Chang Jiang Shang Bao·2025-11-10 06:27Core Viewpoint - Anta Sports' ESG rating was upgraded from A to AA by MSCI, despite facing ecological damage claims related to its subsidiary, Arc'teryx, for an event in Tibet [2][3][4]. Group 1: ESG Rating and Environmental Issues - Anta Sports' MSCI ESG rating was upgraded to AA on October 17, 2023, following a previous downgrade to B in January 2023 [2][7]. - The upgrade comes amidst controversy over the ecological impact of a fireworks event sponsored by Arc'teryx, which has been labeled as "mountain blasting" by netizens [3][4]. - Anta Sports has not publicly detailed its plans for ecological compensation and restoration following the incident [5]. Group 2: Financial Performance - In Q3 2025, Anta and FILA brand products recorded low single-digit growth in retail sales compared to the same period in 2024 [9]. - Anta Sports' revenue grew from 355.12 billion to 708.26 billion from 2020 to 2024, nearly doubling in four years, while net profit increased by approximately 202% during the same period [8]. - Sales expenses grew significantly, reaching approximately 1,087.4 billion over five and a half years, accounting for 35% of total revenue of 3,102.17 billion [11]. Group 3: Inventory and Operational Challenges - Anta Sports is experiencing inventory buildup and operational challenges, with an average inventory turnover period of 136 days in the first half of 2025, compared to 61 days for Li Ning [11][12]. - The company's direct-to-consumer (DTC) reform initiated in 2020 has led to increased inventory levels as it transitioned inventory management from distributors to the brand [12].