Fujian sportswear maker Anta says 2016 net profit jumped 16.9 pc, lifted by domestic sales

Anta Sports Products, the largest Chinese sportswear maker, reported record earnings for 2016 as the Rio de Janeiro Olympic Games reinvigorated sports enthusiasm, triggering higher attendence for both winter and summer recreational sports across a wide range of age groups and cultures.

Net profit leaped 16.9 per cent on year to 2.39 billion yuan (US$347 million), in-line with consensus analyst estimates of 2.34 billion yuan, according to a Reuters’ poll. The company reported 2016 revenues were up 20 per cent on year to 13.35 billion yuan.

In China, a nationwide drive for healthier lifestyles, evident from the growing attendence of enthusiastic Chinese “damas” gathering in parks and squares to dance in unison, has made the country’s athletics goods sector a rare sweet spot immune to the cooling pace of economic growth.

Global researcher Economist Corporate Network forecast the size of China’s sportswear market to account for 3 per cent of the country’s gross domestic product by 2025 -- equivalent to the current level for the United States and South Korea. And with support from the Chinese central government, the industry could balloon to 5 trillion yuan annually by 2025.

“The next 10 years will see the sports shoes and apparel markets expand, driven by mainly demand from the middle to mid-upper classes as their spending continue to see significant increase,” said Ding Shizhong, chairman of Anta, as he highlighted running, indoor training, basketball, soccer and winter sports as recreational activities with the brightest prospects.

Running is also becoming a lucrative endeavour. A record 2.79 million people in China participated in marathons last year, a 86 per cent surge from 2015, according to data from the Chinese Athletic Association.