China’s leading sportswear brand ANTA has announced its 2013 first half results which showed a decline of 18.7 percent in the company’s net profit.
The first six months that ended on June 30, 2013 reported a net profit of 625.7 million yuan (approx US$ 102.16 million) which is lower compared to the 769.6 million yuan (US$ 125.8 million) of the same period in the previous year.
ANTA’s turnover decreased by 14.4 percent to 3.37 billion yuan in the first half compared to the 3.93 billion yuan during the same period of 2012, as the Group adopted a prudent control over orders placed by retailers due to the impact from keen competition and destocking activities in the market.
Mr. Ding Shizhong, Chairman and CEO of ANTA Sports, said, China's sportswear industry still faces uncertainty associated with the unresolved excess inventory problem in the near-term. However, its mid-to long- term outlook will be promising as the Chinese Government is generally believed to put more efforts in expanding domestic demand, boosting urbanization and increasing participation in sports.
The company has seen sequential improvements in its operational performance and in the confidence of its retailers, he said, and added that strong execution and proper management of the distribution network would enable ANTA to bottom out at a faster pace than its peers.
ANTA Sports has successfully extended partnership with the Chinese Olympic Committee (COC) for the 2013 to 2016 Olympic cycle, making it the “Sportswear Partner of the COC” for eight consecutive years. The sportswear brand will provide winning outfits for the Chinese Sports Delegation participating in the Olympics.
ANTA Sports Products Limited primarily designs, develops, manufactures and markets sportswear, including, apparel and accessories.