ANTA Sports Products Limited

Good afternoon, everyone. Welcome to the Antartic Sports Products Limited Investment Session. We have just announced our mid-term results in 2024. We have achieved the best revenue and profit performance in history. We have also maintained a high level of operating efficiency, and our competitiveness remains at a very healthy level. Next, let me introduce the management team that will be attending today. They are Chairman of the Board of Directors and Chairman of the Board of Directors, Mr. Ding Shizhong. Mr. Lai Shih-hien, Chief Executive Officer of Sports Products Limited Mr. Wu Yong-hua, Chief Executive Officer of Sports Products Limited Mr. Zheng-jue, Chief Executive Officer of Sports Products Limited and our Chief Financial Officer of Sports Products Limited In today's press conference, President B will introduce financial performance of the mid-term performance in 2024. Next, President Lai will introduce business review and development. In the last Q&A session, President Ding will lead the management to answer questions from investors. President B, please introduce financial performance in 2024.

Hello, investors and friends. Good afternoon, everyone. Welcome to the first half of the 2024 Sports Products Limited's press conference. Next, I will give you a report on the overall financial performance. In the first half of this year, As you all know, the overall big consumer trend is still in further recovery. Anta Group firmly promotes the long-term strategy, multi-brand co-development, and the performance of the first half of the year is historically high, with a revenue of 3.37.4 billion yuan, which is a 13.8% increase in the same ratio. The operating profit rate is 25.7%, which is the same as the average. The share price of the shareholder is 61.6 billion yuan, which is 17% higher than the share price of the shareholder. In the first half of this year, the free cash flow reached 7.6 billion yuan, which is also a very good level of cash revenue. In the first half of this year, the share price of Hong Kong dollars was 118 points, which is 40% higher than the share price of the shareholder. . . . . . Public positioning, professional sports Then some of the brands and products made in the last two or three years Some of the actions in terms of channels have achieved some results Non-spicy brands 13.6 billion, the same growth of 6.8 Other brands, 4.6 billion, with an increase of 41.8 billion, exceeding our expectations. In the future, we will have 160.8 billion, with an increase of 13.5 billion. In the first half of the year, OWEN basketball shoes were sold globally, and they had a very good sales performance. Then in the high-end malls of the first and second-tier cities, we have some breakthrough movements. In the mainstream malls of these first and second-tier cities, the total flow of water has increased by a double number. In addition, this year, the Anta champion and the SV shoe store's works have also achieved good sales. In the first half of this year, the online channels have also increased by 20%. So in general, these movements has a double-digit growth. In terms of net profit, the total net profit of the Group is 64.1%, with a growth of 0.8%. The net profit of sports products has increased by 0.8%, which is mainly due to an increase in the net profit of co-branded products. In addition, there is an increase in the net profit of large companies. The retail price of sports products is also rising by 1%. This is mainly because this year's stockpile is very healthy. So the stockpile is less than last year. The ratio of new products has also been greatly improved. This is also because the retail price of sports products is rising by 1%. . . . Advertisement Advertisement This year is the year of sports, so advertising expenses, these marketing expenses have risen. But all of our marketing expenses are within the budget. There is a very strong budget management mechanism to manage all kinds of expenses. Development cost ratio 2.7% increased by 0.4% compared to the same period last year. Development cost investment increased by 36%. This represents a group that continues to invest in innovation and development, and continues to invest in the future. We have established six major design and development centers around the world, including Tsinghua University, Peking University, and Donghua University. There are a lot of universities and universities that have cooperated in innovation and development. The results of the research and development of Antam, Egg Technology, and Roushinsha have begun to shift to the stage of market investment. The operating profit rate is 25.7%, which is the same as the balance. High-quality growth is the goal we set at the beginning of the year. So we have high-quality growth. There is a very important factor. First of all, there must be growth. Second, there must be continuous and stable profitability. So the operating profit rate of sports products is 21.8, which is a 0.8% increase. This is mainly due to the increase in the profit rate of sports products. In addition, the efficiency of these high-end factories has been improved. Let me talk about the non-leather products. The operating profit rate of non-leather products has decreased by 1.1%. Foreign Foreign We will still stick to our strategy and continue to invest in some brand products. The operating profit rate of other brands is similar to that of the same period last year. It is still maintained at a relatively high level. As for the shareholder battalion profit rate, 18.3, as you can see, in the first half of 2021, it was 18.3, and this year it is also 18.3. So, without any special circumstances, 18.3 is also the best level in history, the shareholder profit and loss rate. Okay, management of operating funds. The average turnover of the Group is 114 days, which is 10 days lower than before. First of all, all of our brands' stockpiles this year are within five months, within five times. This is a healthy level. Then Anta Group is a business model of D2C. So our stockpiles can be quickly transferred between different stores, including different areas, online and offline. In this way, stockpile management can reach such a level of efficiency. In addition, our entire channel, including all the channel data, the storage data is very clear. We can see at the front end that if there is a problem with the storage, then we will quickly adjust the structure data of the after-sales meeting. So in general, we have always paid great attention to storage management. Storage management is also one of the core elements of high-quality growth. Storage must be healthy. So revenue and negative add-ons are all at a positive level. The net cash flow is 8.5 billion yuan, which is basically equivalent to the net profit. In the first half of this year, our cash flow rate is also more than 90%. The free cash flow is 7.6 billion yuan, so we still have a strong cash output capability. In total, our cash and cash equities are more than 4.7 billion yuan, and we have a debt of 1.5 billion yuan. I've been saying that Group management is multi-brand management. We continuously optimize the management model of our multi-brand differentiation. The goal we set is called high-quality growth. I think it's high-quality growth. First of all, we want to have growth and market share. will continue to expand. Secondly, we need to have stable profit and loss capabilities. At the same time, we need to have healthy operating indicators. Finally, we need to have a sustainable investment future. These factors constitute our high-quality growth strategy. In the first half of this year, we saw that our profit and loss capabilities in terms of profit and loss, as well as shareholder profit and loss, are at the best level in history. In terms of operating indicators, our interest rate has been increased, and the stock price has fallen by 10 days, and there is a stable cash flow. These operating indicators are also data that we pay great attention to. In terms of investment in the future, our R&D investment and continue to grow, with a ratio of 2.7. In terms of channels, we are constantly trying out new types of telecommunications. In terms of smart logistics, we have established a multi-brand network that matches our D2C model. So we will continue to invest in the future. The overall goal is to use our dynamic management model to carry out a firm strategic strategy to promote high-quality growth. That's all for my report. Thank you.

Thank you, President B. The Group is focusing on a multi-brand, global strategy, allowing us to continue to play our advantage. Next, let's have President Lai explain to us how the Group can strengthen its layout and continue to promote high-quality growth.