Anta'S Conservative Measures To Deal With Olympic Crisis

2012 is the Olympic year, 4 years ago, through the Beijing Olympic Games on the fast track.

Anta sports said yesterday that the company will respond to 2012 by conserving measures such as reducing the growth of new shops and lowering the order amount. It is expected that the industry downturn may bottom out in the second half.

Ding Shizhong, chairman of Anta's board of directors, pointed out yesterday that the goal of opening a shop this year is the largest increase of 3% over the previous year, maintaining 7800-8000 of the original target set last year.

By the end of last year, the number of stores in the company was only 229 to 7779.

Ding Shizhong revealed yesterday that the company's first and second quarter orders will be held this year.

Ding Shizhong also said that the company's Treasury sales ratio is 4.5 times, believing that inventory pressure will drop in the second half.

"We expect to get better in the second half of the year."

Ding Shizhong said, "before the individual enterprises have problems, the adjustment has also been adjusted. This year is also the Olympic year.

According to the earnings report released yesterday, Anta's net profit in 2011 increased by 11.5% compared to the same period last year, to 1 billion 730 million yuan, and turnover increased by 20.2% to 8 billion 904 million yuan.

In the current sporting goods market in China, foreign brands such as Nike (Nike) and Adidas (Adidas) dominate the industry.

This has frustrated local brands such as Lining, who strive to pform to high-end products, leading to an increase in inventories.

Lining has started to reduce inventory, eliminate inefficient shops and improve the product mix. However, the competition pressure has finally expanded and the domestic sports brands including Anta have entered the stage of big contraction.

Anta yesterday closed down 3.16% to HK $8.27, and its share price has fallen by about 10% this year.