Core Viewpoint - Anta Group, recently included in the ESG index, faces stock price volatility due to environmental concerns stemming from a fireworks event organized by its high-end outdoor brand, Arc'teryx, in the Himalayas [1][2] Group 1: Stock Market Reaction - On September 22, Anta Sports' stock opened down 4.6% at HKD 92.350 per share, closing down 2.22% at HKD 94.650, reflecting market concerns over the environmental controversy [1][2] - Analysts indicate that investors are worried about the potential impact of the environmental controversy on Arc'teryx's brand image among its core consumer base [2] Group 2: Environmental Controversy - The fireworks event, despite claims of using biodegradable materials and compliance with regulations, sparked significant environmental debate, particularly given the fragile ecosystem of the Himalayas [2] - Experts argue that even if the fireworks were not set off in a protected area, the ecological balance of the Tibetan Plateau is critical, and any disruption could have severe consequences [2] Group 3: Brand Image and ESG Performance - Anta Group was recently recognized as the only footwear company in the Hang Seng ESG 50 index, highlighting its strong ESG performance [3] - The company has made significant commitments to sustainability, including the elimination of perfluorinated compounds (PFAS), contrasting sharply with the recent environmental backlash faced by Arc'teryx [3] Group 4: Financial Performance and Market Position - Anta Group reported a revenue of CNY 38.54 billion for the first half of 2025, a year-on-year increase of 14.3%, with a net profit of CNY 7.03 billion, also up 14.5% [4] - Arc'teryx's parent company, Amer Sports, reported a 42% year-on-year revenue increase in the Greater China market, with Arc'teryx playing a significant role in this growth [5] Group 5: Management Changes - Amer Sports recently underwent a leadership change in the Greater China region, with the appointment of a new president who has extensive experience in the sports goods industry [6] - This new leadership faces the challenge of managing the brand's first major crisis shortly after taking office [6]