Li Ning Company Limited Announces 2024 Annual Results
HONG KONG SAR - Media OutReach Newswire - 28 March 2025 - Li Ning Company Limited (the 'Company' or 'Li Ning Company"; together with the subsidiaries, collectively, the 'Group"; stock codes: 2331 (HKD counter) and 82331 (RMB counter)) announces today its 2024 annual results for the year ended 31 December 2024 (the 'Year').
Financial Results
In 2024, the Group's annual performance was generally in line with expectations, a result of robust operational resilience and effective strategic execution. During the Year, the Group's revenue amounted to RMB28,676 million, representing an increase of 3.9% as compared to that of 2023 (2023: RMB27,598 million). Gross profit amounted to RMB14,156 million, representing an increase of 6.0% compared to that of 2023(2023: RMB13,352 million). The overall gross profit margin increased by one percentage point to 49.4%(2023: 48.4%).
During the year, the net profit attributable to equity holders was RMB3,013 million (2023: RMB3,187 million). The margin of net profit attributable to equity holders was 10.5% (2023: 11.5%). Return on equity attributable to equity holders was 11.9% (2023: 13.1%). Basic earnings per share was RMB116.98 cents (2023: RMB123.21 cents). The Board has recommended the payment of final dividend of RMB20.73 cents per ordinary share for the year ended 31 December 2024, together with the interim dividend of RMB37.75 cents per ordinary share paid in September 2024, the total dividend for the year ended 31 December 2024 will amount to RMB58.48 cents per ordinary share or a total dividend payout ratio of 50%(2023: 45%).
In terms of cash flow management, the Group's net cash generated from operating activities during the year amounted to RMB5,268 million (2023: RMB4,688 million). As at 31 December 2024, cash and cash equivalents (including cash at banks and in hand, and fixed term deposits with original maturity of no more than three months) amounted to RMB7,499 million, representing an increase of RMB2,055 million, as compared with the position as at 31 December 2023. Adding back the amount recorded as fixed-term deposits held at banks, cash balance amounted to RMB18,141 million, which represented a net increase of RMB166 million as compared to 31 December 2023. During the year, the Group maintained a healthy level of operating capital, and the net cash generated from operating activities increased compared to the previous year. The Company will continue to prudently assess its capital plan in light of market conditions and capital requirements to ensure maximum efficiency in the use of capital and to support its long-term development objectives.
Operational Summary
During the Year, the Group maintained its focus on the core strategy of 'Single Brand, Multi-categories, Diversified Channels' to enhance product strength through continuous research and development and technological innovation. Furthermore, the Group made significant progress across various aspects of its business including product innovation, brand building, and channel optimization.
In 2024, the Group made multi-dimensional breakthroughs in the research and development of technologies. During the Year, the Group launched the new midsole technology 'Super BOOM"(超䨻), which is not only lighter and more elastic but also boasts an exceptional elasticity-to-weight ratio, representing the pinnacle of performance for supercritical foaming materials. The BOOM technology platform has achieved four application breakthroughs within six years, evolving from a 'single technology' to 'four major technologies'. This progression demonstrates the Group's commitment to exploring materials and manufacturing processes and exceptional ability to deploy and broaden their application, further enhancing its ability to diversify product offerings and iterate product lines.
In respect of branding and marketing, the Group continued to focus on the six core categories of running, basketball, training, badminton, table tennis, and sports casual. It also actively explored emerging sports and subcategories, such as outdoor sports, golf, tennis and pickleball. The Group leveraged technological innovation capabilities to drive product upgrades underpinned by three key pillars: solidifying a professional sports mindset, showcasing sports fashion aesthetics, and inheriting Chinese cultural values. Moreover, it proactively sought to strengthen its differentiated brand advantages and enhance brand influence through diversified and comprehensive marketing campaigns. Capitalizing on the market opportunities presented by a year distinguished major sporting events, the Group delved into the essence of its brand spirit and gained insights into the younger generation's attitudes towards sports. Through these efforts, it articulated the brand spirit of 'Dare to Imagine, Create Excellence, Anything is Possible"(敢於想像，創造精彩，一切皆有可能) and launched the 'In My Name"(以我為名)-themed marketing campaign, aiming to solidify LI-NING's professional image and establish a deeper emotional connection with consumers.
In respect of channel, the Group consolidated and enhanced operational efficiency for high-end markets and accelerate expansion into emerging markets. In the high-end markets, the Group focused on improving the efficiency of single store sales through a series of refined management processes and the orderly closure of stores with substantial losses to make the channel layout more reasonable, effectively enhancing overall channel efficiency. At the same time, the Group actively expanded its presence in emerging markets. Diversified sales strategies and flexible market response capabilities enable the Group to gradually expand its market share in emerging markets. As of 31 December 2024, the number of conventional stores, flagship stores, China LI-NING stores, factory outlets and multi-brand stores under the LI-NING brand (including LI-NING Core Brand and LI-NING YOUNG) amounted to 7,585, representing a net decrease of 83 POS as compared to 31 December 2023. The number of distributors was 41 (including sales channels of China LI-NING stores), representing a net decrease of 5 as compared to 31 December 2023.
