Li Ning increases the investment to 3.3 billion yuan on its Guangxi supply chain base

Li Ning Co., Ltd. (hereinafter referred to as "Li Ning", 02231.HK) decided to make another victory in the upstream supply chain. The company announced on the evening of May 23rd that it had invested about 1.5 billion yuan in 2019 to acquire the land use rights of a plot in Guangxi and build a supply chain base. Now it decides to increase the investment to 3.3 billion yuan to build a high-end intelligent manufacturing and flexible supply chain base as well as a high-level R&D and experience center to meet the needs of future development.

According to the investment agreement, the above land acquired by Li Ning is industrial land with a total area of 590 mu. The company promises that the project will be implemented and put into production within 5 years after signing the investment agreement, and the annual income generated by the project will be no less than 3.5 million yuan/mu, the annual tax payable will not be less than 200,000 yuan/mu.

Li Ning's supply chain base in Guangxi includes raw materials, sports shoes, sportswear and other R&D and production cluster supply bases. It is reported that before 2019, Li Ning, which was established in 1990, had not built its own production factory. The Guangxi project is the first time Li Ning has built a factory by itself, and it is also the first time that the brand has entered the upstream production link of the sports goods supply chain.

Today's Li Ning is second only to Anta Sports (02020.HK) in terms of size. In 2022, Li Ning's annual revenue reached 25.803 billion yuan, a year-on-year increase of 14.3%, and net profit was 4.064 billion yuan, a year-on-year increase of 1.3%. In 2022, there was a net increase of 360 Li-Ning brand stores, including a net increase of 265 direct-sale stores.