Anta Sports Products Ltd. reported that revenue increased 44.1 percent to RMB1.94 billion for the six months ended June 30, 2018. Profit attributable to equity shareholders increased 34 percent to RMB1.94 billion, while basic earnings per share increased 29.4 percent increase to RMB72.44 cents.
“Since the beginning of 2018, it was clear to us that China has set itself the goal of becoming a sports powerhouse, and the sportswear industry is entering a golden era of rapid growth with unprecedented infrastructure development,” said Ding Shizhong, chairman and CEO of Anta Sports. “Whether or not the brands can seize these opportunities will be the key to the success of each company. For years, the group has stayed innovative and prepared to embrace ourselves for these opportunities and challenges. With innovation in our DNA, we will continue to be agile and adapt to the marketplace as we transform ourselves into a ‘new retailer.’ While delivering our multi-brand strategy, we also leverage new technology to upgrade and improve customer experience of all the brands across the board.”
“Looking ahead, in order to become a true ‘great brand,’ Anta must build up our capacity to innovate to ensure that we can rival international brands. We must be brave and daring when it comes to being creative and innovative so that we can provide consumers with value-for-money sportswear products with high international standards, thus transforming the Anta brand from ‘the brand you can buy’ to ‘the brand you want to buy.'”
- Gross profit margin increased by 3.7p.p. to 54.3 percent
- Operating profit margin and margin of profit attributable to equity shareholders stood at 25.5 percent and 18.4 percent respectively
Strong Retail Sales Performance
- Retail sales (in terms of the retail value) of Anta branded products and other branded products (excluding brands newly joined to the Group after 1 April 2017) during the period increased by high teens and 85 percent-90 percent year-on-year respectively, which sustained the company’s leading position in the industry
Attractive Dividend Payout
- Interim dividend of HK50 cents per ordinary share, an increase of 22.0 percent, representing a payout of the profit attributable to equity shareholders of 60.1 percent
Anta and Anta KIDS
- As COC’s official partner, Anta designed the “Champion Dragon Outfit” for the PyeongChang 2018 Olympic Winter Games, which made a number of appearances during the Olympics, and ultimately boosted awareness of Anta’s brand further.
- Anta continued to team up with its brand endorser and NBA Champion player, Klay Thompson, and launched a series of successful marketing events, such as the “Shock The Game” tour, further bolstering Anta’s brand awareness and relevant sales.
- Anta teamed up with renowned designer RICO LEE and launched the “Technology Sports” series during the Shanghai Fashion Week with tech giant 3M. In addition, to celebrate NASA’s 60th Anniversary, Anta launched the “Tribute to NASA” theme for its “SEEED Plan” sport shoes series, which were well received by the market.
- Anta confirmed its strategic partnership with Zhejiang Greentown Football Club, marking Anta’s first collaboration with a soccer club and proving its commitment to developing in this area.
- Anta provided competition outfits for the participants of the Spartan Race held in Shenzhen, which attracted more than 5,000 participants.
- Anta KIDS continues to use “Grow Up with Fun” as its slogan and launched its “Sports Day” event. It also collaborated with Marvel heroes, which was well received by children aged 0 to 14.
- Anta KIDS invited Zhang Yuexuan (Tiantian)–son of the famous model Zhang Liang–to be its first endorser.
- As at June 30, 2018, the total number of Anta stores (including Anta KIDS standalone stores) in China stood at 9,650.
-Fila, Fila KIDS and Fila Fusion
- Fila has been positioned as a high-end sports fashion brand which targets high-end consumers aged between 25 and 45.
- Fila continued its collaboration with Jason Wu, the New York-based Chinese American fashion designer, and Ginny Hilfiger, a renowned American fashion designer, to introduce the brand-new Jason Wu X Fila and Fila Modern Heritage series, respectively.
- Fila launched its trendy sportswear series, Fila Fusion. This series expands Fila’s presence in the fashion sector by tapping into the youth market.
- Fila KIDS introduced a brand-new Milan Garden Kidswear collection. By integrating the essence of summer with sports and fashion, this collection extensively reflects the brand’s elegant style.
- As at June 30, 2018, the total number of Fila stores (including Fila KIDS and Fila Fusion standalone stores) in Mainland China, Hong Kong, Macao and Singapore reached 1,248.
- After two years of development, Descente has quickly established itself as a functional and professional sportswear brand in China.
- In terms of brand promotion, during the period, the company invited Daniel Wu, a famous movie star, director and producer, to become Descente’s first Chinese endorser, embodying Descente’s brand concept of professionalism, innovation and a spirit that dares to challenge.
- Descente invited famous yoga tutors to lead a series of fitness courses targeted at women, with the theme “Design Your Moves” in Shanghai, Chengdu, Beijing and Nanjing. “Design Your Moves” aimed to promote sports with the utmost safety and comfort of the Spiritual products series.
- As at June 30, 2018, the total number of Descente stores in China reached 85.
- Sprandi is a fashion and lifestyle sportswear brand, mainly focusing on the fashion athletic footwear market in China.
- By opening more physical stores and e-commerce platforms, Sprandi continued to grow and penetrate into the emerging middle-class in China.
- As at June 30, 2018, the total number of Sprandi stores in China reached 81.
- Combining outdoor wear with fashion, Kolon Sport will expand its footprint in the outdoor sportswear market.
- As at June 30, 2018, the total number of Kolon Sport stores in China reached 189.
- The company’s acquisition of Kingkow, a kidswear brand targeting the mid-to high-end market, has not only helped the company to reinforce its presence in the kidswear market, but has also strengthened its multi-brand strategy.
- During the period, the company successfully improved Kingkow’s store efficiency and inventory turnover through optimizing its store network.
- As at June 30, 2018, the total number of Kingkow stores in Mainland China, Hong Kong, Macao and the United States reached 63.
- In addition to the official online flagship store, the company has collaborated with various renowned e-commerce platforms, including Tmall, JD and Vipshop, among others, to further boost the performance of its e-commerce business.
- The company has allowed some of its most outstanding offline distributors to sell Anta products online to maximize the mutual benefits between web-based and brick-and-mortar stores.
- The company optimized its e-store interface, improved product descriptions and presentations and enhanced its product search and cataloging functions to attract more online shoppers.
Upholding Multi-Brand Strategy, Improving Retail Management Capabilities and Optimizing Efficiency
- The “Single-Focus, Multi-Brand and Omni-Channel” operation model has enabled the company to position its brands across the mass market to the high-end market spectrum, with products catering to professional sports and popular sports, “athleisure” for outdoors, as well as kidswear, all of which have ensured the group caters for every consumer’s needs.
- The company will review market trends in a timely manner in response to consumers’ growing appetite for “athleisure” fashion and the stronger demand for “functional,” “differentiated” and “premium” sportswear products. As such, the company has conducted strategic adjustments in its R&D, manufacturing and distribution processes.
- In response to these challenges, the company has built a highly efficient supply chain and a new logistic center to enhance its capabilities, which will further reduce lead times and increase responsiveness to consumer needs.
Anta brand was established in 1991, while Anta Sports Products Limited (Stock code: 2020.HK), a leading sportswear company in China, was listed on the Main Board of Hong Kong Stock Exchange in 2007. The company’s portfolio includes Anta, Anta Kids, Fila, Fila Kids, Descente, Sprandi, Kingkow and Kolon Sport.