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Lining Costs Up 20%&Nbsp; &Nbsp; Product Prices Will Have Double-Digit Increase.

2011/3/18 13:46:00 63

March 17th afternoon news of mainland sports brands

Lining

On the 17 day, the annual performance meeting was held in 2010. The company's net profit increased by 17.4% to 1 billion 108 million yuan last year (RMB, the same below), and the final interest rate was 19.97 points.

Management said that due to wages and

Raw material cost

It is estimated that the cost will increase by 20% this year, and the product price will have double digit increase.

Lining (column) held the 2010 annual performance meeting on 17 th. The company's revenue last year was 9 billion 479 million yuan, an annual increase of 13%, net profit growth of 17.4% to 1 billion 108 million yuan, gross margin remained at 47.3%, earnings per share were 105.84 points, dividends were distributed at 19.97 points, and dividends were issued 42.12 points throughout the year.

The company said that due to the lack of consumer confidence index, coupled with the impact of leisure brands on the sporting goods industry and the impact of this year's lack of major sporting events, the industry growth rate is expected to be affected to a certain extent this year.

In addition, the company's sales channel reform and the improvement of the retail environment will take some time to adjust. Orders for the third quarter of this year may fall in high unit numbers, and the order is expected to improve in the fourth quarter.

Li Ning Co Chief Executive Officer

Chi-Yung Chang

This year, the wage cost accounted for 7.5% to 8% of the total income of the group, which kept the same level as last year.

But now that the price of raw materials has risen sharply, the price of cotton has doubled, and the company can only lock in raw material prices in the next eight months. He expects the cost of this year to rise by 20% on average.

Zhang Zhiyong pointed out that the company will raise the price of products to control costs, and the price of products will double digit growth this year.

At the same time, the company will introduce a new sales discount policy to control the pressure brought by the rising cost, but it is expected that gross margins will drop slightly this year to 46% to 47%.

Apart from the Lining brand, the group has no expectations of other brands, such as

Aigle brand

Last year, business losses reached 1 million 100 thousand yuan, but Zhang Zhiyong said that these brands are still in the investment period, profit losses are normal, but the situation has gradually improved.

He pointed out that Li Ningwai's other brands contributed little to the group's revenues and profits, so it would not affect the group business.

After the announcement of Lining's performance, the share price continued to fall, which now temporarily reported HK $14.24, or 9.645%.