On September 16, the hearing on energy-saving initiatives and Li Ning Co., Ltd.'s trading activities once again put the brand in the spotlight. Recently, it was reported that Li Ning plans to invest 4 billion yuan to build an eco-city in Shenyang. Yesterday, Li Ning addressed several key strategic acquisitions and outlined the company’s broader development strategy, including the possibility of entering the real estate sector.
The acquisition of a 30.9% stake in Li Ning by Ningyi Energy reflects the company's commitment to expanding into a "big sports" ecosystem. According to Li Ning, this reorganization aims to create a more flexible holding structure that supports long-term growth. He emphasized that in the face of intense market competition, the group needs a stronger platform for innovation and expansion. The ultimate vision is to transform Li Ning from a pure sports equipment manufacturer into a comprehensive player in the broader sports industry.
Li Ning clarified that this restructuring will not interfere with the company’s core business operations. He assured that the energy-saving entity will not compete with Li Ning, and all sporting goods-related activities will continue to be managed independently by the company. The changes will not impact Li Ning’s management policies or its operational autonomy.
Through this acquisition, Energy Saver has gained the right to develop certain real estate projects in Shenyang. In the future, the company may focus on developing sports-themed and green communities. This project is located in the city center and spans over 1,500 acres, with an estimated investment of 4 billion yuan over a 5- to 8-year period.
This green-themed development echoes the current trend of real estate investment in mainland China. While Li Ning did not explicitly confirm involvement in the real estate market, he acknowledged the potential for expansion into related sectors.
Li Ning pointed out that the sports industry extends far beyond what most people see—such as sports gear and games. It also encompasses real estate, technology, and other emerging fields. He reiterated the company’s long-term goal of building a massive sports industry in China, rather than focusing solely on products.
Regarding the capital-intensive nature of real estate development, Li Ning admitted that investing in new businesses and platforms requires significant funding. Various financing methods are under consideration, such as equity allocation, but no specific plans have been finalized yet.
Overall, the move signals a bold step toward diversification and long-term growth, positioning Li Ning as a major player in the evolving sports and lifestyle sector.
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