Core Viewpoint - Anta Group is intensifying its anti-corruption efforts, focusing on systemic improvements and strict enforcement of compliance measures to combat corruption within the organization and its supply chain [1][2][5]. Anti-Corruption Measures - As of August 2025, Anta has dismissed 74 employees for serious misconduct and transferred 46 individuals to judicial authorities for suspected criminal activities, including one executive at the president level [1]. - The company has established a "career tracing mechanism" to hold employees accountable for misconduct regardless of their employment status [3]. - Anta has published a list of 10 suppliers banned from cooperation due to violations, indicating a proactive stance against corrupt partners [4]. Systemic Enhancements - Anta is strengthening its internal control systems through organizational restructuring, management system improvements, and employee education [7]. - The establishment of the "Integrity and Ethics Committee" and the revision of six core regulations, including anti-corruption and supplier compliance management, are part of the systemic enhancements [7]. - A "three-line defense" system has been created to cover 58 risk modules and 208 risk responsibilities, ensuring accountability among management [7]. Market Context - Anta's revenue increased by 14.3% year-on-year to 38.544 billion yuan, but net profit declined by 8.9% [11]. - The competitive landscape is challenging, with other major players like Li Ning and Adidas also facing revenue pressures [13][14]. - Anta's gross margin has decreased by 0.7 percentage points to 63.4%, attributed to increased online sales and discounting strategies [15]. Strategic Focus - The company is prioritizing investments in existing business areas, particularly innovation and digital transformation, to enhance profitability [17]. - Anta is also exploring high-quality acquisition opportunities to strengthen its multi-brand strategy [17]. - The ongoing anti-corruption measures are seen as a necessary response to the current market pressures and are expected to continue as a trend in the industry [19][20].

Core Viewpoint - Anta Group is intensifying its anti-corruption efforts, focusing on systemic improvements and strict enforcement of compliance measures to combat corruption within the organization and its supply chain [1][4][16]. Group 1: Anti-Corruption Measures - As of August 2025, Anta has dismissed 74 employees for serious misconduct and transferred 46 individuals to judicial authorities for criminal offenses, including one executive at the president level [1]. - The company has established a "career tracing mechanism" to hold employees accountable for misconduct regardless of their employment status [1]. - Anta has created a list of 10 suppliers banned from future cooperation due to violations, indicating a proactive stance against corrupt partners [2][5]. Group 2: Systemic Improvements - Anta is enhancing its internal control systems by revising core policies, including the anti-corruption system and supplier compliance management [4]. - The company has implemented a "three-line defense" system covering 58 risk modules and 208 risk responsibilities to ensure accountability among management [4]. - Regular compliance training is being conducted for supply chain partners, along with the establishment of a blacklist for non-compliant suppliers [4][5]. Group 3: Financial Performance and Market Context - In the first half of the year, Anta's revenue increased by 14.3% to 38.544 billion yuan, while net profit decreased by 8.9% to 7.031 billion yuan [10]. - The competitive landscape is challenging, with other major brands like Li Ning and Adidas also experiencing revenue growth but facing profit declines [12]. - Anta's gross margin has been under pressure, declining by 0.7 percentage points to 63.4%, attributed to increased online sales and discounting strategies [13][14]. Group 4: Strategic Focus - Anta is prioritizing investments in existing business areas, particularly in innovation, digital transformation, and retail, to enhance profitability [14]. - The company is also exploring high-quality acquisition opportunities to strengthen its multi-brand strategy [14]. - The ongoing anti-corruption campaign is seen as a necessary response to the current market pressures and is expected to lead to a more refined competitive environment [16][17].