Annual Report - Li Ning

More documents

Recommendations

Info

16 Li Li Ning Ning Company Company Limited Limited • • Annual Annual Report Report 2006 2006 Management Discussion and Analysis Mr. ZHANG Zhi Yong, Chief Executive Officer OVERVIEW The Group’s business objectives in 2006 were to sharpen the competitive edge of its core business to ensure strong sustainable growth and to propel new business development, thereby achieving steady profit growth and continual value creation so as to maximize shareholder values. Strong economic growth and rising consumption power in the PRC, coupled with the imminent 2008 Beijing Olympic Games, have created a favourable macro operating environment for the Group. Riding on its strong brand and marketing capabilities, unmatched product research and development talents, extensive distribution channel and enhancement in supply chain management, the Group has achieved another year of distinguished results in 2006.
Management Discussion and Analysis (Continued) RESULTS REVIEW Key Financial Indicators Key financial indicators of the Group for the year ended 31 December 2006 are summarised as follows: Year ended 31 December Change 2006 2005 (%) (Reclassified– Note 7) Items of income statement (audited) (All amounts in RMB thousands unless otherwise stated) Turnover 3,180,543 2,450,536 29.8 Gross profit 1,508,552 1,126,189 34.0 Operating profit 402,518 271,497 48.3 EBITDA (Note 1) 438,407 296,435 47.9 Profit attributable to equity holders 294,846 186,800 57.8 Basic earnings per share (RMB cents) (Note 2) 28.65 18.25 57.0 Selected financial ratios (audited) Gross profit margin (%) 47.4 46.0 Operating profit margin (%) 12.7 11.1 Margin of profit attributable to equity holders (%) 9.3 7.6 Effective tax rate (%) 26.4 31.1 Return on equity holders’ equity (%) 23.0 17.2 Debt to equity holders’ equity ratio (Note 3) 0.53 0.35 Average inventory turnover (days) (Note 4) 70 84 Average accounts receivable turnover (days) (Note 5) 55 44 Average trade payables turnover (days) (Note 6) 67 68 Notes: 1. EBITDA refers to earnings before interest, tax, depreciation and amortisation. 2. The calculation of basic earnings per share is based on the profit attributable to equity holders for the year ended 31 December 2006 of RMB294,846,000 (2005: RMB186,800,000) and the weighted average of 1,029,030,000 ordinary shares in issue during the year less shares held for the Restricted Share Award Scheme (2005: 1,023,827,000 shares). 3. The debt to equity holders’ equity ratio is based on total liabilities divided by equity holders’ equity as at 31 December. 4. The calculation of average inventory turnover (days) is based on the average of opening and closing inventory balances divided by the cost of sales and multiplied by 365 days. 5. The calculation of average accounts receivable turnover (days) is based on the average of opening and closing balances of accounts and notes receivable divided by turnover and multiplied by 365 days. 6. The calculation of average trade payables turnover (days) is based on the average of opening and closing balances of trade payables divided by total purchases and multiplied by 365 days. 7. See note 2.23 to the consolidated financial statements. 17 >
Page 1 and 2: Li Ning Company Limited ! ! (Incorp
Page 3: 2 > 4 > 6 > 10 > 16 > 32 > 42 > 48
Page 9 and 10: Five-year Financial Highlights (Con
Page 11 and 12: Chairman’s Statement (Continued)
Page 13: Chairman’s Statement (Continued)
Page 16 and 17: Li Ning Company Limited • Annual
Page 20: 18 Li Li Ning Ning Company Company
Page 23 and 24: Management Discussion and Analysis
Page 33 and 34: Corporate Governance Report Geared
Page 35 and 36: Corporate Governance Report (Contin
Page 45 and 46: Investor Relations Report (Continue
Page 47 and 48: Investor Relations Report (Continue
Page 49: Steadfast Perseverance
Page 58 and 59: 56 Li Ning Company Limited • Annu
Page 60: 58 Li Ning Company Limited • Annu
Page 66 and 67: 64 Li Ning Company Limited • Annu
Page 69 and 70:
Report of the Directors (Continued)
Page 71 and 72:
Independent Auditor’s Report To t
Page 73 and 74:
Balance Sheet (All amounts in RMB t
Page 75 and 76:
Consolidated Statement of Changes i
Page 77 and 78:
Notes to the Consolidated Financial
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
show all

Annual Report - Li Ning

Create successful ePaper yourself

Delete template?

Save as template?