Li Ning Co., a Chinese brand that once aspired to topple Nike Inc. and is now in the midst of a major overhaul, aims to increase its China market share by as much as 40% in the next two years, its new chief executive said.

But the ambitions come at a rocky time for the company: Li Ning has brought on four new senior executives since replacing its chief executive in July. First-half profit was down 85% from a year earlier, with revenue off 10% to 3.88 billion yuan ($621.6 million). The company has closed nearly a thousand stores this year, as its share price has fallen 35%.

Now, scaling back its plans for global domination in athletic shoes and apparel, the brand is embarking on a three-year transformationprogram to win a bigger slice on the home turf and improve profitability.

Li Ning plans in the years ahead to increase market share to 14% from its current 10% by overhauling its retail outlets, brushing up an image tarnished by massive inventories that forced clearance sales, and adjusting prices that have been 'too high or too low,' said Jin-Goon Kim, who was recruited from buyout firm TPG Group in July to lead a turnaround at Li Ning as its executivedirector and vice chairman.

The Beijing-based sports-apparel company's goal is to win the mass market in China by targeting consumers moving to big cities from the countryside, said Mr. Kim. 'We want to be the leading brand in China, as opposed to the leading brand here and overseas,' Mr. Kim said, adding that Li Ning is going after the 70% of Chinese consumers who aren't yet buying branded shoes from companies such as Nike and German rival Adidas ADS.XE +0.55% AG.

'I don't think we're trying to compete with Nike,' Mr. Kim said.

The maker of badminton and basketball shoes and other athletic gear