Under the strategic support of retail market recovery and multi-brand synergy, ANTA SPORTS-R achieved significant growth in revenue and net profit in the first half of 2023.
After the Hong Kong stock market closed on August 22nd, the group's revenue for the first half of the year reached 29.645 billion yuan, a year-on-year increase of 14.2%, and a growth of 100.2% compared to the same period in 2019. Net profit increased significantly by 39.8% to 5.26 billion yuan. The overall gross profit margin rose by 1.3 percentage points to 63.3%, reaching the highest level in years.
Among them, ANTA SPORTS-R benefited from the strong rebound in offline retail environment and the effective promotion of the Direct-To-Consumer (DTC) model. The main brand of ANTA SPORTS-R and FILA achieved revenues of 14.17 billion yuan and 12.23 billion yuan respectively, occupying two seats among the top five brands in the market, ranking second and fifth.
In addition, ANTA SPORTS-R's cash generation capacity has greatly improved. The operating cash flow in the first half of the year reached 10.16 billion yuan, a year-on-year increase of 104.1%, indicating a significant improvement in cash generation capacity. The total balance of cash and cash equivalents amounted to 45.4 billion yuan.
ANTA SPORTS Co-CEO Lai Shixian said, &#34;In the second half of the year, the group will continue to promote the 'Single Focus, Multi-Brand, Globalization' strategy, increase investment in the future, deepen the multi-brand synergy model, improve corporate governance, and lead future growth through technological innovation and refined operations.&#34;
In addition, the board of directors has declared a mid-year dividend of HKD 0.82 per ordinary share for 2023, an increase of 32.3% compared to the same period last year.
As of the close on August 22nd, ANTA SPORTS fell by 1.02% to HKD 77.65, with a market value of 220 billion yuan.
<h2>Steady Revenue Growth for the Main Brand, FILA Returns to Growth Track</h2>
The highly anticipated FILA brand has rebounded and returned to the growth track this year. In the first half of the year, FILA achieved revenue of 12.23 billion yuan, a year-on-year increase of 13.5%, accounting for 41.5% of the total revenue. Operating profit increased by nearly 50% year-on-year, with an operating profit margin of 29.7%, reaching the best level in history.
FILA pointed out that during the reporting period, the proportion of the brand's professional sports and footwear products increased, and significant growth was seen in major e-commerce platforms. The brand will continue to adhere to the strategy of &#34;Top Products, Top Brands, Top Channels&#34; and increase its layout in elite sports such as golf, tennis, skiing, and outdoor activities.
ANTA SPORTS-R's main brand achieved a revenue of RMB 14.17 billion in the first half of the year, a YoY growth of 6.1%, accounting for 51.5% of the total revenue.
In addition to the two major brands, other brand sectors including DESCENTE and KOLON saw a significant increase in revenue in the first half of 2023, with a YoY growth of 77.6% to RMB 3.25 billion. The operating profit margin also increased by 8.7 percentage points to 30.3%, reaching a record high growth rate for the 22nd consecutive quarter.
AMER SPORTS achieved a YoY revenue growth of 37.2% to RMB 13.27 billion in the first half of the year.
ANTA SPORTS-R Group revealed that the three major brands under AMER SPORTS, Arc'teryx, Salomon, and Wilson, all experienced strong growth during the reporting period. AMER SPORTS' &#34;5 Billion Euro&#34; strategy is progressing rapidly.
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<h2>ANTA SPORTS-R Takes Multiple Measures to Enhance R&amp;D Capabilities</h2>
In the first half of the year, ANTA SPORTS-R invested nearly RMB 700 million in research and development. It has established joint innovation platforms with Tsinghua University, Beijing Sport University, and other institutions, and it is expected that the cumulative investment in innovation research and development will reach RMB 20 billion by 2030.
In June of this year, ANTA SPORTS-R once again set the goal of becoming a world-class innovative enterprise by 2030. It has established the ANTA SPORTS-R Academician Workstation and ANTA SPORTS-R Postdoctoral Research Workstation, and increased investment in technology research and development and the transformation of scientific research achievements.
So far, ANTA SPORTS-R Group has accumulated more than 3,000 patent applications, with 2,020 valid patents. It ranks first among domestic sports brands in terms of patent applications, valid patents, and invention patents. Some achievements have been successfully applied.
It is reported that ANTA SPORTS-R Group, in collaboration with Donghua University, has developed a high-performance waterproof and breathable material called &#34;Breathable Membrane Technology,&#34; which has reached an international advanced level in terms of waterproof technology. It has been mass-produced and applied to ANTA SPORTS-R products. The second phase of research and development has been initiated, and significant progress is expected to be made later this year.
In addition, ANTA SPORTS-R has also launched an environmentally friendly hoodie made of CELYS™ (Celys®) biodegradable polyester fiber, which is the world's first biodegradable product in the sports field.

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ANTA SPORTS-R's main brand revenue remained robust, with a first-half revenue of CNY 14.17 billion, a YoY growth of 6.1%. The FILA brand returned to a growth trajectory, with sales reaching CNY 12.23 billion in the first half, a YoY growth of 13.5%.

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ANTA SPORTS

ANTA SPORTS-R's revenue and net profit both experienced significant growth in the first half of 2023, with gross profit margin reaching a historic high. | Earnings Report