ANTA SPORTS(02020)2024-04-10 09:00Financial Performance - Revenue increased by 16.2% to RMB 62.4 billion[7] - Gross profit margin rose by 2.4 percentage points to 62.6%[7] - Net profit attributable to shareholders surged by 34.9% to RMB 10.2 billion[8] - Basic earnings per share grew by 30.9% to RMB 3.69[11] - Dividend payout ratio was 50.7% of net profit attributable to shareholders[11] - Revenue for the year ended December 31, 2023, reached RMB 62,356 million, a 16.2% increase from RMB 53,651 million in 2022[14] - Gross profit increased by 20.8% to RMB 39,028 million in 2023 from RMB 32,318 million in 2022[14] - Operating profit surged by 36.8% to RMB 15,367 million in 2023 compared to RMB 11,230 million in 2022[14] - Net profit attributable to shareholders rose by 44.9% to RMB 10,954 million in 2023 from RMB 7,562 million in 2022[14] - Free cash flow increased significantly by 71.1% to RMB 17,823 million in 2023 from RMB 10,415 million in 2022[14] - Earnings per share (basic) grew by 30.9% to RMB 3.69 in 2023 from RMB 2.82 in 2022[14] - Gross margin improved to 62.6% in 2023, up 2.4 percentage points from 60.2% in 2022[14] - Operating margin increased to 24.6% in 2023, up 3.7 percentage points from 20.9% in 2022[14] - Net margin rose to 18.1% in 2023, up 2.7 percentage points from 15.4% in 2022[14] - Advertising and promotion expenses as a percentage of revenue decreased to 8.2% in 2023 from 10.3% in 2022[14] - Revenue for 2023 reached RMB 62,356 million, a 16.2% increase from 2022[16] - Gross profit for 2023 was RMB 39,028 million, with a gross margin of 62.6%[16] - Operating profit for 2023 stood at RMB 15,367 million, a 36.8% increase from 2022[16] - Net profit attributable to shareholders for 2023 was RMB 10,236 million, a 34.9% increase from 2022[16] - Total assets for 2023 increased to RMB 92,228 million, up 33.3% from 2022[16] - Revenue reached a record high of RMB 62.36 billion, a 16.2% increase year-over-year[26] - Gross margin rose to 62.6%, up 2.4 percentage points from the previous year[26] - Operating profit margin increased to 24.6%, up 3.7 percentage points year-over-year[26] - Shareholders' net profit excluding joint ventures surged 44.9% to RMB 10.95 billion[26] - FILA's revenue grew 16.6% to RMB 25.1 billion, with a gross margin of 69.0%[29] - Other brands' combined revenue soared 57.7% to RMB 6.95 billion, with a gross margin of 72.9%[30] - Amer Sports' revenue increased 30.1% to RMB 31.25 billion, with EBITDA up 45.4% to RMB 3.75 billion[30] - Operating cash flow surged to RMB 19.63 billion, a significant increase from RMB 12.15 billion in the previous year[27] - Free cash flow reached RMB 17.82 billion, up from RMB 10.42 billion in 2022[27] - Cash and cash equivalents totaled RMB 48.52 billion as of December 31, 2023[27] - Total revenue for 2023 increased by 16.2% to RMB 62,356 million compared to RMB 53,651 million in 2022[117][120] - Revenue from the Anta brand grew by 9.3% to RMB 30,306 million, contributing 48.6% of total revenue[119][121] - FILA brand revenue increased by 16.6% to RMB 25,103 million, accounting for 40.3% of total revenue[119][121] - Revenue from all other brands surged by 57.7% to RMB 6,947 million, driven by DESCENTE and KOLON SPORT[122] - Gross margin improved by 2.4 percentage points to 62.6% in 2023, up from 60.2% in 2022[123][125] - Anta brand's gross margin rose by 1.3 percentage points to 54.9%, attributed to DTC model transformation[126] - FILA brand's gross margin increased by 2.6 percentage points to 69.0%, due to improved retail discounts[126] - E-commerce revenue grew by 11.0% in absolute terms, contributing 32.8% of total revenue[122] - DTC revenue for Anta brand surged by 24.2% to RMB 17,005 million, representing 56.1% of Anta's total revenue[121] - Employee costs increased by 14.6% to RMB 9,304 million, reflecting continued investment in human resources[128] - Inventory write-back of RMB 20 million was recorded in the current fiscal year, compared to a write-down of RMB 414 million in 2022[129] - Other net income for the fiscal year was RMB 1,705 million, down from RMB 2,128 million in 2022[130] - Operating profit margin increased by 3.7 percentage points to 24.6% in 2023, driven by revenue growth and improved operating leverage[132] - FILA's operating profit margin rose by 7.6 percentage points to 27.6%, attributed to reduced operating expenses as a percentage of revenue[134] - Total interest income surged to RMB 1,470 million in 2023, up from RMB 609 million in 2022, due to higher average bank deposit balances and interest rates[141] - Proposed final dividend of HK13.00 per share, with an additional 