(Yicai Global) Aug. 24 -- Shares of Anta Sports Products climbed after the sportswear maker’s sales in the Chinese market outstripped main rival Nike for the first time.
After jumping by as much as 8.2 percent shortly after trading began in Hong Kong today, Anta [HKG: 2020] finished 4 percent higher at HKD95.65 (USD12.19).
Revenue rose 14 percent to CNY26 billion (USD3.8 billion) in the six months ended June 30 from a year earlier, according to the Quanzhou-based firm’s financial report revealed late yesterday, making it the highest earner in China’s sporting goods market.
Nike’s revenue from China in the same period was USD3.7 billion.
International apparel makers have had a cold reception in China since the Xinjiang cotton controversy in March last year. Adidas’ first-half sales in the country slumped 35 percent to EUR1.7 billion (USD1.7 billion), after five straight quarters of year-on-year declines.
Anta’s net profit fell 6.6 percent to CNY3.6 billion in the period, mainly due to steeper retail discounts due to the impact of Covid-19, while raw material costs rose, resulting in a 1.2 percentage point narrowing of gross margin from a year ago.
Anta’s local rivals are also doing well. Earlier this month, Beijing-based Li Ning reported a 22 percent jump in first-half revenue to CNY12.4 billion (USD1.8 billion), with net profit of CNY2.2 billion, up 11.6 percent.
Editor: Peter Thomas