"Double 11" Sold 1 Billion 800 Million Of Anta And Made A Big 1 Billion Deal.

November 13th news: Anta Sports Products Limited (hereinafter referred to as "Anta sports") announced in November 12th that the company sold 5.2517% of AmerSports's indirect interest with HK $1 billion 198 million (about 1 billion 74 million yuan). At this stage, the profit and loss can not be accurately determined. Among them, Anta's subsidiary Anta SPV indirectly sells AmerSports about 5.0012% of its interests to Chao Hong, Jin Fu, Sequoia SPV and ZWC, the selling price is about 133 million euros at the total cost of cash, and indirectly sells AmerSports about 0.2505% interest with 6 million 700 thousand euros to FountainVestSPV.

Anta sports said that the net proceeds would be used as general working capital, and the transaction would be able to maintain effective control of stock ownership and optimize the group's balance sheet.

In 2018, the consortium of Anta sports and Fang Yuan capital and Tencent acquired AmerSports in about 4 billion 600 million euros. The consortium is continuing to work out a future plan for AmerSports to release its internationally recognized brand of sporting goods and equipment, while Anta sports admits that the company believes AmerSports will succeed in the future. After considering a number of factors, the Board believes that the transaction based on the share purchase agreement will be able to optimize the group's balance sheet while maintaining effective control of JVCo holdings.

It is understood that AmerSports is the world's top sports equipment brand management group company. At present, the company has 7 famous international brands, including Salomon (Salomon), Arc teryx (Precor) and Precor, which occupy an absolute leading position in their respective subdivision areas, enjoying excellent reputation among professional athletes and amateurs. But in the past few years, the development of AmerSports has been relatively low. In the past 2016-2018 years, the company's operating income has increased by only 3.5%, -1.8% and 4%. Net profit growth has been declining year after year, with a growth rate of 7.7%, 6.9% and -4.7%.

Shi Hongmei, an analyst at Orient Securities, said that after the acquisition of AmerSports, Anta group will rank among the top sports groups in the world. It is reflected in the following three aspects:

First of all, from the scale of revenue, Anta group will quickly narrow the gap between Nike and Adidas. If the business income of Anta group and AmerSports is simply added (the current accounting process is only to confirm the return on investment), the total business income will reach US $6 billion 568 million in 2018, of which Anta group and AmerSports are 3 billion 515 million and 3 billion 53 million US dollars respectively. The scale of revenue will exceed Lululemon and UnderArmour to become third in the world, next to Nike and Adidas (2019 and 2018 respectively, 39 billion 117 million and 24 billion 983 million US dollars respectively).

Secondly, Anta group's brand positioning is more distinct, and it can basically achieve end consumers' full coverage. If the brand positioning is divided into "fashion professional" and "public high-end" two dimensions, for the acquisition of Amer has greatly filled the high-end professional quadrant blank. In addition, the company is actively deepening the competitive advantages of each brand and reducing its overlap. At present, its brand has initially realized sports and leisure products from professional to sports, from high-end to mass market, from adults to children's sporting goods, from popular sports such as running, comprehensive training, basketball, to skiing and outdoor markets.

Finally, Anta has greatly enhanced its competitiveness in the field of advanced technology and supply chain in the field of outdoor sports through AmerSports. Many of AmerSports's brands are famous for their professionalism, mainly due to Amer's accumulated product technology reserves and quality supply chain resources over the years. Amer has more than 200 core suppliers worldwide, and its long-term cooperative relationship is solid. From the production area, China, Europe / Middle East / Africa, the Americas and other Asia Pacific regions account for 22%, 28%, 12% and 38% respectively, and the global capacity distribution is relatively uniform. From the perspective of production mode, production, mixed production and outsourcing are 24%, 64% and 12% respectively.

Shi Hongmei believes that after the acquisition of AmerSports, Anta group can make full use of its global marketing network and operation experience to consolidate Amer's advantages in overseas markets, accelerate the development of its original brand in the international market, and truly build into a world-class multi brand sports group.

