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ANTA Sports Delivers Over 20% Interim Revenue Growth for Third Consecutive Year GPM Reaches Record High

"Single-focus, Multi-brand, and Omni-channel" Strategy Continues to Drive Sustainable Growth

Hong Kong, August 29, 2016 –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 2016 (the “period”).

Interim Results Highlights
 

  • Sustainable growth in revenue and earnings
  • 20.2% increase in revenue to a record high of RMB6.14 billion, the third consecutive year of over 20% growth
  • 17.0% increase in profit attributable to equity shareholders to RMB1.13 billion
  • 16.8% increase in basic earnings per share to RMB45.15 cents
  • Solid profitability
  • Record high gross profit margin of 47.9%, an increase of 1.3p.p.
  • Operating profit margin and margin of profit attributable to equity shareholders stood at 24.2% and 18.4% respectively
  • Adequate cash position
  • Net cash and cash equivalents stood at RMB5.38 billion as at 30 June 2016
  • Attractive dividend payout
  • Interim dividend of HK34 cents per ordinary share, a 13.3% growth and payout ratio of 65.2%


Operational Highlights

  • Our unique and effective operational strategy allows us to fulfill consumer demands and increase market shares in all sub-segments of the sportswear industry
  • Single-focus: we are committed to producing the best sportswear products with a craftsmanship spirit
  • Multi-brand: we cater for all sub-segments in the sportswear industry, from mass to high-end consumers, from functional  to fashionable sportswear, from adults to kids markets, with our brand portfolio, namely ANTA, ANTA KIDS, FILA, FILA KIDS, DESCENTE and NBA
  • Omni-channel: we will continue to optimise the retail management  of all channels, including street stores, shopping malls, department stores, outlet stores and e-commerce platforms
  • As at 30 June 2016, the number of ANTA stores (including ANTA KIDS standalone stores) stood at 8,510
  • As at 30 June 2016, the number of FILA stores (including FILA KIDS standalone stores) in China, Hong Kong and Macao stood at 687
  • Opened first DESCENTE store in Changchun in northeastern China in August 2016


Rio Olympics marked a new high for the Group

  • The ANTA-designed “Champion Dragon Outfit” worn by medal-winning Chinese athletes on the victory podium generated brand exposure globally. Chinese athletes won 26 Gold, 18 Silver and 26 Bronze medals, ranking 2nd in the total medal count
  • With the theme of “Go Surprise Yourself”, ANTA launched swift, well-targeted and real-time marketing campaigns, which strengthened ANTA’s association with the Chinese Olympic Committee. In terms of design and copywriting, the campaigns used powerful visual effects and inspiring language to appeal to young consumers
  • ANTA launched an integrated marketing campaign with various online platforms during the Rio Olympics; “Go Surprise Yourself” topics on ANTA’s Weibo account were read over 100 million times, with related feeds generating more than 300,000 discussions
  • According to a poll on the impact of sponsorship related to the Rio Olympics conducted by Ipsos, a leading global research company, Olympics-related marketing led to a 17% increase in ANTA’s brand awareness
  • ANTA collaborated with Tmall to create the “ANTA Tmall Super Brand Day”, which allowed consumers to participate in various interactive activities
  • FILA received additional exposure from sponsoring CCTV5’s Rio Olympics reporting team, who did excellent job covering the Rio Olympics  while dressed in FILA products
  • FILA was also the official sponsor of sportswear uniform for Hong Kong’s Olympic squad of China


“A solid financial performance proves that our operational strategy continues to pay off,” commented Mr. Ding Shizhong, Chairman and CEO of ANTA Sports. “Our focus on consumer experience and retail-centric measures are key to maintaining our competitive advantage in the highly competitive market and delivering returns to our investors. Moreover, the Rio Olympics has shone a light on our brands and products, increasing the awareness and the equity of our brand globally, fueling sustainable growth for years to come.”

“Looking ahead, we will continue to build on our multi-brand portfolio and strengthen the influences of our brands, namely ANTA, ANTA KIDS, FILA, FILA Kids, DESCENTE and NBA in each target segment. Our goal is to become the nation’s top sportswear company with the best reputation and largest market share in China, and to become a respectable and a sustainable world-class sportswear company in the long run.”

For more 2016 interim results-related documents and information about the Company, please visit our investor relations website http://ir.anta.com or follow our Twitter account @AntaInsight https://twitter.com/antainsight


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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 companies in China. For many years, we have been principally engaged in the design, development, manufacturing and marketing of ANTA sportswear series to provide professional sporting goods to the mass market in China. Our professional sportswear includes sports shoes, apparel and accessories. In recent years, we have started moving full steam ahead with the strategy of “Single-focus, Multi-brand, and Omni-channel” to deepen our footprint in the sportswear market in China. By embracing a vibrant brand portfolio, including ANTA, ANTA KIDS, FILA, FILA KIDS, DESCENTE and NBA, and by seizing every opportunity arising in various important retail channels, we aim to unlock the potential of both the mass and high-end sportswear markets in China. By integrating various resources, including sponsorship and endorsement, advertising and promotional campaigns, corporate social responsibility initiatives, retail management capability 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 company with the best reputation and largest market share in China, and to become a respectable and a sustainable world-class sportswear company in the long run.

IR Website: http://ir.anta.com | Twitter: @AntaInsight https://twitter.com/antainsight

ANTA Sports Products Limited
Investor Relations Department
Tel: (852) 2116-1660
Fax: (852) 2116-1590
E-mail: ir@anta.com.hk

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Joe Pan / Samuel Xiao
Tel: (852) 3103 0110 / (852) 31030128
Email: antasports@citigate.com.hk