15,750,000 shares issued under an over-allotment option[159] - The company invested $220 million (equivalent to RMB 1,595 million) to purchase 16,923,076 ordinary shares of Amer Sports, Inc. as a cornerstone investor[160] - After the completion of Amer Sports' IPO and related restructuring, the company holds 218,915,443 ordinary shares, representing approximately 43.33% of Amer Sports, Inc.'s total issued shares[160] - The company expects to record a non-cash accounting gain of approximately RMB 1.6 billion in its consolidated financial statements for the year ending December 31, 2024, due to the equity dilution from Amer Sports' IPO[160] - The company acquired a 75.13% equity stake in MAIA ACTIVE, a sportswear brand designed for Asian women, to strengthen its brand portfolio and enhance its product offerings for female customers[161] - The company issued €1 billion zero-coupon convertible bonds due in 2025, with a total outstanding principal amount of €1 billion (equivalent to RMB 8,071 million) as of December 31, 2023[163] - The convertible bonds can be converted into 86,682,707 shares at a conversion price of HKD 99.75 per share[164] - The company completed a placement and subscription of 119,000,000 shares at HKD 99.18 per share, raising a total of HKD 11,802 million (equivalent to RMB 10,497 million)[166] - As of December 31, 2023, HKD 4,571 million (equivalent to RMB 4,211 million) of the net proceeds from the subscription remained unused[167] - The company allocated HKD 9,121 million for repaying financial liabilities, with HKD 4,550 million used and HKD 4,571 million remaining, expected to be utilized by December 31, 2025[168] - The company's capital commitments amounted to RMB 3,187 million, primarily for the construction of Anta's Shanghai headquarters and logistics center, as well as retail store renovations[169] - AS Holding fully utilized a EUR 1,300 million (equivalent to RMB 10,492 million) term loan facility, which was subsequently fully repaid after the fiscal year-end[171][172] - The company's profit attributable to shareholders (before dividends) was RMB 10,236 million in 2023, up from RMB 7,590 million in 2022[200] Store Operations and Expansion - Number of ANTA stores in Mainland China and overseas reached 7,053, up from 6,924[12] - Number of FILA stores in Mainland China, Hong Kong, Macau, and Singapore totaled 1,972, down from 1,984[12] - Number of DESCENTE stores in Mainland China, Hong Kong, and Macau reached 187, down from 191[12] - Number of KOLON SPORT stores in Mainland China and Hong Kong increased to 164 from 161[12] - ANTA has 12,000 offline stores globally, covering multiple brands including ANTA, FILA, DESCENTE, and KOLON SPORT[40] - As of December 31, 2023, Anta operated 7,053 stores in mainland China and overseas, with 44% of its 5,400 Anta stores and 64% of its 2,200 Anta Kids stores directly operated[59] - As of December 31, 2023, Anta Kids operated 2,778 stores in mainland China and overseas[64] - FILA operates 1,972 stores across Mainland China, Hong Kong, Macau, and Singapore, including FILA KIDS and FILA FUSION standalone stores[71] - DESCENTE operated 187 stores in Mainland China, Hong Kong, and Macau as of December 31, 2023[75] - KOLON SPORT operated 164 stores in Mainland China and Hong Kong as of December 31, 2023[80] - Anta plans to expand its Anta and Anta Kids stores in mainland China and overseas to 7,100-7,200 and 2,800-2,900 respectively by the end of 2024[181] - FILA stores, including FILA KIDS and FILA FUSION, are expected to reach 2,100-2,200 in mainland China, Hong Kong, Macau, and Singapore by the end of 2024[181] - DESCENTE stores in mainland China, Hong Kong, and Macau are projected to be 220-230 by the end of 2024[181] - KOLON SPORT stores in mainland China and Hong Kong are expected to reach 180-190 by the end of 2024[181] Brand and Product Development - The company established the Southeast Asia International Business Department in February 2023 to advance its "multi-brand" and "globalization" strategy[20] - Anta opened its first direct-operated store in Singapore in April 2023, marking a significant milestone in its expansion into the Southeast Asian market[22] - Anta signed NBA star Kyrie Irving as a brand ambassador for its basketball products in July 2023[23] - The company joined the Science Based Targets initiative (SBTi) in January 2023 to set scientifically validated carbon reduction targets[19] - Anta launched the second phase of the "Anta Membrane" R&D project in April 2023, focusing on green and low-carbon sustainable development[22] - ANTA's e-commerce accounted for 32.8% of the company's total