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Page 1: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Page 2: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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DisclaimerDisclaimer

The presentation is prepared by ANTA Sports Products Limited (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and do not purport to be a complete description of the Company, its business, its current or historical operating results or its future business prospects.

This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company specifically disclaim all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation.

This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company. These forward-looking statements represent the Company’sexpectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Certain statements, such as those that include the words “potential”, “estimated”, “expects”, “anticipates”, “objective”, :intends”, “plans”, “believes”, “estimates”, and similar expressions or variations on such expressions may be considered “forward-looking statements”.

Forward-looking statements involve inherent risks and uncertainties. Readers should be cautioned that a number of factors could cause actual results to differ in some instances materially, from those anticipated or implied in any forward-looking statement. Forward-looking statements speak only as of the date they are made, and it should not be assumed that they have been reviewed or updated in the light of new information or future events. Trends and factors that are expected to affect the Company’s results of operations are described in the “Business Review and the “Financial Review”.

Page 3: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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AgendaAgenda

Financial and Operational Highlights

Financial Overview

Q and A

Milestones

Market and Business Overview

Prospects

Page 4: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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PresentersPresenters

Mr. Lai ShixianMr. Paul Ling Ms. Claudia Lo

COOCFOVP –

Investor Relations

Page 5: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Recognition in 2009� “Youth Global

Leader” Honoree

Recognition in 2009� “Youth Global

Leader” Honoree

MilestonesMilestones

Distribution Network� Number of ANTA stores

reached the 5,000 milestone and 9 flagship stores were opened

� ANTA’s brand exhibition hall and image store were set up

Distribution Network� Number of ANTA stores

reached the 5,000 milestone and 9 flagship stores were opened

� ANTA’s brand exhibition hall and image store were set up

Business Development� Trendy sneaker and Kids

sportswear business successfully launched

� Disposed of the international branded sportswear retail business

Business Development� Trendy sneaker and Kids

sportswear business successfully launched

� Disposed of the international branded sportswear retail business

Market Position� ANTA’s footwear has

been the lead in the “composite index on market share of sports footwear in China” for seven consecutive years from 2001 to 2007

Market Position� ANTA’s footwear has

been the lead in the “composite index on market share of sports footwear in China” for seven consecutive years from 2001 to 2007

Recognitions in 2008� “Ernst & Young

Entrepreneur of the Year China 2008”

� “Certificate of Excellence –IR Award 2008”

� “The Most Benevolent Foreign Enterprise – China Charity Award 2008”

Recognitions in 2008� “Ernst & Young

Entrepreneur of the Year China 2008”

� “Certificate of Excellence –IR Award 2008”

� “The Most Benevolent Foreign Enterprise – China Charity Award 2008”

Brand Equity� The “CBA ANTA Stars

Training Camp” and “China Tour” were held

� ANTA basketball shoes were showcased in the “Rookie Challenge” and Beijing Olympics 2008

Brand Equity� The “CBA ANTA Stars

Training Camp” and “China Tour” were held

� ANTA basketball shoes were showcased in the “Rookie Challenge” and Beijing Olympics 2008

Page 6: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Financial HighlightsFinancial Highlights

���� 34.8% pts33.8%Dividend payout ratio

--8.0Special dividend per share (HK cents)

RMB millionRMB million

���� 25.0%8.010.0Final dividend per share (HK cents)

���� 41.9%25.335.9Basic earnings per share (RMB cents)

Change

���� 94.2%479.3930.7Operating profit

2007*2008

���� 66.4%

���� 84.9%

537.8

999.9

2,988.7

894.8Profit attributable to shareholders

1,848.6Gross profit

4,626.8Turnover

Strong profitability and sustainable financial growth

���� 1.3% pts18.0%19.3%Net profit margin

Gross profit margin

���� 4.1% pts16.0%Operating profit margin

33.5%

Change2007*2008

* Restated as a result of separate disclosure of operation discontinued in 2008 (“Restated”)

40.0%

20.1%

���� 6.5% pts

68.6%

���� 54.8%

Page 7: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Operational HighlightsOperational Highlights

���� 9.6%92.0Average sales floor area of ANTA stores (sq.m.)

