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Li Ning Delivers Modest 2025 Growth With Solid Cash Flow and Stable Inventory

Story Highlights
  • Li Ning posted modest 2025 revenue growth with slightly lower profit margins but maintained strong cash generation and a 50% dividend payout ratio.
  • Flat retail sell-through and stable four-month inventory turnover indicate healthy operations and working capital despite subdued top-line momentum.
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Li Ning Delivers Modest 2025 Growth With Solid Cash Flow and Stable Inventory

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Li Ning Company ( (HK:2331) ) has shared an update.

Li Ning Company Limited reported a 3.2% increase in revenue to RMB29.6 billion for 2025, with gross profit margin edging down to 49% and net profit attributable to shareholders slipping to RMB2.94 billion, implying a net margin of 9.9%. The group maintained strong cash generation with net operating cash inflow of RMB4.85 billion and recommended a final dividend that brings the full-year payout ratio to 50%, underscoring continued commitment to shareholder returns.

Operationally, overall retail sell-through across online and offline channels was flat, while new products accounted for 83% of offline sell-through and channel inventory turnover stayed at about four months, suggesting healthy inventory levels despite modest top-line growth. Working capital remained solid with gross average working capital equivalent to 7.7% of revenue and a cash conversion cycle of 37 days, indicating stable operational efficiency even as profitability and margins faced mild pressure.

The most recent analyst rating on (HK:2331) stock is a Sell with a HK$17.00 price target. To see the full list of analyst forecasts on Li Ning Company stock, see the HK:2331 Stock Forecast page.

More about Li Ning Company

Li Ning Company Limited is a leading Chinese sportswear and athletic footwear company listed in Hong Kong, operating under stock codes 2331 and 82331. The group focuses on performance and lifestyle sports products sold through a mix of online and offline retail channels across its branded platform.

Average Trading Volume: 20,697,512

Technical Sentiment Signal: Buy

Current Market Cap: HK$52.27B

See more data about 2331 stock on TipRanks’ Stock Analysis page.

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