revenue[40] - ANTA's self-produced footwear accounted for 15.0% of total sales volume, while self-produced apparel accounted for 4.3%[37] - ANTA operates 6 global design centers located in China, the US, Japan, South Korea, Italy, and the Netherlands[38] - ANTA upgraded its Global Research and Innovation Center, covering product performance testing, sports science experiments, material R&D, and product development[37] - ANTA implemented a "5+N" logistics network strategy in China and established regional warehouses overseas to support global operations[39] - The company's multi-brand strategy focuses on professional sports, fashion sports, and outdoor sports groups[41] - ANTA's digital platform leverages big data to drive digital transformation across the entire value chain, from product development to delivery[40] - The company has strategically deployed a full-scenario, full-crowd, and full-track coverage and layout, with significant multi-brand synergy value[46] - The company's three major brand groups include the professional sports brand group led by Anta, the fashion sports brand group led by FILA, and the outdoor sports brand group composed of DESCENTE and KOLON SPORT[47] - The company has over 30 years of channel management and terminal operation experience in the Chinese retail market, with leading retail operation efficiency in their respective fields[48] - The company has established R&D and design studios in the US, Europe, Japan, and South Korea, collaborating with global research institutions and suppliers[49] - The company has established a Southeast Asia International Business Division and is actively expanding in strategic markets such as Singapore and the Philippines[50] - Anta has extended its contract with the International Olympic Committee until 2027, enhancing its global influence[55] - The company has developed the "Tanding" weightlifting shoe with five patented technologies, showcasing its commitment to R&D and product quality[55] - The company is leveraging its mature supply chain, cost-effective products, and extensive channel expansion experience to advance its globalization strategy[51] - The company is focusing on high-growth potential vertical sports fields, achieving breakthroughs in brand positioning and consumer cognition[47] - The company is targeting the Southeast Asian market, where the rising middle class and increasing consumer demand present significant opportunities[50] - Anta signed NBA star Kyrie Irving as the latest spokesperson and Chief Creative Officer for its basketball products, who participated in the design of exclusive logos and personal product lines[56] - Anta partnered with Ethiopian long-distance runner Kenenisa Bekele and launched the "Anta Plateau C Plan" to establish a high-altitude training base in Africa for Chinese athletes[56] - Anta developed the high-performance waterproof and breathable material "Anta Membrane" in collaboration with Donghua University, used in the "Storm Armor" and "Ice Armor" outdoor product series[58] - Anta expanded its Southeast Asian market by opening its first directly operated store in Singapore and a flagship store in Thailand[58] - Anta Kids launched the "Anta Youth" series targeting teenagers, covering sports categories such as figure skating, artistic gymnastics, and skiing[62] - Anta Kids organized events like the "527 Children's Balance Bike Festival" and sponsored top balance bike competitions to promote children's interest in cycling[63] - Anta Kids introduced the "Storm Armor" two-piece set with water-repellent technology for outdoor activities[63] - Anta Kids promoted green sustainability by increasing the use of eco-friendly materials, such as recycled polyester fibers in its Heat Return Tech IV down jackets[64] - FILA's shoe product sales exceeded 10 billion yuan for the first time, with the "Cat Claw" and "Mars" shoes each selling over 1 million pairs annually[65] - FILA expanded its e-commerce business and achieved significant growth in online sales, ranking high in Tmall's "Double 11" shoe category sales[66] - FILA KIDS strengthened its presence in the tennis and skiing markets by sponsoring events like the FILA KIDS Diamond Cup and national youth skiing championships[68] - FILA FUSION launched collaborations with international brands like TEAM WANG design and BEAMS, enhancing its trendy and innovative image[70] - DESCENTE's retail sales surpassed 5 billion yuan for the first time, driven by its focus on professional sports like skiing, triathlon, and golf[74] - DESCENTE partnered with China's national skiing teams and launched the "Everything Starts with Skiing"