No. of ANTA stores

���� 31.7%433,843571,204Total sales floor area of ANTA stores (sq.m.)

���� 9514,7165,667

Change20072008

Remarkable store and product performance

35.658.635.355.2Average cost per unit sold (RMB)

33.9 ���� 43.6���� 46.423.618.326.8Volume sold (Million pairs/pieces)

Apparel

53.6

Apparel

57.0

Apparel FootwearFootwearFootwear

Average selling price#

(RMB) 88.094.0

Change (in %)20072008

# At wholesale price

100.8

���� 6.8 ���� 6.3

���� 5.8 ���� 0.8

Page 8: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Financial OverviewFinancial Overview

Luis ScolaANTA’s endorsed basketball player,

Spanish League and

FIBA American Cup MVP,

Athens Olympics 2004 gold medalist

Page 9: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Turnover by ProductsTurnover by Products

Balanced strong growth of products

(in %)

Change

100.0

3.7

41.8

54.5

% of turnover % of turnoverRMB millionRMB million

���� 45.93.9118.6173.0Accessories

2007*2008

���� 54.8

���� 52.9

���� 56.9

2,988.7

1,263.4

1,606.7

100.04,626.8Total

42.31,932.2Apparel

53.82,521.6Footwear

Remarkable increase in ANTA brand’s turnover due to:� Increase in average selling prices on both wholesale and retail levels� Additional product offerings� Expansion of distribution network

* Restated

Page 10: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Turnover by RegionsTurnover by Regions

(in %)

Change

Total

International ���� 14.80.925.70.521.9

���� 54.8100.02,988.7100.04,626.8

99.5

21.0

35.2

43.3

% of turnover % of turnoverRMB millionRMB million

���� 81.517.9535.3971.4Northern region

2007*2008

���� 55.4

���� 34.7

���� 64.5

2,963.0

1,208.6

1,219.1

99.14,604.9China

40.41,628.5Southern region

40.82,005.0Eastern region

Notable increase in turnover in eastern & northern regions

Strong growth of turnover in eastern and northern regions due to:� Opening of new flagship stores in Beijing, Shanghai, Wuhan, Changsha and Hefei� Expansion of distribution network in Hunan, Shandong, Hubei and Henan with large

population

Notes: (1) Eastern region includes Hunan, Hubei, Henan, Anhui, Jiangxi, Zhejiang, Jiangsu and Shanghai.(2) Southern region includes Guangdong, Guangxi, Fujian, Hainan, Guizhou, Yunnan, Sichuan, Chongqing and Tibet.(3) Northern region includes Beijing, Hebei, Inner Mongolia, Shanxi, Shandong, Gansu, Ningxia, Qinghai, Tianjin, Xinjiang,

Shaanxi, Liaoning, Heilongjiang and Jilin.

* Restated

Page 11: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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ASP & Volume GrowthASP & Volume Growth

ASP growth (wholesale price) due to:� Increase in consumers’ disposable

income and demand on sportswear� Strengthened brand desirability� Provision of more supports and services

to distributors

Volume growth due to:� Upgrade of brand and ANTA store image � Opening of flagship stores at prime

locations� Widening of product range

Significant growth in ASP and sales volume

� 6.8%

� 6.3%

� 43.6%

� 46.4%

ASP Growth (Wholesale Price) Volume Growth

* Restated * Restated

* *

Page 12: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Cost Efficiency & Cost BreakdownCost Efficiency & Cost Breakdown

(in %)

