ANTA Sports Products Limited

Hello, dear investors. Good afternoon, everyone. Welcome to the launch event of Antartic Sports Products Limited. We have just announced the annual performance in 2024. Although there are more challenges in the global red-light economy than before, with the advantages of multi-brands and strong operating capabilities, the market share of each brand has also been further improved, realizing the target of the market share of the first priority in advance. Next, let me introduce the management team that attended today and invite them to introduce ANTA's performance. Please welcome Chairman of the Board, Mr. Ding Shizhong. Executive Director and Chief Executive Officer Mr. Lai Shixian Executive Director and Chief Executive Officer Mr. Wu Yonghua Executive Director and Chief Financial Officer Mr. Zheng Jie Executive Director and Chief Financial Officer Mr. Bi Mingwei and Vice President Lin Wei

Hello, investors. I'm sure you've all seen our annual report. Now, I'm going to give you a detailed report. In 2024, we all know that the consumer market is still in a very big wave. But we, Anta Group, rely on the advantages of multi-brands. to continue to achieve a double growth and further expand the market share. Our total gross income is 708 billion yuan, the first time to break 7 billion yuan, which is 13.6 billion yuan in total. We will continue to maintain the first place in the Chinese market share. Our shareholder profit is 11.9 billion yuan, which is 16.5 billion yuan in total. The free cash flow of the Group is 132.5 billion yuan. The production capacity of the cash flow continues to stabilize. The Board of Directors announced that the end-of-year dividend will be 118 points, plus our year-end dividend of 118 points, which is a total of 236 points this year, which is equivalent to an increase of 20 points. The dividend rate has also reached 51.4%. In August last year, the Board of Directors announced that we would buy back 10 billion Hong Kong dollars. So far, we have bought back 20 billion Hong Kong dollars. If there is a suitable time in the future, we will continue to promote the stock return plan. Next, let's take a look at the performance of our specific operating projects. . . . . . . . . . has achieved double growth both online and offline. Online growth is slightly better, with an increase of 20% online. Let's look at the interest rate. The total interest rate of the group, 62.2%, dropped by 0.4%. This is mainly due to the drop in the interest rate of the brand Anta. and ANTA's online business ratio has been improved. Feiler's profit margin has dropped by 1.2%. This is mainly because in the past two years, we have increased our investment in Feiler's products. We have invested in product development, innovation, and fabric. If you go to our Feiler store this year, you will see the changes in the product level. We think that a good product represents a good brand. A brand's continuous competitiveness must be a product. A product is the core competitiveness. So we at Fela are constantly investing in our products. Fela's net profit is very high, so the net profit has dropped a little. As you know, This is the cost rate. The core is our cost rate. In addition, the online ratio is also a little higher. Business expenses. First of all, employee expenses. 14.8. Basically, we are at this ratio every year. Continuous and stable employee investment. According to this year's calculation, we invested 10.5 billion yuan for the benefit of new employees and employee development. Then we proposed that our ability should be built on the brand Because now every brand has a large enough scale So it continues to provide us with multi-brand globalization and the value of talent Broadband spending is 9% compared to the rise of 0.8% Because the 24th year is the sports year, the Olympic year So there is a slight increase in the broadband aspect Then the development spending is 2.8% This year, we invested 2 billion yuan in R&D, and our R&D revenue increased by 20%. In 2024, we signed a contract with Sports Products Limited. We have built six design centers, 70 universities, 250 experts, as well as hundreds of suppliers, to participate in the global open-source innovation ecosystem network, which continues to contribute to our innovation. In addition, on our independent technology platform, our innovative technologies, such as ANTAMO, PJ7, and Roushinsha, have also achieved better results in market transformation. Business Profit Rate 23.4 Uh... DeSante Cologne's operating profit rate or their discount is still rising. Profit rate is also rising by 1.5%. Then shareholder profit. . . The next step is the management of operating funds. Our storage capacity is 123 days. As you all know, we are a D2C company, so all the storage in the whole channel, basically all the storage in the whole channel, is in our account. So 128 days is still a healthy level. Now our whole channel storage ratio is also at a healthy level of about 5. As you can see, the stock price has gone up. The stock price was very good at the end of 2023. Last year, it was at a relatively low level. We can have detailed data to see the storage of every SKU in the whole channel. Once there is a lot of storage at the front end, we will adjust our OTB model in time to guide our orders. Because the group is very large, we have to order more than 100 billion pairs every year, so we pay great attention to the management of the entire storage, the management of the entire operating capital. In terms of income and pay, they are all at a very good health level. In terms of cash, the company's operating cash flow is 16.7 billion. The net profit is also 16.9 billion. The operating cash flow is 16.7 billion. So the net profit is basically 87% of the cash flow. The free cash flow is 13.2 billion. 520 million yuan in cash at the end of the year. Currently, there is a debt of 20 billion yuan. 314 million yuan in net cash. The financial situation is very stable. Regarding the dynamic management model, we are continuing to optimize the dynamic management model. This year, we have also established a regulatory monitoring model. in terms of product types and brand models, as well as the target model of online platforms. In addition, from the three aspects of profitability, operating standards, and investment in the future, we will promote the differential management of multi-brands. In addition, in 2024, we also launched the online partner project. With this project as our catcher, we will continue to optimize our business process and fully authorize to promote the operational efficiency of the entire group, and promote the efficiency reduction of the entire value chain. That's all for my report. Thank you. Thank you, Mr. Bi.

With our multi-brand strategy, and with the interesting development of all brands, we continue to play our advantage. Next, let's have Mr. Lai explain to us how to strengthen the organization and continue to promote high-quality growth. Mr. Lai, please.