Lining Issued Profit Warning Pformation Successfully Or Will Improve Operation Condition

< p style= "text-align: center" > < img border= "0" align= "center" alt= "" src= "" /uploadimages/201407/18/20140718125152_sj.JPG "/" < > > "

< p > > a href= "http://cailiao.sjfzxm.com/Matertial/show/default.aspx" > Lining < /a > Limited (2331.HK) issued a profit warning today. It is expected that the net loss in the first half of June 30, 2014 will increase to no less than 550 million yuan (RMB, the same below), compared with 184 million 200 thousand yuan in the same period last year.

< /p >

< p > Lining (2231.HK) pointed out that net losses included 100 million yuan in bad debts provision, 200 million yuan in other projects, and a 300 million yuan loss caused by factors such as network expansion and core brand investment in the pformation plan launched in July 2012, and reduced wholesale sales of new products after clearance of channel inventory.

< /p >

< p > > a href= "http://cailiao.sjfzxm.com/Matertial/show/default.aspx" > group < /a > means that in order to meet the increasingly mature consumer demand in China, it is now pforming from the traditional wholesale mode to a retail oriented mode, and has achieved some success in the new products, especially since the performance of its core sports category in the second half of 2013 and the better trend of new product retail sales in the first half of 2014.

The Group believes that if the pformation is successful, the business will continue to improve.

< /p >

< p > Lining (2231.HK) closed at HK $5.46 in July 17th, down 1.27%, and has fallen 9.6% since 2014.

< /p >