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Benefiting from the sports consumption boom brought about by the Olympic year, as well as the rapid expansion of its joint ventures, Anta has presented a highly impressive semi-annual report: net profit soared by 62.6% year-on-year, and revenue also achieved a significant double-digit percentage increase.

Following the release of the financial report, Anta generously announced its intention to use no more than 10 billion Hong Kong dollars to repurchase shares in the open market, with the repurchased shares to be canceled.

On Tuesday, August 27, Anta Sports released its financial report for the first half of 2024.

1) Key financial data:

Revenue: Anta's first-half revenue was 33.74 billion yuan, a year-on-year increase of 13.8%, exceeding market expectations of 32.97 billion yuan;

Profit: The first-half gross margin slightly increased to 64.1%, exceeding expectations of 63.2%; attributable net profit was 7.72 billion yuan, a year-on-year increase of 62.6%, with expectations of 6.05 billion yuan; net profit excluding the impact of joint ventures was 6.16 billion yuan, a year-on-year increase of 17.0%.

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Cash flow: The net inflow from operating activities in the first half was 8.502 billion yuan, with free cash flow at 7.619 billion yuan.

2) Shareholder returns

Dividends: The board declared an interim dividend of 1.18 Hong Kong dollars per ordinary share;

Repurchase: It plans to use no more than 10 billion Hong Kong dollars to repurchase shares in the open market, with the repurchased shares to be canceled within the next 18 months.Anta brand revenue saw a year-on-year increase of 13.5%, while FILA revenue grew by 6.8%.

This year has been a significant year for sports, with Anta's main brand Anta achieving rapid expansion and FILA's revenue experiencing a slight increase. Specifically:

Anta's first-half revenue was 16.08 billion yuan, a year-on-year increase of 13.5%, with a gross margin of 56.6%, an increase of 0.8 percentage points year-on-year;

FILA's revenue was 13.06 billion yuan, a year-on-year increase of 6.8%; the gross margin was 70.2%, an increase of 1.0 percentage points year-on-year;

Revenue from other brands was 4.6 billion yuan, a year-on-year increase of 41.8%, with a gross margin of 72.7%, a decrease of 0.7 percentage points year-on-year.

Anta stated that its high-end outdoor sports brand DESCENTE saw a significant increase in revenue in the first half of the year, and KOLON SPORT also recorded growth in revenue. Specific consumer group brands, including Anta Kids, FILA KIDS, FILA FUSION, etc., saw a year-on-year increase in revenue of 41.8% in the first half, reaching 4.6 billion yuan.

Amer Sports, an important investment of Anta Sports, successfully went public on the NYSE in 2024, bringing strategic synergies and an enhancement of brand value to Anta Sports.

The company has increased the number of stores in Mainland China and overseas, especially the growth of FILA brand stores. Financial reports show that as of June 30, 2024, the total number of FILA brand stores worldwide was 1,981. In comparison, the total number of Anta brand stores worldwide was 7,073.

In the first half of the year, Anta Group's R&D investment further expanded, approaching the 1 billion yuan mark, with a year-on-year increase of over 30%, reaching nearly 1.5 times the total R&D expenses of Li-Ning, Xtep, and 361 degrees during the same period.