Anta Group’s First-Half Revenues Slide 1 Percent

Article From：SGB Media

 

 

Anta Group reported first-half revenue fell slightly by 1 percent over the same period last year to ¥14.669 billion.

 

Revenue of the Anta brand was ¥6.777 billion, down by 10.7 percent, and revenue of the Fila brand reached ¥7.152 billion, up by 9.4 percent.

 

In addition to the two main brands, other brands, led by Descente, grew by 8.3 percent. The Group’s e-commerce retail sales grew by over 50 percent year-on-year, with a 78 percent growth rate during the sales promotion of the 618 Online Shopping Festival. The online business of Fila, Descente, and Kolon Sport grew more than 100 percent year-on-year.

 

Gross profit margin reached 56.8 percent, an increase of 0.7 percentage over the same period last year to a record level.

 

Profit attributable to equity shareholders (excluding losses of joint ventures) was ¥2.377 billion, down by 20.1 percent, and margin of attributable to equity shareholders reached 16.2 percent.

 

Profit from operations decreased by 15.3 percent to ¥3.604 billion. Profit margin from operations was 24.6 percent, of which profit from operations of the Anta brand was ¥1.805 billion and profit from operations of the Fila brand was ¥1.766 billion.

 

The Group’s net cash generated from operating activities amounted to ¥2.39 billion, and free cash inflow was ¥1.902 billion. The Group’s total amount of capital (comprising cash and cash equivalents, fixed deposits held at banks with maturity over three months, and pledged deposits) has reached ¥21.5 billion.

 

In the first half of this year, the Group operated over 12400 stores across China. According to Tmall Industry Index. Anta brand ranks number one 1 among Chinese sportswear brands and number three in the whole industry while Fila ranks number five with the fastest industry-wide growth rate.

 

Ding Shizhong, chairman of the board of directors and CEO of Anta Group, said, “At the moment, pandemic prevention and sustainable development of our businesses are the top two priorities. Since there are still many sources of uncertainty and volatility in both the international and domestic scenes, all we can do is strengthen our foresight and predictions of industry changes and consumer trends, because taking the initiative to change is the only way to counterbalance all the potential uncertainties. Yet, what remains unchanged should be ‘creating value for consumers’ as our fundamental standpoint and ‘effective management and control’ as our core operation principle so as to maintain a healthy operation. From our perspective, having survived all the challenges in the first half of 2020, we should continue pursuing the digital transformation of the Group, implementing the “direct-to-consumer” strategy and upgrading our business model, in order to guard our leading position in the industry and maintain our brand vitality. As China has done a remarkable job in fighting against the pandemic, we remain positive and confident about China’s consumer market and the growth of China’s sports industry.”