Li Ning Company Limited provided group earnings guidance for the year ended December 31, 2015. The board of directors of the company informed shareholders of the company and potential investors that based on the latest review of the unaudited management accounts of the group for the eleven months ended 30 November 2015 and the information currently available to the Board, the group is expected to record an approximate break-even in terms of profit and loss attributable to the equity holders of the company for the year ended 31 December 2015, as compared to a loss attributable to the equity holders of the company of RMB 781,481,000 for the year ended 31 December 2014. The Board believes that the expected turnaround in operating results is principally due to an increase in both the sales revenue and gross profit of the group and a decrease in expense ratio in 2015.

These are products of the group's commitment to improving direct retail store operating efficiency and profitability, enhancing long-term relationships with channel partners, as well as expanding e-commerce business.