Li Ning’s Shares Boosted After CEO Resignation

Sportswear retailer Li Ning’s Hong Kong trading was boosted after its CEO stepped down, and private-equity firm TPG Capital said it could increase investment in the company if necessary.

Li Ning’s founder and Olympic gymnast Li Ning will help run the company while it searches for a new CEO to replace Zhang Zhi Yong.

TPG Capital partner Kim Jin Goon invested in the retailer earlier this year and will become Executive Vice Chair.

Li Ning’s profit dropped 65 percent last year last year “amid escalating competition” from Nike, adidas and Anta Sports Products.

China-based Guotai Junan Securities  analyst Jerry Peng said: “TPG has quite strong retail experience and now they’re playing a bigger role, so the market has high expectations for next year.”

Hong Kong-traded Anta reported a 20 percent sales increase in 2011,  Li Ning’s sales dropped 5.8 percent to 8.9B yuan (us $1.4B billion).

Li Ning will focus more on its business in China.

Kim Jin Goon said: “The first most important focus for us is to build a very clear and strong brand with clear brand strategy that focuses on the core businesses in China.” {jcomments on}