According to paragraph A.2.1 of the code provisions, the role of the chairman and chief executive of Li Ning Company Limited should be separate and should not be performed by the same individual. During the year, the day-to-day responsibilities of the Chief Executive Officer have been assumed by Mr. Li Ning, the Executive Chairman, who manages the external affairs and relationships of the Group, and by Mr. Jin-Goon Kim, the there was no separation of the roles of the chairman and the CEO as both of the roles are currently undertaken by the Executive Chairman and/or the Executive Vice Chairman of the Board. Not with standing the above, the Board is of the view that the current management structure remains effective for the group's operations and sufficient checks and balances are in place. As at the date of this announcement, Mr. Jin-Goon Kim, Executive Vice Chairman and an executive director of the company, has been appointed as Interim CEO of the company with effect from March 21, 2014.

The company reported audited consolidated earnings results for the year ended December 31, 2013. For the year, the company reported revenue of RMB 5,824,110,000 against RMB 6,676,441,000 for the same period in the last year. Operating loss was RMB 169,417,000 against RMB 1,598,934,000 for the same period in the last year. Loss before income tax was RMB 317,172,000 against RMB 1,805,919,000 for the same period in the last year. Loss attributable to equity holders of the company was RMB 391,540,000 or 29.91 cents per basic and diluted share against RMB 1,979,114,000 or 172.63 cents per basic and diluted share for the same period in the last year. Return on equity attributable to equity holders was 18.2% against 77.8% for the same period in the last year. For the year ended 31 December 2013, the group's EBITDA recorded a profit of RMB 26,020,000 against loss of RMB 1,377,598,000, representing a significant year-on-year improvement, which was mainly attributable to the performance of LI-NING brand and Double Happiness brand. Net cash used in operating activities was RMB 13,531,000 and net capital expenditure was RMB 223,674,000 for the year 2013.