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Li Ning, a well-known sports apparel brand, has recently expanded into the real estate development sector through a newly established subsidiary. However, recent statements from officials in Shenyang’s Heping District suggest that this move may not be as smooth as expected. On September 14, local government representatives stated that they were unaware of any plans for the reconstruction of old districts in the area. This came in response to reports linking Li Ning to a potential large-scale urban redevelopment project.
The company's entry into real estate seems to be part of a broader strategy. In June, Li Ning acquired a significant stake in JE Energy through a joint venture with his brother. Later, JE Energy purchased a portion of Li Ning’s shares, leading to a conversion of convertible notes into ordinary shares. As a result, Li Ning became the controlling shareholder of JE Energy, which then announced its intention to enter the real estate market.
According to the announcement, Li Ning planned to develop an “Eco-city†project in the Heping District of Shenyang, covering about one million square meters and requiring an estimated investment of 40 billion yuan over five to eight years. However, local authorities have cast doubt on the feasibility of the project. The Heping District government confirmed that no official plans for urban reconstruction had been approved, and the land acquisition process would require public auctions.
Industry analysts note that entering real estate requires both capital and land, and while Li Ning has substantial cash reserves, the scale of the project remains uncertain. The company’s financial reports show that it holds around 14.36 billion yuan in cash, but the 40 billion yuan investment is still a massive challenge. Additionally, the company must balance its expansion with ongoing operations in the apparel industry.
This is not the first time a clothing company has ventured into real estate. Brands like Youngor and others have done so in the past, often seeking diversification and higher profit margins. However, for companies like Li Ning, which already operate in high-margin sectors, the decision to enter real estate raises questions about long-term strategy and market positioning.
Despite the challenges, Li Ning sees real estate as a way to expand beyond traditional sports apparel. The company emphasized that the sports industry involves more than just clothing, including areas like technology and real estate. With growing competition from both domestic and international brands, Li Ning may be looking to diversify its revenue streams and secure a stronger market position.
August 29, 2025