ANTA Sports Products Limited ANTAA SSports

120 Pages·2013·6.91 MB·English

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As the sportswear partner of the COC, we provided
high-quality winning outfit to the CSD from 2009 through
2012. We are proud to extend this exclusive partnership
for the next four years.
The 16th Asian Games
November 2010 The 6th East Asian Games
The 2nd Guangzhou, China October 2013
Winter Youth Olympic Games
Tianjin, China
February-March 2016 The 3rd Asian Indoor Games
Lillehammer, Norway November 2009
The 30th Summer Olympic Games Hanoi, Vietnam The 4th Asian Indoor and
July-August 2012 Martial Arts Games
London, United Kingdom The 7th Asian Winter Games June-July 2013
February 2011 Incheon, South Korea
Almaty, Kazakhstan
The 17th Asian Games
September-October 2014
Incheon, South Korea
The 3rd
Asian Beach Gaammeess
August 2012
Haiyang, China
The 4th
Asian Beach Games
The 21st November 2014
Winter Olympic Games Phuket, Thailand
February 2010
Vancouver, Canada The 22nd
Winter Olympic Games The 1st The 2nd Asian Youutthh GGaammeess
The 1st February 2014 Asian Youth Games August 2013
Winter Youth Olympic Games Sochi, Russia July 2009 Nanjing, China
Singapore
January 2012
The 2nd Asian Beach Games
Innsbruck, Austria The 2nd
December 2010 The 1st
Summer Youth Olyymmppiicc GGaammeesss
Muscat, Oman Summer Youth
August 2014
Olympic Games
Nanjing, China
August 2010
The 31st Singapore
Summer Olympic Games The 5th East Asiann GGaammeess
August 2016 December 2009
Rio de Janeiro, Brazil Hong Kong SAR, Chhiinnaa
The 5th Asian Beaacchh GGaammeess
2016
Nha Trang, Vietnamm
International sporting events held in 2009-2012
International sporting events to be held in 2013-2016
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45 Financial Review
49 Prospects
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Back
Cover)
CORPORATE INFORMATION
Board
Executive Directors Ding Shizhong (Chairman) Ding Shijia (Deputy Chairman)
Lai Shixian Wang Wenmo Wu Yonghua Zheng Jie
Independent Non-Executive Directors Yeung Chi Tat Lu Hong Te Dai Zhongchuan
Company Secretary Ling Shing Ping FCPA FCCA
Board committees
Audit Committee Yeung Chi Tat (Chairman) Lu Hong Te Dai Zhongchuan
Remuneration Committee Lu Hong Te (Chairman) Dai Zhongchuan Ding Shizhong
Nomination Committee Lu Hong Te (Chairman) Yeung Chi Tat Lai Shixian
Authorised representatives Lai Shixian Ling Shing Ping
Registered offices
Cayman Islands Office Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman
KY1-1111, Cayman Islands
Hong Kong Office Unit No. 4408, 44th Floor, COSCO Tower, 183 Queen’s Road Central, Hong Kong
Head offices in the PRC
Jinjiang Office Dongshan Industrial Zone, Chidian Town, Jinjiang City Fujian Province, PRC
Postal code: 362212
Xiamen Office No. 99 Jiayi Road, Guanyinshan, Xiamen, Fujian Province, PRC
Postal code: 361008
Share registrars and transfer offices
Cayman Islands Principal Register Royal Bank of Canada Trust Company (Cayman) Limited
4th Floor, Royal Bank House, 24 Shedden Road, George Town,
Grand Cayman KY1-1110, Cayman Islands
Hong Kong Branch Registrar Computershare Hong Kong Investor Services Limited
Shops 1712–1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong
Legal adviser Norton Rose Hong Kong
Auditor KPMG
Internal control review adviser KPMG Advisory (China) Limited
Public relations consultant Hill+Knowlton Strategies Asia
Principal bankers Agricultural Bank of China Bank of China Limited Bank of China (Hong Kong) Limited
Industrial and Commercial Bank of China China Construction Bank Corporation (Hong Kong Branch)
The Hongkong and Shanghai Banking Corporation Limited
2 ANTA Sports Products Limited Annual Report 2012
G R O U P S T R U C T U R E
Anta Anta Anta Shine Well
International (BVI) Holdings (BVI) Investments (BVI) 0.26% Public
Talent Trend
57.41% 6.72% 4.83% 0.04% 30.74%
ANTA Sports Products Limited
(Cayman Islands)
s
ein HKEX Stock Code: 2020
a
p
m 100%
o
C
e
ro
h
s ANTA Enterprise (BVI) Motive Force (BVI)
