Li Ning Co. (02331.HK) and Peak Sport Products Co. (01968.HK) have both shown improvement in their financial performance for the first half of this year, bolstering hopes that the sports apparel industry is on the recovery track.
Li Ning announced that its net loss narrowed by 95 percent from a year earlier to 29.4 million yuan for the six months to June, while Peak Sport’s interim profit surged 45.45 percent to 176 million yuan, the Hong Kong Economic Journal noted.
Li Ning saw its store number rise for the first time since 2011, as it recorded a net addition of 119 outlets compared with the level at the end of last year, the report said, citing the firm’s chairman and acting chief executive Li Ning.
The company’s total store number now stands at 5,745.
The fall in the renminbi’s exchange rate will have only a marginal impact on Li Ning as its business is mostly in mainland China, chief financial officer Terence Cheung Wah-fung said.
Peak Sport, meanwhile, said the drop in the Chinese currency will help the company push ahead in overseas markets which is the firm’s long-term goal.
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