Running shoes sell over 26 million pairs, with revenue nearing 30 billion yuan, as Li-Ning shifts from steady management to aggressive expansion

This article is sourced from Times Finance. Author: Zhou Hang

Li Ning’s comprehensive offensive is quietly beginning.

On March 19, Li Ning Co., Ltd. (02331.HK) released its 2025 performance report. As of December 31, 2025, Li Ning Group’s revenue increased by 3.2% to 29.598 billion yuan, setting a new record high. The group’s operating profit grew from 3.678 billion yuan last year to 3.898 billion yuan; net profit was 2.936 billion yuan, with a net profit margin of 9.9%, exceeding market expectations.

Against the backdrop of a sluggish overall recovery in the consumer industry, this financial report data can be considered steady, but the guidance of high single-digit revenue growth in 2026 signals new developments. The reaction of the capital market may shed some light: on the morning of March 20, Li Ning’s stock price surged over 13% at one point. By the close, Li Ning was trading at HKD 21.44 per share, up 8.56% for the day, with a latest market value of approximately HKD 55.4 billion.

At the earnings release conference on March 20, Li Ning Group Co-CEO Qian Wei stated, “This year, we will continue to solidify our foundation and actively expand, but this is not a reckless stance; it is an attitude of facing challenges and seizing business opportunities.”

This is not just empty talk. In recent years, Li Ning has consistently emphasized “steady management,” but this time, management highlighted “active expansion” on a solid foundation.

Behind this shift is the company’s key strategic layout completed in 2025. Now, they are more confident and ready to enter a new Olympic cycle.

Li Ning has become more proactive

Where does Li Ning’s confidence for this offensive come from?

Latest performance data shows that in 2025, Li Ning Group’s operating cash flow had a net inflow of 4.852 billion yuan. As of the end of 2025, the group’s net cash (cash and cash equivalents plus fixed deposits) reached 19.97 billion yuan, an increase of 1.8 billion yuan compared to the same period last year.

In an era when cash flow anxiety is common in the consumer goods industry, this cash reserve not only indicates risk resistance but also provides the ammunition for quick action. “Sufficient cash reserves give us a solid financial foundation and flexible deployment capabilities,” said Zhao Dongsheng, CFO of Li Ning Group, at the earnings conference.

Inventory management is another key indicator repeatedly scrutinized by the capital market.

By the end of 2025, Li Ning Group’s omnichannel inventory-to-sales ratio remained stable at four months. The company’s inventory turnover days were 64 days, consistent with last year—such healthy performance in a challenging environment is backed by meticulous operations. More importantly, the company’s inventory age structure remains healthy. From the channel inventory perspective, about 85% of stock is under 6 months, 9% between 7-12 months, and only 6% over 12 months. This leaves ample room for future category expansion and channel innovation.

Li Ning’s balanced channel development also provides a solid foundation for strategic shifts.

By the end of 2025, Li Ning brand stores (excluding Li Ning YOUNG) totaled 6,091, a slight decrease of 26 stores year-over-year. This reflects proactive optimization of store structure from quantity to quality. Revenue shares from direct-operated stores, wholesale, and e-commerce were 23%, 46%, and 31%, respectively, maintaining overall balance.

Notably, Li Ning’s e-commerce revenue grew in single digits amid overall market pressure, demonstrating resilience online. Meanwhile, Li Ning YOUNG stores increased by 50 to 1,518, with steady expansion in children’s apparel, helping the group lock in the next generation of consumers.

Running category reaches the top, badminton quietly “counterattacks”

Steady finances form Li Ning’s defensive base, while proactive moves across multiple fronts signal a comprehensive offensive.

Before the earnings conference, founder Li Ning, Co-CEO Qian Wei, and CFO Zhao Dongsheng specifically showcased their sports shoes on camera. Li Ning was wearing a pair of professional running shoes equipped with Super Bionic capsules, the “Chitu 9 ULTRA.”

Qian Wei said, “Some categories have been continuously expanded and attacked over the past three or four years.” The explosive growth in running is the core pillar of Li Ning’s offensive.

Data shows that in 2025, Li Ning’s professional running shoes sales exceeded 26 million pairs. Among them, the core IP series—Fei Dian, Chitu, and Ultra-light—sold over 11 million pairs. The retail revenue share of the running category has risen to 31%, making it the largest category within Li Ning Group.

Li Ning’s dominance in the running community continues to strengthen. Among elite runners completing the Beijing half marathon in under 90 minutes, Li Ning is the most worn brand; in the Shanghai marathon “breaking three hours,” Fei Dian has the highest wear rate, with significant year-over-year growth. Since 2019, the Fei Dian series has helped athletes win 277 championships and step onto the podium 522 times.

