Li Ning Co. (2331) surged to a three-month high in Hong Kong trading after the sportswear retailer reported the departure of its chief financial officer, fueling optimism that a new management team could help revive sales.
The stock rose 3.4 percent to HK$4.83, the highest close since July 6, after the company said Chong Yik Kay is quitting as chief financial officer. The Chinese retailer in July reported the departure of Chief Executive Officer Zhang Zhi Yong and said Kim Jin Goon, a partner at private equity investor TPG Capital would be executive vice chairman.
The sportswear company, founded by the Olympic gold medalist of the same name, reported a 65 percent profit drop last year as competition escalated from Nike Inc. (NKE:US), Adidas AG (ADS), and Anta Sports Products Ltd. (2020) Li Ning has said it will seek to improve results through marketing investments, and by clearing its inventory.
The new team led by the TPG executive “may want to introduce more vigorous reforms to turn around the company,” said Forrest Chan, a Hong Kong-based analyst at CCB International. “The CFO departure isn’t a complete surprise.”
Company Secretary Lee Hung is also leaving, the company said in a statement to the Hong Kong Stock Exchange today.
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