share price rebounded slightly 1.67%, 6.71 yuan yesterday, and the paction amount was 6 million 790 thousand yuan.

Zhang Zhiyong, group executive and chief executive officer, pointed out that the domestic sporting goods companies had not improved the situation with large discounts. The sales growth of the same store in 4 and May this year is similar to that in the first quarter, while the sales of May 1 golden week have not been outstanding.

In the face of a large number of coffers, sporting goods companies use large discounts to clear goods. Zhang Zhiyong said that the company's retail discount will be set at 24% off this year. Last year it spent 310 million yuan to repurchase its inventory. The amount of repurchase will not exceed last year's level this year.

R & D products seek positioning

International brands such as Nike and Adidas have penetrated into the Chinese market in recent years. Zhang Zhiyong admitted that domestic brands lack the ability of independent innovation, and it is more difficult to compete with international brands. Lining, as the first self developed Chinese sports company, will actively seek its own position in the future. This year, it will continue to put about 2.5% of its turnover into research and development funds.

In addition, the company introduced private equity fund TPG (Texas Pacific Group) as a strategic shareholder earlier. The fund partner and Li Ningfei executive Kim Kim Chun said that the fund's focus in the short term is to improve group cash flow, inventory problems and team stability.