ANTA and Sustainability

CHAIRMAN STATEMENT

Dear Stakeholders,

On behalf of the Board, I am pleased to present our ESG Report for the year ended 31 December 2021.

30th Anniversary – Embarking on New Adventures

2021 marks our 30th year of operations, so this is a good time for a retrospective look at our achievements and milestones over the past three decades, while planning for future sustainable development. When kick-starting the new journey, we always bear in mind why we started in the first place, and we introduce new vision, new value and new strategy for the next 10 years, laying a solid foundation for the next decade.

Mutualism by Strengthening Governance

“Value Creation through Mutualism” is the new proposition for our next development stage. We will transform ourselves into an organization that strives for mutual growth, underpinned by four pillars – consumers, ecosystem partners, environment, and society – promoting sustainability to reach collective prosperity. While pursuing our business goals, we are dedicated to maintaining honesty, integrity and compliance in our operations. We will also strive to enhance resource conservation and environmental protection, ensure production safety, protect employees’ legitimate interests and rights, and participate in public welfare. We continuously optimize our ESG governance structure by establishing the Sustainability Committee with Board level participation in sustainability issues. In the meantime, we have also become the signatory of United Nations Global Compact, supporting the Ten Principles of the United Nations Global Compact. We firmly believe that we can continue to create more value for stakeholders by improving internal sustainability governance, strengthening management and controlling our corporate development’s impact on the environment and society.

Mutualism by Focusing on Quality and Innovation

Our aim is to grow side by side with our consumers by building top-notch, multibrand consumer value. Every year, we provide consumers with high quality sportswear products, allowing them to enjoy the fun of sports. Every item comes with our dedication to quality and innovation. During the financial year, we had over 1,000 registered and approved trademarks, and had over 1,000 valid patents. Furthermore, we strive to enhance our investment in technological R&D. Our aggregated R&D expenses in the past 10 years reached RMB3 billion. We have a R&D team of over 200 international design and development experts from 18 countries and regions. Sustainability has been integrated in our products, and it will be the focus of our new era, empowering our consumers to embrace sustainable consumption concepts.

Mutualism by Achieving a Win-win Outcome with our Eco-system Partners

We aim to grow side by side with our eco-system partners to establish an effective and sustainable industrial chain. During the financial year, 267/162/65 of our suppliers obtained certifications of ISO 9001/ISO 14001/ISO 45001, and 45 suppliers obtained bluesign® certification. We continue to deepen the mutual growth relationship with our upstream and downstream partners. We grow together with our employees to promote their growth. We also attach great importance to diversity, promote a corporate culture of respect, inclusiveness, and openness. During the financial year, the percentage of employee trained reached 79.7%. We are committed to providing our employees with a broad career platform and to improving our global, diversified and multi-level talent team structure. During the financial year, female executives accounted for 34.7% of total executives among our employees. Our eco-system partners and employees help us to grow steadily and ride on the path to success.

Mutualism by Protecting our Green Home

We subsist in symbiosis with the environment and we develop in a sustainable manner in concert with the environment. We continue to attach importance to environmental protection and ecological progress. We always adhere to integrating into sustainability the Group’s operations and decisionmaking and strive to create greater value with a lower impact on the environment. Carbon neutrality is an environmental issue related to future generations. In the future, products with high carbon footprints will gradually lose their competitiveness. As advocate for sustainability, we are committed to improving green production and product carbon footprint-management capabilities. While realizing the "Mountains of Gold and Silver" economic benefits, we will protect the “Clear Waters and Green Mountains” of our homeland by optimizing our products’ carbon footprint and developing innovative environmental protection processes.

Mutualism by Giving Back to Society

We grow side by side with the society and strive to give back to it. We have been committed to participating in community build up and contributing to building a harmonious society through various community activities. During the financial year, we donated RMB65 million in cash to various charities and donated sportswear worth over RMB270 million (calculated at tag value). Over the years, “Sturdy Growth Charity Project” established 150 ADream Centers, trained 2,817 physical education teachers, donated over RMB490 million worth of sportswear (calculated at tag value) and benefited over 3.5 million students in 9,137 schools in China. We also carried out a number of activities to serve the public, such as supporting the Beijing 2022 Olympic Winter Games, serving the community, promoting common prosperity, and helping those in need.

In addition, we proactively encourage our employees to participate in public welfare activities to jointly fulfill our corporate social responsibilities.

To provide stable and healthy return to our Shareholders, we have paid dividends of more than RMB1 billion annually since 2014, and the cumulative dividends paid from 2014 to 2020 exceeded RMB11 billion. In 2021, the total dividend payout (including paid and recommended dividend) reached RMB3,524 million.

In 2021, we reviewed the development journey in the past 30 years and formulated the development strategy of the coming 10 years. We will continue to create value for consumers, push forward nationwide sports promotion campaign, work together with upstream and downstream partners as well as all employees, bear responsibility for the society and the environment, so as to move towards the goal of sustainability. We believe that keeping on the track of sporting goods, developing multibrands to cater to market demands, expanding global footprints, and creating mutual growth value are the best ways to create maximum value for all stakeholders.


Ding Shizhong
Chairman