Sprandi
In December 2015, it is reported that Anta has acquired Sprandi, a leading brand in Russia and east Europe[1]. The estimated consideration is “Tens of Million US$” in CGIS Research1, although “Payments for acquisition of interest in a subsidiary” in Anta’s 2015 cash flow statements is RMB26.3 million[2]. In Anta’s 2016 annual report, Sprandi China appears in Anta’s group structure with 85% owned Anta[3].
Number of SPRANDI stores in China stood at 104 at the end of 20186.
Descente JV
Founded in 1935 in Osaka, Japan, DESCENTE focuses on high-end sportswear, especially skiing, cross-training and running[4].
In 2016, Anta formed a joint venture with Descente Global Retail Limited (“DGR”), a subsidiary of Descente Ltd. (a company listed on the Tokyo Stock Exchange with stock code 8114) (“Descente Japan”), ITOCHU Textile (China) Co., Ltd. (“ITOCHU”), a subsidiary of ITOCHU Corporation (a company listed on the Tokyo Stock Exchange with stock code 8001), (ITOCHU, together with Anta and DGR, the “JV Parties”) and Descente Japan in relation to the proposed formation of a joint venture group (the “JV Group”) to operate and engage in the business of design, sale and distribution of all categories of products (the “Business”) bearing the “Descente” trade marks in the People’s Republic of China (excluding Hong Kong and Macau) (the “Territory”) on an exclusive basis. Anta, DGR and ITOCHU’s interest in the JV Group is proposed to be 60%, 30% and 10%, respectively. The total initial capital injection into the JV Group is proposed to be Renminbi 250 million and each of the JV Parties will inject the capital into the JV Group in proportion to its interest in the JV Group , respectively[5],[6].
The first Descente China store opened in August 2016 in Changchun, Jilin[7]. By the end of 2016, Descente has opened 6 store in mainland China16.
Anta argued in its 2016 annual report that since 2000, China has increased its number of ski resorts more than ten-fold to nearly 600 in 2015, with approximately 13 million skier visits. Winter sports in China would be on track for major boost from the 2022 Beijing Winter Olympics. The Chinese government also aggressively promotes winter sports and targets to increase the number of winter sports participants to 300 million skier visits in the future16.
Number of DESCENTE stores in China stood at 117 at the end of 20186.
Kolon Sport
Founded in 1973, KOLON SPORT promoted an outdoors lifestyle. Kolon Sport first entered the Chinese market in 2006 and currently operates 214 stores in China as of Dec. 2016. The company has posted a double digit sales growth in the last three years[8].
In February 2017, Anta entered into the agreement to form a 50/50 joint venture company with Kolon Group to operate KOLON SPORT in China, Hong Kong, Macao and Taiwan21. The JV formation completed in September 2017 and KOLON SPORT Holdings appeared as a 50% subsidiary in Anta’s group structure in its 2017 annual report5.
Anta has been closing Kolon Sport store since the JV formation, with 181 standing by the end of 2018 (33 store closed in 2 years)6.
KINGKOW
Founded in 1998, KINGKOW provides quality kidswear to 0 to 14 kids in mid- to high-end market. As at the end of September 2017, KingKow had 81 stores in mainland China, Hong Kong, Taiwan and the United States.[9],[10].
The acquisition price is said to be around HKD60 million[11].
Total number of KINGKOW’s stores decreased 4 by the end of 2018 (77 in total)6.
[1] http://www.cggthinktank.com/2015-12-24/100074922.html
[2] https://www.todayir.com/webcasting/anta_15ar/ann.pdf
[3] https://www1.hkexnews.hk/listedco/listconews/sehk/2017/0302/ltn201703021344.pdf
[4] http://www.files.services/files/394/2019/0226/20190304161737_36877020_en.pdf
[5] https://www1.hkexnews.hk/listedco/listconews/sehk/2016/0223/ltn20160223097.pdf
[6] https://www.itochu.co.jp/en/news/press/2016/160223.html
[7] http://ir.anta.com/en/news_detail.php?id=39757
[8] http://www.businesskorea.co.kr/news/articleView.html?idxno=17372
[9] http://ir.anta.com/en/news_detail.php?id=38696
[10] https://cn.reuters.com/article/anta-kingkow-ma-idCNKBS1CP07J