In terms of retail operations, the Group intensified efforts to promote a single-store operational model with solid profit and efficiency. It established standard profit and loss models for stores at all levels, standardizing and quantifying core store metrics to link them with management objectives across departments. This formed an efficient and coordinated management system, contributing to improved overall operational efficiency. The Group also strengthened the synergies between inventory and sales planning for single-stores and was committed to achieving improvements in both operational efficiency and supply chain management, ensuring efficient and accurate resource allocation and profitability.
In terms of new retail business, the Group continued to deepen the construction of its new retail business system, focusing on enhancing digitalization and all-channel operational capabilities. The aim is to efficiently convert private traffic and steadily improve sales performance. The Group actively explored diversified business models such as acquiring traffic through popular social media platforms like Douyin (抖音) and collaborating online with core channels to broaden sales, increase the proportion of out-of-store sales, and empower stores with new retail capabilities.
In terms of e-commerce operations, facing intensified market competition and a sluggish consumption environment, the Group continued to deepen e-commerce reform and strengthened its core competitiveness in the e-commerce sector across the board through online and offline interaction, diversified marketing campaigns, and precise capture of major sales promotions.
In terms of supply chain, the Group focused on exploring and matching high-quality supply chain resources, gradually improving the supplier matrix for high-end and outdoor products to ensure precise alignment between products and supply chain resources. The Group also implemented a flexible supply chain strategy to closely monitor market demand. Initiatives to refine management and analyse digital information support interoperability and transparency, improve the level of automation, and significantly enhance inventory efficiency along the supply chain. While flexibly responding to market changes, the Group strived to achieve dual improvements in production efficiency and economic benefits.
In 2024, the Group made remarkable achievements in logistics. Four major regional logistics centres across the country underwent comprehensive automation upgrades and began operations. The Nanning central warehouse is set to begin operations in 2025, which will improve delivery efficiency and logistics and warehousing operational capabilities in the southwest of the country. The Group is also proactively promoting refined logistics plan management across its divisions. Through the optimization of digital tools, the Group catered to the specific needs of its sales teams, improved the efficiency of goods distribution, and reduced logistics costs.
In terms of kidswear business, LI-NING YOUNG refined its youth product offerings, leveraging the core competitiveness of its clothing and accessories, while actively expanded into emerging markets, improved single-store efficiency, strengthened construction of clearance channels, promoted product distribution, and expanded the customer base. In terms of retail operations, LI-NING YOUNG continued to enhance operational efficiency and actively acquire and convert customers. Meanwhile, the Group actively built a community marketing system to strengthen member interaction and provide exclusive benefits to strengthen member loyalty and sales conversion rates. In terms of marketing, LI-NING YOUNG planned a series of offline youth activities and cross-border collaborations, focusing on popular sports including basketball, football, running and outdoor activities to showcase the brand's diverse appeal. Meanwhile, LI-NING YOUNG leveraged social media platforms, ensuring that its messaging reaches target audiences, drives engagement, and reinforces the concept of being a 'professional youth sports brand'. As at 31 December 2024, the total number of LI-NING YOUNG POS amounted to 1,468, representing a net increase of 40 POS since 31 December 2023.
Outlook
Looking ahead, the Group will continue to fulfil its commitments by focusing on its core strategy of 'Single Brand, Multi-categories, Diversified Channels', and ensure its effective implementation by strengthening operational systems and consolidating foundational support.
1. Strengthen the implementation of core strategies. By maintaining the healthy development of its core businesses, the Group will further integrate resources and leverage the LI-NING technology platform to further improve its professional product offerings in subcategories such as running, basketball, training, badminton, table tennis and sports casual. It will also deepen the fusion of the sporting spirit and its brand to enhance its competitiveness and influence in core business areas. Meanwhile, in addition to active efforts to optimize its product structure, the Group will expand diversified dressing scenarios with a commitment to the single-brand strategy, deeply integrate sports fashion culture, and launch sports products that combine technology and fashion. In addition, it will take the lead in laying out new pathways for sports consumption, especially in the markets for women, outdoor and youth, striving to achieve breakthrough progress in these emerging fields and drive diversified business expansion. Moreover, the Group is committed to expanding its presence in all target markets, with the aim to create business opportunities in each channel, continuously enhance brand influence, and drive sustained business growth.
2. Optimize operational efficiency. The Group will focus on boosting operational efficiency to ensure the effective implementation of its 'Single Brand, Multi-categories, Diversified Channels' strategy. Deepened cross-departmental collaboration and streamlined business processes will empower the Group with efficient product management operations and allchannel integration and supply chain collaboration. Meanwhile, the Group will adopt refined management practices and strictly control costs and benefits, to ensure optimal allocation of resources. At the organizational level, the Group will endeavour to streamline management levels, optimize talent structure, cultivate efficient teams, and promote collaboration among organizations, in order to accelerate the decision-making process, enhance execution, and build a flexible and efficient operational structure.
3. Reinforce underlying support. In terms of underlying support, the Group will ensure sound operations of its financial systems, strengthen fund management and optimize capital structure, and improve financial transparency in a way that provides a solid financial foundation for long-term development. At the same time, the Group will deepen the integration of digital and smart tools by applying digital and intelligent technologies to make more scientific business decisions and adapt with agility to market changes. Through data analysis, artificial intelligence and automation tools, the Group will enhance its insight into market trends and understanding of consumer behaviour, thereby driving innovation in products and services and providing strong support for sustained development.
