China’s Anta Sports posted a strong performance in 2020 despite the sluggish market caused by the COVID-19 pandemic.

Financial Highlights

  • Despite the impact of the pandemic, the Group’s revenue, gross profit and profit from operations all recorded positive growth, reaching a new record high;
  • During the financial year, revenue increased by 4.7 percent to ¥35.5 billion, and the overall gross profit margin increased 3.2 percentage points to 58.2 percent. The overall profit from operations increased by 5.3 percent to ¥9.2 billion;
  • During the financial year, aiming for a healthy inventory level and retail discount, Anta segment achieved ¥15.7 billion; revenue from the Fila segment increased by 18.1 percent to ¥17.5 billion, demonstrating its sustainable development capability. The new brand incubation model matured, and all other brand revenue increased 35.4 percent to ¥2.3 billion;
  • Operating profit margin increased 0.2 percentage points to 25.8 percent, achieving a record high. It implied the Group’s success in retail strategy, high efficiency in cost control and a matured multi-brand business model;
  • Although the overseas markets were uncertain amid the pandemic, AS Holding, the Group’s joint venture which wholly-owns Amer Sports, shared a profit of ¥118.0 million in the second half of 2020;
  • Without the effect of the share of loss of a joint venture, the profit, attributable to equity shareholders, decreased by 3.6 percent to ¥5.8 billion. On a consolidated basis, with the effect of the share of loss of a joint venture, the profit, attributable to equity shareholders, decreased by 3.4 percent to ¥5.2 billion. After deducting the foreign exchange loss of ¥340 million, the profit attributable to shareholders increased by 2.9 percent;
  • The final dividend was HK47 cents per ordinary share, and the dividend payout ratio was 30.3 percent of the profit attributable to equity shareholders during the financial year. The Group was still able to maintain a stable dividend payout ratio;
  • The Group recorded healthy liquidity and sufficient cash level, showing its risk-resistant capacity. For the year ended December 31, 2020, net operating cash inflow slightly decreased by 0.4 percent to ¥7.5 billion, exceeding the profit for the year, without the effect of the share of loss of a joint venture. Free cash inflow also reached ¥6.6 billion, up ¥200 million year-on-year. The total amount of cash and cash equivalents, fixed deposits held at banks with maturity over three months and pledged deposits reached ¥20.3 billion, reflecting the healthy cash generation capability of the Group amid the pandemic; 
  • The total number of Anta stores, including Anta Kids standalone stores, in Mainland China and foreign countries, stood at 9,922. The total number of Fila stores, including Fila Kids and Fila Fusion standalone stores, in Mainland China, Hong Kong, Macao, and Singapore stood at 2,006. The total number of Descente stores in Mainland China and Hong Kong stood at 175. The total number of Kolon Sport stores in Mainland China and Hong Kong stood at 157; and
  • The sales network of the Group continued to improve, helping to expand its brand awareness and promoting the Group’s sustainable development.

Operational Highlights
Anta and Anta Kids

  • Anta is committed to providing the consumer with functional, “value-for-money” sportswear products across diverse sporting categories. Its brand position has evolved from “value-for-money” to “extreme value.”
  • Anta continued to support and endorse Chinese athletes. As the official sportswear partner of the COC, Anta sponsored 22 Chinese national teams in winter sports, boxing, taekwondo, gymnastics, weightlifting, wrestling, etc.
  • Anta launched a licensed collection of national flag-themed sportswear for the Beijing 2022 Olympic and Paralympic Winter Games with the Beijing Winter Olympics Organizing Committee in Shanghai. This series of products attracted first-time customers to the brand. 
  • Anta Running launched its long-term strategy, “Born from Runners, Evolving with Runners,” echoing the trend the brand sees over the past few years for a sports-oriented, healthier lifestyle.
  • Anta Kids enjoyed the advAntage of being an “early-entry trailblazer.” The brand promoted its philosophy of “Grow Up with Fun” and aimed to incorporate more of a “fun” element in a kids’ growing journey through an integrated experience. Child model Ella Gross became Anta Kids endorser with Zhang Yuexuan (Tian Tian) and Fu Tianzong, the World Young Street Dance Championship champion.

Fila, Fila Kids and Fila Fusion

  • Fila, together with Fila Kids and Fila Fusion, targets high-end customers from different age groups.
  • Celebrity endorsers who joined the brand during its financial year included Gao Yuanyuan, Huang Jingyu, Wu Jinyan, Kōki, and Cai Xukun. The endorsements drove sales and brand awareness.
  • Fila retained its competitiveness with its worldwide design team in Hong Kong, Japan, Korea, etc. 
  • Fila’s apparel business in Mainland China increased gradually, with the growing popularity of its shoes. During the financial year, it sold more than 10 million pairs.

Descent
Descente will continue to expand its retail presence in Mainland China’s high-end sportswear market. It partnered with celebrity Daniel Wu, Chinese actress Xin Zhilei and golf athlete Li Haotong to promote its products. Descente also opened its Descente BLANC concept store in Beijing, the first concept store for the brand in China.

Kolon Sport
During the financial year, Kolon Sport announced that Chen Kun, a Chinese actor, had endorsed the brand. They worked together to interpret the high-end outdoor lifestyle of “Your Best Way To Nature”.

Turn Crisis Into Opportunities To Achieve “High-Quality Growth”

  • Anta Sports continued to work toward becoming a multi-brand sportswear group. During the pandemic, it overcame difficulties while maintaining the strategy of “Long-term Preparation,” “Dynamic Management,” “Reconstruction of Mind,” and “Optimizing Standards.” It will continue with its “Keep Moving” mantra to accelerate growth.
  • During the financial year, Anta optimized its multi-brand portfolio to form three growth curves. In 2021, it will continue to work the “curves” full potential to facilitate multi-layer business growth incentives.
  • It increased investment in its DTC model and optimized resources through “Customers, Products and Channels” for information flow that connects its products to meet customer needs.
  • It emphasized digitized transformation focusing on improving membership value, upgrading products and its website to penetrate online and offline sales channels to support and enhance its integrated working efficiency.

Ding Shizhong, chairman and CEO of Anta Sports, said, “As a leader in the global sportswear industry, Anta Sports firmly upholds the philosophy of long-term, the perseverance to our mission and vision, the focus on consumer-oriented strategy, the delivery of high-quality growth, and the culture of benchmarking with high standards to become a respectable world-class, multi-brand sportswear group. The year 2021 is the 30th anniversary of Anta Sports. The mission, vision, core capabilities, and social responsibilities should be undertaken in the future are the questions we need to ask and answer for the 30th anniversary. Motivating the company to move towards the goal of sustainable development will be our direction in the next 10-to-20 years and even longer-term.”

Photo courtesy Anta Sports