In addition, from a financial point of view, Shi Hongmei introduced that in the short term, considering the one-time cost of mergers and acquisitions, the interest on borrowing money of merger and acquisition, and the historical operating profits of Amer, it is expected that the inclusion of Amer in 2019 will have little impact on the profit table as a whole. In the medium term, Amer is expected to become a new profit growth point for Anta sports, taking into account the huge volume of Amer (net profit in the past is basically around 10-11 billion yuan) and potential space for future development.

Public information shows that Anta sports is the largest comprehensive sports apparel company in China. The company was founded in 1991. After 28 years of development, the company has transformed from a traditional private enterprise into a public company with modern governance structure and international competitiveness. In 2007, the company successfully listed on the Hongkong market, financing more than HK $3 billion 500 million, creating the highest price earnings ratio and financing amount of Chinese sports apparel enterprises.

Financial reports show that after 2012-2013 years of industry adjustment, Anta sports's business performance has been speeding up since 2017. 2017 and 2018, the company's operating income was 16 billion 690 million and 24 billion 120 million yuan, an increase of 25.1% and 44.5% compared to the same period, and the net profit to the parent company was 3 billion 90 million and 4 billion 100 million yuan, respectively, up by 29.4% and 32.9% over the same period. The growth rate was rapid. From the gross profit margin, it has steadily increased since 2014, reaching 52.6% in 2018, an increase of 3.2pct compared with the same period last year, mainly due to the sharp increase in the sales of FILA products with high gross profit and direct operation. From the net interest rate, 2018 was 17%, with a slight decrease of 0.5pct in the same period, mainly due to the increase in the sales expenses rate by 4.23pct over the same period. However, the net interest rate is still far higher than that of domestic competitors such as Lining and XTEP.

In the first half of 2019, Anta sports realized its operating income of 14 billion 810 million yuan, an increase of 40.3% over the same period last year, and a net profit of 2 billion 480 million, an increase of 27.7% over the same period last year. If the effect of Amer acquisition was eliminated, it could achieve an increase of 53% over the same period last year, continuing the strong growth momentum since 2017.

From the perspective of sales structure, the proportion of Anta sports apparel sales is rising due to the rapid growth of FILA. In recent years, the proportion of Anta sports apparel sales increased from 49.9% in 2014 to 61% in 2018. On the contrary, the proportion of footwear sales decreased year by year, from 46.1% in 2014 to 35.8% in 2018, indicating that Anta sports sales were driven by the rapid growth of FILA brand dominated by clothing, and product categories became increasingly diversified.

Liu Chang, a Dongxing Securities researcher, said that the core points of Anta sports lie in several aspects: first, the quality of the brand. In recent years, the main brand has been promoted by product promotion and new marketing, and has made obvious brand advantages in domestic brands. The M & a brand (including FILA) has the characteristics of good brand quality, but poor operation before M & A, Anta is able to empower these brand management and re energize brand vitality; the two is product progress. Anta sports has invested a lot in R & D in recent years, especially in sports shoes, especially in basketball shoes. Its technological progress is obvious. The recognition of KT series shoes is promoted by generation. Three, the barrier of channel supply chain is more and more profound. Anta sports first implements the retail oriented development mode in the industry. The channel efficiency is obvious in the industry. Anta sports multi brand strategy accumulates a number of high quality suppliers, and the company continues to invest in production and research and development, so that Anta sports in the supply chain quality and efficiency have been promoted.

First textile network reporter learned that this year's "double eleven" period, as the leading brand of local sports brands, including Anta's main brands, FILA, DESCENTE and many other brands, Anta group this year, "double eleven" water reached 1 billion 830 million yuan, an increase of over 60% over the same period. In the past four years, the turnover has been increased by 170 million, 400 million, 670 million and 1 billion 130 million yuan respectively.

The data provided by Anta group show that it achieves 100 million transactions in 1 minutes, 500 million minutes in 41 minutes, and 2 hours and 52 minutes in the past 2 days. In addition, Anta has launched nearly 100 IP cross-border products on the electronic business platform, including NASA series, KT basketball series, Marco series, Olympic country tide, Huang Jingyu FILA and Daniel Wu DESCENTE, etc. These IP products have become popular choices. IP cross-border joint name and electronic business are specially designed for new products. This year, the proportion of Anta's group e-commerce products is more than 90%.