Mr. Li Ning, Executive Chairman and Joint CEO of the Group, concluded, 'Looking ahead to 2025, with strong policy support, consumer spending has the potential to grow decently in China. As a company with long-term roots in China market and a focus on professional products for sports, we are confident in our future development and will seize this opportunity to drive high-quality growth.
Notably, LI-NING will once again partner with the Chinese Olympic Committee and the Chinese Sports Delegation from 2025 to 2028, which underscores the full trust and responsibility bestowed by the General Administration of Sport of China and the Chinese Olympic Committee and the high recognition of the Group's professionalism and innovation. By adhering to its core value of 'serving the public with sportsmanship', LI-NING is committed to becoming the most prominent and stylish sports brand from China and the preferred sports brand of Chinese consumers.'
Hashtag: #LiNing #Sportswear
The issuer is solely responsible for the content of this announcement.
About Li Ning Company Limited
Li Ning Company Limited is one of the leading sports brand companies in China, mainly operating professional and leisure footwear, apparel, equipment and accessories under the LI-NING brand. The Group has comprehensive research and development, design, manufacturing, marketing, distribution and retail management capabilities. It has established an extensive retail distribution network and supply chain management system in China. We are committed to be the most prominent, stylish, world-leading sports brand from China.
In addition to its core LI-NING brand, the Group also manufactures, develops, markets, distributes, sells various sports products which are self-owned by or licensed to the Group, including Double Happiness (table tennis), AIGLE (outdoor sports) and Kason (badminton), which are operated through joint venture/associate with third parties of the Group.
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Cash will continue to receive a particular attention, notably through strict management of working capital and capital expenditures. The Group will also rely on the ramp-up of its major projects in high value-added innovative applications and in fast growing regions. Their additional EBITDA contribution is now expected to reach around €50 million in 2025 compared to 2024, with the Group also reaffirming its target of over €400 million in 2028. Furthermore, Arkema anticipates a limited direct impact from the increase in tariffs thanks to its industrial footprint close to customers in the three major regions of the world but will nevertheless remain vigilant about their indirect impact on the macroeconomic environment and the wait-and-see attitude of customers. Based on these elements, the Group now expects to achieve EBITDA of between €1.3 billion and €1.4 billion in 2025, including an unfavorable impact linked to the evolution of exchange rates of around €50 million compared to last year. Recurring cash flow should adjust accordingly to between €300 million and €400 million. Finally, beyond the short-term priorities, Arkema will also continue to implement its strategic roadmap, notably its innovation focus and the development of high-performance solutions for a less carbon-intensive and more sustainable world, in close partnership with its customers. Relying also on its balanced geographical footprint, the Group will thus reinforce its positioning and its resilience, while benefiting from numerous growth opportunities. Further details concerning the Group's second quarter 2025 results are provided in the "Second quarter 2025 results and outlook" presentation and the "Factsheet", both available on Arkema's website at: The half-year financial report for the six months ended 30 June 2025 is available on the Group's website ( under Investors/Financials/Financial results. FINANCIAL CALENDAR 7 November 2025: Publication of third-quarter 2025 results 26 February 2026: Publication of full-year 2025 results DISCLAIMER The information disclosed in this press release may contain forward-looking statements with respect to the financial position, results of operations, business and strategy of Arkema. In a context of significant geopolitical tensions, where the outlook for the global economy remains uncertain, the retained assumptions and forward-looking statements could ultimately prove inaccurate. Such statements are based on management's current views and assumptions that could ultimately prove inaccurate and are subject to risk factors such as changes in raw materials prices, currency fluctuations, and the pace at which cost-reduction projects are implemented, escalating geopolitical tensions, and changes in general economic and financial conditions. Arkema does not assume any liability to update such forward-looking statements whether as a result of any new information or any unexpected event or otherwise. Further information on factors which could affect Arkema's financial results is provided in the documents filed with the French Autorité des marchés financiers. Balance sheet, income statement and cash flow statement data, as well as data relating to the statement of changes in shareholders' equity and information by segment included in this press release are extracted from the condensed consolidated interim financial statements at 30 June 2025, as approved by Arkema's Board of Directors on 30 July 2025. Quarterly financial information is not audited. Information by segment is presented in accordance with Arkema's internal reporting system used by management. Definitions and concordance tables for the main alternative performance indicators used by the Group are provided in Notes 6 and 8 to the consolidated financial information at the end of June 2025 provided at the end of this document. For the purpose of tracking changes in its results, and particularly its sales figures, the Group analyzes the following effects (unaudited analyses): scope effect: the impact of changes in the Group's scope of