ANTA Sports Announces 2021 Annual Results
Hong Kong, 22 March, 2022 – ANTA Sports Products Limited ("ANTA Sports" or the "Company", stock code: 2020.HK, and its subsidiaries collectively the "Group"), a leading global sportswear company, today announced its audited annual results for the year ended 31 December 2021 (the "financial year").
‧ The Group's revenue, gross profit margin and profit from operations all recorded positive growth, reaching a new record high since listing. During the financial year, revenue increased by 38.9% to RMB49.32 billion and gross profit increased by 47.2% to RMB30.40 billion, with a gross profit margin of 61.6%. Profit from operations increased by 20.1% to RMB10.99 billion, with an operating profit margin of 22.3%;
‧ Breakdown by segment, during the financial year, ANTA's revenue soared 52.5% year-on-year to RMB24.01 billion; FILA's revenue increased by 25.1% year-on-year to RMB21.82 billion. The new brand incubation model became more mature, driven by the businesses of DESCENTE and KOLON SPORT, and all other brands' revenue increased by 51.1% to RMB3.49 billion;
‧ Amer Sports Holding (Cayman) Limited (“AS Holding”, the Group's joint venture which wholly-owns Amer Sports business), is on a fast track to expand. In 2021, the revenue and operating profit from the continuing operations of Amer Sports in relation to the core brand’s business exceeded pre-pandemic levels in 2019 and hit a record high. EBITDA of the AS Holding increased by 46.6% to RMB2.37 billion, while the share of loss to the Group reduced significantly to RMB81 million;
‧ On a consolidated basis, without the effect of share of loss of the joint venture, the profit attributable to equity shareholders surged 35.4% to RMB7.80 billion. On a consolidated basis, with the effect of share of loss of the joint venture, the profit attributable to equity shareholders surged 49.6% to RMB7.72 billion;
‧ The proposed final dividend would be HK68 cents per ordinary share (subject to the approval by shareholders of the Company at the forthcoming annual general meeting). With the special interim dividend of HK30 cents for the Group's 30th anniversary and the interim dividend of HK60 cents declared, the dividend payout was 45.6% of the profit attributable to equity shareholders for the financial year, which is the highest level since 2018;
‧ During the financial year, the Group's free cash inflow increased by 56.5% to RMB10.37 billion, reflecting a healthy cash generation capability. Moreover, the Group had a total of RMB24.58 billion in cash and cash equivalents, fixed deposits held at banks with maturity over three months and pledged deposits at the end of the financial year. Net cash position also increased to RMB11.41 billion. The abundant amount of cash reflected our adequate risk resistance ability; and
‧ The total number of ANTA stores (including ANTA KIDS standalone stores) in Mainland China and overseas was 9,403. The total number of FILA stores (including FILA KIDS and FILA FUSION standalone stores) in Mainland China, Hong Kong, Macao and Singapore was 2,054. The total number of DESCENTE stores in Mainland China, Hong Kong and Macao was 182, while the number of KOLON SPORT stores in Mainland China was 152. We continue to optimize our distribution network, helping to enhance brand influence and promoting the Group's sustainable development.
‧ ANTA and ANTA KIDS
‧ As a leading sportswear brand in China, ANTA is committed to providing the Chinese consumers with functional, "value-for-money" sportswear products for a diverse range of sporting categories, from popular to professional and niche sports, including running, cross-training, basketball and women’s series, amongst others;
‧ As the official partner of the COC for 16 years, ANTA continues to sponsor 22 Chinese National Olympic teams through the provision of outfits for their competitions. ANTA unveiled its latest "Champion Dragon Outfit" for the Chinese Sports Delegation at the Tokyo 2020 Olympic Summer Games;
‧ ANTA continued to endorse professional athletes including Eileen Gu, Wu Dajing, Lu Xiaojun and Zhang Jike, amongst others, to promote ANTA's professional image. During the financial year, ANTA endorsed Wang Yibo and Bai Jingting, two renowned Chinese celebrities, to rejuvenate the brand. In addition, Eileen Gu won two gold medals and one silver medal at the Beijing 2022 Winter Olympic Games. She also became the only freestyle skier in history to win three medals. Wearing ANTA outfit during the competition and at the moment of receiving the medals on stage, this not only enhanced the exposure of ANTA in front of the international media and consumers, but also drove the sales of skiing apparel products in China;
‧ During the financial year, ANTA announced its Five-year Development Strategy and "Lead to Win" acceleration plan. Leveraging on ANTA's existing strengths in the domestic market, ANTA will continue to sponsor outfits for Chinese national teams, leverage global advanced sports R&D capability, grab the opportunities of Generation Z, and speed up DTC transformation and digitalization, amongst others.; and
‧ ANTA KIDS enjoys the advantage of being an "Industry Pioneer", has consistently promoted its philosophy of "Grow Up with Fun", widening the gap with major international brand competitors, after achieving breakthroughs in professional sports mindset, the retail performance of offline and online retail stores, and core channels.
