Aug. 31, 2016

ANTA Sports Delivers Over 20% Interim Revenue Growth

for Third Consecutive Year

GPM Reaches Record High

Hong Kong, August 29, 2016–ANTA Sports Products Limited (“ANTA Sports” or the “Company”, stock code: 2020.HK, and its subsidiaries collectively the “Group”), is pleased to announcethe unaudited interim results of the Group for the six months ended 30 June 2016 (the “period”).

 

Interim Results Highlights

 

  • Sustainable growth in revenue and earnings
  •  20.2% increase in revenue toa record high of RMB6.14billion, the third consecutive year of over 20% growth
  • 17.0% increase in profit attributable to equity shareholdersto RMB1.13billion
  •  16.8% increase in basic earnings per share to RMB45.15 cents
  • Solid profitability
  • Record high gross profit marginof 47.9%, an increase of 1.3p.p.
  • Operating profit marginand margin of profit attributable to equity shareholders stood at24.2% and 18.4% respectively
  • Adequate cash position
  • Net cash and cash equivalents stood at RMB5.38billionas at 30 June 2016
  • Attractive dividend payout
  • Interim dividend of HK34 cents per ordinary share, a 13.3% growth and payout ratio of 65.2%

 

Operational Highlights

 

  • Our unique and effective operational strategyallows us to fulfillconsumer demands andincrease market sharesin all sub-segments of the sportswear industry
  • Single-focus: we are committed to producing the bestsportswear productswith a craftsmanship spirit
  • Multi-brand: we cater for all sub-segments in the sportswear industry, from mass to high-end consumers, from functional  to fashionable sportswear, from adults to kids markets, with ourbrand portfolio, namelyANTA, ANTA KIDS, FILA, FILA KIDS, DESCENTE and NBA
  • Omni-channel: we will continue to optimise the retail management  of all channels, including street stores, shopping malls, department stores, outlet stores and e-commerce platforms
  • As at 30 June 2016, the number of ANTA stores (including ANTA KIDS standalone stores) stood at 8,510
  • As at 30 June 2016, the number of FILA stores (including FILA KIDS standalone stores) in China, HongKong and Macao stood at 687
  • Opened first DESCENTE store in Changchun in northeastern Chinain August 2016

 

Rio Olympicsmarked a new high for the Group

 

  • The ANTA-designed “Champion Dragon Outfit” worn by medal-winning Chinese athletes onthe victory podium generated brand exposure globally. Chinese athletes won 26 Gold, 18Silver and26Bronze medals, ranking 2nd in the total medalcount
  • With the theme of “Go Surprise Yourself”, ANTA launched swift, well-targeted and real-time marketing campaigns, which strengthenedANTA’s association with the Chinese Olympic Committee. In terms of design and copywriting, the campaignsused powerful visual effects and inspiring language to appeal to young consumers
  • ANTA launched an integratedmarketing campaign with various online platforms during theRioOlympics;“Go Surprise Yourself” topics onANTA’s Weibo account were read over 100 million times, with related feeds generating more than 300,000 discussions
  • According to a poll on the impact of sponsorship related to the Rio Olympics conducted by Ipsos, a leading global research company, Olympics-related marketing led to a 17% increase in ANTA’s brand awareness
  • ANTA collaborated with Tmallto create the “ANTATmall Super Brand Day”, which allowed consumers to participate in various interactive activities
  • FILA received additional exposure from sponsoring CCTV5’s Rio Olympics reporting team, who did excellent job covering the Rio Olympics  while dressed in FILA products
  • FILA was also the official sponsor of sportswear uniform for Hong Kong’s Olympic squad of China

 

“Asolid financial performanceproves that our operationalstrategy continues to pay off,” commented Mr. Ding Shizhong, Chairman and CEO of ANTA Sports. “Our focus on consumer experience and retail-centric measures are key to maintaining our competitive advantagein the highly competitive marketand delivering returns to our investors. Moreover, the Rio Olympics has shone a light onour brands and products, increasing the awareness and the equity of our brand globally, fuelingsustainable growth for years to come.”

“Looking ahead,we will continue to build on our multi-brand portfolio andstrengthen the influences of our brands, namely ANTA, ANTA KIDS, FILA, FILA Kids, DESCENTE and NBAin eachtarget segment. Our goal is to become the nation’s top sportswear company with the best reputation and largest market share in China, and to become a respectable and a sustainable world-class sportswear company in the long run.”

 

For more 2016 interim results-related documents and information about the Company, please visit our investor relations website http://ir.anta.comor follow our Twitter account @AntaInsight https://twitter.com/antainsight

<BACK