Li Ning Co Ltd said on Tuesday that it has closed its only shop in Hong Kong to focus on its mainland business.

It was set up in 2009 under a two-year leasing contract by the leading mainland sports brand, but industry analysts said internationalization is no longer a priority for Li Ning because its home market is declining.

Challenges in management, consumer demand and dominance from established international brands have all hindered the development of the company in overseas markets, the company said, insisting its overseas businesses including those in Hong Kong are still in an exploratory phase, with cost and risk control measures in place.

The pullout comes amid declining profits and lackluster performance at home. Li Ning is among many Chinese sportswear brands to have encountered obstacles when trying to expand to overseas markets.