‧ FILA, FILA KIDS and FILA FUSION
‧ Positioned as a high-end fashion sports brand, FILA, together with FILA KIDS and FILA FUSION, leveraged its top-quality products, top branding and channels and
target high-end consumers in a wide range of age groups, so that everyone in the family can be a FILA customer. Making its 110th year anniversary, FILA cooperated with different brands and celebrity and organized a fashion show to enhance the brand’s international image and long-standing connotation; and
FILA engages with different endorsers such as global celebrities Gianna Jun and Lay Zhang, Chinese actresses Gao Yuanyuan, Jiang Shuying and Ni Ni, a Chinese actor Huang Jingyu and a Chinese singer Cai Xukun to enhance its the brand reputation.
‧ With over 80 years of brand legacy, DESCENTE upholds the design driven sporting spirit of "DESIGN THAT MOVES", combining innovative technology with design aesthetics. DESCENTE swiftly built its influence in the Mainland China market, catching the attention of core consumers who pursue unique high-tech materials and exquisite craftsmanship; and
‧ DESCENTE continued its partnership with internationally renowned movie star Daniel Wu and Chinese golf player Li Haotong; and partnered with Chinese actor Willam Chan to launch winter marketing campaigns for his endorsed series of products.
‧ KOLON SPORT
‧ KOLON SPORT is a premium outdoor lifestyle brand. During the financial year, KOLON SPORT engaged renowned Chinese actress Liu Shishi as its official brand endorser. She worked alongside famous Chen Kun, a famous Chinese actor, to interpret the high-end outdoor lifestyle of "YOUR BEST WAY TO NATURE".
Focus on high-quality development and value creation through mutualism
‧ With China adopting a path of high-quality growth in its economy, the potential for rapid development remains in the sportswear industry. Factors such as more personalized consumption habits and cultural self-confidence will continue to affect the market composition across the industry, bringing opportunity for domestic Chinese brands, and as a result, more niche brands are expected to emerge;
‧ ANTA launched a new ten-year strategy, "Single Focus, Multi-Brand, Globalization" at the end of 2021. Catering to the diversified needs of consumers and achieving high-quality growth with an array of brands, we continue to focus on the sportswear industry and consumer value creation. We target globalization in terms of market position, brand portfolio, value chain composition and governance structure;
‧ ANTA will further invest in digitalization, focusing on upgrading our membership system, member services and the operation of different platforms, to improve online and offline retail performance and achieve diversification in sales platforms. Digitalization will help integrate the omni-channel inventory system, strengthen the replenishment model, strengthen the omni-channel integration of products, and improve product efficiency. The digital supply chain platform, digital logistics network of regional warehouses and cloud warehouses, and the data interoperability across the full value chain will also help the Company increase the quantity and efficiency of direct distribution to our stores and empower our brands to grow and develop more effective cost management and operational efficiency; and
‧ We will uphold our business principle of "value creation through mutualism" to create a "mutualistic eco-system" and commit to facilitating "mutualism" related to stakeholders' interests in four areas: consumers, partners, environment and community, where we will continue to promote sustainable development.
Representative of ANTA Sports, said: "ANTA Group's vision is to be the leading world-class, multi-brand sportswear group. We will continue to set our "High-standard Benchmark" and believe that with the right strategy, our goals can be achieved. By 2025, through the multi-brand strategy, ANTA Group will strive to hold the No. 1 market share in China, and by 2030, strive to achieve global leadership. Regardless of how the external environment changes, our original intention will not change, we will continue to make every effort to produce quality apparel and footwear, while integrating a sporting spirit to go beyond ourselves in everyday life, and become the "leading world-class, multi-brand sportswear group."
For more 2021 annual results-related documents and information about the Company, please visit our investor relations website http://ir.anta.com.
About ANTA Sports
ANTA brand was established in 1991, while ANTA Sports Products Limited, a leading global sportswear company, was listed on the Main Board of HKEx in 2007 (Stock code: 2020.HK). For many years, ANTA Sports has been principally engaging in the design, development, manufacturing and marketing of branded sportswear including footwear, apparel and accessories to consumers. By embracing an all-round brand portfolio including ANTA, FILA, DESCENTE and KOLON SPORT, and by setting up an investor consortium to successfully acquire Amer Sports in 2019, a Finnish sportswear group that has internationally recognized brands including Salomon, Arc'teryx, Peak Performance, Atomic, Wilson, etc. ANTA Sports aims to unlock the potential of both the mass and high-end sportswear markets.
IR website: http://ir.anta.com
WeChat official account: antatiyu_20070710
For further information, please contact:
ANTA Sports Products Limited
Investor Relations Department
Tel: (852) 2116 1660
Fax: (852) 2116 1590
Citigate Dewe Rogerson
Tel: (852) 3103 0118