Anta History Best Annual Report: Revenue 24 Billion 100 Million Yuan, 5 Years Double-Digit Growth

China's leading sporting goods group Anta Sports Products Limited (Anta sports or company), stock code: 2020.HK and its Affiliated Companies collectively "group" released today's 2018 annual performance of the group.

In 2018, the group gained 24 billion 100 million yuan, an increase of 44.4% over the same period last year. The group's healthy business indicators created the best performance of Anta group ever since, and has maintained double-digit growth for 5 consecutive years.

In 2018, Anta group adhered to the development strategy of "single focus, multi brand and all channels", and further promoted the value retail with "consumer as the core". The group's main brand and multi brand collaborative development created excellent financial performance.

Financial Highlights

Earnings and profits are high.

Revenue increased by 44.4% to RMB 24 billion 100 million yuan.

Operating profit increased by 42.9% to RMB 5 billion 700 million yuan.

The profit attributable to shareholders increased by 32.9% to RMB 4 billion 100 million yuan.

Basic earnings per share increased by 30.6% to RMB 152.82.

Robust earnings ratio

Gross margin increased by 3.2 percentage points to 52.6%

The operating interest rate and the shareholder's interest rate are 23.7% and 17% respectively.

Strong retail performance

The retail sales of Anta brand products and other branded products (excluding new brands that joined the group after October 1, 2017) were recorded at the median annual growth of 10%-20% and the increase of 85%-90%, respectively, at the retail value. They continued to be in the leading industry level.

Attractive dividends

The final dividend is HK $28 per share, and the dividend payable is 44.9% of the profit attributable to shareholders this year.

Two major brands strengthen commodity strength, brand power and retail power to achieve rapid growth.

In 2018, the Anta brand of the group's main brand was remodeled, linking the young consumers through the integrated marketing of the category, and continuously increasing the cost of R & D activities, which has accounted for 5.2% of the total sales cost. The group has several R & D design centers worldwide, including the United States, Japan, Korea, China, Hongkong and Mainland China, attracting nearly 200 design and research experts from 18 different countries and regions. Anta independently developed "wormhole technology" and C202 running shoes, helping thousands of professional marathon runners succeed in PB, becoming one of the most popular domestic running shoes on the marathon.

Marketing helps Pingchang's Winter Olympic Games, Jakarta Asian Games and Argentina Youth Olympic Games. The national team is equipped with advanced technology and a new look, and the Olympic theme goods become a new consumption fashion. After signing the NBA star Gordon Hayward, after the Claire Thompson, La Jane Rondo and Lewis Scola, Anta's overseas spokesperson resources will be added to another resource. Anta basketball IP is going to be crazy. It will pform the sports star assets into commodity selling points, and promote the growth; the KT3-Rocco limited edition basketball shoes price of 160 US dollars will lead to nearly 1000 people queuing up in San Francisco, and cooperate with calligraphy artist Zhu Jingyi to "sell the water in a deep stream", and sell the hot line on the online and offline markets, which will attract a lot of young consumers. Anta brand takes advantage of sports

The group's second main brands, FILA, are positioning high-end sports and fashion, covering high-end consumers from 25 to 45 years old. For the first time in Milan fashion week in Italy, they lead the global fashion movement. FILA is a consumer group with many brands to develop the fashion movement: FILA fashion movement, FILAFUSION (tide brand) and FILA ATHLETICS (professional sports), with differentiated commodity positioning to meet diversified consumer demand.

And signed Wang Yuan as the spokesman of the trend movement to enter the market of young people aged 20 to 30 years.

FILA collaborated with outstanding international designers including Wu Jigang, a Chinese fashion designer in New York (JasonWu), a famous American fashion designer Ginny Hilfiger, and another famous designer, Lin Nengping (Philip Lim), leading the trend of high fashion fashion.

"Multi brand and all channel" strategy enters a new stage, upgrading channels and upgrading shopping experience

Anta group's strategy of "single focus, multi brand and full channel" was further promoted in 2018.

There are 12188 stores in the group, including 10057 Anta stores (including Anta children's independent store), and 1652 FILA stores in mainland China, Hongkong, Macao and Singapore (including FILAKIDS and FILAFUSION independent stores).

