Anta Group Predicted 45% Net Profit Increase For 2019

Chinese sportswear brand Anta published its annual profit forecast announcement for 2019, stating that by the end of December 2019, the company's net profit is expected to increase by at least 45% year-on-year and the company's net profit in 2018 was about CNY4.1 billion.

However, the number does not include the losses of its joint venture Mascot JVCo. In 2019, a consortium led by Anta acquired Amer Sports and Anta's joint venture Mascot JVCo is a holding company of Amer Sports.

It is said that during the 2019 financial year, the losses of Mascot JVCo is about CNY650 million, including acquisition-related one-time expense of less than CNY200 million. If taking the losses into consideration, Anta predicted that its net profit growth for 2019 financial year would be no less than 30%.

At the same time, the group's brands like FILA and Descente made more contributions to its retail revenue. With enhanced retail business and stable operating expense ratio, Anta is expecting increased operating margin for 2019.

Anta said that compared with the last financial year, the group's sales maintained a strong growth in 2019 and its annual operating revenue is expected to increase by over 35%.