Anta's First Half Revenue Exceeded 14 Billion 800 Million Growth Over 40% In The Industry's First Place

In August 26th, Anta Sports Products Limited (Stock Code: 2020.HK) and its Affiliated Companies collectively "Anta group" released the mid 2019 earnings report.


According to the financial report, several single core performance indicators of the company have reached a new high level. On the basis of the scale of China's largest sporting goods group, the company has achieved high growth for 6 consecutive years, and the growth rate in the first half of the year is also ahead of the whole industry (referring to the domestic sporting goods industry, including international brands). Among them, the income increased by 40.3% to 14 billion 810 million yuan, the growth rate ranked first in the industry; operating profit increased by 58.4% to 4 billion 260 million yuan; shareholders accounted for a total profit of 2 billion 480 million yuan, an increase of 27.7%, and maintained a nearly 20% growth every year for six consecutive years; the gross profit margin increased 1.8 percentage points to 56.1%; the operating interest rate increased by 3.2 percentage points to 3.2; and the net cash flow of operation reached the net income.


At the same time, the overall brand sales ratio of the company keeps healthy; more than ten million high standard stores are springing up, especially the new shop opening effect has been greatly improved compared with the same period.


As of the end of June 2019, the total number of Anta brands (including Anta children) was more than 10200. FILA (Fei LE) brand store, including FILA KIDS (Fei Le children) and FILA FUSION (Fei Le Chao brand), nearly 1800, Desanto (DESCENTE) in China, more than 110 stores, klong sports (KOLON SPORT) more than 170.


Summing up the achievements of the first half of 2019, we have the following highlights:


Highlight 1: Anta's main brand investment "young future"


This year, Anta brand will invest more in the future. Brand positioning is a professional sports brand "leading to the extreme value of science and technology". It focuses on investment in R & D, quality improvement, retail experience upgrading, new channel layout and efficient store. Anta children has attracted a large number of loyal consumers with innovative products and marketing activities. The brand health is growing obviously, and sales growth ranks among the forefront of the industry.


Anta has opened five new strategies, namely, new targets, new products, new brands, new channels and new organizations. At the same time, the layout of the four major categories increased, and in the United States, Japan, Korea and China, the R & D center was upgraded. Anta made basketball, running, comprehensive training and sports life four categories to promote growth, of which Anta's basketball business line grew rapidly, nearly 35%; sports life category favored by young consumers, water increased by nearly 30%; running and comprehensive training categories to quickly layout professional sports market with scientific and technological innovation.


In 2019, Anta's crazy activities were upgraded completely. Online and offline attracted more than 30 million fans. "Crazy" has become the product IP; Anta launched the "Olympic and national team elements" products, loved by consumers; it also officially launched the 2022 Winter Olympic licensed goods in the main market of the country to promote the creation of the 2022 Winter Olympic preparation office, the integration of global resources for Winter Olympic equipment R & D design.


Highlight two: "value retail" triggering "consumer panic buying"


The group's main brand, supported by the technology matrix, has launched many high quality, high value, innovative and cross-border products, and has been on the hot topic of social media many times, from "affordable" to "want to buy", and then to "rush to buy".


For example: Anta and the Imperial Palace joint Winter Olympic licensed merchandise sports shoes, only 110 grams of "hydrogen technology" Anta and Coca-Cola joint running shoes once triggered a queuing rush to buy; Anta global synchronous launch of KT4 "reward" basketball shoes, the domestic online and offline synchronized sale, the price of 999 yuan, less than an hour sold out ten thousand; NBA main player Gordon Hayward met with fans in many cities in China and released its exclusive LOGO, which will become Anta's new IP product line, driving growth.


FILA, as the leading international brand of high-end fashion movement, focuses on creating the brand mission of "sports led elegant taste". With the development strategy of "single brand and multi category", it further deepens commodity innovation and integrates global design resources. In the first half of this year, it collaborated with internationally renowned designers to successfully build cross-border products, and launch FILA X 3.1 Phillip Lim series, which is very popular among consumers. At the same time, it persists in setting up shop in a second tier city, and actively creates high standard stores and high-yield shops; FILA FUSION opens shop independently to enter the market of young people aged 20 to 30; in late September, FILA will once again ascend to the show of Milan international fashion week.


Desanto and Kron sports completed the accurate positioning of the brand, product innovation and retail upgrading. Desanto's image of high quality professional sports has high loyalty among consumers, high repetition rate and in-depth layout of first and second tier cities.


Highlight three: all channels "upgrading" to promote growth


In the first half of this year, Anta group's online self operated retail channel exceeded 40%. The group electric business is dedicated to young people's favorite products, making topics through IP and designers, and through big data applications, to enhance product search function and consumer insight and demand forecast. Improve shopping experience through marketing innovation.


Anta's ninth generation brand new image store has appeared in Chongqing, Shanghai and Nanjing. With digitalization, youalization and specialization, the shop has more technology sense and fashion sense and enhances the interactive experience. Anta children's new 4 store image has also been upgraded, with professional sports, trend sports, baby children as the main player, and a new child testing system, which brings new shopping experience with scientific guidance. In early September, Anta children will appear in New York fashion week.


Highlight four: building "three brand groups" and "three sharing platforms"


In the first half of the year, around the "synergy value" and the company strategy, three brand groups were established: professional sports brand group mainly based on Anta, Anta children, Spandi (SPRANDI) and AntapluS; fashion sports brand group mainly based on FILA, FILA FUSION, FILA KIDS and Xiao Xiao cattle (KINGKOW); outdoor sports brand represented by AMER SPORTS (amifen sports), Desanto and kirong sports. The three brands focus on their respective fields and achieve full coverage of consumers and full coverage of channels.


At the same time, we set up three platforms: Group retail, group supply chain and group sharing support, forming the integration of brand groups and group functions, enhancing efficiency and giving full play to scale advantages. In the first half of the year, the company invested hundreds of millions of yuan to deepen the digital transformation and the construction of big data platform; the integrated logistics park of the group was also put into full use. In the first half of this year, group value retail and collaborative incubating capabilities continue to improve, and this year is expected to produce another brand of over 1 billion of the annual turnover.


Highlight five: completing the acquisition of AMER SPORTS as the leading sporting goods group in the world


Anta and other investors formed an investor consortium in March 2019 to complete the acquisition of AMER SPORTS; in April, the new board of directors of AMER SPORTS was established. In the first half of the year, the board of directors and management team formulated the five year development strategy to stimulate its growth potential and the growth plan of the Chinese market, bringing the world-class products and experience to the global sports enthusiasts.


Ding Shizhong, chairman and chief executive officer of Anta group, said: "2019 is the collaborative value year of Anta group. We have also become a global company. In the first half of this year, the company's performance maintained a high growth, benefiting from Anta brand, FILA brand and many other brands. In the second half of this year, the group will focus on building the "innovation strategy" and promoting the organization and capacity building of innovation so as to build a new growth engine for the group. 2020 is the Olympic year. As a partner of the Chinese Olympic Committee, preparations for the Olympic Games have begun. In the tide of national health, Anta group will value the retail value of deep ploughing, provide people with diversified sports products and experience, and create brand that makes consumers proud. Many brands of Anta group will combine many excellent brands of AMER SPORTS to serve consumers globally. To become a respected global company, to make people healthier and better lives, and never stop! "