Financial Performance - Revenue increased by 13.8% to RMB 25.965 billion[5] - Gross profit margin decreased by 1.2 percentage points to 62.0%[6] - Shareholders' profit attributable decreased by 6.6% to RMB 3.950 billion[6] - Basic earnings per share decreased by 7.0% to RMB 1.33[6] - The company's revenue reached a historical high of RMB 25.97 billion, an increase of 13.8% compared to RMB 22.81 billion in the same period last year[12] - Operating profit decreased by 1.9% to RMB 5.79 billion, compared to RMB 5.91 billion in the same period last year[12] - Net cash inflow from operations recorded RMB 4.98 billion, down from RMB 6.31 billion in the previous year[13] - Free cash flow was RMB 4.11 billion, compared to RMB 5.86 billion in the same period last year[13] - The overall gross margin slightly decreased by 1.2 percentage points to 62.0%, down from 63.2% in the previous year[12] - The interim dividend per share was declared at HKD 0.62, a 3.3% increase from HKD 0.60 in the previous year[15] Store Expansion - The number of ANTA stores in mainland China and overseas reached 6,660[7] - The number of ANTA children's stores in mainland China and overseas reached 2,563[7] - The number of FILA stores in mainland China, Hong Kong, Macau, and Singapore reached 2,021[7] - The number of DESCENTE stores in mainland China, Hong Kong, and Macau reached 182[7] - The number of KOLON SPORT stores in mainland China and Hong Kong reached 153[7] - Anta Sports aims to expand its store count to between 6,600 and 6,700 for Anta and Anta Kids, and between 1,900 and 2,000 for FILA, FILA KIDS, and FILA FUSION by the end of 2022[100] - The company plans to open 190 to 200 DESCENTE stores and 180 to 190 KOLON SPORT stores in mainland China and Hong Kong by the end of 2022[101] Brand Performance - FILA's revenue slightly decreased by 0.5% to RMB 10.78 billion, down from RMB 10.83 billion in the same period last year[15] - FILA's gross margin and operating profit margin were recorded at 68.6% and 22.5%, respectively, compared to 72.3% and 29.0% in the previous year[15] - The revenue from Amer Sports' overseas business grew by 21.1% to RMB 9.67 billion, compared to RMB 7.99 billion in the same period last year[18] - Total revenue from other brands, including DESCENTE and KOLON SPORT, increased by 29.9% to RMB 1.83 billion, compared to RMB 1.41 billion in the same period last year[18] - The Anta segment accounted for 51.5% of total revenue, with a 26.3% increase to RMB 13,360 million compared to RMB 10,578 million in 2021[67] E-commerce and Digital Strategy - The e-commerce business contributed 28.9% to the overall revenue of the group during the fiscal period, up from 27.3% in the same period last year, reflecting a 20.6% growth in absolute terms compared to the previous year[17] - FILA has strategically expanded its e-commerce business to maximize online sales amid pandemic-related store closures, enhancing its omnichannel synergy[36] - The importance of online business has increased, leading to strategic investments in e-commerce and digitalization to enhance consumer experience[29] - The company is enhancing its digital marketing strategies across various e-commerce and social platforms to meet diverse consumer needs[50] Operational Efficiency and Management - The company implemented a "dynamic management" approach to address challenges posed by the pandemic, maintaining healthy liquidity and preparing for emergency plans[24] - The DTC model was optimized to enhance management efficiency and inventory distribution, allowing for better monitoring and quick responses to consumer demand[25] - The company is focusing on enhancing the consumer experience on its official website and strengthening its membership system[50] - The company is implementing a fast-response model for inventory management to better manage stock levels across brands[52] Market Outlook and Strategy - The company maintains a long-term optimistic outlook for the sports goods industry in China despite short-term challenges[11] - The company is committed to achieving carbon neutrality by 2050 and is working on building a sustainable value chain with its suppliers[100] - The management expressed confidence in the Chinese economy's stability, despite potential local COVID-19 outbreaks, and anticipates sustainable growth in the retail sector[93] - The sports goods industry is expected to benefit from a shift towards domestic brands and an increase in consumer spending in lower-tier cities[93] Research and Development - Anta Sports established