The company was founded in 1989 by Li Ning, a former Chinese Olympic gymnast. As of 2015, Li Ning remains the Chairman of the company's board of directors. In 2005, Li-Ning created a joint-venture with French sports apparel company, AIGLE, giving Li-Ning the exclusive right to be the sole distributor of AIGLE's products in China for 50 years. In 2006, Li-Ning posted revenues of US$418 million and total profits of about US$39 million. As of March 2007, there were 4,297 Li-Ning retail stores. The company directly owns some of the retail stores while others are franchised.

In 2006, the company entered strategic collaborations with the National Basketball Association, the Association of Tennis Professionals, the Chinese University Basketball Association, and the Chinese Football Association. It also signed sponsorship deals with the Chinese national teams and the Sudan track and field team. The company will also provide apparel for the Argentina national basketball team at international events including the 2008 Summer Olympics and 2012 Summer Olympics. A similar deal was made with the Swedish Olympic Committee.