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  Executive Directors
Mr. Ding Shizhong
ANTA Sports Products Limited Chairman

Mr. Ding Shijia
Mr. Lai Shixian
Mr. Wang Wenmo
Mr. Wu Yonghua
Mr. Zheng Jie

Company Secretary
Mr. Lam Jim
Mr. Tse Kin Chung

Independent Non-Executive Directors
Mr. Yeung Chi Tat
Mr. Lu Hong Te
Mr. Dai Zhongchuan

Chairman's Statement

Dear Shareholders,

On behalf of the Board, I am pleased to present our annual results for the year ended 31 December 2015.

We Delivered Record-breaking Results and Sustainable Growth

Facing rapid changes and intense competition in China’s sportswear industry, we have enhanced product differentiation and implemented retail-oriented measures aimed at offering innovative products that fully match consumer demand, thereby gaining market share and improving retailers’ profitability in the long run. Our revenue increased by 24.7% to RMB11.13 billion for the year (2014: RMB8.92 billion), not only due to the growing demand for our differentiated value-for-money ANTA products, but also due to notable growth in other businesses, such as ANTA Kids, Fila and e-commerce businesses. Profit attributable to equity shareholders rose by 20.0% to RMB2,040.6 million (2014: RMB1,700.3 million), with basic earnings per share amounting to RMB81.66 cents (2014: RMB68.12 cents). To provide attractive returns to our shareholders, the Board proposed a final dividend of HK30 cents per ordinary share (2014: HK28 cents) and a special dividend of HK8 cents per ordinary share (2014: HK8 cents), together with an interim dividend of HK30 cents per ordinary share (2014: HK25 cents) paid in September 2015, representing a payout ratio of 70.0% of profit attributable to equity shareholders for the year (2014: 71.1%).

We Strengthen Our Leading Position in Key Sports Categories and Target Markets

We have consistently positioned ANTA as a functional sportswear brand that focuses on the mass market and have enriched and brought into full play our unique sports resources to differentiate ANTA from its peers. During the year, we put forth our best efforts to reinforce our influence and leading position in China’s basketball market by promoting ANTA’s professional image and value-for-money products with ANTA-endorsed NBA players in China. We signed an endorsement contract with Klay Thompson, a star shooting guard of the Golden State Warriors. We held a China Tour for Klay Thompson to meet fans and promote ANTA professional basketball gear after he won his first NBA championship of the 2014-2015 NBA season. Also, his first signature basketball shoe “KT1” has been available for sale in China and San Francisco, United States. In addition, we unveiled a new campaign for running, “RUN WITH ME”, in order to maintain ANTA’s leadership in China’s running market by boosting participation in running. The campaign aims to raise the popularity of ANTA’s premium running technologies and professional products among the general public. What’s more, we have tailor-made supreme functional running shoes – “Challenge 100” – in helping renowned Chinese ultra-marathon runner Chen Penbin finish 100 marathons in 100 consecutive days. As an official partner of the COC, we made full use of this event to unite China in its bid to host the 2022 Winter Olympics. More importantly, we have tapped the soccer market and have kicked off an all-rounded “PLAY IS ALL” soccer strategy with four-pronged campaigns, including matches, coaching, gear and pitches, through the cooperation with Jiangsu Administration of Sports, Evergrande Football School, Shuhua Company Limited as well as current China’s national soccer team captain Zheng Zhi.

We Offer Innovative Value-for-Money Sportswear to Consumers

Innovation is one of our key success factors. Our strong capacity for innovation continues to bring us greater differentiation and helps us extend our leading position in China’s sportswear market. During the year, we upgraded our A-Web 2.0 to A-Web 3.0 which provides better cooling and ventilation for the vamp. We developed and adopted a number of brand new technologies and advanced fabrics in all kinds of our footwear and apparel products, such as A-Strata, A-Reno, A-Fit, A-Grip, A-Infrared Warm, A-Frozen Skin III, A-Sports Energy, etc. Furthermore, we tailor-made the supreme functional running shoe “Challenge 100” applying exceptional materials and advanced technologies for professional longdistance runners. In addition, we introduced an unprecedented Control-5WD basketball shoe offering a better balance of pressure on the foot and a more comfortable fit, and the technology can increase friction, stability and speed for basketball players, in particular point guards, in basketball games. All these premium functional products are selling for under RMB500 and have been well received by sports lovers and consumers in the mass market in China. Thanks to our strong product differentiation and good value-for-money, we have gained the largest market share of travel and sports shoes in China for the 14th consecutive year.

We Enhanced Store Efficiency to Maintain Distribution Network’s Competitiveness

We have always worked hard to help our retailers stay competitive, and have been improving their profitability and sustainability by taking comprehensive retail-oriented measures. In addition to implementing a streamlined distribution structure and emphasising retail efficiency in our corporate culture and values, we have engaged in thorough analysis of real-time retail performance and inventory movements gathered from our ERP system and provided to our retailers more precise future order guidelines according to the most up-to-date market trends and changes in consumer demand with an aim to minimising our retailers’ inventory risks. Furthermore, we have consolidated the smaller, less efficient stores while continuing to open bigger and more attractive stores adopting our latest seventh-generation store layout in prime locations so as to enhance overall store efficiency. We have continued to strengthen ANTA Kids and FILA’s presence across China. By the end of 2015, the numbers of ANTA stores, ANTA Kids sportswear series stores and FILA stores stood at 7,031, 1,458 and 591, respectively. We also opened around 50 FILA KIDS stores so as to tap the potential in the high-end children’s clothing market. More importantly, we have progressively expanded our e-commerce business to capture the tremendous demand from the growing number of online shoppers and to bring synergy to both our online and offline retailers.

We Outperform through Effective Multibrand and Omni-channel Strategies

Despite the intense competition in China’s sportswear industry, we delivered remarkable results and hit the peak again for the year. Looking ahead, our brands – ANTA, ANTA Kids, NBA, FILA and FILA KIDS – are always focused on the sportswear market and are well-equipped to tap the full potential of their target markets, benefiting from the Chinese government’s new two-child policy, as well as its measures to boost sports-related consumption and to accelerate the development of the sports industry and the growing popularity of sports participation. To gain market share from our competitors and to achieve long-term sustainable growth, we will strengthen our brands’ recognition with the support of strong influence of our sponsorship resources, endorsers, ambassadors and cross-border collaborations, and will offer more innovative, stylish, differentiated, and value-for-money products that fit consumer preferences and needs in different markets. Moreover, we will focus more on the consumer experience by bringing into full play Big Data and social media aiming to drive sales for and bring synergy to all forms of retail channels, including online and offline stores. Therefore, we will not only enhance store efficiency by optimising store size, location and product displays, but will also offer a more pleasant and comfortable shopping experience to customers by encouraging retailers to adopt our latest store layout and optimising online stores’ interface, functions, delivery and after-sales services.

On behalf of the Board, I would like to express my sincere gratitude to our shareholders for their steadfast support and to all of our staff members for their unmatched dedication. We will work hard to ensure steady growth and to create greater value for our stakeholders over the long run.

 


Ding Shizhong
Chairman
Hong Kong, 23 February 2016

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