Lining Positioned The Mass Market &Nbsp; The Main Attacking Large And Medium Cities.

Under the pressure of channel reform, Lining [15.80-7.49%] Limited (2331.HK)'s performance growth is weak.

Li Ning Co expects gross margins and net profit margins to be close to 2009 levels in 2010.

In January 17, 2011,

At the end of last year's Lining brand meeting in the second quarter of 2011, the average price of Lining's clothing and footwear products increased by more than 8% over the same period last year, according to the retail tag price, that is, the product label price. However, the number of orders dropped by over 7% and 8% compared to the same period last year, and the total value of orders for orders decreased by about 6%.

This immediately triggered concern about the Li Ning Co, and the market even once said that Li Ning Co had to close 500 to 600 stores.

Then in December 28, 2010, Li Ning Co launched a series of reform measures for the distribution system to the outside world, including the integration of 500-600 inefficient distributors, the adjustment of store structure and the increase of wholesale discount by 3 percentage points.

Public information shows that as of June 30th last year, Li Ning Co had 129 distributors and more than 2000 distributors.

Li Ning Co said yesterday that the entire sporting goods industry is entering the stage of pformation. The business model is likely to undergo major changes in the next five years, and the market will be further differentiated into a brand premium.

Li Ning Co plunged 7.49% to HK $15.8 in HK 16.