Regarding recent development of the running category, Qian Wei emphasized, “Actually, the group consciously started pushing aggressively into the running business a few years ago. Over the past few years, we’ve actively promoted the growth of this category. The recent explosion is not just a matter of waiting for business scale to happen; it’s a deliberate, top-down push.”

He also set a clear goal at the earnings conference: “In the next few years, we hope Li Ning running can become the number one running brand in consumers’ minds.”

While the rise of the running category was expected, the “counterattack” in badminton was somewhat surprising. In 2025, Li Ning Group’s badminton revenue grew by 30%, with racket sales exceeding 5.5 million units, a new record.

Qian Wei explained, “We took a difficult but correct path. A few years ago, Li Ning’s badminton was mainly apparel, with very low proportion of equipment. But we adjusted our strategy, abandoning short-term scale pursuits, and focusing on core professional equipment like rackets and strings.” Now, revenue from badminton equipment accounts for 85% of the category business.

Maintaining “presence” in each growth track has diversified Li Ning’s offensive options. In 2025, Li Ning accelerated expansion into outdoor, tennis, and pickleball. As sports consumption becomes more social and scene-specific, any new track’s explosive growth could reshape the industry landscape.

The outdoor category expansion is particularly noteworthy. Qian Wei revealed that in 2024, Li Ning started from zero in outdoor, and by 2025, retail sales on a small base had doubled.

This leap was rapid, but Qian Wei also expressed caution. To become a standalone, competitive outdoor channel, product variety still needs to be richer, and store profitability models are not yet established—“the base is still too small. We have many areas to adjust.”

Simultaneously, new tracks like pickleball and tennis are being developed. Qian Wei mentioned that Li Ning began entering the pickleball field two years ago, now fully promoting pickleball product lines, including a seven-year sponsorship of the “Li Ning Cup” China Pickleball Series. A new generation of tennis rackets is also planned to launch in the first half of 2026. He admitted that compared to major categories like basketball and running, these emerging tracks have less business potential, but they should not be underestimated.

Channel expansion also plays a key role in Li Ning’s proactive offensive.

In 2025, Li Ning’s flagship stores, outdoor standalone stores like “COUNTERFLOW,” and scene-specific stores will be launched successively, precisely targeting niche groups. Flagship stores, blending sports spirit with daily consumption scenarios, will feature new series like Glory Gold Label, offering high-quality outfits for urban consumers seeking a versatile lifestyle—covering commuting, business, and light sports. Outdoor stores focus on casual outdoor lifestyles.

For a company with nearly 30 billion yuan in annual revenue, whether these new channels and markets can become short-term growth engines remains to be seen. However, under Li Ning’s “single brand” strategy, the company’s category expansion has developed a systematic replication and migration capability, opening up more offensive possibilities.

Long-term value behind Li Ning’s offensive

Li Ning’s offensive is not aimed at rapid scale growth.

Marathon winners are rarely those who sprint the fastest in the first half; instead, they are those with the most consistent pace and optimal energy distribution. Li Ning’s development logic aligns with this—focusing on long-term value rather than short-term explosive growth.

In 2025, Li Ning renewed its partnership with the Chinese Olympic Committee. At the Milan Winter Olympics earlier this year, the Chinese sports delegation appeared in Li Ning gear. According to third-party analysis by Second Quarter, during the Winter Olympics, Li Ning ranked first among all sports brands in social media volume and third in overall category social volume.

Meanwhile, Li Ning also opened its first global flagship store—“Long Store”—and launched the “Glory Gold Label” series, which features the Chinese Olympic Committee emblem combined with the Li Ning brand logo on products. According to Guojin Securities research, this series received positive early consumer feedback and is expected to be a key growth driver in 2026.

Qian Wei emphasized, “Such collaborations are never just marketing actions for immediate sales; their core value lies in long-term brand building. We aim to continuously invest so that consumers and sports enthusiasts reinforce their recognition of Li Ning’s professional sports image over the medium and long term.”

Regarding short-term financial impact, he was candid: “It may put some pressure on current financial statements, but the long-term empowerment is worth it—or even necessary. Last year’s financial report showed a slight increase in marketing expenses, but through operational efficiency improvements, we try to offset the additional costs and maintain a healthy, stable financial state.”

This firm commitment to long-term value, combined with unwavering focus on the single-brand strategy, echoes founder Li Ning’s repeated emphasis on “walking alongside China’s sports industry.” This has become a distinctive feature of Li Ning Group—rooted in Li Ning’s identity as an Olympic champion and deeply intertwined with China’s sports development over decades.

2025-2028 marks a new Olympic cycle. For Li Ning, which holds top-tier sports resources, multiple categories “blooming,” and new categories, audiences, and channels expanding, the offensive layout is already in place, and the value of this offensive is expected to gradually unfold.