Li-Ning warns of substantial losses

Li-Ning Co Ltd, a leading Chinese sportswear company, said on Monday in a statement filed to the Hong Kong stock exchange that it expects substantial losses this year.

The company said that the losses will be mainly due to the implementation of its sales channels revival plan, on which it plans to spend 1.4 to 1.8 billion yuan ($222 to $285 million).

The plan has won the approval of the board, and will be implemented in the next few months, it said.

The plan includes decreasing inventory, improving its sales network, as well as supporting distributors with better sales, the company said.

Li-Ning shares fell 3.68 percent on Monday to HK$ 4.71 ($0.61).