Anta Sports Profit Grew 1.1 Times To 430 Million Yuan In The First Half Of The Year.

In the first half of this year, Anta sports achieved a turnover of 2 billion 205 million 200 thousand yuan, an increase of 52.3% over the same period last year of 1 billion 447 million 700 thousand yuan, a net profit of 434 million yuan, an increase of 113.6% over the same period last year, a profit of 0.17 yuan per share, and a dividend of HK $0.10 per share.

In addition, the advertising and publicity expenses of the company accounted for 14% of the turnover, compared with 12.6% last year, mainly due to the increase of the expenditure for the activities before the Olympic Games and the expansion of distribution networks.

In addition, the cost of R & D activities has also increased. In the first half of this year, the proportion of Anta sports R & D activities in the cost of sales increased by 0.3 to 3.1% over the same period last year.

In addition, the company's chief operating officer, Lai Shi Hsien, said at yesterday's performance report that the company will have room to increase its price in 2009, and the price increase is expected to be higher than inflation, from 5% to 10%.

In the first half of this year, Anta sports added 664 licensed stores, renovating and improving the store image of 269 retail stores, and integrating 187 retail outlets with a smaller area, adding 477 retail outlets.

The total sales area increased from 433843 square metres at the end of last year to 500829 square meters by the end of June. The average sales area increased from 92 square metres at the end of last year to 96.4 square meters at the end of June this year.

The company's chief operating officer, Lai Shi Hsien, predicts that the two businesses will account for 7% to 8% of the total sales by the end of 2010. Meanwhile, Anta sports also said it will continue to expand its sales network and sales channels. The group plans to increase the number of sales outlets to 5400 by the end of 2008.

The company's capital expenditure is less than 100 million yuan in the second half of this year.

UBS pointed out that Anta sports brand is highly known, plus a successful publicity and promotion plan before the Olympic Games. It is expected that the same store sales in the first half of this year will grow by more than 20%.

UBS believes that Anta sports has sold international retail business earlier so that it can focus on brand development, which will help to improve profitability in the next two years.