consolidation, which arise from acquisitions and divestments of entire businesses or as a result of the first-time consolidation or deconsolidation of entities. Increases or reductions in capacity are not included in the scope effect; currency effect: the mechanical impact of consolidating accounts denominated in currencies other than the euro at different exchange rates from one period to another. The currency effect is calculated by applying the foreign exchange rates of the prior period to the figures for the period under review; price effect: the impact of changes in average selling prices is estimated by comparing the weighted average net unit selling price of a range of related products in the period under review with their weighted average net unit selling price in the prior period, multiplied, in both cases, by the volumes sold in the period under review; and volume effect: the impact of changes in volumes is estimated by comparing the quantities delivered in the period under review with the quantities delivered in the prior period, multiplied, in both cases, by the weighted average net unit selling price in the prior period. Building on its unique set of expertise in materials science, Arkema offers a portfolio of first-class technologies to address ever-growing demand for new and more sustainable materials. With the ambition to become a pure player in Specialty Materials in 2024, the Group is structured into three complementary, resilient and highly innovative segments dedicated to Specialty Materials - Adhesive Solutions, Advanced Materials, and Coating Solutions - accounting for some 92% of Group sales in 2024, and a well-positioned and competitive Intermediates segment. Arkema offers cutting-edge technological solutions to meet the challenges of, among other things, new energies, access to water, recycling, urbanization and mobility, and fosters a permanent dialogue with all its stakeholders. The Group reported sales of around €9.5 billion in 2024 and operates in some 55 countries with 21,150 employees worldwide. ARKEMA financial statements Consolidated financial information - At the end of June 2025 Half-year information is subject to a limited review by auditors. Consolidated financial statements as of December 2024 have been audited. 2. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2 nd quarter 2025 2 nd quarter 2024 (In millions of euros) Net income 47 149 Hedging adjustments 11 12 Other items 0 0 Deferred taxes on hedging adjustments and other items 0 0 Change in translation adjustments (320) 14 Other recyclable comprehensive income (309) 26 Impact of remeasuring unconsolidated investments 0 (1) Actuarial gains and losses 3 5 Deferred taxes on actuarial gains and losses (1) (1) Other non-recyclable comprehensive income 2 3 Total other comprehensive income (307) 29 Total comprehensive income (260) 178 Attributable to non-controlling interest (1) (1) Total comprehensive income - Group share (259) 179 End of June 2025 End of June 2024 (In millions of euros) Net income 97 229 Hedging adjustments 21 (3) Other items 0 0 Deferred taxes on hedging adjustments and other items 0 0 Change in translation adjustments (522) 71 Other recyclable comprehensive income (501) 68 Impact of remeasuring unconsolidated investments (1) (1) Actuarial gains and losses 11 18 Deferred taxes on actuarial gains and losses (1) (4) Other non-recyclable comprehensive income 9 13 Total other comprehensive income (492) 81 Total comprehensive income (395) 310 Attributable to non-controlling interest (17) (6) Total comprehensive income - Group share (378) 316 Expand 3. CONSOLIDATED CASH FLOW STATEMENT End of June 2025 End of June 2024 (In millions of euros) Net income 97 229 Depreciation, amortization and impairment of assets 404 382 Other provisions and deferred taxes (4) 23 (Gains)/Losses on sales of long-term assets 0 4 Undistributed affiliate equity earnings 0 3 Change in working capital (231) (279) Other changes 9 18 Cash flow from operating activities 275 380 Intangible assets and property, plant, and equipment additions (240) (269) Change in fixed asset payables (107) (50) Acquisitions of operations, net of cash acquired — (29) Increase in long-term loans (30) (55) Total expenditures (377) (403) Proceeds from sale of intangible assets and property, plant and equipment 3 3 Change in fixed asset receivables 8 (2) Proceeds from sale of operations, net of cash transferred — — Repayment of long-term loans 20 16 Total divestitures 31 17 Cash flow from investing activities (346) (386) Issuance/(Repayment) of shares and paid-in surplus — — Acquisition/sale of treasury shares (27) (14) Issuance of hybrid bonds 399 399 Redemption of hybrid bonds — — Dividends paid to parent company shareholders (272) (261) Interest paid to bearers of subordinated perpetual notes (24) (5) Dividends paid to non-controlling interests and buyout of minority interests (3) (1) Increase in long-term debt 11 3 Decrease in long-term debt (67) (750) Increase / (Decrease) in short-term debt (718) 685 Cash flow from financing activities (701) 56 Net increase/(decrease) in cash and cash equivalents (772) 50 Effect of exchange rates and changes in scope 70 (1) Cash and cash equivalents at beginning of period 2,013 2,045 Cash and cash equivalents at end of the period 1,311 2,094 Expand 4. CONSOLIDATED BALANCE SHEET 31 December 2024 (In millions of euros) ASSETS Goodwill 2,898 3,071 Other intangible assets, net 2,194 2,373 Property, plant and equipment, net 3,902 4,227 Investments in equity affiliates 10 11 Other investments 48 50 Deferred tax assets 139 155 Other non-current assets 316 327 TOTAL NON-CURRENT ASSETS 9,507 10,214 Inventories 1,309 1,348 Accounts receivable 1,435 1,312 Other receivables and prepaid expenses 216 201 Income taxes recoverable 103 101 Current financial derivative assets 35 20 Cash and cash equivalents 1,311 2,013 Assets held for sale — — TOTAL CURRENT ASSETS 4,409 4,995 TOTAL ASSETS 13,916 15,209 LIABILITIES AND SHAREHOLDERS' EQUITY Share capital 761 761 Paid-in surplus and retained earnings 