Change

OEM/ODM

���� 39.7100.01,988.8100.02,778.2Total

Sub-contracting charges

Raw materials

Overhead

Direct labour

Raw materials

Outsourced production

���� 9.611.0219.68.6240.6

���� 61.339.9793.546.11,279.9

15.0

5.5

5.5

19.3

% of total cost of sales

% of total cost of sales

RMB millionRMB million

���� 30.15.9117.2152.5

2007*2008

���� 48.7

���� 25.9

���� 17.3

280.0

120.9

457.6

14.1416.3Sub-contracting arrangement

6.1152.2

23.0536.7Self-production

Cost saving due to:� Shoe sole factory running in full capacity,

achieving scale effect� Purchase of raw materials in advance,

reducing price fluctuations� Purchase of raw materials together with OEM

suppliers, enjoying mass-purchase discount

� 5.8%

� 0.8%

* Restated

Effective cost control

*

Average Cost Per Unit Sold

Page 13: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Outstanding Store PerformanceOutstanding Store Performance

2,9634,605Turnover+ (RMB million)

367,593505,268Sales floor area (sq.m.)

Change

679,587

8,061

84.3

4,360

Per store (RMB)

Per sq.m. (RMB)

Sales floor area per store (sq.m.)

No. of ANTA stores

881,171

2007*2008

9,114Weighted average sales contribution#

96.7

5,226Weighted average

Outstanding store performance due to upgrade and expansion of distribution network

* Restated# At ex-factory prices + Excluding international sales

No. of Stores and Total Sales Floor Area of Stores

���� 19.9%

���� 14.7%

���� 37.5%

���� 13.1%

���� 55.4%

���� 29.7%

Page 14: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Margin AnalysisMargin Analysis

Impressive growth in gross profit margin

Gross profit and gross profit margin breakdown by product

Change in GP margin

40.0%

41.2%

38.0%

41.3%

GP margin GP marginGP (RMB million)GP (RMB million)

���� 5.4% pts35.8%42.471.2Accessories

2007*2008

���� 6.5% pts

���� 4.5% pts

999.9

422.8

534.7

33.5%1,848.6Overall

33.5%735.1Apparel

33.3%1,042.3Footwear

Gross profit margin expansion:� Increase in average selling prices for

footwear and apparel > changes in average costs of footwear and apparel

� 6.5% pts

*

Gross Profit Margin

* Restated

���� 8.0% pts

Page 15: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Margin Analysis (contMargin Analysis (cont’’d)d)

Continuous growth in operating profit margin and net profit margin

Drive for operating profit margin ���� :

� GP margin gain partially offset by the increase of A&P expenses for the Olympics campaign and the expansion and enhancement of distribution network

Net profit margin growth < operatingprofit margin growth due to:� Decrease in interest income� IPO interest = non-recurring item

� 4.1% pts � 1.3% pts

* Restated * Restated

Operating Profit/(Loss) Margin Net Profit/(Loss) Margin

* *

Page 16: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Operating Expenses RatiosOperating Expenses Ratios

R&D costs(as a % of cost of sales)

A&P expenses (as a % of turnover)

Staff costs(as a % of turnover)

* **

* Restated * Restated * Restated

� 1.4% pts � 0.5% pts � 0.1% pts

A&P expenses ���� due to: � Launching Olympic

campaigns

R&D costs ���� due to: � Enhancing R&D

capabilities

Staff costs remainedconstant despite thestrengthening of qualityand expansion of ourmanagement team

Page 17: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Effective Tax Rate &Effective Tax Rate &Working Capital ManagementWorking Capital Management

In 365 days

In 366 days

5139Average trade and bills payables turnover days

20072008

14

44

15Average trade receivable turnover days

43Average inventory turnover days

Effective tax rate Asset / liabilities turnover ratios

* Restated

*� Sound control of inventory level � Healthy financial positions of our

distributors� Acceleration of the payment of payables

so as to obtain preferential terms on mass purchases

� 2.8% pts

Effective tax rate ���� because:� Certain subsidiaries in the PRC are

entitled to preferential tax treatments� Interest income derived from bank

deposits in Hong Kong is non-taxable

Page 18: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Liquidity and Financial ResourcesLiquidity and Financial Resources

