Financially struggling Chinese sportswear retailer Li Ning expects its loss for the first six months of 2014 to widen to “no less than” 550 million yuan, or $89 million, from 184 million yuan in the first half of last year, according to a statement at the Hong Kong Stock Exchange after the close of trade today.
Li Ning said the expected loss would result in part from provisions for doubtful debt and “legacy issues.” The company has been struggling with excess inventories and is trying to switch from a business model that emphasizes wholesale business to a retail-oriented model.
The estimated loss is based on preliminary figures. The company’s Hong Kong-traded shares have gained a fifth in the past year on hopes for improvement in its performance.
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