6,678 6,439 Treasury shares (49) (22) Translation adjustments (156) 348 SHAREHOLDERS' EQUITY - GROUP SHARE 7,234 7,526 Non-controlling interests 216 235 TOTAL SHAREHOLDERS' EQUITY 7,450 7,761 Deferred tax liabilities 412 435 Provisions for pensions and other employee benefits 361 391 Other provisions and non-current liabilities 433 456 Non-current debt 3,644 3,680 TOTAL NON-CURRENT LIABILITIES 4,850 4,962 Accounts payable 935 1,074 Other creditors and accrued liabilities 429 424 Income tax payables 89 82 Current financial derivative liabilities 16 32 Current debt 147 874 Liabilities associated with assets held for sale — — TOTAL CURRENT LIABILITIES 1,616 2,486 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 13,916 15,209 Expand 5. CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Shares issued Treasury shares Shareholders' equity - Group share Non-controlling interests Shareholders' equity (In millions of euros) Number Amount Paid-in surplus Hybrid bonds Retained earnings Translation adjustments Number Amount At 1 st January 2025 76,060,831 761 1,117 700 4,622 348 (257,160) (22) 7,526 235 7,761 Cash dividend — — — — (296) — — — (296) (6) (302) Issuance of share capital — — — — — — — — — — — Capital reduction by cancellation of treasury shares — — — — — — — — — — — Acquisition/sale of treasury shares — — — — — — (378,429) (27) (27) — (27) Grants of treasury shares to employees — — — — 0 — 109 0 0 — 0 Share-based payments — — — — 10 — — — 10 — 10 Issuance of hybrid bonds — — — 400 (1) — — — 399 — 399 Redemption of hybrid bonds — — — — — — — — — — — Other — — — — 0 — — — 0 4 4 Transactions with shareholders — — — 400 (287) — (378,320) (27) 86 (2) 84 Net income — — — — 96 — — — 96 1 97 Total income and expense recognized directly through equity — — — — 30 (504) — — (474) (18) (492) Total comprehensive income — — — — 126 (504) — — (378) (17) (395) At 30 June 2025 76,060,831 761 1,117 1,100 4,461 (156) (635,480) (49) 7,234 216 7,450 Expand 6. ALTERNATIVE PERFORMANCE INDICATORS The Group uses performance indicators that are not directly defined in the consolidated financial statements under IFRS and which are used as monitoring and analysis tools. The purpose of these indicators is to provide additional information to illustrate the Group's financial performance and its various activities, notably by eliminating exceptional or non-recurring items in certain cases, to ensure period-on-period comparability. In some cases, the indicators may also provide a consistent basis for comparison with the financial performance of our peers. A reconciliation with the aggregates of the IFRS consolidated financial statements is presented in this note. RECURRING OPERATING INCOME (REBIT) AND EBITDA (In millions of euros) End of June 2025 End of June 2024 2 nd quarter 2025 2 nd quarter 2024 OPERATING INCOME 219 352 117 217 - Depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses (70) (75) (34) (37) - Other income and expenses (69) (77) (47) (48) RECURRING OPERATING INCOME (REBIT) 358 504 198 302 - Recurring depreciation and amortization of property, plant and equipment and intangible assets (335) (297) (166) (149) EBITDA 693 801 364 451 Details of depreciation and amortization of property, plant and equipment and intangible assets: (In millions of euros) End of June 2025 End of June 2024 2 nd quarter 2025 2 nd quarter 2024 Depreciation and amortization of property, plant and equipment and intangible assets (404) (382) (199) (193) Of which: Recurring depreciation and amortization of property, plant and equipment and intangible assets (335) (297) (166) (149) Of which: Depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses (70) (75) (34) (37) Of which: Impairment included in other income and expenses 1 (10) 1 (7) ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE (In millions of euros) End of June 2025 End of June 2024 2 nd quarter 2025 2 nd quarter 2024 NET INCOME - GROUP SHARE 96 224 47 145 - Depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses (70) (75) (34) (37) - Other income and expenses (69) (77) (47) (48) - Other income and expenses attributable to non-controlling interests — — — — - Taxes on depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses 16 16 8 7 - Taxes on other income and expenses 6 12 4 11 - One-time tax effects (4) (4) (2) (2) ADJUSTED NET INCOME 217 352 118 214 Weighted average number of ordinary shares 75,597,121 74,748,618 Weighted average number of potential ordinary shares 75,987,210 75,043,514 ADJUSTED EARNINGS PER SHARE (in euros) 2.87 4.71 1.56 2.87 DILUTED ADJUSTED EARNINGS PER SHARE (in euros) 2.86 4.69 1.56 2.85 RECURRING CAPITAL EXPENDITURE (In millions of euros) End of June 2025 End of June 2024 2 nd quarter 2025 2 nd quarter 2024 INTANGIBLE ASSETS AND PROPERTY, PLANT, AND EQUIPMENT ADDITIONS 240 269 151 170 - Exceptional capital expenditure — — — — - Investments relating to portfolio management operations — — — — - Capital expenditure with no impact on net debt — — — — RECURRING CAPITAL EXPENDITURE 240 269 151 170 CASH FLOWS (In millions of euros) End of June 2025 End of June 2024 2 nd quarter 2025 2 nd quarter 2024 Cash flow from operating activities 275 380 253 295 + Cash flow from investing activities (346) (386) (164) (198) NET CASH FLOW (71) (6) 89 97 - Net cash flow from portfolio management operations (7) (41) (2) (20) FREE CASH FLOW (64) 35 91 117 - Exceptional capital expenditure — — — — - Non-recurring cash flow (37) (37) (20) (15) RECURRING CASH FLOW (27) 72 111 132 - Recurring capital expenditure (240) (269) (151) (170) OPERATING CASH FLOW 213 341 262 302 Expand NET DEBT (In millions of euros) End of June 2025 End of December 2024 Non-current debt 3,644 3,680 + Current debt 147 874 - Cash and cash equivalents 1,311 2,013 NET DEBT 2,480 2,541 + Hybrid bonds 1,100 700 NET DEBT AND HYBRID BONDS 3,580 3,241 Last twelve months EBITDA 1,424 1,532 NET DEBT AND HYBRID BONDS TO EBITDA RATIO 2.5 2.1 WORKING CAPITAL (In millions of euros) End of June 2025 End of December 2024 Inventories 1,309 1,348 + Accounts receivable 