a sports science laboratory in Jinjiang, China, to enhance product research and development, and set up design centers globally[48] - The company is actively seeking suppliers with mature R&D capabilities for the joint development of innovative materials[49] - Research and development costs increased to RMB 605 million in the first half of 2022, compared to RMB 500 million in the same period of 2021, marking a growth of 21%[123] Financial Position and Risks - Cash and cash equivalents totaled RMB 24.93 billion as of June 30, demonstrating strong financial resilience[15] - The debt ratio of the group was 19.9% as of June 30, 2022, down from 21.0% at the end of the previous year[80] - The company is facing intensified competition in the domestic sportswear industry, with increasing market concentration and rapid expansion of international brands[60] - Economic cycles significantly affect consumer demand in the sportswear industry, with potential adverse impacts on operations if economic conditions remain volatile[60] - There are risks associated with supply chain management, including potential delays or quality issues from suppliers[60] Community Engagement and Brand Promotion - The "You Feng" basketball event has successfully engaged local communities and solidified the company's position in the outdoor basketball segment[31] - KOLON SPORT's community activities have reached ten cities, promoting outdoor sports and environmental awareness among urban consumers[45] - DESCENTE's marketing strategy includes promoting the spirit of challenge and self-improvement through community events for triathlon enthusiasts[43] Shareholder Information - The company declared an interim dividend of HKD 0.62 per share, amounting to RMB 1,455 million, which is higher than the profit attributable to shareholders excluding losses from joint ventures[79] - The company’s total equity attributable to shareholders increased to RMB 31,652 million, up from RMB 28,923 million at the end of 2021, reflecting a growth of 9.5%[109] - The company has not identified any significant legal or regulatory non-compliance risks that could impact its operations[59]

Financial Performance - Anta Sports achieved a revenue of HKD 38.5 billion in 2021, representing a year-on-year growth of 35%[8] - The company reported a net profit of HKD 5.2 billion, an increase of 40% compared to the previous year[8] - Shareholders' profit increased by 49.6% to RMB 7.72 billion[12] - Revenue grew by 38.9% to RMB 49.328 billion[12] - Basic earnings per share rose by 49.5% to RMB 2.87[12] - The company's total revenue for the fiscal year 2021 increased by 38.9% to RMB 49,328 million, compared to RMB 35,512 million in 2020[84] - The footwear segment generated revenue of RMB 19,139 million, accounting for 38.8% of total revenue, reflecting a growth of 50.7% from RMB 12,700 million in 2020[78] - The apparel segment contributed RMB 28,632 million, representing 58.0% of total revenue, with a growth of 32.1% from RMB 21,671 million in 2020[78] - The Anta segment accounted for 48.7% of total revenue, with a revenue increase of 52.5% to RMB 24,012 million from RMB 15,749 million in 2020[85] - The FILA segment contributed 44.2% of total revenue, with revenue growth of 25.1% to RMB 21,822 million from RMB 17,450 million in 2020[85] Market Expansion and Strategy - Anta's retail network expanded to over 15,000 stores across China, with a focus on enhancing customer experience and brand presence[8] - The company aims to achieve a compound annual growth rate (CAGR) of 20% in revenue over the next five years[8] - Anta Sports announced a five-year development strategy and the "Winning Plan" aimed at continuous revenue growth and expanding market share in China[27] - The company aims to focus on high-quality economic growth and strategic goals in response to market challenges[36] - Anta Sports is focusing on a "single focus, multi-brand, globalization" strategy for the next decade[29] - The company aims to increase the number of stores in China and overseas to between 9,200 and 9,300 for Anta and its children's brands, and between 1,900 and 2,000 for FILA by the end of 2022[115] Product Development and Innovation - The company plans to invest approximately HKD 1 billion in research and development for new product lines in 2022[8] - The company launched the FLASHLITE 3.0 running shoes, which achieved a 16% higher energy return rate compared to the previous version, FLASHLITE 2.0[19] - Anta Sports introduced its new midsole technology, "Anta Nitrogen