Core Viewpoint - Anta, under the leadership of Ding Shizhong, has become the third largest sportswear group globally, joining the "trillion club" after Nike and Adidas, primarily through a series of acquisitions [1][12]. However, the company faced a significant backlash due to a controversial event involving its subsidiary, Arc'teryx, which negatively impacted its stock price [2][3]. Group 1: Incident Overview - On September 19, Arc'teryx held a firework event in the Himalayas, which was criticized for its environmental impact, leading to public outrage [2][3]. - Arc'teryx initially defended the event, claiming the materials used were biodegradable and met environmental standards, but later acknowledged the need for a more professional assessment of their actions [2][3]. - The backlash resulted in a significant drop in Anta's stock price, with a decline of over 7% at one point, leading to a market value loss exceeding 100 billion HKD [3][4]. Group 2: Financial Response - In response to the stock price drop, Anta announced a share buyback of 2.12 million shares at a cost of approximately 199 million HKD [4]. - The trading volume for Anta's shares surged to 30.06 billion HKD, more than double the previous day's volume [4]. - By the end of September 22, Anta's stock closed down 2.22%, with a total market capitalization of 263.2 billion HKD [4]. Group 3: Impact on Parent Company - The parent company of Arc'teryx, Amer Sports, also experienced a decline, with its stock price dropping over 11% on September 22, resulting in a market value loss of approximately 12.1 billion USD (around 86 billion RMB) [6]. - Arc'teryx has become a significant contributor to Amer Sports, accounting for about 40% of the group's revenue, which reached over 2 billion USD last year [12][16]. Group 4: Brand Development - Arc'teryx, originally founded in 1989, has evolved from a niche outdoor brand to a popular choice among middle-class consumers in China, often referred to as one of the "three treasures" of the middle class [12][18]. - Since Anta's acquisition of Amer Sports in 2019, Arc'teryx has expanded its presence in China, adding 57 new stores in the region [18]. - The brand's revenue heavily relies on the Greater China region, with 45% of its income sourced from there, compared to only 11% and 8% for its other brands, Salomon and Wilson, respectively [16].