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Annual Report - Li Ning

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Management Discussion and Analysis (Continued)<br />

Breakdown of turnover by geographical location<br />

Year ended 31 December<br />

2006 2005<br />

% of total % of total Change<br />

Note RMB’000 turnover RMB’000 turnover (%)<br />

LI-NING brand<br />

PRC market<br />

Beijing and Shanghai 238,387 7.5 187,078 7.6 27.4<br />

Central region 1 395,959 12.4 287,221 11.7 37.9<br />

Eastern region 2 701,378 22.1 570,135 23.3 23.0<br />

Southern region 3 397,074 12.5 313,583 12.8 26.6<br />

Southwestern region 4 320,812 10.1 208,325 8.5 54.0<br />

Northern region 5 557,920 17.5 384,851 15.7 45.0<br />

Northeastern region 6 451,955 14.2 305,319 12.5 48.0<br />

Northwestern region 7 76,625 2.4 45,455 1.9 68.6<br />

International markets 27,935 0.9 31,844 1.3 -12.3<br />

Other brands*<br />

PRC market 12,498 0.4 116,725 4.7 -89.3<br />

Total 3,180,543 100.0 2,450,536 100.0 29.8<br />

* Other brands include the KAPPA and AIGLE brands. Corresponding figures for 2005 relate to the KAPPA brand (disposed of in August 2005), while those for 2006 relate to<br />

the AIGLE brand.<br />

Notes:<br />

1. Central region includes Hubei, Hunan and Jiangxi.<br />

2. Eastern region includes Zhejiang, Jiangsu and Anhui.<br />

3. Southern region includes Guangdong, Guangxi, Fujian and Hainan.<br />

4. Southwestern region includes Sichuan, Chongqing, Guizhou, Yunnan and Tibet.<br />

5. Northern region includes Shandong, Hebei, Henan, Tianjin, Shanxi and Inner Mongolia.<br />

6. Northeastern region includes <strong>Li</strong>aoning, Jilin and Heilongjiang.<br />

7. Northwestern region includes Shaanxi, Xinjiang, Gansu, Qinghai and <strong>Ning</strong>xia.<br />

The Group has established a nationwide network which covers all provinces and municipalities in the PRC. The second and<br />

third-tier cities where the Group has strong presence in are the mainstream market for future growth.<br />

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