Li Ning

Li Ning Company Limited is principally engaged in brand development, design, manufacturing, sale and distribution of sport-related footwear, apparel, equipment and accessories in the People's Republic of China (the PRC). The Company has established a supply chain management system, and a distribution and retail network in the PRC primarily through outsourcing of manufacturing operations and distribution via franchised agents. The Company also directly manages retail stores for the LI-NING brand. In addition to its core LI-NING brand, Li Ning Company Limited distributes sports products under its Z-DO brand via hypermarket channel. On July 21, 2008, the Company acquired a 57.5% equity interest in Shanghai Double Happiness Co., Ltd. (Double Happiness), a company, which, together with its subsidiaries, is principally engaged in the manufacturing, research and development, marketing and sale of sports equipment in the PRC.