DEAR SHAREHOLDERS,
Over the past year, China's economy navigated the economic cycle with steady strides. Driven by favorable policies such as expanding domestic demand and boosting consumption, it maintained an overall stable trajectory with steady progress. Sports-related policies have been actively advanced, with ample room for industry development. Against this backdrop, the Group has anchored its core strategy and continued to exert efforts, continuously enhancing operational efficiency, deepening the commercialization of cutting-edge technological achievements, meticulously refining the "LI-NING's Experience Value", meeting consumers' diverse needs, driving steady performance growth, and contributing to long-term value creation.
STEADY GROWTH IN PERFORMANCE, SOLID OPERATIONAL FOUNDATION
In 2025, we upheld integrity while innovating, advanced steadily toward the future, with revenue increasing 3.2% to RMB29,598 million (2024: RMB28,676 million). Overall gross profit increased by 2.4% to RMB14,489 million (2024: RMB14,156 million), with a gross profit margin of 49.0%, decreasing by 0.4 percentage point compared to the previous year. Profit attributable to equity holders was RMB2,936 million, with a net profit margin of 9.9%.
During the year, the Group maintained robust cash flow, generating net operating cash inflow of RMB4,852 million (2024: RMB5,268 million), demonstrating strong risk resilience and exceptional operational resilience.
The Board has recommended the payment of a final dividend of RMB23.36 cents per ordinary share for the year ended 31 December 2025. Together with the interim dividend of RMB33.59 cents per ordinary share paid in August 2025, the total dividend for the year ended 31 December 2025 will amount to RMB56.95 cents per ordinary share or a total dividend payout ratio of 50%.
FOCUSING ON CORE STRATEGY, DEEPENING OLYMPIC SYNERGY
LI-NING Company adheres to its development strategy of "Single Brand, Multi-categories, Diversified Channels", solidifying its foundation in professional sports while actively responding to evolving market and consumer trends. Throughout the year, the Group concentrated on six core business segments: running, basketball, training, badminton, table tennis, and sports casual. By enhancing independent research and development capabilities, deepening technology-enabled products, and optimising consumer experiences, it continuously launched high-quality products that blend professional performances with trendy designs.
Throughout the year, LI-NING continued its full support for China's sports initiatives, collaborating with the Chinese Olympic Committee. This partnership served as an opportunity to integrate top-tier sports resources, convey the brand's spirit, and execute a series of marketing campaigns and product launches centered around the theme of "China's Glory, Together with LI-NING." We designed the award-winning gear for China's delegations at the 2026 Milan Winter Olympics and the 2025 World Games, deeply integrating cutting-edge sports technology with Eastern aesthetics. This accompanied and witnessed athletes' moments of glory while showcasing cultural confidence through premier sporting events, embodying LI-NING's core value of "Serve With Sportsmanship". Simultaneously, we extend the sportsmanship beyond the arena into everyday life. In December 2025, we opened the world's first "LI-NING LOONG STORE"（龍店）in Beijing and officially launched the "Glory Gold Label"（榮耀金標）product series. This collection deeply integrates LI-NING's professional sports technology with a minimalist, refined design aesthetic, offering high-quality apparel for urbanites pursuing a quality lifestyle. It meets diverse needs across commuting, business, and light sports scenarios.
COMMITTED TO INNOVATION-DRIVEN DEVELOPMENT, STRENGTHENING SCIENTIFIC AND TECHNOLOGICAL CAPABILITIES
LI-NING consistently regards technological innovation as the core engine driving high-quality development, establishing a technical platform comprising two major pillars: scientific research and sports science studies. Throughout the year, the Group continued to leverage its proprietary research and development strengths while strengthening academic research collaborations. This multifaceted approach enhanced the technological application capabilities of professional products across diverse scenarios, empowering both professional athletes and consumers to continuously refine their skills in the training field and achieve extraordinary results in competitions.
Following the launch of "Super BOOM"（超䨻）technology, the Group unveiled the "Super BOOM Capsule"（超䨻膠囊）midsole cushioning technology in November 2025, achieving a breakthrough experience among the industry characterized by "High Rebound, Fast Rebound, and High Durability." By embedding specialized capsule-shaped modules into running shoe midsoles, "Super BOOM Capsule" significantly enhances energy return and rebound performance, delivering a powerful foot feel and strong propulsion for users. This innovation has first applied to core running shoe products including the "Feidian 6 ULTRA" （飛電6 ULTRA）, "Feidian 6 ELITE" （飛電6 ELITE）, and the latest addition to the "Red Hare"（赤兔）series, the "Red Hare 9 ULTRA" （赤兔9 ULTRA). Empowered by cutting-edge technology, athletes sponsored by the Group frequently graced podiums at premier domestic and international events in 2025, showcasing the formidable strength and reliable performance of LI-NING's professional running shoes through outstanding achievements.
At the same time, the Group actively expanded into emerging tracks such as outdoor and other specialised categories. During the year, through collaboration with the Information Office of the China National Space Administration, we advanced aerospace technology-driven sports innovation by integrating aerospace technology into LI-NING's professional sports gear. We systematically pursued technological innovation in the outdoor sector, such as developing the fabric of dual-vent nanotechnology for rainstorm protection in partnership with national-level research institutions. This breakthrough fabric achieves comprehensive improvements in waterproof breathability, thermal insulation, ventilation, and protective performance, providing reliable safeguards for complex environments such as hiking and snow sports. Additionally, we continuously refined proprietary technologies such as the GCU ground control system, optimising traction, stability, and energy return mechanisms to create lighter, more professional outdoor footwear and gear. With the opening of our first standalone outdoor concept store, "COUNTERFLOW 溯", we have further defined our strategic positioning and differentiation in the outdoor business sector. Focusing on lightweight outdoor lifestyle for the masses, we have created a new offline space integrating retail, experiential activities, and community engagement.
DEEPLY ROOTED AND STEADFAST IN ACTION, ACCUMULATING STRENGTH FOR FUTURE BREAKTHROUGHS, FIRMLY BELIEVING THAT "ANYTHING IS POSSIBLE"
2026 marks the opening year of the "15th Five-Year Plan". Guided by the strategy to accelerate the development of a leading sports nation, the PRC will further unleash the potential of sports consumption and promote the transformation and upgrading of the sporting goods manufacturing industry. The continuous release of domestic demand potential will provide solid support and a broad stage for the sports industry. Anchored in the domestic market while looking toward the future, LI-NING will seize the opportunities of our era with a more forward-looking vision and more efficient executions. We will deepen our "Single Brand, Multi-categories, Diversified Channels" strategy, optimise and upgrade our core category matrix, explore emerging niche segments, and continuously strengthen our products' core advantages in professional performance, technological prowess, and athletic experience. We will empower our products through innovation and design to repay the trust of our consumers.
As the Group's founder, I remain steadfastly guided by the long-term value of all shareholders and related stakeholders. I sincerely thank everyone for your enduring trust and steadfast support for LI-NING Company. Looking ahead, we will continue to enhance corporate governance, optimise employee development, and fulfill our social responsibilities. We are committed to repaying the deep affection and unwavering support of all shareholders and stakeholders with superior results and performance as well as a stronger brand reputation.
Finally, on behalf of the Company, I express my sincere gratitude to every dedicated colleague. You embody our brand spirit and are our partners in the Group's journey forward. Moving forward, I will work alongside the management team and unite with all employees to continue driving the company toward excellence and new achievements.
Li Ning
Executive Chairman and Joint Chief Executive Officer
Hong Kong, 19 March 2026
