Li Ning Co., the Chinese sportswear retailer which reported an 85 percent drop in first-half profit, forecast a “substantial” full-year loss on costs stemming from a plan to revive growth.
A plan to boost results by reducing excess inventory, getting newer products into stores and improving the sales network will cost between 1.4 billion yuan ($224 million) and 1.8 billion yuan, Li Ning said in a statement to Hong Kong’s stock exchange today. It didn’t provide an estimate for the full-year loss.
The company in January said that it would sell 750 million yuan of convertible bonds to TPG Capital and Singapore’s sovereign fund to raise money for more stores and product development. Full story
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