Strong Cash Flows

0.13.4Sales proceeds of fixed assets

(335.6)62.0Working capital movements

RMB millionRMB million

(24.8)Free cash inflow/(outflow)

(264.5)(177.4)CAPEX

-(14.7)Disposal of subsidiaries

239.6Operating cash inflow

68.925.3Tax and interest

(92.8)(34.1)Non-cash adjustments

599.1962.6Profit before tax

2007*2008

* Restated

1,015.8

827.1

� Remarkable improvement in working capital and outstanding operating results� Strong free cash flow supports high dividend payout ratio� No bank loans and interest expenses

Page 19: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Strong Financial PositionsStrong Financial Positions

Page 20: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Concentrations and CAPEXConcentrations and CAPEX

% of total sales% of total sales

37.0%33.7%Five largest customers in aggregate

12.1%11.9%The largest customer

2007*2008Major customers

% of total purchases% of total purchases

30.2%26.7%Five largest suppliers in aggregate

10.7%6.1%The largest supplier

2007*2008Major suppliers

* Restated

* Restated

� Expansion of footwear production facilities in Jinjiang� Development of new information management system� Establishment of an operational center in Xiamen

CAPEX in 2009 = RMB244.9 million

Page 21: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Wang HaoANTA’s endorsed table tennis player, Beijing Olympics 2008 gold medalist

of table tennis men’s team

Market and Market and Business OverviewBusiness Overview

Page 22: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Market ReviewMarket Review

China will maintain a “stable and relatively fast” economic growthSound potential in various sportswear market segments

Challenges:� Global financial crisis and economic

slowdown� Increase of unemployment rate and

decrease of income level� More cautious spending� Fast changing customers’ tastes and

preferences

Opportunities:� Fiscal and monetary policies to boost

economic growth� Increase in government spending to

create more jobs as well as to stabliseincome level

� Domestic demand stimulus plans to encourage consumption

� Sporting events promotion, raised health awareness and sport participation driving higher demand for sportswear

� Increasing demand for professional, stylish and value-for-money sportswear

Page 23: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Competitive AdvantagesCompetitive Advantages

� Strong in-house production capabilities

� Stratified management system of suppliers

� Flexible OEM/ODM arrangement

� Diversified sponsorship resources

� Brand internationalisation

� Nationwide brand recognition and awareness

� Quick response to market demand

� Wide spread of our network

� Effective management of distributors

� Wide range of products

� Drive for national quality standards setting

� Strong alliance with designers and R&D institutes

Strong Brand Equity

R&D and Design Capabilities

Nationwide Distribution Network

Supply Chain Management

Page 24: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Integrated Sponsorship ResourcesIntegrated Sponsorship Resources

Basketball: CBA

Table Tennis Volleyball

Basketball: International

MarathonANTA CCTV Sports

Personality

� Introduction of Luis Scola in China

� Scola’s designated basketball shoes

� Dalian International Marathon

� Potential CBA players

� CBA ANTA Stars Training Camp

� China Table Tennis Super League � ANTA National Volleyball League

Page 25: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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MultiMulti--dimensional dimensional Advertising ExposureAdvertising Exposure

Olympics promotional campaigns

Promotional campaigns for endorsed players

Interaction with consumers

� “Fuel Up China”

� “My Tough Backbone is Made of China Spirit”

� China Tour for Luis Scola and Steve Francis in August 2008

� “Harder Training brings brighter flame”

�� Online blogs and forums enhanced interaction with consumers

Page 26: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Nationwide Distribution NetworkNationwide Distribution Network

���� 20.2%

���� 21.0%

���� 19.7%

���� 19.9%

Change Refurbished2008

5,667

1,524

1,783

2,360

Expanded

1,567

479

422

666

1952141,259Northern region

Consolidated2007

787

235

357

616

128

274

4,716Total

1,489Southern region

1,968Eastern region

Rapid growth of distribution network Distribution & retail network

N/A33

20072008

N/A

4,716

81

5,667

Page 27: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Effective Store ManagementEffective Store Management

