Lining Cleaning Up Inventory Will Result In A Significant Loss In Annual Performance.

< p style= "text-align: center" > img border= "0" alt= "align=" center "src=" /uploadimages/201212/17/2012121711020777193.jpg "/" < < > >

< p > China's main sports brand, < a href= "http://sjfzxm.com/news/index_f.asp" > Lining < /a >, announced on Monday that a large-scale one-time channel revival plan will be implemented to solve the problem of excessive sales, including the excessive inventory. The estimated cost will be about 14-18 billion yuan, which will lead to a substantial loss in the year ended December.

< /p >

< p > Lining's statement said that the company had previously sold its marketing network in China's < a href= "http://sjfzxm.com/news/index_c.asp" > sports goods industry < /a > to gain market share through wholesale operation.

However, in recent years, the growth rate of the whole industry has been declining rapidly and showing signs of saturation, which is no longer suitable for the development of the industry.

In addition, excessive expansion leads to an increase in dealer inventories, which adversely affects retail store performance and profitability, and leads to continuous deterioration of cash flow and financial conditions in retail stores.

< /p >

< p > "management believes that reducing old stock, improving product freshness, optimizing product procurement and rationalizing sales channels are the best ways to restore our group's sales channels.

"Lining said.

< /p >

< p > to achieve this goal, the company has formulated the name "channel revival plan" to replace the old a href= "http://sjfzxm.com/news/index_s.asp" > inventory < /a > with new product mix, so as to better cater to the needs of customers and help sales channel partners to strengthen financial situation and cash flow.

< /p >

< p > Lining's board of directors has approved the channel revival plan, and is expected to have a one-time cost ranging from 14 to 1 billion 800 million yuan.

The cost will result in a significant loss in the company's performance in the 2012 year.

When the company announced its first half performance in August, it expected 2012 of its performance to be a loss.

The company's net profit in the first half was only 44 million yuan.

The annual decrease is 85%.

The net profit in 2011 was 386 million yuan.

< /p >

Lining P reported HK $4.89 last Friday, which has risen more than 7% in the past month.

< /p >