Technology," enhancing performance for professional runners and sports enthusiasts[26] - The company has launched a digital supply chain platform to enhance operational efficiency and reduce costs[34] - Anta has established strategic partnerships with leading material and chemical suppliers to enhance innovation capabilities[34] Sustainability and Corporate Social Responsibility - The company is focusing on sustainability initiatives, aiming to reduce carbon emissions by 30% by 2025[8] - Anta Sports aims to achieve carbon neutrality by 2050 and has set a goal to increase the proportion of sustainable products to 50% by 2030[117] - The founder's family has established a public welfare fund valued at RMB 10 billion, with plans to donate RMB 2 billion to support community initiatives[117] - The company has implemented various environmental protection measures, including upgrading hardware and using clean energy[76] Digital Transformation and E-commerce - The company plans to enhance digital capabilities, transitioning from experience-based to data-driven decision-making[33] - Anta's e-commerce business contributed 29% to overall revenue in the fiscal year, up from 26% in the previous year, with a 50% absolute growth compared to the previous year[34] - The company has established a Direct-to-Consumer (DTC) model, enhancing operational efficiency and allowing for quicker consumer response[39] - The company is enhancing its digital transformation to optimize store efficiency and increase online business penetration[117] Awards and Recognition - Anta was recognized as one of the "Top 500 Companies in China" by Fortune magazine in 2021[8] - The company received multiple awards for investor relations, including "Best Investor Relations Company (Large Cap)"[8] - Anta's brand value ranked first in the apparel category in the "Top 500 Chinese Brands" list[8] Financial Health and Risk Management - The debt ratio decreased to 21.0% from 27.8%[1] - Free cash flow increased by 56.5% to RMB 10.369 billion[1] - The net cash position increased to RMB 11.41 billion, indicating improved financial health and risk resilience[33] - The company faces significant risks from counterfeit sales affecting brand reputation and profitability[76] - The fluctuation of the RMB exchange rate may impact the company's financial performance due to foreign currency transactions[76] Corporate Governance - The company has established a strong governance structure with experienced board members overseeing strategic initiatives[197] - The board consists of 11 members, including 6 executive directors, 1 non-executive director, and 4 independent non-executive directors[155] - The company has complied with the corporate governance code throughout the fiscal year, focusing on internal controls and fair disclosure[155] - The company has established various committees including the audit committee, remuneration committee, nomination committee, risk management committee, and sustainability committee[167] Community Engagement and Social Initiatives - Anta Sports donated RMB 50 million in cash and equipment to support disaster relief efforts in Henan Province[28] - The company is dedicated to corporate social responsibility and community engagement as part of its long-term strategy[197]

Company Overview - Anta Sports Products Co., Ltd. is a leading sports goods company, listed on the Hong Kong Stock Exchange since 2007, focusing on the design, development, manufacturing, and marketing of sports products in China [30]. - The company has diversified its brand portfolio, including Anta, FILA, DESCENTE, and KOLON SPORT, and successfully acquired Finnish sports brand Amer Sports Corporation in 2019, enhancing its international brand recognition [30]. - Anta Sports aims to explore both mass and high-end sports goods markets, leveraging its extensive brand portfolio to capture market potential [30]. Awards and Recognition - The company has received multiple awards, including recognition as one of the "Top 500 Companies in China" by Fortune magazine and "Best Investor Relations Company" by the Hong Kong Investor Relations Association [36]. - Anta Sports has been acknowledged for its innovative business model, winning the "Best Business Model Innovation Award" in 2020 [37]. - Anta Sports has been recognized for its excellence in investor relations, receiving awards for "Best Investor Relations Team" and "Best Investor Relations Case Study" in 2020 [39]. Financial Performance - Total revenue for the year ended December 31, 2020, was RMB 35,512 