ANTA SPORTS(02020)2025-03-19 04:02Revenue and Profitability - Revenue increased by 13.6% year-on-year to RMB 70,826 million[4] - Net profit attributable to shareholders rose by 16.5% to RMB 11,927 million, excluding non-cash accounting gains from Amer Sports[7] - The overall operating profit increased by 8.0% to RMB 16,595 million[24] - Net profit for the year surged by 50.7% to RMB 16,989 million, compared to RMB 11,277 million in 2023[47] - Basic earnings per share rose by 50.4% to RMB 5.55, up from RMB 3.69 in the previous year[47] - Shareholders' profit attributable to the company was RMB 15,596 million, up 52.3% from RMB 10,236 million in 2023[50] - Shareholders' profit increased by 16.5% to RMB 11,927 million, with a profit margin of 16.8% compared to 16.4% in 2023[196] Dividends and Shareholder Returns - Proposed final dividend for the fiscal year 2024 is HKD 1.18 per share, subject to shareholder approval[7] - A total of HKD 118 cents per share was proposed as the final dividend, with a payout ratio of 51.4% of the attributable profit[55] - The proposed final dividend for the fiscal year is HKD 1.18 per share, totaling RMB 6,134 million, which is 51.4% of the shareholders' profit, up from 50.9% in 2023[197] E-commerce and Market Performance - E-commerce business accounted for 35.1% of total revenue, up from 32.8% in 2023[32] - E-commerce business revenue increased by 21.8% year-on-year, accounting for 35.1% of the group's total revenue in 2024[94] - The online retail sales in China reached RMB 13.1 trillion in 2024, growing by 6.5% year-on-year, representing 26.8% of total retail sales[94] - Anta's e-commerce business grew by 20.7% year-on-year, showcasing strong brand competitiveness and market influence[114] Brand Performance - ANTA brand revenue increased by 10.6% to RMB 33,522 million, while FILA brand revenue grew by 6.1% to RMB 26,626 million[47] - Anta's segment contributed 47.3% to the group's total revenue, with segment revenue increasing by 10.6% to RMB 33,522 million compared to RMB 30,306 million in 2023[168] - FILA's segment contributed 37.6% to the group's total revenue, with segment revenue growing by 6.1% to RMB 26,626 million from RMB 25,103 million in 2023[169] - Revenue from all other brands surged by 53.7% to RMB 10,678 million, driven by DESCENTE and KOLON SPORT, outperforming internal management targets[170] Operational Efficiency and Investments - Operating profit margin decreased by 1.2 percentage points to 23.4%, with Anta's margin at 21.0% and FILA's at 25.3%[4] - The company maintained a high level of operational efficiency despite increased investments in brand, channel, and product development[4] - The company maintained a debt ratio of 18.5%, a slight increase from 16.2% in 2023[50] - Total employee costs rose by 12.8% to RMB 10,491 million, reflecting ongoing investments in human resources and talent development[177] Sustainability and Corporate Responsibility - The company aims for carbon neutrality by 2050, focusing on a "1+3+5" strategy for long-term social commitment[58] - 30% of Anta's products are sustainable, with 34 products assessed for carbon footprint, including 26 carbon-neutral certified products[135] - Anta donated a total of RMB 37 million in cash and over RMB 340 million in sports products to various charities during the fiscal year[137] - The group emphasizes sustainable material sourcing and supply chain transparency, planning to disclose more information related to materials and supply chains in the future[132] Market Expansion and Innovation - The company is strategically expanding into Southeast Asia and other international markets, with over 240 stores outside of China[75] - The group invested approximately RMB 20 billion in R&D in 2024, up from RMB 16 billion in 2023, representing 2.8% of total revenue[99] - The company has established six design and R&D centers globally, collaborating with over 70 universities and research institutions to enhance product innovation[65] - Anta's new retail formats, such as "Anta Collection" and "Super Anta," are designed to enhance consumer experience and meet personalized demands[87] Challenges and Risks - The company faces risks related to external investment policies, particularly concerning regulations in China and overseas markets[148] - There is a significant risk of brand counterfeiting affecting the company's reputation and profitability, despite efforts to protect intellectual property[151] - The company is exposed to operational risks due to the increasing costs of physical retail and e-commerce channels, which may impact profitability[154]