Aug. 16, 2017

ANTA Sports Delivers Record High Revenue of USD 1.09Billion

and Profit Attributable to Equity Shareholders of USD 217.4 Million 

in 2017 Interim Results

Hong Kong, August 15, 2017–ANTA Sports Products Limited is pleased to announce the unaudited interim results of the Group for the six months ended 30 June 2017 (the “period”).

 

Financial Highlights

uRecord-breaking Revenue and Earnings

Ø  19.2% increase in revenue toUSD1.09 billion

Ø  28.5% increase in profit attributable to equity shareholdersto USD 217.4 million

Ø  24.0% increase in basic earnings per share

uSolid Profitability

Ø  Gross profit marginexceeds 50% for the first time to 50.6%, an increase of 2.7p.p.

Ø  Operating profit marginand margin of profit attributable to equity shareholders stood at25.9% and 19.8% respectively

uStrong Retail Sales from Brands

Ø  Retail sales (based on retail value) of ANTA branded products & non-ANTA branded products in second quarter of 2017 increased by 20%-30% and 50%-60% year-to-year respectively, which sustained our leading position in the industry

uAdequate Cash Position

Ø  Free cash inflow increased by 151.1% to USD 272.8 million

Ø  Net cash stood at USD 1.5billion

uAttractive Dividend Payout

Ø  Interim dividend of HK41 cents per ordinary share, an increase of20.6% with a payout ratio of 66.3%

 

Operational Highlights

uANTA and ANTA KIDS

Ø  Aside from consolidating ANTA’s position in traditional retail channels such as street stores, we have increased our presence in shopping malls and department stores, enabling us to adjust to changing consumption habits and shifting trend of foot traffic within the mass market

Ø  Introduced 8th generation ANTA stores with new décor and fresh merchandise displays, creating a completely new shopping experience.

Ø  As at 30 June 2017, the total numberof ANTAstores (including ANTAKIDS standalone stores) in China stood at9,041

 

 

 

uFILA and FILA KIDS

Ø  FILA reached another milestone in 2017 with the launch of the Blue series line in China in January, which further expanded FILA’s customer base.

Ø  Through partnerships with Staple, an US fashion brand, and Jason Wu, a renowned US designer, FILA launched the Staple X FILA product series and the new Jason Wu X FILA 2017 Spring/Summer collection respectively, to deliver customers personalized products that embodies FILA’s unique style

Ø  As at 30 June 2017, the total numberof FILAstores (including FILA KIDS standalone stores) in China, HongKong, Macao and Singapore reached869

uDESCENTE

Ø  Expanded into high-end shopping malls in over 10 major cities in China following the opening of its first new store in August 2016

Ø  Launched the “AWAKEN!” marking campaign and successfully raised awareness of the DESCENTE brand

Ø  As at 30 June 2017, there were a total of 21 DESCENTE storesin China

uE-commerce Business

Ø  In addition to our official online flagship store (anta.cn), we have collaborated with various renowned e-commerce platforms, including Tmall, JD and Vipshop etc. to further boost the performance of our e-commerce business.

Ø  Made a breakthrough in terms of the integration of our online and offline channels, such as the launch of ANTAUNI on Tmall during the period.

 

Creating Innovative Products and Brands

uInnovative Products

Ø  We entered into a “Trademark/Copyright License Agreement” with The Chemours Company in relation to the Teflon EcoElite™ renewably-sourced water repellent, the series was launched during the 2017 Spring/Summer Season

Ø  We formed a strategic alliance with Noble Biomaterials, Inc. to incorporate XT2® Technology,a best-in-class odor elimination solution,into ANTA’sfitness, training and leisure products, as wellas the products of the Group’s other brands.

Ø  Introduced A-Livefoam technology to support the Livefoam dynamic-net running shoes to provide more protection for runners’ ankles

Ø  Aside from setting up a design center in Japan, we opened our “LAUNCH” design center in the US, where our international design team will add to our innovative capabilities

uInnovative Brands

Ø  We celebrated the achievements of Klay Thompson, a sharpshooter for NBA Golden State Warriorsand launched our month-long Shock The Game campaign in China. Over 30 million people watched the campaign live stream video, while its Weibo posts attracted over 77 million readers. The campaign not only successfully connected online and offline channels together, but showcased ANTA’s success in creating compelling brand stories in relation to its basketball products, and successfully boosted sales and took the value of ANTA’s brand to a new level.

 

 

Ding Shizhong, Chairman and CEO of ANTA Sports, commented, “Our ‘Single-focus, Multi-brand and Omni-channel’ strategy continues to deliver breakthroughs in terms of market share and profitability. During the period, as ANTA’s business continued to grow, along with a strong sales performance seen across the Group’s other brands, namely ANTA KIDS, FILA, FILA KIDS and DESCENTE, which contributed to ANTA Sports’ strong and sustainable growth.”

 

“We believe our 10th listing anniversary is not only a celebration of the past 10 years, but a new starting point from which to take the next step forward towards new heights. We will continue to maintain our focus on the sportswear industry and fulfill consumers’ demands by maintaining our

core strategy – “Single-focus, Multi-brand, Omni-channel” – to ensure comprehensive coverage of customers and channels, and to maintain our leading competitive edge.”

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