ffO Investment Holding Investment Holding
85%
ANTA Int'l (HK) Anda Int'l Inv (HK) Fila Marketing (HK) Full Prospect (Cayman Islands)
Management Investment Holding Retailing of Fila Products Investment Holding
Services in Hong Kong
Fila Macao (Macao) Full Prospect IP Speed Benefi t (HK)
Retailing of Fila (Singapore) Sourcing of Fila Products
Products in Macao Holding of Fila PRC Trademarks
ANTA ANTA China ANTA Xiamen ANTA Quanzhou Xiamen ANTA Fila China (PRC)
Changting (PRC) (PRC) (PRC) Trading Trading of
(PRC) Sportswear Apparel Footwear (PRC) Sporting Goods
Apparel Trading and Manufacturing Manufacturing Sportswear
se Manufacturing Footwear Trading
in Manufacturing
a
p
m 55%
o
C
c Athletic Dongyida Chenfeng Xiamen Xiamen Jinjiang Material Xiamen Fila (PRC)
itse (PRC) (PRC) (PRC) ANTA ANTA ANTA Supply Retailing of
m Sportswear Shoe Sole Shoe Sole E-commerce (PRC) Trading (PRC) Sporting Goods
o
D Manufacturing Manufacturing Manufacturing (PRC) Investment (PRC) Shoe Sole
and Trading Sportswear Holding and Sportswear Manufacturing
Retailing Trading of Trading
Sporting
Goods
Xiamen ANTA Anqing ANTA
Industrial (PRC)
(PRC) Sportswear
Sportswear Trading
Manufacturing
Annual Report 2012 ANTA Sports Products Limited 3

FINANCIAL OVERVIEW
Year ended 31 December 2012 2011 Changes As at 31 December 2012 2011 Changes
(RMB million) (RMB million) (%) (%) (%) (% points)
Gearing ratio(1) 9.9 – 9.9
Turnover 7,622.8 8,904.8 14.4
Return on average total 20.7 28.7 8.0
Gross profit 2,893.2 3,762.4 23.1 shareholders’ equity(2)
Profit from operations 1,563.3 2,011.5 22.3 Return on average total 14.9 22.7 7.8
assets(3)
Profit attributable to equity 1,358.7 1,730.1 21.5
Average total 72.0 79.0 7.0
shareholders
shareholders’ equity to
Free cash inflow 1,610.0 1,219.5 32.0 average total assets
(days) (days) (days)
(RMB cents) (RMB cents) (%)
Earnings per share Average inventory 51 38 13
– Basic 54.48 69.37 21.5 turnover days(4)
Average trade receivables 34 26 8
– Diluted 54.40 69.20 21.4
turnover days(5)
Shareholders’ equity per 270.72 255.47 6.0 Average trade payables 47 37 10
share turnover days(6)
Cautionary Statement Regarding Forward-
(HK cents) (HK cents) (%) Looking Statements
Dividend per share
This Annual Report 2012 contains certain forward-looking
– Interim 23 26 statements with respect to the fi nancial conditions, results of
– Final 17 26 operations and business of the Group. These forward-looking
statements represent the Group’s expectations or beliefs
– Special 8 –
concerning future events and involve known and unknown
48 52 7.7 risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed
or implied in such statements. Certain statements, that include
(%) (%) (% points)
wordings like “potential”, “estimated”, “expects”, “anticipates”,
“objective”, “intends”, “plans”, “believes”, “estimates”, and
Gross profit margin 38.0 42.3 4.3 similar expressions or variations on such expressions may be
considered “forward-looking statements”.
Operating profit margin 20.5 22.6 2.1
Margin of profit attributable to 17.8 19.4 1.6 Forward-looking statements involve inherent risks and
equity shareholders uncertainties. Readers should be cautioned that a number of
Effective tax rate 21.6 20.2 1.4 factors could cause actual results to differ in some instances
materially, from those anticipated or implied in any forward-
Advertising and promotional 10.5 13.7 3.2
looking statement. Forward-looking statements speak only at
expenses (as a percentage
the date they are made, and it should not be assumed that they
of turnover)
have been reviewed or updated in the light of new information
Staff costs (as a percentage 9.7 8.5 1.2 or future events. Trends and factors that are expected to affect
of turnover) the Group’s results of operations are described in the section
R&D costs (as a percentage 3.8 3.7 0.1 “Management Discussion and Analysis”.
of cost of sales)
Notes:
(1) Gearing ratio is equal to the bank loans divided by the total assets at the end of the relevant year.
