Li Ning sees huge loss for full year

CHINESE sportswear group Li Ning Co projected a "substantial" full-year loss as the firm seeks to spend 1.4 billion yuan to 1.8 billion yuan to lift sales.

Shares of the company fell 3.89 percent to HK$4.70 in Hong Kong trading yesterday. They declined as much as 5.5 percent in morning trading.

Li Ning said in a filing to the Hong Kong stock exchange on Monday that it plans to cut excess inventory levels and improve its sales network under its latest move to revive the firm after it announced in July the departure of chief executive Zhang Zhiyong so that a new management team could be introduced.

In the first half of this year, Li Ning's profit plunged 85 percent to 44 million yuan on higher raw material and labor costs while discounts for distributors also eroded its net earnings.