1,435 1,312 + Other receivables including income taxes recoverable 319 302 + Current financial derivative assets 35 20 - Accounts payable (operating suppliers) 935 1,074 - Other liabilities including income taxes 518 506 - Current financial derivative liabilities 16 32 WORKING CAPITAL 1,629 1,370 CAPITAL EMPLOYED (In millions of euros) End of June 2025 End of December 2024 Goodwill, net 2,898 3,071 + Intangible assets (excluding goodwill), and property, plant and equipment, net 6,096 6,600 + Investments in equity affiliates 10 11 + Other investments and other non-current assets 364 377 + Working capital 1,629 1,370 CAPITAL EMPLOYED 10,997 11,429 Expand 7. INFORMATION BY SEGMENT 2 nd quarter 2025 (In millions of euros) Adhesive Solutions Advanced Materials Coating Solutions Intermediates Corporate Total Sales 716 917 565 188 9 2,395 EBITDA (a) 103 177 53 54 (23) 364 Recurring depreciation and amortization of property, plant and equipment and intangible assets (a) (25) (100) (31) (7) (3) (166) Recurring operating income (REBIT) (a) 78 77 22 47 (26) 198 Depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses (24) (9) (1) — — (34) Other income and expenses (9) (33) — 3 (8) (47) Operating income 45 35 21 50 (34) 117 Equity in income of affiliates — 0 — — — 0 Intangible assets and property, plant, and equipment additions 16 71 53 6 5 151 Of which: recurring capital expenditure (a) 16 71 53 6 5 151 2 nd quarter 2024 (In millions of euros) Adhesive Solutions Advanced Materials Coating Solutions Intermediates Corporate Total Sales 706 918 648 254 10 2,536 EBITDA (a) 109 190 91 84 (23) 451 Recurring depreciation and amortization of property, plant and equipment and intangible assets (a) (21) (87) (30) (10) (1) (149) Recurring operating income (REBIT) (a) 88 103 61 74 (24) 302 Depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses (26) (10) (1) — — (37) Other income and expenses (11) (28) 0 (1) (8) (48) Operating income 51 65 60 73 (32) 217 Equity in income of affiliates — (1) — — — (1) Intangible assets and property, plant, and equipment additions 16 113 28 4 9 170 Of which: recurring capital expenditure (a) 16 113 28 4 9 170 (a) Alternative performance indicator: refer to sections 6 and 8 for reconciliation tables and definitions. Expand 7. INFORMATION BY SEGMENT End of June 2025 (In millions of euros) Adhesive Solutions Advanced Materials Coating Solutions Intermediates Corporate Total Sales 1,431 1,811 1,172 345 17 4,776 EBITDA (a) 202 351 111 78 (49) 693 Recurring depreciation and amortization of property, plant and equipment and intangible assets (a) (51) (197) (63) (15) (9) (335) Recurring operating income (REBIT) (a) 151 154 48 63 (58) 358 Depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses (49) (18) (3) — — (70) Other income and expenses (19) (43) — 3 (10) (69) Operating income 83 93 45 66 (68) 219 Equity in income of affiliates — 0 0 0 — — — 0 0 Intangible assets and property, plant, and equipment additions 26 121 76 7 10 240 Of which: recurring capital expenditure (a) 26 121 76 7 10 240 End of June 2024 (In millions of euros) Adhesive Solutions Advanced Materials Coating Solutions Intermediates Corporate Total Sales 1,386 1,796 1,263 412 20 4,877 EBITDA (a) 214 352 166 123 (54) 801 Recurring depreciation and amortization of property, plant and equipment and intangible assets (a) (44) (169) (61) (20) (3) (297) Recurring operating income (REBIT) (a) 170 183 105 103 (57) 504 Depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses (53) (19) (3) — — (75) Other income and expenses (16) (51) 0 (1) (9) (77) Operating income 101 113 102 102 (66) 352 Equity in income of affiliates — (2) — — — (2) Intangible assets and property, plant, and equipment additions 27 176 43 11 12 269 Of which: recurring capital expenditure (a) 27 176 43 11 12 269 (a) Alternative performance indicator: refer to sections 6 and 8 for reconciliation tables and definitions. Expand 8. DEFINITIONS OF ALTERNATIVE PERFORMANCE INDICATORS Recurring depreciation and amortization of property, plant and equipment and intangible assets This alternative performance indicator corresponds to depreciation, amortization and impairment of property, plant and equipment and intangible assets before taking into account: depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses, and impairment included in other income and expenses. The indicator facilitates period-to-period comparisons by eliminating non-recurring items. Working capital This alternative performance indicator corresponds to the net amount of current assets and liabilities relating to operating activities, capital expenditure and financing activities. It reflects the Group's short-term financing requirements resulting from cash flow timing differences between outflows and inflows relating to operating activities. Capital employed This alternative performance indicator corresponds to the sum of the following: the net book value of goodwill, the net book value of intangible assets (excluding goodwill) and property, plant and equipment, the amount of investments in equity affiliates, the amount of other investments and other non-current assets, and working capital. Capital employed is used to analyze the amount of capital invested by the Group to conduct its business. Adjusted capital employed This alternative performance indicator corresponds to capital employed adjusted for divestments and acquisitions, to ensure consistency between the numerator and denominator items used to calculate ROCE. In the case of an announced divestment of a business announced and not finalized by 31 December, the operating income of this business remains consolidated in the income statement, and is therefore included in the calculation of REBIT, whereas items relating to capital employed are classified as assets/liabilities held for sale and are therefore excluded from the calculation of capital employed. To ensure consistency between the numerator and denominator items used to calculate ROCE, capital employed at 31 December is increased by the capital