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TPG, GIC-backed Li Ning suspends shares following CFO walkout

15 Oct 2012

Private equity-backed Chinese sportswear group Li Ning has suspended its shares as it prepares to make a statement to the Hong Kong bourse, it has emerged.

The embattled clothing company, which is part-owned by US firm TPG and Singapore sovereign fund GIC, suffered its latest senior management walkout last week when CFO Chong Yik Kay resigned.

Li Ning replaced chief executive Zhang Zhiyong three months ago and had pledged to focus its operations on China following a dramatic slump in the company’s share price.

It gave no further details about the share suspension.

The company has said it plans to cut back on new store openings after expanding in the wake of the Beijing Olympics four years ago.

The company’s first-half profit fell 85 per cent as unsold stock accumulated, marketing expenses rose and the company warned it may post a loss amid falling revenues.

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