(2) Return on average total shareholders’ equity is equal to the profit attributable to the equity shareholders divided by the average balance of total
shareholders’ equity.
(3) Return on average total assets is equal to the profit attributable to the equity shareholders divided by the average balance of total assets.
(4) Average inventory turnover days is equal to the average balance of inventories divided by the cost of sales and multiplied by the number of days
in the relevant year.
(5) Average trade receivables turnover days is equal to the average balance of trade receivables divided by the turnover and multiplied by the
number of days in the relevant year.
(6) Average trade payables turnover days is equal to the average balance of trade payables divided by the cost of sales and multiplied by the
number of days in the relevant year.
6 ANTA Sports Products Limited Annual Report 2012
RESULTS HIGHLIGHTS
Financial performance Operational performance
• Turnover decreased by 14.4% to RMB7.62 billion • Number of ANTA stores and Sports Lifestyle series stores
• Gross profit margin decreased by 4.3% points to 38.0% stood at 8,075 (end of 2011: 8,665)
• Profit attributable to shareholders decreased by 21.5% to • Number of Kids sportswear series stores reached 833 (end
RMB1,358.7 million of 2011: 632)
• Basic earnings per share has a decrease of 21.5% to • Number of FILA stores in China, Hong Kong and Macao
RMB54.48 cents reached over 300 (end of 2011: over 220)
• 71.7% payout of the 2012 profit attributable to equity
shareholders
• Free cash inflow increased by 32.0% to RMB1,610.0 million
Annual Report 2012 ANTA Sports Products Limited 7
FIVE-YEAR FINANCIAL SUMMARY
TURNOVER
RMB million
10,000 2012
8,904.8
(RMB’000)
8,000
7,408.3 7,622.8
Turnover 7,622,808
6,000 5,874.6
Gross profit 2,893,166
4,626.8
4,000 Profit from operations 1,563,310
2,000 Profit attributable to equity shareholders 1,358,701
Non-current assets 1,933,589
0 2008 2009 2010 2011 2012
Current assets 8,102,474
Current liabilities 2,897,909
PROFIT ATTRIBUTABLE TO EQUITY
Net current assets 5,204,565
SHAREHOLDERS
Total assets 10,036,063
RMB million
Total assets less current liabilities 7,138,154
2,000 Non-current liabilities 205,448
1,730.1 Total liabilities 3,103,357
1,600
1,551.1
Non-controlling interests 180,466
1,358.7
1,200 1,250.9 Shareholders’ equity 6,752,240
894.8
800 (RMB cents)
400 Basic earnings per share 54.48
Diluted earnings per share 54.40
0 2008 2009 2010 2011 2012
Shareholders’ equity per share 270.72
(HK cents)
BASIC EARNINGS PER SHARE Dividends per ordinary share
RMB cents – Interim 23
– Final 17
100
– Special 8
80
(%)
69.37
60 62.21
54.48 Gross profit margin 38.0
50.23
40
35.94 Operating profit margin 20.5
20 Margin of profit attributable to equity shareholders 17.8
0 2008 2009 2010 2011 2012 Effective tax rate 21.6
Advertising and promotional expenses 10.5
(as a percentage of turnover)
Staff costs (as a percentage of turnover) 9.7
OPERATING PROFIT MARGIN
R&D costs (as a percentage of cost of sales) 3.8
% Gearing ratio(1) 9.9
30 Return on average total shareholders’ equity(1) 20.7
Return on average total assets(1) 14.9
23.7 23.4
22.6 Average total shareholders’ equity 72.0
20 20.1 20.5 to average total assets
(days)
Average inventory turnover days(1) 51
10 Average trade receivables turnover days(1) 34
Average trade payables turnover days(1) 47
0 2008 2009 2010 2011 2012
Notes:
(1) Please refer to notes on page 6 of the annual report for the definitions
of gearing ratio, return on average total shareholders’ equity, return
on average total assets, average inventory turnover days, average
8 ANTA Sports Products Limited Annual Report 2012 trade receivables turnover days and average trade and bills payables
turnover days.