On behalf of the Board, I am pleased to present our annual results for the year ended 31 December 2017.
A DECADE’S WORTH OF OUTSTANDING PROGRESS HAS CREATED THE “GREAT BRAND”
In 2017, ANTA experienced a year full of opportunities and challenges. Having overcome all the obstacles and difficulties, ANTA successfully made solid progress and attained measurable achievements amid various uncertainties. Last year marked the 10th anniversary since we were listed in Hong Kong in 2007, and was a year of strategic transformation for ANTA from a traditional private company into an internationally competitive listed corporation with modern governance standards. Over the past decade, we have experienced the surge in consumption and purchasing power, a transformation in retail channels, and witnessed the rise of the internet and e-commerce. We have seized each opportunity to make ANTA the “Great Brand”. ANTA has grown into the largest domestic sportswear brand in China and the third largest in the world, with its market capitalization reaching HK$100 billion. In 2017, we added KOLON SPORT and KINGKOW into our brand portfolio. We also opened many bigger stores with improved quality. I would like to extend my gratitude for the continuous support of all our customers, supply chain partners, brand partners, distributors and franchisees etc. Additionally, I also would like to express my sincerest thanks to all of our employees whose dedication and hard work have been the driving force that has pushed the Company to a new level of success.
In 2017, with notable growth in both online and offline sales of ANTA, and with the robust performance of other brands in our product portfolio, we recorded a 25.1% increase in revenue to RMB16.69 billion (2016: RMB 13.35 billion). Profit attributable to equity shareholders rose by 29.4% to RMB3.09 billion (2016: RMB2.39 billion), with basic earnings per share amounting to RMB117.01 cents (2016: RMB95.36 cents). To reward our shareholders, the Board has proposed a final dividend of HK41 cents per ordinary share (2016: HK34 cents) and a special dividend of HK16 cents per ordinary share (2016: HK8 cents), together with an interim dividend of HK41 cents per ordinary share (2016: HK34 cents) which was paid in September 2017, representing a payout ratio of 70.5% of profit attributable to equity shareholders for the year (2016: 73.2%). It is especially noteworthy that our e-commerce channels made a significant contribution towards our satisfactory sales results, delivering record-breaking results during the ‘‘Double 11’’ promotion period in 2017, which showcased our rapid development in the e-commerce space.
PARTNERING WITH THE OLYMPIC GAMES, GRASPING DEVELOPMENT OPPORTUNITIES
The 19th National Congress of the Communist Party of China mapped out a path towards a new economic development path for the country, highlighting the vital role of domestic consumption. As domestic consumption continues to grow and the external economic environment remains stable, we believe the overall consumer market will maintain steady growth. Meanwhile, the 19th National Congress specifically promoted national fitness, which will create a new market structure and opportunities for the sports industry. With the Beijing Olympic and Paralympic Winter Games approaching, we believe that our sponsorship of the Chinese Olympic Committee Winter Olympic Delegation will again enhance ANTA’s influence globally. In the PyeongChang 2018 Olympic Winter Games, we are happy to see the Chinese Olympic team setting amazing records wearing ANTA’s winter sportswear.
To fully grasp market opportunity and enhance our operational efficiency, our new logistics center will commence operation in 2018, greatly enhancing the efficiency of our supply chain from production to sales. It will continue to maximize our capacity to meet growing demand and pave the way for developing a market for personalized products.
FROM CHINA TO THE WORLD, UPHOLDING OUR MULTI-BRAND STRATEGY
Our “Single-Focus, Multi-Brand, and Omni-Channel” strategy has laid a solid and sound foundation. The journey of ANTA’s brand from a mass market position to the high-end market, from professional sports to popular sports, and from highend athleisure to urban stride, as well as outdoor frontiers, all have ensured the Group caters for every consumer’s requirements. Moreover, we have always been focused on sports footwear, sports apparel and related products. We believe that this strategy will continue to lead us towards success.
We will not be complacent with only being the leading multi-brand company in China as we aspire to become competitive multibrand company in the world. To that end, we are launching our globalization strategy in 2018. Through product innovation and R&D investment, we hope athletes will fight for glory with our sportswear and that the public will break through their limits with our products. We will tap into the global market with our best brands.
In the future, we will continue our focus on the sportswear industry. Aside from existing brands, we will continue to seek high-end international sportswear brands with growth potentials to meet the needs for sportswear and to fill the gaps between different market segments. Meanwhile, we will continue to improve our product differentiation and increase our market share in the categories of running, boxing, basketball, female fitness, cross-training and skiing. In the next ten years, we believe that e-commerce will continue to grow at a fast pace, making it a major channel alongside shopping malls, while the street stores strategy will shift its focus from “quantity over quality” to “quality over quantity”.
On behalf of the Board, I would like to extend my gratitude to all our shareholders for their continuous support. A person alone can walk fast, but a team can walk further. Looking ahead, we will ensure to maintain our sustainable and steady development with the help of our stakeholders, and create even greater value for our shareholders.
Ding Shizhong Chairman Hong Kong, 27 February 2018