Li Ning Company Limited (OTCPK:LNNGF) Q2 2025 Earnings Conference Call August 21, 2025 11:00 PM ET
Company Participants
Dong Sheng Zhao – VP & CFO
Ning Li – Founder, Exec. Chairman, Joint CEO and Head of Business Devp. Corporate Strategies & Planning
Takeshi Kosaka – Joint CEO & Executive Director
Operator
Analysts, investors, good morning. Welcome to Li Ning Company Limited’s 2025 Interim Results Announcement. Let me introduce to you our management. They are Executive Chairman and Joint CEO, Mr. Li Ning; Executive Director and Joint CEO, Mr. Qian Wei; Group Vice President and CFO, Mr. Zhao Dong Sheng. In today’s event, Mr. Zhao will first present the 2025 interim financial review, and then our CEO will go through strategic direction, and then Mr. Sheng will then talk about future developments and progress followed by Q&A. Mr. Zhao, please.
Dong Sheng Zhao
Thank you. Good morning, everyone. I am Zhao Dong Sheng. I will now review the company’s financial performance for the first half of the year with you. In the first half of the year, we continued to focus on laying a solid foundation, pursuing pragmatic development and prioritizing stability, achieving the following operational results. Financially, our company’s revenue grew by 3.3% to RMB 14.817 billion.
Gross profit margin decreased by 0.4 percentage points to 50%. Under the premise of prudent control over expense allocation, the company focused our investments on core product categories and brand development, combined with a decrease in non-operating income and an increase in effective tax rate, ultimately achieving a net profit of RMB 1.737 billion. Net profit margin was 11.7%.
Overall, financial condition remains healthy and robust with net operating cash inflow of RMB 24.11 billion. Average working capital as a percentage of revenue stands at 7.3%. Cash conversion cycle 31 days, unchanged from the same period last
