Group 1: Long-term Optimism Toward China's Economy - The long-term optimistic outlook for China's economy remains unchanged, with ongoing economic transformation viewed as a gradual process [2][3][11] - New growth drivers for China are identified, including energy transition initiatives like electric vehicles and the technology sector, which has attracted significant investment [10][11] - The high degree of global economic integration makes it difficult to reverse globalization, despite current trade conflicts [2][13][20] Group 2: Trade Issues and Globalization - Trade fragmentation poses significant challenges, disrupting supply chains and potentially hindering economic growth, but there is optimism for long-term resolution [14][16] - The geopolitical situation in the Middle East has had limited impact on the global economy, primarily affecting oil prices [8][9] - The risk of globalization stalling is acknowledged, with the past 20 years showing an upward trend, but recent years indicating a plateau [20] Group 3: US Economic Concerns - The US government debt problem is longstanding, with rising interest costs and potential pressure on fiscal spending programs like Social Security in the next 5 to 8 years [22][24][25] - Despite concerns, the risk of US default is considered almost zero, as countries issuing debt in their own currency do not need to default [25] - Clients of Amundi Asset Management express concerns about US asset price adjustments, but do not view the weakening of "American exceptionalism" as a serious risk [28][30] Group 4: Investment Strategies - Investors are advised to moderately reduce their allocation to US assets, as the US accounted for over 70% of the MSCI World Index by the end of 2024 [30][32] - Recent capital flows into European and emerging markets indicate a trend towards portfolio diversification rather than large-scale selling of US stocks [31][32] - The focus on diversified investment is seen as a prudent strategy in light of the high concentration of US assets in global portfolios [31][32] Group 5: Key Risks - Major risks identified for the upcoming year include prolonged tariff negotiations, geopolitical fragmentation, and economic growth falling below expectations [33][34] - Concerns about public debt and interest rates in a slowing growth environment could lead to negative consequences for investors [33][34]

Financial Data and Key Metrics Changes - The total revenue of ANTA Sports Products exceeded JPY 100 billion for the first time, achieving a year-on-year growth of 13.6% [4] - Operating profit attributable to shareholders increased by 15% [4] - Free cash flow was reported at JPY 13.5 billion, indicating stable cash generation ability [4] - The final dividend for the year was JPY 123, up 20% year on year [5] Business Line Data and Key Metrics Changes - ANTA brand revenue reached JPY 60 billion, growing by 10.6% year on year [6] - FILA brand revenue was JPY 30 billion, up 6.1% year on year [6] - Other brands, particularly Dessence and Colin, saw significant growth of 53.7% year on year [6] - Online sales grew by 20%, while offline sales also achieved double-digit growth [7] Market Data and Key Metrics Changes - The overall gross profit margin was 62.2%, a slight decline of 0.4 percentage points [7] - FILA's gross profit margin decreased by 1.2 percentage points due to increased investment in merchandise [8] - The consumer market in China grew at a low rate of 3.5% in 2024, with a consumer confidence index of 86.2% [21][22] Company Strategy and Development Direction - The company aims to maintain its number one market share in China and expand its multi-brand strategy [3][50] - ANTA is focusing on brand breakthroughs and enhancing product quality, particularly in performance sports [27][51] - The company plans to replicate its successful strategies in China to international markets [51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a gradual rebound in the consumer market supported by government policies [22] - The global sports industry is expected to grow steadily, with opportunities in running, outdoor, and tennis categories [22] - The company is committed to low carbon innovation and sustainable practices to enhance brand influence [52] Other Important Information - The company has invested JPY 2 billion in R&D, representing a 20% increase [11] - ANTA's inventory turnover days are at a healthy level of 123 days, with a sellout rate of 87% [14][17] - The company has made significant strides in ESG performance, including a reduction in water consumption intensity by 2.5% [46][48] Q&A Session Summary Question: What are the key growth drivers for ANTA in 2025? - The company will focus on brand breakthroughs for ANTA and FILA, aiming for high-quality development in footwear and apparel [51] Question: How is ANTA addressing sustainability? - ANTA is committed to low carbon innovation and sustainable materials, with a goal of 50% sustainable products in the order book [48][52] Question: What is the outlook for the consumer market? - Management anticipates a gradual recovery in consumer confidence and spending, supported by government initiatives [22]