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ANTA Sports’ 2016 Annual Results Reach New Heights and President Xi in ANTA Winter Sportswear Boosts Brand Awareness
“Single-focus, Multi-brand and Omni-channel” Strategy Continues to Reach all Market Segments Strengthening the Group’s Competitive Edge
Hong Kong, February 22, 2017 –ANTA Sports Products Limited (“ANTA Sports” or the “Company”, stock code: 2020.HK, and its subsidiaries collectively the “Group”), a leading sportswear company in China, is pleased to publish its annual results for the year ended 31 December 2016 (the “year”).
Through its precise brand positioning, comprehensive consumer and retail channel coverage, and unique business model, the Group’s revenue and profit attributable to equity shareholders for the year set new records ,and have now more than quadrupled over the past decade.
In January 2017, Xi Jinping, President of the People’s Republic of China, wore ANTA-branded winter sportswear when he visited the winter sports venues at Zhangjiakou, host site of the Beijing 2022 Winter Olympics. The visit attracted an unprecedented level of media and public attention for the ANTA brand, particularly on social media, and saw President Xi become the latest unofficial ‘endorser’ of the brand. This has helped to create a valuable brand connection between ANTA and the 2022 Winter Olympics.
Financial Highlights for the Year
Record-breaking Revenue and Earnings
- 20.0% increase in revenue to RMB13.35billion, the third consecutive year of over 20% growth
- 16.9% increase in profit attributable to equity shareholders to RMB2.39billion
- 16.8% increase in basic earnings per share to RMB95.36 cents
- Record high gross profit margin of 48.4%, an increase of1.8p.p.
- Operating profit margin and margin of profit attributable to equity shareholders stood at 24.0% and 17.9% respectively
Adequate Cash Position
- Free cash inflow increased by 33.9% to RMB1.90 billion
- Net cash and cash equivalents stood at RMB5.83billion as at 31December 2016
Attractive Dividend Payout
- Total dividend of HK76 cents per ordinary share, an increase of 11.8% with a payout ratio of 70.2%
Operational Highlights for the Year
ANTA and ANTA KIDS
- Awareness of ANTA’s brand and sales increased due to the Group’s effective marketing campaign during the Rio Olympics, the signing of world-famous endorsers namely Klay Thompson and Manny Pacquiao, among others, and its value-for-money innovative products
- As at 31 December 2016, the total number of ANTA stores(including ANTA KIDS standalone stores) in China stood at 8,860
FILA and FILA KIDS
- The FILA business continued its high growth momentum driven by its collaborations with renowned fashion designers and celebrities, including Jason Wu and Guo Yuanyuan, among others
- As at 31 December 2016,the total number of FILA stores(including FILA KIDS standalone stores) in China, Hong Kong and Macau reached 802
- The opening of the first ever DESCENTE store in China in August marked the launch of DESCENTE’s business in the country, which will tap the potential of the high-end functional sportswear market
- As at 31 December 2016, there were a total of six DESCENTE stores in China
- E-commerce continued to be one of the fastest growing segments of the Group. The “Double 11” online shopathon saw the Group record over 100% year-on-year sales growth across its e-commerce platforms
Sustainable Growth Strategy
Our unique and effective “Single-focus, Multi-brand, Omni-channel” strategy enables us to tap market potential, fulfill consumer needs and increase market share across all segments of the sportswear industry.
- We solely focus on the sportswear industry and are committed to producing the best sportswear products with a craftsmanship spirit
- We cater for all segments of the sportswear industry, from mass to high-end consumers, from functional to fashionable sportswear, from adults to kids markets, and from popular sports to niche sports with our comprehensive brand portfolio
- Further to our ANTA, ANTA KIDS, FILA, FILA KIDS, DESCENTE and NBA brands, we are devoted to strengthening our brand line-up
- Using a combination of street stores, shops in shopping malls and department stores, outlet stores and online shops on e-commerce platforms, our brands and products are able to reach their target consumers
“We have once again delivered another year of strong and sustainable growth,” commented Ding Shizhong, Chairman and CEO of ANTA Sports. “Today’s headline figures and our consistent track record of delivering profitable growth are the result of the implementation of our ‘Single-focus, Multi-brand, Omni-channel’ strategy’.”
“The next ten years will be a golden decade for China’s sportswear sector thanks to the government’s ongoing support for the development of the sports industry, increasing participation in sports and the growing demand for sportswear products. Adhering to our‘ ANTA Way’ ethos and unique business model, we are confident that we will continue to stand out as a leader in China’s sportswear industry, ”he added.
2016 Annual Results digital report:
For more 2016 Annual Results-related documents and information about the Company, please visit our investor relations website http://ir.anta.com or follow our Twitter @AntaInsight https://twitter.com/antainsight
Photos and video reference of President Xi Jinping wearing ANTA-branded winter sportswear when visiting Zhangjiakou can be viewed at:
About ANTA Sports Products Limited
Established in 1994 and listed on the Main Board of Hong Kong Stock Exchange in 2007, ANTA Sports Products Limited (stock code: 2020.HK) is one of the leading sportswear management enterprise in China. For many years, we are principally engaged in the design, development, manufacturing and marketing of ANTA sportswear series to provide professional sporting goods to the mass market. Our professional sportswear includes sports shoes, apparel and accessories. In recent years, we started moving full steam ahead on the strategy of “Single-focus, Multi-brand, and Omni-channel” to deepen our footprint in the sportswear market with a vibrant brand portfolio, including ANTA, ANTA KIDS, FILA, FILA KIDS, Descente and NBA, seizing every opportunity arose in all important retail channels as a result of the successful Omni-channel strategy to unlock the potential of mass and high-end markets in China. By integrating various resources, including sponsorship and endorsement, advertising and promotional campaigns, corporate social responsibility initiatives, professional store image and high quality, value-for-money merchandise, we strive to reinforce the image of our brands and the level of brand association in the minds of our customers. Our goal is to become the nation’s top sportswear management enterprise with the best brand reputation and largest market share in China, and a respectable and sustainable world-class sportswear company in the long run.
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