[Graphic] 2017 Results Came Out: How Are The Four Major Local Sports Brands?

In the past year, Anta has been firmly in the top position of domestic brands, and Lining, who has been losing money for many years, has also improved significantly. The gap between 361 and XTEP is increasing.

Benefiting from the promotion of sports consumption concept, the demand for Chinese sporting goods market has increased. In recent years, sports brands at home and abroad have also grown strongly in the Chinese market.

As far as local enterprises are concerned, the four major sports brands, such as Anta, Lining, XTEP and 361 degrees, occupy half of China's sports market.

In March 22nd, with the announcement of Lining's earnings report, four local brands have released their respective 2017 financial year results.

From the comparison of total market capitalization, revenue, net profit, gross profit margin and cost expenditure, it is obvious that Anta has been firmly in the top position of domestic brands, and Lining, who has been losing money for many years, has also improved significantly. The difference between 361 degree, XTEP and the former two is bigger and bigger.

The four major local sports brands are listed on the Hong Kong stock market. At present, the total market value of Anta has exceeded 100 billion Hong Kong dollars, more than three times that of Lining, XTEP and 361 degree market capitalization.

Operating income

The annual revenues of Anta, Lining, 361 degree and XTEP were 16 billion 692 million yuan, 8 billion 874 million yuan, 5 billion 158 million yuan and 5 billion 113 million yuan respectively.

Influenced by strategic pformation and retail channel reform, XTEP is the only brand with revenue decline.

Gross profit margin

Anta's gross profit margin increased by one percentage point to 49.4% compared to the same period last year, although it has dropped slightly compared with the 50.6% in the mid term report in 2017, but this data has obvious advantages in the global industry, mainly due to the higher proportion of clothing revenue with higher gross profit margin.

In addition, the gross margin of Lining and XTEP reached 47.1% and 43.9% respectively.

361 degrees is the only drop in the brand, with a gross margin of 41.8%.

Net profit

Anta's net profit was 3 billion 90 million yuan, while 361 yuan reached 457 million yuan, and the two increased to varying degrees.

Lining's figure was 515 million yuan, down 19.9% compared to the same period last year, but if we ignore the 313 million yuan of 10% shares sold in 2016, the net profit is 56%.

XTEP's net profit fell 22.7% to 408 million yuan, mainly due to last year's one-time inventory repurchase losses of 121 million yuan, excluding repurchase losses net profit of 529 million yuan, an increase of 0.2% over the same period last year.

Gross profit

Anta, Lining, XTEP and 361 degree gross profit were 8 billion 241 million yuan, 4 billion 176 million yuan, 2 billion 245 million yuan and 2 billion 156 million yuan respectively.

Also affected by the cost factors of strategic pformation, XTEP is the only brand that has seen a decline in gross margins.

Inventory turnover days

Anta's average stock turnover days increased from 61 days in 2016 to 75 days. For this reason, Anta said the reason was that the group postponed the delivery of products to shops to meet the sales of lunar new year in February 2018.

XTEP and 361 degree of inventory turnover days also have a small increase, due to improved inventory structure, Lining dropped 2 days.

Advertising investment

In line with the professional sports strategy dominated by running, XTEP sponsored 40 events in 2017. It is the local brand sponsoring the most marathon events, and advertising expenses account for the highest proportion.

Anta's figure has declined, the company said it was a significant increase in revenue.

R & D input

As the mainstream consumer groups' Sports levels and product requirements continue to improve, the major sports brands pay more attention to product R & D innovation.

From 2009 onwards, Anta's R & D activity cost ratio has been on the rise for 9 consecutive years, the first in the domestic industry.

Lining's R & D investment has increased, but its proportion is at the bottom of the four brands.

Proportion of sales by category

Under the background of professional sports strategy dominated by running shoes, XTEP's footwear sales account for over 60%.

Anta's clothing proportion increased significantly, sales of clothing category rose 32.4% to 9 billion 120 million yuan over the same period.

The important reason is that the group's FILA, which is mainly based on clothing sales, has increased the proportion of its contribution to performance.

Total market value

As of March 22, 2018, Anta's total market value reached HK $104 billion 900 million, second only to the international giants Nike and Adidas, ranking third in the global sports brand industry.

At the same time, Anta's market value is 6 times that of Lining, XTEP's 11 times, and 361 times of 20 times.

It is worth mentioning that Lining has been touted by the capital market after the fashion week in New York.

In March 16th, Lining's stock price reached the highest price of HK $8.49 in 52 weeks, with a total market value of HK $18 billion 300 million, a 5 year high and nearly 6 billion in 40 days.