Anta plans to continue to open 600 stores to actively expand its apparel business during the year

Sportswear seller Anta Sports (2020), last year's recurring net profit rose 2.3 times year-on-year to 480 million yuan (renminbi, the same below), the amount of profit almost equal to its peer Li Ning (2331). Anta Chief Operating Officer Lai Shih-hsien said that 600 stores have been opened in the Mainland this year, and the total number of stores has reached 5,300.

Last year opened 608 stores rose 1.5 times

Anta opened 608 nets last year, prompting ANTA's turnover to increase 1.5 times. When Lai Shixian accepted the newspaper’s visit, he said that 600 stores are not too much to open this year, and denied that the positive effect of the Olympic Games on the sale of sporting goods is overly optimistic.

He said that the sales volume of ANTABO shoes in the Mainland last year topped the list at 18.3 million pairs, and the development potential of this market is huge. For example, he currently has 0.1 double-wave shoes per person in the Mainland. If wave shoes can be popularized to one pair per person, Anta seizes a popular brand position and seizes a business in the market. The production capacity of wave shoes is currently 7 Times.

According to a report from Credit Suisse, Li Ning’s revenue for the entire year was RMB 440 million, and ANTA’s net interest income of RMB 56.9 million was recorded after the listing was frozen. The net profit rose by 2.3 times year-on-year to RMB 480 million. The profit almost equals Li Ning.

Lai Shih-hsing believes profitability has risen sharply because of the increase in sales volume of Anta's brand awareness. He pointed out that the ex-factory price of Anta's merchandise is 41.5% to 43% of the selling price, and the price is reasonable, so distributors are willing to purchase goods from Anta.

Extension garment business to acquire high-end brands

In addition, apart from the production and sales of wave shoes, Anta has also actively expanded its apparel business, which has enabled Anta to diversify its products and increase overall gross profit margin. He pointed out that apparel sales accounted for only 13.2% of total sales in 2004, reaching 40% last year. He hopes that the proportion of apparel sales to sales can maintain this level.

“We are already one of the four major brands in the Mainland, and we are focusing on the popular market.” Lai Shixian said that he will focus on the development of the Anta brand and will develop the Anta children's series this year. The business is expected to account for 5% of the turnover within three years. He said that he hopes to acquire more upscale international brands and the estimated purchase amount will not exceed 40 million U.S. dollars.