ANTA Sports Delivers Record High Revenue of RMB 7.32 Billion and Profit Attributable to Equity Shareholders of RMB 1.45 Billion in 2017 Interim Results Gross Profit Margin Exceeds 50% for the First Time Free Cash Flow increased by 151% to RMB 1.82 Billion
Get Ready to Keep Moving and Flying High in the Next Decade
Hong Kong, August 15, 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 announce the unaudited interim results of the Group for the six months ended 30 June 2017 (the “period”).
- Record-breaking Revenue and Earnings
➢19.2% increase in revenue to RMB 7.32 billion
➢ 28.5% increase in profit attributable to equity shareholders to RMB1.45 billion
➢ 24.0% increase in basic earnings per share to RMB 55.98 cents
- Solid Profitability
➢ Gross profit margin exceeds 50% for the first time to 50.6%, an increase of 2.7p.p.
➢ Operating profit margin and margin of profit attributable to equity shareholders stood at 25.9% and 19.8% respectively
- Strong Retail Sales from Brands
➢ Retail sales (based on retail value) of ANTA branded products & non-ANTA branded products in second quarter of 2017 increased by 20%-30% and 50%-60% year-to-year respectively, which sustained our leading position in the industry
- Adequate Cash Position
➢ Free cash inflow increased by 151.1% to RMB 1.82 billion
➢ Net cash stood at RMB 10.03 billion
- Attractive Dividend Payout
➢ Interim dividend of HK41 cents per ordinary share, an increase of 20.6% with a payout ratio of 66.3%
- ANTA and ANTA KIDS
➢ Aside from consolidating ANTA’s position in traditional retail channels such as street stores, we have increased our presence in shopping malls and department stores, enabling us to adjust to changing consumption habits and shifting trend of foot traffic within the mass market
➢ Introduced 8th generation ANTA stores with new décor and fresh merchandise displays, creating a completely new shopping experience.
➢ As at 30 June 2017, the total number of ANTA stores (including ANTA KIDS standalone stores) in China stood at 9,041
- FILA and FILA KIDS
➢ FILA reached another milestone in 2017 with the launch of the Blue series line in China in January, which further expanded FILA’s customer base.
➢ Through partnerships with Staple, an US fashion brand, and Jason Wu, a renowned US designer, FILA launched the Staple X FILA product series and the new Jason Wu X FILA 2017 Spring/Summer collection respectively, to deliver customers personalized products that embodies FILA’s unique style
➢ As at 30 June 2017, the total number of FILA stores (including FILA KIDS standalone stores) in China, Hong Kong, Macao and Singapore reached 869
➢ Expanded into high-end shopping malls in over 10 major cities in China following the opening of its first new store in August 2016
➢ Launched the “AWAKEN!” marking campaign and successfully raised awareness of the DESCENTE brand
➢ As at 30 June 2017, there were a total of 21 DESCENTE stores in China
- E-commerce Business
➢ In addition to our official online flagship store (anta.cn), we have collaborated with various renowned e-commerce platforms, including Tmall, JD and Vipshop etc. to further boost the performance of our e-commerce business.
➢ Made a breakthrough in terms of the integration of our online and offline channels, such as the launch of ANTAUNI on Tmall during the period.
Creating Innovative Products and Brands
- Innovative Products
➢ We launched a new series that features renewably sourced water repellent technology during the 2017 Spring/Summer Season
➢ We formed a strategic alliance with an international specialized material producer to develop a best-in-class odor elimination solution, into ANTA’s fitness, training and leisure products, as well as the products of the Group’s other brands.
➢ Introduced A-Livefoam technology to support the Livefoam dynamic-net running shoes to provide more protection for runners’ ankles
➢ Aside from setting up a design center in Japan, we opened our “LAUNCH” design center in the US, where our international design team will add to our innovative capabilities
- Innovative Brands
➢ We celebrated the achievements of Klay Thompson, a sharpshooter for NBA Golden State Warriors and launched our month-long Shock The Game campaign in China. Over 30 million people watched the campaign live stream video, while its Weibo posts attracted over 77 million readers. The campaign not only successfully connected online and offline channels together, but showcased ANTA’s success in creating compelling brand stories in relation to its basketball products, and successfully boosted sales and took the value of ANTA’s brand to a new level.
Ding Shizhong, Chairman and CEO of ANTA Sports, commented, “Our ‘Single-focus, Multi-brand and Omni-channel’ strategy continues to deliver breakthroughs in terms of market share and profitability. During the period, as ANTA’s business continued to grow, along with a strong sales performance seen across the Group’s other brands, namely ANTA KIDS, FILA, FILA KIDS and DESCENTE, which contributed to ANTA Sports’ strong and sustainable growth.”
“We believe our 10th listing anniversary is not only a celebration of the past 10 years, but a new starting point from which to take the next step forward towards new heights. We will continue to maintain our focus on the sportswear industry and fulfill consumers’ demands by maintaining our
core strategy – “Single-focus, Multi-brand, Omni-channel” – to ensure comprehensive coverage of customers and channels, and to maintain our leading competitive edge.”
Kindly browse the link below for 2017 Interim Results infographic animation:
For more 2017 Interim Results-related documents and information about the Company, please visit our investor relations website http://ir.anta.com , follow our Twitter @AntaInsight https://twitter.com/antainsight or visit our YouTube channel
About ANTA Sports Products Limited
ANTA was established in 1994, while ANTA Sports Products Limited (Stock code: 2020.HK), a leading sportswear company in China, was listed on the Main Board of HKEX in 2007. For many years, we have been principally engaged in the design, development, manufacturing and marketing of ANTA sportswear series to the mass market with professional sporting products including footwear, apparel and accessories. In recent years, we have started moving full steam ahead on the strategy of “Single-focus, Multi-brand and Omni-channel” to deepen our focus in the sportswear market in China. We aim to unlock the potential of both the mass and high-end sportswear markets by delivering a diverse brand portfolio including ANTA, ANTA KIDS, FILA, FILA KIDS, DESCENTE, SPRANDI and NBA, and by capturing every opportunity arising from various important retail channels.
IR Website: http://ir.anta.com | Twitter: @AntaInsight | YouTube Channel: ANTA Insight
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