Anta's 2017 mid-year report set a new record for the full-speed advancement of the 2020 strategy

China's leading sporting goods company - Anta Sports Goods Co., Ltd. ("Anta Sports" or "Company"; stock code: 2020.HK; and its subsidiaries collectively referred to as "Group") announced its results as of June 30, 2017 The China Daily exceeded expectations and re-invented the record and pushed the implementation of the 2020 strategy at full speed.

The revenue of Anta Group increased by 19.2% year-on-year to RMB 7.32 billion. Profit attributable to shareholders increased by 28.5% to RMB 1.45 billion. Basic earnings per share increased by 24.0% to RMB 55.98. For the first time, gross profit margin exceeded the 50% mark, rising by 2.7 percentage points to 50.6%. Especially in the second quarter, the retail sales of Anta brand and non-Anta brand (according to retail value) led the industry, with annual growth of 20-30% and 50-60% respectively. Free cash inflows increased by 151.1% to RMB 1.82 billion and net cash was RMB 10.03 billion. The market value of Anta also surged to HK$74 billion in the current period, and it is firmly in the position of the world's fourth largest sporting goods management company.

At the same time, Anta will distribute an interim dividend to shareholders. The common stock per share increased by 20.6% year-on-year to HK$41. The dividend payout ratio was 66.3% of the profit attributable to shareholders during the period. Since its listing, Anta Group has paid dividends for more than 60% for a period of ten years, with a cumulative dividend of more than RMB 8 billion.

Multi-brand matrix, omni-channel full coverage to drive growth

In the first half of the year, Anta continued to implement the “Single Focus, Multi-Brand, All-Channel” 4.0 strategy. The Group's Anta, Anta Children, FILA, FILA KIDS, DESCENTE and many other brands cover everything from the public to the high-end, from functional to leisure sports. Consumers such as supplies. Anta Store (including Anta Children's Independent Store) continues to consolidate its position as a traditional street shop sales channel. It also actively promotes the proportion of stores in shopping malls and department stores, and meets the trend of changes in market consumption habits and the trend of people flow. Anta also launched its eighth-generation store, and the new decor and merchandise display will bring consumers a new shopping experience. As of the end of June, there were 9,041 Anta stores (including Anta Children's Independent Stores) and 869 FILA stores (including FILA KIDS independent stores). DESCENTE has entered more than 10 core city shopping centers across the country, with 21 stores nationwide. In addition to operating the official online store anta.cn, it also cooperated with well-known e-commerce platforms such as Tmall, Jingdong and Vipshop in China to further enhance the performance of online transactions. ANTA ANTAUNI was launched during the period, online and offline. Achieve a good integration.

Focus on merchandise, sports technology to enhance product value

In the first half of 2017, Anta Group further strengthened R&D and upgrades, and R&D projects accounted for 5.8% of sales costs, an increase of 1.4 percentage points over the same period last year. To enable Anta's brands to provide consumers with more technologically advanced and differentiated products. LAUNCH, the US design center that brings together the world's best designers, has also been fully operational, working with the Japanese Design Center to further enhance product value with international vision of design innovation.

As of the first half of 2017, the national ANTA Sports Science Laboratory has applied for 51 national patents and obtained 32 national patent examinations. Anta currently has 300 authorized patents, including 42 invention patents and 73 utility model patents. Anta obtained the right to use long-lasting water repellent and developed a waterproof series designed as “Yuyi Technology”. It was launched in spring/summer 2017 and became the leading sports brand in China with non-fluorine and water repellent products. In addition, Anta has also established a strategic alliance to acquire technology related to antibacterial inhibition of sweat and odor. The new fabric “Silver Line Technology” series using this technology has been applied to the fitness, comprehensive training and leisure products of the Anta brand, and can be extended to Other brands. Anta also released an A-LIVEFOAM dynamic mesh running shoe equipped with Anta's new midsole technology platform to better protect the runner's ankle.

Enhance brand power, marketing innovation enhances consumer experience

In the first half of 2017, Anta Group's brands boldly innovated: Following Anta's basketball spokesperson Clay Thompson helped the Golden State Warriors win the NBA championship, Anta invited Thompson and China's consumption to let the consumers enjoy the charm of basketball together. A 30-day large-scale consumer experience event - "Be crazy" China traveled through 12 cities, with a total of more than 30 million live broadcasts, and more than 77 million related microblog topics, successfully opening online and offline channels. It has brought an extraordinary consumer experience to Anta basketball products.

At the same time, its FILA brand launched the BLUE LINE series in January this year to further expand the consumer base. FILA also boldly innovated cross-border cooperation, and cooperated with the American trend brand Staple to launch the Staple X FILA product line in China. At the same time, the new season cross-border Jason Wu X FILA series brought consumers with FILA-style personalized products.

Full-speed advancement of the 2020 strategy, the sword refers to the 2025 billion target

Since the beginning of 2017, Anta Group has promoted the 2020 strategy at full speed: By 2020, Anta plans to achieve a compound annual growth rate of more than 15% in the Group's sales flow. The annual growth rate of Anta's sales flow reaches double digits, and the compound annual growth rate of FILA sales flow. More than 30%. In terms of sales volume, the sales target of footwear reached 100 million pairs, and the sales target of clothing exceeded 130 million pieces. In terms of channels, the number of stores will exceed 11,000, and e-commerce accounts for 20% of retail water. It is expected that the flow of water in 2017 is expected to exceed 30 billion yuan. In addition, Anta will continue to seek acquisition opportunities and strengthen its influence in the high-end market to achieve a 100 billion leap in 2025.

Ding Shizhong, Chairman and CEO of ANTA Sports, said: “2017 is the first year for Anta Group to fully implement the 2020 strategy. We have successfully used single-focus, multi-brand, omni-channel strategies to enhance market share and profitability. Breakthroughs have made outstanding returns for consumers and investors. The 10th anniversary of the listing is a new starting point. Looking forward to the future, China's sporting goods industry is expected to reach 7 trillion in 2025, and we will rely on the government to support the sports industry. The development and the opportunity of the 2022 Winter Olympics will continue to lead in the new decade of China's sports industry."

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