SINGAPORE, July 17 Chinese sportswear maker Li
Ning Co Ltd on Thursday said it expects one-off
charges and the cost of expanding its direct sales network to
widen its January-June net loss to at least 550 million yuan
Li Ning, whose investors include U.S. private equity firm
TPG Capital Management LP and Singapore sovereign
wealth fund GIC Pte Ltd, posted a net loss of 184.2
million yuan in the first half of 2013.
"The group is in the process of transforming from a
traditional wholesale model to a retail-oriented model to meet
the demands of the increasingly sophisticated consumers in
China," Executive Chairman Li Ning said in a stock exchange
"The direct retail platform in which the group has been
investing is also building a foundation for increasing retail's
contribution to the group's revenue in future," Li said.
Operating performance will likely improve, Li also said
without detailing specifics such as a time frame.
Li Ning, whose competitors include ANTA Sports Products Ltd
and foreign makers such as Nike Inc, in March
said restructuring would "take time to reflect fully" in its
Li Ning is scheduled to announce first-half earnings in
($1 = 6.2033 Chinese Yuan)
(Reporting by Donny Kwok; Editing by Christopher Cushing)