million, representing a 4.7% increase from RMB 33,928 million in 2019 [43]. - Gross profit increased to RMB 20,651 million, a 10.7% rise from RMB 18,659 million in the previous year [43]. - Operating profit reached RMB 9,152 million, reflecting a 5.3% growth compared to RMB 8,695 million in 2019 [43]. - Net profit attributable to shareholders was RMB 5,763 million, a 3.6% decrease from RMB 5,977 million in 2019 [43]. - Basic earnings per share decreased by 3.4% to RMB 191.92 from RMB 198.70 in the previous year [43]. - The gross profit margin improved to 58.2%, up from 55.0% in 2019, indicating better cost management [43]. - The operating profit margin slightly increased to 25.8% from 25.6% in the previous year [43]. - Free cash flow increased to RMB 6,626 million, a 3.0% rise from RMB 6,433 million in 2019 [43]. - The debt ratio rose to 27.8%, compared to 22.3% in 2019, indicating a higher leverage position [43]. Product Development and Innovation - The company continues to focus on new product development and technological advancements to enhance its competitive edge in the sports goods market [39]. - The company launched its first recyclable "Bada Running Shoes," aiming to minimize waste and improve resource allocation [50]. - Anta Sports aims to enhance its technical innovation capabilities through the "Create China's Running Power" long-term development plan, leveraging over 100 million user data from the leading sports app, Codoon [63]. - Anta launched a new running shoe series A-TR∞N in collaboration with the leading sports app "Gudu," focusing on technological innovation and data analysis [88]. - The company upgraded its Hydrogen Running Shoes 2.0 with FLASHLITE 2.0 technology, enhancing durability and grip [89]. E-commerce and Digital Strategy - In the fiscal year, the company achieved a 53% increase in e-commerce revenue compared to 2019, demonstrating the effectiveness of its e-commerce strategy [70]. - The company is enhancing its DTC model and digital strategy to improve responsiveness to demand changes and product quality [54]. - E-commerce has been a major driver of performance, offsetting declines in offline store traffic due to the pandemic, with a focus on integrating online and offline channels [76]. - The company has initiated a Direct-to-Consumer (DTC) transformation across 11 regions in China, with approximately 3,500 stores involved, aiming for a 60% direct operation and 40% franchise model [78]. Market Position and Strategy - The company is committed to sustainable growth and aims to strengthen its market position through strategic acquisitions and partnerships [39]. - The company plans to enhance its international layout and deepen international cooperation, aiming to become a world-class brand [70]. - The company has adopted a multi-brand strategy to meet diverse consumer needs, with a focus on "mass, professional, and new domestic products" as its growth pillars [70]. - The company believes that the upcoming Beijing Winter Olympics will stimulate new consumer demand for winter sports [74]. Corporate Governance and Compliance - The company has established a comprehensive corporate governance system to maintain good relationships with stakeholders, including suppliers and customers [105]. - The board of directors confirmed the independence of all independent non-executive directors as per the listing rules [169]. - The company has maintained a competitive remuneration policy for its directors, considering market levels and individual contributions [171]. Employee and Social Responsibility - The company emphasizes providing above-average compensation for frontline employees to foster a positive corporate culture and maintain good communication with staff [104]. - The company has implemented various environmental protection measures, including upgrading hardware, using clean energy, and improving management systems [105]. - The group made charitable donations of RMB 32 million during the fiscal year, down from RMB 37 million in the previous year [164]. Future Outlook - Anta Sports is focusing on "high-quality growth" through a "single focus, multi-brand, and all-channel" strategy, optimizing its multi-brand product portfolio for sustainable growth [139]. - The company anticipates significant potential in the outdoor and winter sports markets, aiming for differentiated experiences and sustainable growth [143]. - Anta's mission and vision are clearly expressed, guiding the company to overcome uncertainties and pursue excellence in a rapidly changing environment [144].