Lining Fundraising 1 Billion 700 Million Preparations Focus On Five Main Categories Of Sports Marketing

In December 17, 2014,

The company announced that its board recommended raising funds of HK $1 billion 500 million to HK $1 billion 700 million in public offering of common stock and convertible securities for the next stage of the company's operating capital and optimizing its capital structure.

According to the announcement, eligible shareholders can receive 5 issued securities on the basis of each share holding 12 shares of the existing common stock, choose the existing shares to subscribe for common stock, or apply for convertible securities, with a subscription price of HK $2.60 each.

The subscription price of HK $2.60 is about 25% of the closing price of the company's shares before the full day of the announcement.

Convertible securities can be converted into common stock at any time and will be processed according to equity.

It is understood that

At present, shareholders - extraordinary China Holdings Limited, TPG, GIC and madden Strategic Holdings Limited have committed to subscribe to their securities in full scale.

At the same time, the extraordinary China, TPG, Madden strategy and another financial investor will underwrite all unsold securities.

Lining, founder and executive chairman of Li Ning Co, said: "2015 will be the first year of the company's redevelopment.

A series of adjustments made by management in the past two to three years have resulted in a modest improvement in operation and clear the next line of growth.

The company adheres to the three focus strategy, that is, focusing on the Chinese market.

And the five most popular sports categories in China, basketball, badminton, running, training and sports.

In the face of the growing sports consumption group of the middle class in the Chinese market, our new products developed for professional and popular sports enthusiasts have shown unique competitiveness in the market.

In addition, after the implementation of the channel revival plan, the optimization of the channel has enabled some distributors and two level distributors to gradually restore profitability.

The company's retail operation platform has also been constructed.

We have set up a platform dominated by sports marketing, product and retail operation, which is ready for the company to enter a new stage of growth.

The funds raised from the public offering will support the company's efforts to deepen new product development, continuously enhance the competitiveness of its products, and enhance the overall retail operation capabilities of channel partners and companies. "

The Li Ning Co has considered a variety of fund-raising options for smoothly advancing the next stage of development. The Board considers that the public offering is in line with the overall interests of the company and shareholders, so that the eligible shareholders of the company can have the opportunity to participate in the future development of the company in the form of rights and interests while protecting their shareholders' interests.

Mr. Lining added: "during the pition period of Li Ning Co management, I will participate in more daily operations with the help of the company management team.

The board and myself attached great importance to the continuous support from the wholesale investors to the business models dominated by sports marketing, product and retail operation capabilities.

We are confident of entering the new development journey and the vision of building a leading sports brand. "

Mr. Chen Yue, a non-executive director and TPG partner of the company, said: "Li Ning Co and TPG are pleased with the progress made by the company.

Through subscription and participation underwriting is a public offering, TPG will further increase investment in the company and strengthen its cooperation with the company. "