Chinese sportswear group Li Ning Co Ltd reported on Tuesday a steeper-than-expected 1.98 billion yuan ($318.8 million) loss for 2012, its first annual loss since it listed in 2004, hit by inventory charges and fierce competition from domestic and foreign brands.
The result compared with a profit of 385.8 million yuan in 2011 and was deeper than the average forecast of analysts for a 1.09 billion yuan loss, according to Thomson Reuters Starmine SmartEstimate.
Li Ning, backed by Singapore sovereign fund GIC and U.S. private equity firm TPG Capital, had warned in December of a big loss in 2012 as it racked up as much as $288 million in expenses by buying back inventory from distributors.
Li Ning's shares have fallen 7.7 percent so far this year, lagging a 1.8 percent drop in the benchmark Hong Kong index. Full story
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