employed relating to the business being sold. When an acquisition is finalized during the year, operating results are only consolidated in the income statement from the date of acquisition, and not for the full year, while capital employed is recognized in full at 31 December. When the acquisition has not generated a material contribution to the year's earnings, in order to ensure consistency between the numerator and denominator items used to calculate ROCE, capital employed at 31 December is reduced by the capital employed relating to the acquired business, unless they are considered as not material. Net debt This alternative performance indicator corresponds to the sum of current and non-current debt less cash and cash equivalents. Net debt and hybrid bonds This alternative performance indicator corresponds to the amount of net debt and hybrid bonds. Net debt and hybrid bonds to EBITDA ratio This alternative performance indicator corresponds to the ratio of net debt and hybrid bonds to EBITDA. The indicator measures the level of debt in relation to the Group's operating performance, and provides a consistent basis for comparison with our peers. Earnings Before Interest Taxes Depreciation & Amortization (EBITDA) The IFRS item most similar to this alternative performance indicator is operating income. The indicator corresponds to operating income before taking into account: recurring depreciation and amortization of property, plant and equipment and intangible assets, other income and expenses, and depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses. This indicator is used to assess the Group's operating profitability and its ability to generate operating cash flow before changes in working capital, capital expenditure and cash flow from financing and tax expenses. It also facilitates period-to-period comparisons by eliminating non-recurring items, and provides a consistent basis for comparison with our peers. Recurring cash flow This alternative performance indicator corresponds to free cash flow excluding non-recurring or exceptional items, i.e., non-recurring cash flow and exceptional capital expenditure. The indicator enables period-to-period comparisons by eliminating the impact of exceptional or non-recurring items and portfolio management, and provides a consistent basis for comparison with our peers. It is used to assess the Group's ability to generate cash to finance its shareholder returns, non-recurring or exceptional items and acquisitions. Free cash flow This alternative performance indicator corresponds to net cash flow before taking into account net cash flow from portfolio management operations. It enables period-to-period comparisons by eliminating portfolio management, and provides a consistent basis for comparison with our peers. Net cash flow This alternative performance indicator corresponds to the sum of two IFRS items, cash flow from operations and cash flow from net investments. It provides an estimate of Group cash flow before changes in cash flow from financing activities. Net cash flow from portfolio management operations This alternative performance indicator corresponds to cash flows from acquisitions and divestments as described in notes 3.2.2 'Acquisitions during the year' and 3.3 'Business divestments'. Non-recurring cash flow This alternative performance indicator corresponds to cash flow from other income and expenses, as described in note 6.1.5 'Other income and expenses'. Operating cash flow This alternative performance indicator corresponds to free cash flow before taking into account intangible assets and property, plant and equipment additions, adjusted for non-recurring cash flows. It is used to assess the Group's ability to generate cash to finance its intangible assets and property, plant and equipment additions, shareholder returns and acquisitions. It corresponds to and replaces the "Operating cash flow" indicator defined at the Capital Markets Day on 27 September 2023. Recurring capital expenditure The IFRS item most similar to this alternative performance indicator is intangible assets and property, plant and equipment additions. Recurring capital expenditure includes all intangible assets and property, plant and equipment additions, adjusted for exceptional capital expenditure, investments linked to portfolio management operations and investments with no impact on net debt (financed by third parties). This indicator enables period-to-period comparisons by eliminating exceptional items, and provides a consistent basis for comparison with our peers. Exceptional capital expenditure Alternative performance indicator corresponding to a very limited number of capital expenditure items for major development projects that the Group presents separately in its financial communication due to their size and nature. REBIT margin This alternative performance indicator corresponds to the recurring operating income (REBIT) to sales ratio. It facilitates period-to-period comparisons by eliminating non-recurring items, and provides a consistent basis for comparison with our peers. EBITDA margin This alternative performance indicator corresponds to the EBITDA to sales ratio. It facilitates period-to-period comparisons by eliminating non-recurring items, and provides a consistent basis for comparison with our peers. It is also one of the financial performance criteria linked to performance share plans. Recurring operating income (REBIT) The IFRS item most similar to this alternative performance indicator is operating income. The indicator corresponds to operating income before taking into account: depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses, and other income and expenses. The indicator assesses the Group's operating profitability before tax and excluding non-recurring items, whatever the financing structure, since it does not take into account financial result. It facilitates period-to-period comparisons by eliminating non-recurring items, and provides a consistent basis for comparison with our peers. Adjusted