ANTA Sports Delivers Another Round of Strong Results for FY 2018 Maintaining Double-digit Growth for the Fifth Consecutive Year
Revenue Reaches RMB 24.1 Billion with Profit Attributable to Equity Shareholders of RMB 4.1 Billion Supporting Multi-brand Strategy with Synergistic Incubation and Expanded Retail Platform
Hong Kong, 26 February, 2019 – 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 its audited annual results for the year ended 31 December 2018 (the “year”).
- Record-breaking Revenue and Earnings
- 44.4% increase in revenue to RMB 24.10 billion
- 42.9% increase in profit from operations to RMB 5.70 billion
- 32.9% increase in profit attributable to equity shareholders to RMB 4.10 billion
- 30.6% increase in basic earnings per share to RMB 152.82 cents
- Stable and Healthy Profit Ratios
- Gross profit margin increased by 3.2 percentage points to 52.6%
- Operating profit margin and margin of profit attributable to equity shareholders were 23.7% and 17.0% respectively
- Strong Retail Sales Performance
- Retail sales (in terms of the retail value) of ANTA branded products and other branded products (excluding brands newly added to the Group after 1 October 2017) during the period saw increases in the mid-teens and 85%-90% year-on-year respectively, which have strengthened our leading position in the industry
- 2018 Dividend HK 78 cents
- Total dividends of HK78 cents per ordinary share, representing a payout of 44.9% of the profit attributable to equity shareholders
- ANTA and ANTA KIDS
- As the official sportswear partner of the Chinese Olympic Committee (COC), ANTA successfully supported the Chinese national team, which saw great success at the 2018 Pyeongchang Winter Olympics.
- In terms of branding during the year, ANTA signed an endorsement contract with Gordon Hayward, adding another star to its list of NBA endorsers alongside with Klay Thompson, Rajon Rondo and Luis Scola. Meanwhile, Klay Thompson launched the 2018 ANTA “Shock the Game” tour in China, which further increased awareness of ANTA’s brand. In terms of products, the KT3-Rocco and SEEED series received a positive response from the market.
- ANTA KIDS expanded and upgraded its “Sports Day” event series and launched its “China Soccer Coach Training” project in China.
- As at 31 December 2018, the total number of ANTA stores (including ANTA KIDS standalone stores) in China stood at 10,057.
- FILA, FILA KIDS and FILA FUSION
- FILA had its debut appearance at the Milan Fashion Week during the year and released its 2019 Spring Summer ICONIC collection. It also continues to boost its cooperation with various renown designers, including Jason Wu, Ginny Hilfiger and Philip Lim, who are blazing trails in high-end sportswear trends.
- FILA officially launched FILA FUSION, a new sportswear series, and signed an endorsement contract with Roy Wang. FILA has set up standalone stores and launched crossover series with a range of leading brands, such as international fashion brand AAPE by A Bathing Ape, Korean brand D-ANTIDOTE, New York streetwear brand Staple, and many more.
- FILA KIDS introduced several crossover products, including the FILA KIDS X WONNIE FRIENDS and Christmas Emoji collections, which were supported by simultaneous online and offline promotions.
- As at 31 December 2018, the total number of FILA stores (including FILA KIDS standalone stores) in China, Hong Kong, Macau and Singapore reached 1,652.
- DESCENTE, SPRANDI, KOLON SPORT & KINGKOW
- As newer members of the Group’s multi-brand portfolio, DESCENTE, SPRANDI, KOLON SPORT and KINGKOW reached new milestones during the year. Among them, DESCENTE secured pan China movie star, director and producer, Daniel Wu, as its first Chinese endorser, expanding its focus on high-end sportswear and accessories for skiing, cross-training and running. SPRANDI, a fashion and lifestyle sportswear brand, has mainly focused on fashionable athletic footwear in China, while KOLON SPORT has expanded the Group’s business reach into outdoor sports through its blend of outdoor sports and lifestyle apparel together with leisurewear. In addition, KINGKOW, an established kidswear brand targeting the mid- to high-end market, has helped reinforce the Group’s presence in the kidswear market.
Delivering on Our Multi-brand Strategy, Improving the Value of Our Products and Brands, while Optimizing Supply Chain Capabilities
- Our “Single-Focus, Multi-Brand and Omni-Channel” operation model has enabled ANTA’s brands to spread across the entire market spectrum from the mass end to high-end, with products for professional sports and popular sports, high-end athleisure to urban strolls, as well as for outdoor frontiers and kidswear, catering to every consumer need.
- When enhancing the value of our brands and products, we look at the process from four perspectives. First is the “value of end users”, which requires the integration of online and offline services. By collecting and analyzing data from our “smart stores”, we are able to gain valuable insights into consumer behavior, which helps us to improve and upgrade the efficiency of our store management and management process, as well as provide the perfect customer experience. The second perspective is the “value of products”, which ensures we provide consumers with the most appropriate products that meet their demands while minimizing inventory risks. The third perspective is the “value of branding”, which incentivizes us to upgrade our brands so that they resonate with our consumers, as well as improve our brand awareness and brand influence. The fourth perspective is the “value of culture”. We have created a corporate culture that motivates, rewards and helps employees to achieve their personal and corporate goals.
Ding Shizhong, Chairman and CEO of ANTA Sports, said, “The year 2018 was an important milestone for both China and ANTA Sports. We will never forget our mandate to be a consumer-centric company which builds on its multi-brand strategy and innovation. We remained steadfast to our mission, committed to innovation, and upgraded our brand with a global mindset, ensuring that we can truly become the ‘Great Brand’. Being ‘customer-centric’ is at the heart of our ‘value retailing’ philosophy.”
He added, “In an investor consortium, ANTA Sports has signed an official tender offer for Finnish sportswear group, Amer Sports, marking an important milestone in ANTA’s internationalization process. While we have a few more steps to go before the acquisition is complete, I am optimistic about this deal because I know that we have both the capability and confidence to create value for global consumers. Looking ahead, ANTA Sports will focus on advancing our brand, retail operations, management, organization, talent management and corporate culture. We will continue to strengthen our march towards becoming a world-class multi-brand sports company.”
For more 2018 Annual Results-related documents and information about the Company, please visit our investor relations website http://ir.anta.com , follow our Twitter @AntaInsight or visit our YouTube channel ANTA Insight.
About ANTA Sports
ANTA brand was established in 1991, while ANTA Sports Products Limited, a leading sportswear company in China, was listed on the Main Board of Hong Kong Stock Exchange in 2007 (Stock code: 2020.HK). For many years, ANTA Sports has been principally engaging in the design, development, manufacturing and marketing of ANTA sportswear series to provide the mass market in China with professional sporting products including footwear, apparel and accessories. By embracing an all-round brand portfolio including ANTA, FILA, DESCENTE, SPRANDI, KINGKOW, and KOLON SPORT, and by seizing every opportunity arising in various important retail channels, ANTA Sports aims to unlock the potential of both the mass and high-end sportswear markets in China.
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
Joe Pan / Samuel Xiao
Tel: (852) 3103 0110/ (852) 3103 0128