Amer Parent Co' ANTA Sports Achieves Record-high Revenue Of RMB29.65 Billion In First Half Of 2023, Exceeds Market Expectations

ANTA Sports Products Limited ("ANTA Sports" or the "Company", stock codes: 2020 (HKD counter) and 82020 (RMB counter), and its subsidiaries collectively the "Group"), has announced its unaudited interim results for the six months ended 30 June 2023 (the "period").

Financial and Operational Highlights

• "Single-focus, Multi-brand, Globalization" strategy manifested results with overall revenue for the financial period increased by 14.2% year-on-year to RMB29.65 billion, doubling the revenue compared with the same period of 2019, and continuing to increase its market share. Compared with the same period of 2019, ANTA and FILA segment revenues have grown by over 85% each and all other brand total revenue has experienced an impressive growth of over 3.5 times;
• ANTA segment revenue grew by 6.1% year-on-year to RMB14.17 billion;
• FILA segment revenue grew by 13.5% year-on-year to RMB12.23 billion;
• The multi-brands strategy has yielded fruitful results. DESCENTE and KOLON SPORT sustained their rapid upswing, and the total revenue of all other brands surged 77.6% year-on-year to RMB3.25 billion;
• Amer Sports Holding (Cayman) Limited ("AS Holdings", the Group's joint venture, owning the business of Amer Sports) continued to show strong growth with revenue growing by 37.2% to RMB13.27 billion year-on-year. Excluding the impact of one-off nature items, the joint venture managed to achieve breakeven, making it the best-performing first half since the acquisition by the investor consortium;
• Without the effect of the share of profit or loss of a joint venture, the profit attributable to shareholders rebounded strongly, leaping 39.8% year-on-year to RMB5.26 billion;
• Operating efficiency recorded considerable improvement, with operating profit margin increasing 3.4 percentage points year-on-year to 25.7%, of which:
  - FILA segment’s operating profit margin increased by 7.2 percentage points year-on-year to 29.7%; and
  - All other brands' operating profit margin expanded 8.7 percentage points year-on-year to 30.3%;
• The Board has declared an interim dividend of HK82 cents per ordinary share for the six months ended 30 June 2023, representing an increase of 32.3% year-on-year;
• The financial position continued to be stable, the cash generating ability was greatly improved and the cash flow was abundant. The free cash inflow in the first half of the year was RMB9.52 billion, an increase of 131.8% over the same period of last year. As of 30 June 2023, the aggregate amount of cash and cash equivalents, fixed deposits held at banks with maturity over three months and pledged deposits registered RMB45.40 billion;
• Increased investment in research and development (R&D): the Group cooperated with several universities to build national academician workstations and postdoctoral research stations, and invested nearly RMB700 million in R&D activities during the financial period;
• Increased ESG investment and deployment: The Group published "Supplier Sustainability Management Handbook" and "Labor Policy" which assists suppliers in fostering and maintaining a safe, healthy and compliant manufacturing environment, as well as creating an equitable, inclusive, healthy and safe working environment for our employees. We also implemented a training system for diversified talent development to create a brighter future.

Lai Shixian, Co-CEO of ANTA Sports, said, "In the first half of this year, ANTA Sports continued to advance its strategy of "Single-focus, Multi-brand, Globalization" by leveraging its strategic advantages. The Group adheres to a long-term vision and shows greater resilience in the ever-evolving  market environment, while increasing investments for the future. Moving into the second half of the year, with the government's issuance of the “Guideline on Boosting the Growth of the Private Economy”, which includes several favorable policies for the sports industry, we maintain an optimistic outlook about the consumption prospects of the sportswear sector. The Group will persist in supporting the real economy, deepening the multi-brand synergy model, elevating corporate governance standards, and upholding its leading position in the industry through technological innovation and refined operation."