• FY profit drops 3.2% to CNY1.31bn 
  • Turnover down 4.5% to CNY7.28bn 
  • Gross margin up 3.7 percentage points to 41.7%

Improved margins failed to offset a decline in annual profit and turnover for Hong Kong sportswear firm Anta Sports Products.

Profit attributable to equity shareholders stood at CNY1.31bn (US$211.6m) for the year ended 31 December, down from CNY1.36bn in the same period last year.

Turnover fell by 4.5% to CNY7.28bn from CNY7.62bn, but gross margin improved 3.7 percentage points to 41.7% during the year.

"Although certain sportswear brands' unresolved issues of excess inventory and deep price cuts are generally expected to bring uncertainty to China's sportswear industry in the short-term, our fundamentals are strong and our retail-oriented measures have been effective, while continuous positive growth in our future orders on improving profitability and stronger confidence of our retailers has been seen, leading to the recovery of our operational and financial performance," said Anta Sports chairman and CEO Ding Shizhong.

"On the other hand, it is generally believed that the ongoing urbanisation, the improvement in livelihoods and the popularisation of sports in China will further drive demand for affordable sportswear with good features."