China’s second largest sportswear group, Li Ning, has posted an 85% slide in first-half profits, due to heightened competition and a slowing domestic market.

The company said profit for the January to June period was $7 million, down from $46.2 million in the same period a year ago.

"Critical inventory pressure still exists at the retail end and industry competition continues to intensify," company founder and chairman Li Ning said in a statement.

The company “controlled the cost and efficiency of newly opened stores and closed some inefficient stores,” according to its statement. The number of retail stores was cut by 952 to 7,303, it said.

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