ANTA Delivers a Record-breaking Performance with Outstanding Growth

HONG KONG, Aug. 26, 2019 /PRNewswire/ -- ANTA Sports Products Limited (stock code: 2020.HK, and its subsidiaries collectively the 'Group'), released its interim results today for the year 2019, setting a record-breaking performance. As of now, several core business indicators are ranked on the forefront of the industry across China, showing an excellent achievement.

The company's several core performance indicators have not only set a new record in some individual items, but also achieved high growth for the last six consecutive years as the largest sportswear company in China. The revenue growth rate in the first half of 2019 is also on the top in the overall industry (referred to as the domestic sports goods industry, including international brands).

• Revenue increased 40.3% to RMB 14.81 billion to be the first in the overall industry;
• Profit from operations increased 58.4% to RMB 4.26 billion;
• Profit attributable to equity shareholders is RMB 2.48 billion, up 27.7%, which attained new heights, maintaining nearly 20% growth for the sixth consecutive year;
• Overall gross profit margin increased 1.8 percentage points to 56.1%;
• Operating profit margin increased 3.2 percentage points to 28.7%;
• Net cash flow generated from operating activities increased to RMB 3.44 billion;
• The overall warehouse sales ratio of each brand stays healthy;
• High-standard stores of RMB 10 million revenue continue emerging, and the efficiency of new stores has increased significantly over the same period;

As at the end of June 2019, the total number of ANTA Brand stores (including ANTA KIDS standalone stores) in China stood at over 10,200, that of FILA stores, including FILA KIDS and FILA FUSION, approximately 1,800, that of DESCENT stores more than 110 and that of KOLON SPORT stores more than 170.

Anta Group has registered remarkable achievements, due to its adherence to the development strategy of 'Single-Focus, Multi-Brand and Omni-Channel' in recent years. Laying a greater emphasis on high-standard benchmark, Anta Group has gained in earning spectacular achievements and sustainable growth through high-quality operation management capabilities, innovative consumer strategies, marketing execution, overall improvement of commodity power, brand power and retail power, refined management and digital transformation of supply chain, logistics and retail. Following are the highlights of performance recorded in the first half of 2019:

Highlight I: ANTA Brand Investment in "Younger Future"

ANTA has been increasing its investment in the future and focus on the "Youth" this year. ANTA positions its brand as a professional sports brand led by technology with ultimate quality value. Its key investment is placed on the R&D of technology, improvement in the quality, upgrade of retail experience and planning of new channels and efficient large stores. ANTA KIDS has attracted a large number of loyal consumers, thanks to its innovative products and marketing activities. Hence, it enjoys a certain growth in brand health. With its sales growth ranking on the forefront of the industry, it retains the position as the largest children's sportswear brand in China.

ANTA has adopted the "Five New" strategies of new goals, new products, new brands, new channels and new organizations. In addition, it has achieved the growth in four major categories and comprehensively upgraded its R&D design centers in the United States, Japan, South Korea and China. ANTA has developed four businesses categories: basketball, running, training and sports life, serving to achieve phenomenal growth, where the ANTA basketball business has reached a rapid growth of over 35% in both online and offline salethrough. ANTA's sportswear are liked by young consumers, with an increase of nearly 30% in salethrough. Running and training categories are designed with technological innovation to expand in professional sports market.

In 2019, ANTA has upgraded its series of "Shock the Game" marketing campaign, attracting more than 30 million fans online and offline. "Shock the Game" has turned to be a product IP. In the meantime, Anta launched products featuring "Olympic and National Team Elements", which are favored by consumers. It has also officially launched the promotion of 2022 Olympic Winter Games licensed products in major markets across China and set up the 2022 Olympic Winter Games Preparation Office with an aim of integrating global resources for the development and design of Winter Olympic equipment.

Highlight II: "Value Retailing" Triggers off "Shopping Rush"

The main brand of the Group is supported by the technological matrix and has launched a variety of high-quality, high-value innovative and crossover products. These products have repeatedly emerged as a hot topic on social media, thus transforming the ANTA brand from 'Buy-from'to 'Buy-into' brand, then further to 'the brand you rush to buy'.

For example: The Olympic Winter Games licensed sneakers promoted by ANTA and the Forbidden City Museum and the 110-gram "FLASHLITE" running shoes jointly promoted by ANTA and Coca-Cola have ever triggered off a shopping rush. 10,000 pairs of Anta's KT4 "NEWSPAPER" sneakers, simultaneously released globally, and in China both online and offline at RMB 999, were sold out within an hour. NBA's star Gordon Hayward met with his fans in multipal cities in China and released his exclusive LOGO, will be driving the growth of ANTA's new IP product line.

