On September 16, the hearing on energy-saving initiatives and Li Ning Co., Ltd.'s trading activities once again brought the brand into the spotlight. Recently, it was reported that Li Ning plans to invest 4 billion yuan in building an eco-city in Shenyang. Yesterday, the company clarified its major strategic acquisitions and long-term development plans, including its consideration of entering the real estate sector.
Regarding the acquisition of a 30.9% stake in Li Ning by Ningyi Energy, the company stated that this move reflects its commitment to expanding into the "big sports" industry. The reorganization aims to create a more flexible holding platform, allowing for greater flexibility and growth opportunities. Li Ning emphasized that in the face of intense market competition, the group needs a broader development platform and more room to innovate. The ultimate goal is to develop the entire sports industry in China, rather than just focusing on sports equipment.
Li Ning also clarified that this restructuring will not impact the company’s business operations. He assured that the energy-saving company will not become a competitor. All sporting goods-related businesses will continue to be managed solely by Li Ning. This change will not affect the company's management strategy, business policies, or operational independence.
Through the acquisition, Energy Saving has gained the right to develop certain real estate projects in Shenyang. In the future, the company may explore sports-themed and green community development projects. These projects are located in the central area of Shenyang and cover over 1,500 acres. The estimated investment is around 4 billion yuan, with a development period spanning 5 to 8 years.
This green-themed project echoes the recent surge in real estate investments in mainland China. While Li Ning did not confirm direct involvement in the real estate market, he acknowledged the potential for expansion into related industries.
Li Ning pointed out that the sports industry goes beyond what people typically see—such as sports games and apparel. It also includes sectors like real estate and emerging technologies. He reiterated the company's long-term vision of building a large-scale sports industry in China, moving beyond just selling sports products.
Regarding the capital-intensive nature of real estate development, Li Ning admitted that the financial requirements for new business ventures are significant. The company is exploring various funding methods, such as share allocations, but no specific plans have been finalized yet. The focus remains on sustainable growth and strategic expansion.
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