Chinese sportswear maker Li Ning’s shares jump to nine-year high as former Uniqlo executive Kosaka Takeshi appointed joint CEO
- Kosaka had previously headed up the Chinese and South Korean operations for Uniqlo, Asia’s biggest clothing retailer
- Li Ning’s shares, which have more than quadrupled over the past two years, rose by as much as 5 per cent in Hong Kong on Monday
Li Ning, the Chinese sportswear maker whose shares have more than quadrupled in the past two years, may get another boost to its stock-market performance.
The Beijing-based company, which was founded by the Olympic gold medal-winning gymnast of the same name, said it has hired Kosaka Takeshi from Japanese clothing retailer Uniqlo as its joint chief executive officer, alongside Li Ning himself.
Kosaka, a Japanese-Chinese, was formerly the chief operating officer of the Chinese unit of Uniqlo, Asia’s biggest clothing retailer. Before that, he was CEO of the company’s South Korea operation.
The appointment, effective from Monday, will put Kosaka, a veteran with 15 years of experience in the Chinese market, in charge of Li Ning’s operations including supply chain, products and retail management, according to a company statement.
Li Ning’s shares jumped by as much as 5 per cent in Hong Kong to HK$24.50 on Monday, their highest level in nine years. Investors including Hengsheng Asset Management said the move would bring better management expertise to the company and strengthen its brand image among consumers in the long run.
“That will do good for the company’s development as [Kosaka] is supposed to be very experienced in that area,” said Dai Ming, a fund manager at Hengsheng Asset Management in Shanghai. “Li Ning is better known among Chinese consumers than any other domestic brand name such as Anta, because of the fame of the founder. The company still has growth potential with better operations.”