Core Viewpoint - The recent fireworks event held by Arc'teryx in the ecologically sensitive Himalayas has sparked significant environmental controversy, raising questions about Anta Group's commitment to its stated ESG principles and environmental responsibilities [4][5][9] Group 1: Event Overview - Arc'teryx collaborated with artist Cai Guoqiang to host a fireworks show titled "Cai Guoqiang: Ascending Dragon" in the Himalayas, aiming to explore local mountain culture [3] - The event has been criticized for potentially harming the fragile ecosystem of the region, which is home to sensitive wildlife and unique environmental conditions [4][5] Group 2: Environmental Concerns - The fireworks display may cause irreversible damage to local soil, water sources, and wildlife, contradicting Anta's ESG commitments to biodiversity and environmental protection [5][6] - Anta's 2024 ESG report emphasizes adherence to biodiversity protection goals and avoidance of activities that could harm ecosystems, yet the event's location raises concerns about compliance with these commitments [5][6] Group 3: Brand Image and Consumer Reaction - Anta has been positioning itself as a leader in sustainable fashion, with over 30% of its products being sustainable, but the fireworks incident starkly contrasts with its environmental promises [9] - Following the event, several outdoor and photography influencers have severed ties with Anta or expressed intentions to boycott the brand, indicating a potential backlash against its image [9] Group 4: Corporate Governance Issues - The differing statements from Arc'teryx regarding its involvement in the event have led to accusations of double standards, further complicating the brand's public relations [10][12] - Anta has not publicly addressed the incident, leading to increased consumer dissatisfaction and concerns about its governance capabilities, which may negatively impact its ESG ratings [12][13] Group 5: Financial Impact - Following the controversy, Anta's stock price fell by 2.22%, resulting in a market capitalization loss of approximately 6 billion HKD [13]