Shares in financially struggling Li Ning plunged for a second day at the Hong Kong Stock Exchange on Monday after the Chinese sportswear retailer said its first-half loss would nearly triple from a year earlier.
Li Ning said after the close of trade on Thursday its estimated loss for the first six months of 2014 would increase to “no less than” 550 million yuan, or $89 million, compared with a loss of 184 million yuan in the first half of last year.
Li Ning shares dropped by 4.3% yesterday, after plunging nearly 10% on Friday.
In a statement at the Hong Kong Stock Exchange on Thursday, the company said the expected loss would result in part from provisions for doubtful debt and “legacy issues.” The company has been struggling with excess inventories and is trying to switch from a business model that emphasizes wholesale business to a retail-oriented model.
The estimated first-half loss is based on preliminary figures.
Li Ning himself, an iconic Chinese Olympic athlete, has attracted TPG as an investor and Samuel Su, chairman of Yum!, as an independent member of the board of directors. Rivals in the China market include Nike.
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