Smarter ANTA store image

Effective management of distributors and franchisees

� Organised “Display Management Competition” to improve ANTA store display

� Launched the fifth generation stores of better decoration and product display setting

� “Distributors Management Guidelines” to standardiseoperational procedures

� Incentive discounts offered under the stratified management system

� Introduced “Mysterious Shoppers” assessments� Provided frequent trainings for distributors and

franchisees to enhance inventory management and customer service

Page 28: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Strong R&D and Design CapabilitiesStrong R&D and Design Capabilities

Fruitful R&D and design rewards

� “Hydrogen Running Shoes” - feather light but supreme shock absorbance

� Breathable footwear and apparel with “A-Cool” technology

� > 2,200 and 2,500 new footwear and

apparel styles designed by local and international designers

� “Scola II” basketball shoes designed by renowned sportswear designers

� Basketball shoes with “A-Cozel II” and “A-Core II”technology, enhancing the shock resistance capabilities and comfortableness

� “A-Form Running Shoes” - endurant and protective

Page 29: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Stringent Quality ControlStringent Quality Control

Test the bending and anti-torsion ability of the footwear’s forepart

Shoe torsion resistance and flexibility measurement

Test the durability and safety of sports apparel

Apparel color and formaldehyde test

Test the fatigue resistance and durability

Fatigue and low temperature test

Test the permeability and comfort inside the shoe

Footwear comfort test

ContentsQuality control measures

� Fatigue resistance and durability test for footwear

� Measuring the feet size, body movement and stress burden of Steve Francis by advanced intruments

� Steve Francis tested his designated basketball shoes at the ANTA’sSports and Science Lab

Page 30: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Supply Chain ManagementSupply Chain Management

Extensive in-house production scale

Stratified suppliers management system

� Proportion of self-production in 2008:

Footwear 50.0%; apparel 11.7%

� Conducted quarterly reviews to boost suppliers’performance and quality

� Collective purchase of raw materials to enjoy mass-purchase discounts

� Established the “Suppliers’ Quality Evaluation Handbook”and the “Suppliers’ Incentive Scheme” for suppliers

� Introduced more ODM to reinforce the design capabilities

ChangtingApparel produced: approx. 2.2M pcs

XiamenApparel produced: approx. 2.3M pcs

AnhaiShoe sole produced: approx. 9.3M pcs

Chendai and ChidianFootwear produced: approx. 12.6M pairs(23 footwear production lines and 3 footwear production lines in the trial stage)

Page 31: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Jelena JankovicANTA’s endorsed tennis player,

one of the world’s top

female singles tennis players

ProspectsProspects

Page 32: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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ProspectsProspects

Market and products diversification

� Favourable response from the penetration into Kids sportswear and Trendy sneaker segments - the Group will continue to tap potential market segments

Sponsorship and endorsement

� Jelena Jankovic, our endorsed tennis player

Page 33: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Prospects (contProspects (cont’’d)d)

Further penetration of distribution network

Enhancement of R&D and quality control capabilities

Optimisation of supply chain management

Store Expansion Planin 2009:ANTA Stores� �from 5,667 to 6,200Kids Series Stores� �from 81 to 200Trendy Sneaker Stores� �from 33 to 200

Page 34: ANTA AR08 PPT yin - TodayIR · ANTA stores (sq.m.) No. of ANTA stores Total sales floor area of 571,204 433,843 31.7% ANTA stores (sq.m.) 5,667 4,716 951 2008 2007 Change Remarkable

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Thank YouThank You

ANTA Sports Products Limited Hill and Knowlton Asia Limited

Investor Relations Department

Tel: (852) 2116-1660 (852) 2894-6283

Fax: (852) 2116-1590 (852) 2576-1990

E-mail: [email protected] / [email protected] [email protected]