Quietly, the Chinese sportswear manufacturer Anta has become a major player in the outdoor scene. A decisive and ingenious step was the takeover of the Amer Group by Anta Sports in 2019. Anta CEO Ding Shizhong paid $5.2 billion for the deal and thus created a portfolio consisting of the brands such as Peak Performance, Salomon and Atomic. Back in 2009, Anta Sports bought then the struggling sports brand Fila. In the years that followed, the company made further acquisitions such as Kolon Sport and Descente.
Having maintained our focus during the ups and downs in the past 30 years, ANTA Sports was able to look back on three extraordinary decades with pride. Through our “Single-focus, Multi-brand, Omni-channel” strategy, we have been successfully fulfilling various consumer needs with our multi- brand portfolio, achieving a “Consumer-centric” approach alongside “High-quality Growth”. As a result of our dedication over the past 30 years, all our brands have established a leading edge in China’s sportswear market, allowing us to become a respectable world-class, multi-brand sportswear group.
Realizing High-quality Growth
During the financial period, Anta grasped the opportunities of recovery after the slowdown of pandemic. The revenue grew significantly by 55.5%, a strong rebound and new record high over the years. All brands performed satisfactorily and drove the overall gross profit margin to a new record high as well. During the financial period, the gross profit margin grew by 6.4% point to 63.2%. Moreover, the expansion of business resulted in the net cash generated from operating activities increasing by 163.6%, and free cash inflow increasing by 208.1%, reflecting Anta’s strong cash generation capability.
China’s economy and sportswear market rebounded. With the increasing concern towards health, 2021 will be vital to the global sports industry. Sports and fitness have become a habit to most of the public. Major leagues and tournaments have been resumed to normal in most countries around the world. The sportswear industry in China has been transforming rapidly under the increasing awareness of healthy lifestyle, with consumers looking for professional, customized and differentiated sportswear instead of casual wear, helping to stimulate the growth of high- end products in the industry.
With a stock market value of 38 billion dollars, the company is now the third-largest sportswear company in the world after Nike and Adidas. Anta CEO Shizhong’s buy-and-build strategy is ingenious and the market for sporting goods will continue to grow over the next 25 years.