ANTA Sports Products (2020) H1 2024 earnings summary

Executive summary

• H1 revenue rose 13.8% YoY to CNY 33.735bn, with all brands contributing to growth.

• Profit attributable to equity shareholders increased 62.6% to CNY 7.72bn, including Amer Sports Listing effects; excluding those effects, it rose 17.0% to CNY 6.16bn.

• Gross profit margin rose 0.8 percentage point to 64.1%, while operating profit margin remained stable at 25.7%.

• Net operating cash inflow was CNY 8.50bn and free cash inflow was CNY 7.62bn.

• Interim dividend increased 43.9% to HKD 1.18 per share; payout ratio was 50.1% excluding Amer Sports Listing effects.

Financial highlights

• Operating profit grew 13.6% to CNY 8.66bn; basic EPS increased 58.0% to CNY 2.75.

• Net profit margin rose to 25.0% from 17.9% YoY.

• R&D expense rose 36% YoY, with the R&D expense ratio increasing to 2.7% of revenue.

• Advertising and promotion expense ratio increased 0.4 percentage point to 7.5%, within budget amid a major sports year.

Outlook and guidance

• Management remains cautiously optimistic about China's sportswear industry, emphasizing single-focus, multi-brand and globalization strategies while pursuing growth with stable profitability.

• Year-end 2024 store targets: ANTA 7,100–7,200; ANTA KIDS 2,800–2,900; FILA/FILA KIDS/FUSION 2,100–2,200; DESCENTE 220–230; KOLON SPORT 190–200.

• Plans include expanding overseas beyond Southeast Asia, investing in R&D and digitalization, and developing global design resources and supply chains.

• ANTA will refine store formats and product mixes; FILA will strengthen golf and urban tennis, while outdoor brands pursue broader market penetration.