The Anta brand has opened the high standard flagship store in the mainstream business circle, and has entered the shopping mall of the mainstream city and the consumer business circle. The eight generation store has a new image to stimulate consumption growth; the international brand Desanto (DESCENTE) has formally signed the famous movie actor Daniel Wu of Hongkong as the brand name endorsement of the Chinese brand, focusing on high-end sports products, including skiing, comprehensive training and running. It has become a new brand pursued by the middle class. The brand remolding of outdoor sports and KOLONSPORT has achieved initial success. SPRANDI is mainly attacking the Chinese fashion sports footwear market, and its business is expanding to the emerging middle class market.

Group multi brand has found an accurate location and development space in the consumer segmentation market.

The group's "children's brand" is also a multi brand matrix layout with huge market potential: Anta children upgraded the "naughty Games" and launched a series of cross-border innovation products this year, and has been the leading brand of the children's clothing industry in ten years. FILAKIDS continues to promote cross-border cooperation products, FILA KIDS X WONNIEFRIENDS series, and synchronize online with the Christmas expression package; Xiao Xiao Niu (KINGKOW) brand new brand image and positioning.

The group's children's business section and market overall performance is excellent, the increase is far beyond the industry level.

Deepening consumer insights into the new trend of big data guidance services

In 2018, based on big data research and consumer insight, the group electricity supplier studied consumer behavior changes, using products that meet the needs of young consumer groups, through optimizing online store interface, improving product presentation and display, and providing comprehensive customer services, including secure payment procedures, robust supply chain, fast and reliable distribution service, VIP membership system and replacement shopping guarantee, to gain positive feedback and recognition from consumers.

In 2018, each brand deeply ploughed "value retail", which fundamentally strengthened the successful mode of each brand.

First, terminal value.

Online and offline integration, through smart store data pformation to insight into consumer habits, improve management efficiency; through shop upgrading, management upgrading, service upgrading, to enhance consumer shopping experience.

Secondly, the value of commodities.

Give consumers the right goods to meet consumer demand and reduce inventory risk.

Third, brand value.

Brand upgrading will resonate with consumers to enhance brand reputation and influence.

Fourth, cultural value.

To carry forward the "iron culture" with strong executive power, enterprises and employees will win together, and the brand end will constantly "empower" dealers and front-line sales teams to enhance the service and performance of terminals.

Partners and consumers pay attention to sports commonweal responsibility brand and win social respect.

In 2018, a thriving public welfare program was launched in the old revolutionary base areas of Jiangxi, Gansu, Guizhou and other provinces in the less developed areas. The project donated more than 300 schools throughout the country, accumulating about 60000000 yuan sports equipment, building 32 Dream Center classrooms, and 24 footprints in 24 provinces.

The plan also joined Sina in a total of 190 thousand people participating in the online donation process, and the 6 regional dealer partners participated in sports commonweal projects throughout the country.

In 2018, the company was also recognized by many authorities. It was awarded "Forbes 2018, one of the most trusted companies in the world, the best employer brand in the world", "the best Asian listed company in 2018", "the 50 Chinese corporate citizenship brand 50", and the group CEO won the 2018 China's ten largest economic figures of the year.

Ding Shizhong, chairman and chief executive officer of Anta group's board of directors, said: "2018 is a milestone for Anta group.

Each brand of the group thinks that consumers create value as the core, innovating empowerment, brand upgrading, and the international pattern of standing position, and promotes business growth with value retailing.

In the future, we will work to build multiple shared incubator platforms including supply chain, e-commerce, logistics, finance, etc., to bring the advantages of collectivization into full play and promote the rapid growth of brands.

In 2018, Anta consortium, which joined hands with other investors, issued a takeover offer to AMERSPORTS, the sporting goods group of Finland, and took a solid step in globalization.

Although the acquisition still needs some paction processes, we are confident of the acquisition and the internationalization of the future.

Through years of successful practice of many brands, we firmly believe that the company has the ability to create more value for the global consumers and realize the vision of a respected world-class multi brand sporting goods group.