ANTA Sports Products (2020) H1 2024 earnings summary

Executive summary

• Revenue rose 13.8% year-over-year to RMB 33.74 billion, with all brands contributing to growth.

• Profit attributable to equity shareholders increased 62.6% to RMB 7.7 billion, with basic EPS up 58.0% to RMB 2.75.

• Operating profit margin remained flat at 25.7%, reflecting high-quality growth and operational efficiency.

• Free cash inflow reached RMB 7.62 billion, up 17.0% year-over-year, supporting stable shareholder returns.

• The group maintained a strong financial position with robust cash reserves and a net operating cash inflow of RMB 8.5 billion.

Financial highlights

• Gross profit margin improved by 0.8 percentage points to 64.1%.

• Operating profit grew 13.6% to RMB 8.66 billion.

• Net profit margin rose to 25.0% from 17.9% year-over-year.

• Basic EPS increased 58.0% to RMB 2.75.

• Interim dividend per share increased 43.9% to 118 HK cents.

Outlook and guidance

• Targeting 7,100–7,200 ANTA stores, 2,800–2,900 ANTA KIDS, 2,100–2,200 FILA/FILA KIDS/FUSION, 220–230 DESCENTE, and 190–200 KOLON SPORT stores by year-end 2024.

• Focus on mass market positioning, performance sports breakthroughs, and brand transformation.

• Continued investment in R&D, channel transformation, and digitalization.

• Management remains cautiously optimistic about the Chinese sportswear industry, focusing on single-focus, multi-brand, and globalization strategies.

• Plans include expanding differentiated store formats, enhancing product innovation, and deepening market penetration, especially in Southeast Asia and other global regions.