Anta Shoes Business Turnover In The First Half Of More Than 2 Billion 200 Million Yuan

Yesterday, Anta Sports Products Limited disclosed the company's performance report in the first half of the year.

The report shows that as of June 30th this year, Anta's turnover in the first half of the year amounted to RMB 2 billion 205 million 200 thousand yuan, up 52.3% from 1 billion 447 million 700 thousand yuan in the same period last year, the gross profit margin increased by 5.1% to 38.9%, the pre tax profit growth reached 77.3% yuan to 418 million 600 thousand yuan, and the profit margin of shareholders was RMB 434 million 300 thousand yuan, which was more than doubled compared with 203 million 300 thousand yuan in the same period last year.

Anta's board of directors recommends an interim dividend of HK $10 per share in 2008.

The eastern and northern market sales grew rapidly. According to the China Daily, 664 retail outlets in the first half of this year added 269 retail outlets, renovated and improved the retail image of 269 retail outlets, integrated 187 smaller retail outlets, and increased 477 retail outlets, and opened 8 flagship stores in Shenyang, Wuhan, Shanghai (two), Beijing, Changsha, Chongqing and Xiamen.

By the first half of the year, the company managed and operated 5193 Anta brand franchised retail outlets across China through 46 distributors. It is expected to increase to about 5400 in the year and add 2 to 10 flagship stores in the core market.

During the period of sales according to the sales area, the turnover in the eastern and northern markets increased significantly. The Eastern market turnover increased from 582 million 600 thousand yuan in 2007 to 943 million 900 thousand yuan, accounting for 42.8% of the total turnover, while the turnover in the northern market increased from 263 million 700 thousand yuan in 2007 to 454 million 700 thousand yuan, accounting for 20.6% of the total turnover.

The report explained that the main reason was that Anta opened new flagship stores in Beijing, Shanghai and Hunan in the first half of the year, and expanded distribution networks in densely populated markets such as Hunan, Shandong, Hubei and Henan.

In the second half of the year, we will open up fashionable shoe shops and children's products stores. Besides expanding retail stores, Anta also expects to open fashionable shoe stores and children's stores in the second half of the year, so that Anta products can penetrate into more populous cities and increase sales network penetration.

Anta company responsible person believes that the children's sporting goods market has great potential for development, and will become a new growth point for Anta's future profits. Anta will take the lead in providing sports shoes, clothing and accessories for children and adolescents aged 9~14, with equal emphasis on style and function, to fill the gap of children's sports products in the large market, and will open 100 children's clothing stores by the end of 2008.

At the same time, Anta faces the huge demand of fashion sports products, and will launch the fashion footwear series in the fourth quarter. It mainly aims at young people and office workers who are in fashion pursuit at the age of 15~28. At the end of the year, 100 fashion shoe stores will be set up at the end of the year.

In the first half of the year, Anta has sold the international brand sporting goods retail business with declining gross profits. Anta said it will focus on Anta brand management business and enhance its research and design capabilities in the first half of the year, and actively study the possibility of introducing international brand management business.