FILA, as an international leading brand in high-end sports market, is committed to creating a brand featuring "elegant lifestyle led by sports". FILA is further deepening its product innovation with the development strategy of "single brand with multiple categories" and integrating the design resources around the world. In the first half of 2019, it worked with renowned designer, on the FILA X 3.1 Phillip Lim series to create crossover products. FILA adheres to the orientation in first- and second-tier cities, and actively builds high-standard stores and high-yield stores; while FILA FUSION opened its own standalone stores, entering into the market of youths aged 20-30. In September, FILA will once again appear on the platform of the International Fashion Week Milan.

DESCENTE and KOLON SPORT have completed the accurate positioning of their brands, product innovation and retail upgrades. DESCENTE enjoys high consumer loyalty and buyer retention, thanks to its reputation of high-quality and professional sports, and opens stores in high-quality business circles in first- and second- tier cities, showing rapidly-growing business.

Highlight III: Omni-channel "Upgrade" to Accelerate Growth

In the first half of 2019, ANTA Group enjoyed an increase in the overall self-operated on-line business of more than 40%. The Group's e-commerce exclusively offers products preferred by the young. It has created topics through IP and designer models, and improved its product search functions and the prediction of consumer insights and demand through big data applications. It has further enhanced the shopping experience for consumers, thanks to its marketing innovation.

Anta's ninth-generation stores have been opened in Chongqing, Shanghai and Nanjing. Those stores are becoming more technological and fashionable because of their "Digitalization", "Youth" and "Professional Sports" in design, providing impressive interactive experience for young consumers. Anta Kid's new image of 4.0 stores have also been upgraded and launched with professional sports, trend sports, babies and children as the major feature. Those stores are equipped with new physical measurement systems for children, bringing new shopping experience in a scientific manner. In early September, Anta Kids will participate in the New York Fashion Week.

Highlight IV: Building "Three Major Brand Groups" and "Three Major Shared Platforms"

In the first half of 2019, the Group established three major brand groups focusing on its "Year of Synergy and Value" and strategies: the group of professional sports brands characterized by Anta, Anta Kids, Sprandi and AntapluS; the group of trend sports brands centered at FILA, FILA FUSION, FILA KIDS and KINGKOW; and the outdoor sports brand group represented by AMER SPORTS, DESCENTE and KOLON SPORT. The three major brand groups focus on their respective segmented fields and have achieved the full coverage of all consumers and channels.

Meanwhile, the Group has also established three major shared platforms of "Group Retail, Group Supply Chain and Group Sharing Services" to promote the integration of various brand groups and group functions, improve efficiency and give a full play to scale advantages. In the first half of 2019, the company invested another several hundred million yuan to further deepen the digital transformation and the construction of big data platform. The Group's integrated logistics park will become fully operational. In the first half of 2019, the Group's capabilities in Value Retailing and synergistic incubation continued to grow, and is expected to incubate another brand with an annual salethrough of more than RMB 1 billion this year. 

Highlight V: Achieved the Acquisition of Amer Sports, and became a Global Leading Sports Products Group

ANTA Sports, together with other investors, set up an investor consortium to acquire Finland's Amer Sports in March 2019. In April, Amer Sports' new board of directors composing of investor consortium was established. In the first half of 2019, the board of directors and the management team formulated a five-year development strategy to stimulate its growth potential as well as a growth plan oriented at the Chinese market, in a move to provide global sports fans with world-class products and experience.

Ding Shizhong, Chairman of the Board of Directors and CEO of ANTA Group, said, "The year 2019 marks the Year of Synergy and Value for ANTA Group, informing that we have emerged as a global company. In the first half of 2019, the company maintained a high growth in its performance due to the goodwill of ANTA brand, FILA brand and other brands. It will continue to focus on its consumer demands and expectations and innovate its products accordingly. In the second half of the year, the group will focus on the construction of an 'Innovation Strategy' and promote the development of innovative organizations and capabilities, thereby forming a new driving force for the group. The year 2020 is an Olympic year. As a partner of the Chinese Olympic Committee, ANTA has made full preparation for the Olympics. In the wake of national health, ANTA Group will further focus on Value Retailing, provide consumers diversified sports products and experiences, and create a brand that brings pride to consumers. Multiple brands of ANTA Group will unite with a number of outstanding brands of Amer Sports to better serve consumers throughout the world. ANTA is committed to developing into a respectable global company and always keeps moving towards its goal of providing people with a healthier and better life!"

SOURCE ANTA Sports