Anta'S Net Profit Rose Nearly 17% In The First Half Of The Year.

Anta sports (02020.HK) announced that its net profit in the first half of June was 1 billion 129 million yuan, up 16.98% from the same period last year, and its turnover was 6 billion 143 million yuan, 20.21% higher than that of the same period last year. Gross profit was 2 billion 941 million yuan, 23.48% higher than that of the same period last year, and gross profit margin increased 1.3 percentage points to 47.9%.

Income was classified by product category. Footwear revenue increased by 19.4% to 2 billion 867 million yuan in the first half of the year, clothing increased by 22.5% to 3 billion 27 million yuan, and accessories increased by 4.5% to 249 million yuan.

Anta sports will continue to adopt single focus, multi brand and all channel management strategy, which will play an important role in the success of the group and in achieving long-term sustainable development.

Under the advantages of multi brand combination, Anta group has successfully covered different forms of retail channels in China, including street shops, shopping malls, department stores, Oteri J, and e-commerce channels to meet the different needs of consumers.

At present, the group has Anta, a functional sporting goods brand that focuses on the mass market, a Anta sporting goods brand for children in the mass market, a NBA brand for functional and leisure sports and sporting goods brands, a focus on high-end fashion sports apparel brand FILA, a high-end children's clothing brand FILA KIDS, and a high-performance sports goods brand Descente focusing on high-end market.

Anta Group Chairman and CEO Ding Shizhong said the group is

However, the impact of the Olympic craze on the short-term sales of the group is not obvious, but it lays a good foundation for the long-term development of the group. Because of its brand reputation, he hopes that the second half profits will maintain the momentum of growth in the first half year.

As for the first half of the year, the gross profit margin of footwear products has dropped slightly. He explained that because the group walked the mass line and consumers were sensitive to commodity prices, the group would launch a cost-effective product with a view to maintaining the price advantage. It is expected that the gross profit in the second half of this year will be relatively stable.

In addition, Ding Shizhong also pointed out that the annual advertising expenditure will not account for more than 13% of the revenue; as for the group's free cash flow decline, he explained the group business.

Its FILA brand is a self run store, so its turnover is slow.

At present, FILA accounts for 20% of the total revenue, with a target of more than 30% in 2020.

In August 2015, Anta Group acquired the trademark rights and franchises of FILA, the sports brand FILA of BELLE International (1880.HK), at a total cost of 332 million yuan.

Opening shop, Ding Shizhong pointed out that in the second half of the year, the capital expenditure of new stores will not exceed 20 million yuan, and the number of Anta brand branches will increase from 8510 to 8600 to 8700. FILA will increase from 687 to 700 to 750, and Descente will be increased from 1 to 5 to 10. The new stores will be mainly concentrated in East North and Beijing.

In view of the rapid growth of online shopping, the group will be popular.

The platform has launched more new and unique online products, and strengthened cooperation with these platforms, making further use of the advantages of big data analysis and social media marketing, enabling online and offline cooperation to play a synergistic effect and achieve greater mutual benefit and win-win results.

As of the end of June, the number of Anta stores, including Anta children's independent shops, was 8510, and there were 687 FILA stores in mainland China and Hong Kong and Macao, including FILA KIDS.

After Anta sports released its earnings today, its share price fell 1.11% to HK $19.58 per share. The group's stock price has risen 16.6% in the past three months, and the market value of the group is now HK $48 billion 975 million.