Li-Ning has announced that it is adjusting its organizational structure. The company says this is part of the reform plan for 2012, which foresees the Chinese brand optimizing its operational efficiency and improving its gross margin. To do so, Li-Ning will put its focus on its core business, meaning that it will provide all necessary resources for its to-market activities such as sales, marketing and product development, while it intends to streamline all divisions that the company considers as non-core activities, including information, technology and human resources, to achieve higher efficiency and lower personnel costs. The consolidation of the back-office divisions includes the streamlining of the workforce and motivation for employee performance. Li-Ning points out, however, that there will be no changes in the company’s overall strategic developments after the consolidation of its operational structures. Today, Li Ning, founder and chairman, announced that the company completed the issuing of convertible bonds worth RMB 750 million (€100.9 million) to TPG Stallion Holdings and to the Government of Singapore Investment Corporation (GIC). The move was announced back in January and was completed today. Last month, Li Ning sold back 53 million ordinary shares to the company and 4 million to the senior management. Altogether, including the conversion of the convertible bonds, Li Ning remains the largest single shareholder with an equity stake of 23 percent.