net income The IFRS item most similar to this alternative performance indicator is net income – Group share. This indicator corresponds to net income – Group share before non-recurring items. Exceptional or non-recurring items correspond to: other income and expenses, net of applicable taxes, depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses, net of applicable taxes, and one-time tax effects unrelated to other income and expenses and relating to events that are exceptional in terms of frequency and amount, such as the recognition or impairment of deferred tax assets, or the impact of a change in tax rates on deferred taxes. This indicator enables us to assess the Group's profitability by taking account of not only operating items, but also the Group's financing structure and income taxes. It facilitates period-to-period comparisons by eliminating non-recurring items, and provides a consistent basis for comparison with our peers. Adjusted earnings per share This alternative performance indicator is calculated by dividing adjusted net income for the period by the weighted average number of ordinary shares outstanding during the period. Diluted adjusted earnings per share This alternative performance indicator corresponds to earnings per share adjusted for the dilutive effect of all potential ordinary shares. It is calculated by dividing adjusted net income for the period by the weighted average number of potential ordinary shares outstanding during the period. Return on capital employed (ROCE) This alternative performance indicator corresponds to the ratio of recurring operating income (REBIT) for the period to capital employed at the end of the period. It is used to assess the profitability of capital expenditure over time. Return on adjusted capital employed This alternative performance indicator corresponds to the ratio of recurring operating income (REBIT) for the period to the adjusted capital employed at the end of the period. It is used to assess the profitability of capital expenditure over time, by adjusting items relating to capital employed acquired during the period or in the course of disposal to bring them into line with the items used in REBIT. EBITDA to cash conversion rate This alternative performance indicator corresponds to the ratio of recurring cash flow to EBITDA. The indicator is used to assess the Group's ability to generate cash to finance, in particular, returns to shareholders, exceptional capital expenditure and acquisitions. This alternative performance indicator corresponds to the ratio of operating cash flow to EBITDA. The indicator provides a consistent basis for comparison between periods and with our peers, whatever the growth strategy adopted, whether external growth through acquisitions or internal growth through capital expenditure. It is also one of the financial performance criteria linked to performance share plans. It corresponds to and replaces the "Operating cash conversion rate" indicator defined at the Capital Markets Day on 27 September 2023.
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Reaction to South Korea's trade deal with Trump
SEOUL (Reuters) -South Korea and the United States said they reached a deal that would set U.S. tariffs on most South Korean goods at 15% in return for $350 billion in investment in the U.S. Officials, analysts, and companies in Seoul said the deal removed uncertainty. Here are some key quotes. KATHLEEN OH, CHIEF KOREA ECONOMIST AT MORGAN STANLEY 'Our initial take is that it is a case of the worst avoided, with a pinch of relief removing Korea-specific tariff risks. We also see this as broadly positive, as it puts Korea on level ground with its export competitors in the U.S., especially for autos. "Now that the trade deal uncertainty is removed, the BoK will revise its growth forecast higher on the latest stimulus package. We believe continued stabilisation in the housing market trend now holds (the) key before we see the next cut in August.' HYUNDAI MOTOR GROUP STATEMENT "For Hyundai Motor Group, this agreement validates our unwavering confidence in the U.S. market and our commitment to American manufacturing. Our $21 billion investment plan through 2028 – building upon our existing $20.5 billion commitment – represents one of the largest foreign investments in American automotive history. Our U.S. investments will create more than 100,000 direct and indirect jobs, supporting 570,000 American jobs. This agreement ensures we can continue scaling these commitments with confidence." SAMSUNG ELECTRONICS CHIEF FINANCIAL OFFICER PARK SOON-CHEOL 'We believe that the uncertainty has been reduced through the conclusion of negotiations between the United States and South Korea. We are closely monitoring the follow-up discussions between the two governments regarding the detailed contents of the recently announced agreement, and we plan to formulate our response strategy accordingly." CHEONG IN-KYO, SOUTH KOREA'S FORMER TRADE MINISTER "We avoided the worst and chose the second best; 15% was in line with expectations. But when talking about investments, what was promised is going to be very important. Depending on how and where $350 billion will be spent, this fund will be looked at differently. If that money only flows into the U.S. or supports South Korean companies' investments there. If that's about South Korean companies' investment, that can be helpful in a way that South Korean companies can fill the vacuum by going into the U.S. while China is moving out, when the U.S. is reforming its manufacturing." KIM GUNN, SOUTH KOREAN FORMER DIPLOMAT AND CURRENT OPPOSITION LAWMAKER "If the agreement was reached on equal terms compared to our competitors, it is a bit of a relief. At the very least, our companies will be able to compete in the U.S. market, but the devil is in the details, isn't it? So details are going to be far more important. For now, President Trump is able to boast about the deal domestically. We need to look into the details to see if we've made excessive concessions."
