Anta posts revenue increases for 2020

Anta Sports Products Limited on Wednesday posted its fiscal report of 2020, with revenue increased by 4.7 percent year-on-year to 35.51 billion yuan ($5.43 billion), and operating profits up 5.3 percent to 9.15 billion yuan.

The group's operating profit margin was up 0.2 percentage points to 25.8 percent, and the gross profit margin rose 3.2 percentage points to 58.2 percent.

Anta group maintained a strong cash inflow with ample capital reserves and free cash inflow of 6.63 billion yuan.

Last year, the group's e-commerce business grew more than 50 percent, with GMV exceeding 9 billion yuan.

Group president Zheng Jie said in the next five years, its online sector is expected to take up 40 percent of its total business.

The president said the company's efforts to focus on digital strategy and direct-to-consumer approaches have greatly contributed to the strong growth of the last year.

He said rising awareness in improving health amid the global pandemic has encouraged more participation from the public in sports, prompting an estimated double-digit annual growth of the sportswear sector this year.

On the direct-to-consumer strategy, nearly 3,500 stores or more than 60 percent of its total, have transformed as the directly operated outlets after the group acquired 11 distributers' divisions since last September. The process is expected to be completed by March, Zheng said.

Its main brand Anta has seen both gross profit margin and operating profit margin increase over the last year.

The growth rate of Fila's revenue is the highest in the industry, reaching 18 percent year-on-year while continuing to focus on first- and second-tier cities.

Excluding Anta and Fila, the revenue of other brands owned by the group grew by over 35 percent with strong momentum.

Anta saw a major growth in its post-95s Generation Z and rising white-collar consumers, the proportion of its online female shoppers increased to 50 percent and the total online members of Anta and Fila exceeded 14 million, a yearly growth of 130 percent..

Fila, which produces top sports products with two major sub-brands, Fila Kids and Fila Fusion, has been growing rapidly. Its sneakers have become a new business growth point, with annual sales exceeding 10 million pairs.

Descente is recognized as the No 1 sports brand in the fields of high-end combined training, skiing and triathlon. In 2020, its number of young members increased by more than 20 percent.

Zheng said Descente's unique professional performance and niche designs have proved popular among high-end consumers who have growing interest in brands with more individuality and differentiation.

The group established a big data department to build a "super flagship project" of big data to mine and utilize the value of data, and empower all brands with insightful decisions.

Ding Shizhong, board chairman and CEO of Anta Group, said:"2020 was a challenge and an opportunity, which brings reform and future plans to Anta Group. We will remain mission-driven, inspect the presence from the future and promote the realization of global Anta and Anta's globalization. We are confident the retail sales of the group will reach 200 billion yuan by 2025 to make us a respected multi-brand sportswear group."