While the broader industry faced headwinds, ANTA Sports broke through. On August 26, in a challenging environment where national retail sales of consumer goods grew by just 1.3% in the first half, ANTA Sports delivered a high-quality mid-year report card: strong growth across the board for H1 2026. Revenue surged 12.9% year-on-year to RMB 43.51 billion, a scale equivalent to 7.1 times 361 Degrees and 2.9 times Li Ning, securing the industry's top spot for the fifth consecutive year. Net profit attributable to shareholders jumped 34.9% to RMB 9.487 billion, with gross and net margins both improving, signaling continued optimization of earnings quality.

Following the release of its 2026 interim results at midday, ANTA Sports' share price rallied sharply in the afternoon session, closing up 9.53%. In an industry-wide shakeout, ANTA Group has not only firmly defended its "China's No. 1" crown but has also proven through its financials that a true moat is the resilience to grow steadily even as the tide goes out. From absolute brand mindshare to deep technological breakthroughs in products and a systematic overhaul of channel efficiency, ANTA has spent 35 years weaving brand power, product strength, and channel capability into a broad and deep economic moat, demonstrating the ability to navigate cycles during the 2026 industry downturn.

Revenue Nearly 3 Times Li Ning's in H1

The sports goods industry faced significant pressure in H1 2026, with national retail sales of consumer goods growing only 1.3% year-on-year, and retail sales of sports and entertainment goods declining 2.4%. Amid this low industry sentiment, several listed companies saw their operating performance come under clear pressure, with slowing or declining growth becoming the dominant theme. Nike's Greater China revenue for its fiscal 2026 came in at USD 5.847 billion, down 11% year-on-year, marking eight consecutive quarters of negative growth. Xtep International's main brand recorded a mid-single-digit decline in retail sales for Q2, while Li Ning's revenue of RMB 15.24 billion saw a significant slowdown compared to previous years, reflecting weak terminal demand.

Despite the industry chill, ANTA Group bucked the trend with high-quality growth. In H1 2026, ANTA Group achieved revenue of RMB 43.51 billion, a 12.9% increase year-on-year, equivalent to 7.1 times 361 Degrees and 2.9 times Li Ning, maintaining its position as the industry leader in the Chinese market for five consecutive years. Specifically, the two cornerstone brands, ANTA and FILA, maintained steady growth from their massive bases, showcasing their ability to withstand risks and navigate cycles. Compared to H1 2025, the ANTA brand achieved 4.8% revenue growth, reaching RMB 17.77 billion, holding the top spot among Chinese brands for 15 straight years. FILA also grew 6.1%, reaching RMB 15.05 billion, and performed exceptionally well during this year's "618" shopping festival, consistently ranking first across various product categories on major e-commerce platforms.

Notably, the revenue growth for the ANTA main brand and FILA was achieved through improved operational efficiency, even as their store counts remained essentially flat. This fully demonstrates the risk-resistance and refined operational capabilities of large-scale brands in fierce competition. On the retail front, the ANTA brand continues to optimize its channel layout, exploring retail space innovation in core business districts of first- and second-tier cities with promising sales results, consistently improving sales per square meter. FILA continues to focus on retail upgrades, driving store image renewals and the launch of themed concept stores to enhance store efficiency through meticulous operations.

While the two cornerstone brands grew steadily, the "Other Brands" segment, which includes Descente, Kolon Sport, Maia Active, and Jack Wolfskin, generated revenue of RMB 10.69 billion in H1 2026, already surpassing their full-year revenue for 2024, doubling within just two years. Among them, Descente, positioned in high-end professional sports (skiing, golf, triathlon), saw its annual turnover exceed RMB 10 billion for the first time in 2025, becoming ANTA Group's third billion-yuan brand after the main brand and FILA. It's worth highlighting that Descente's D-Fluid running shoe series became a hit product in H1, rising to the No.1 position for running shoes priced above RMB 1,000 across online platforms, capturing a 14% market share in that specific category, 3 percentage points ahead of its closest competitor. Kolon Sport focuses on core functions and precise scenarios, building a highly recognizable and differentiated product matrix, with its advantages in categories like hard shells and soft shells maintaining high growth of over 50%. Maia Active, focusing on high-quality professional yoga, is actively enriching its product matrix, refining community operations, and enhancing the offline shopping experience as an incubated brand within the group, while building an efficient retail model. Jack Wolfskin has established its positioning as "all-scenario professional hiking," complementing the group's existing brands with clear differentiation. In H1, its "3-in-1" classic款式, which carries its patented technology, maintained high sales volume in the Chinese market.

Growth in Both Revenue and Profit

Alongside the counter-trend revenue growth, ANTA Group's earnings quality and operational efficiency also improved steadily, further solidifying its fundamentals for navigating cycles. Gross and net margins both increased, and earnings quality continued to optimize. In H1 2026, the overall gross margin improved by 0.5 percentage points to 63.9% (H1 2025: 63.4%). Operational efficiency also increased, with the overall operating margin up 0.7 percentage points to 27.0% (H1 2025: 26.3%). During the period, the group generated free cash inflow of RMB 11.63 billion, a substantial 54.2% increase compared to H1 2025, and net cash exceeded RMB 39.1 billion, showcasing a very healthy financial position.

Inventory turnover efficiency improved, with operational efficiency leading the industry. As of the end of Q2 2026, the group's average inventory turnover days decreased by 6 days to 130 days, maintaining a healthy inventory level in a complex and changing operating environment. Moreover, with store counts essentially unchanged, ANTA Group achieved high-quality growth through refined operations, once again demonstrating its management prowess. ANTA Group has formed a "Four-Strength" management model – "Strong Planning, Strong Management, Strong Empowerment, Strong Authorization" – building an empowerment system that combines independent brand operations with coordinated support from the group's middle and back offices. Under the clear division of labor where "brands create consumer value, and the group supports each brand in creating value," each brand maintains its independent positioning and differentiated innovation. The group, through its middle and back offices and hundreds of accumulated refined management models, provides personalized support to brands at different stages and with different positioning, achieving an organic unity of specialized brand operations and group-scale synergy.

In H1 2026, a period when the overall industry was under pressure and most brands saw slowing or declining growth, ANTA Group not only achieved counter-trend growth but also demonstrated strong earnings quality and operational efficiency on a base of over RMB 80 billion in annual revenue – with stable-to-improving gross margins, healthy inventory and discounts, and continuous release of operating leverage. These cycle-defying results are no accident but the outcome of ANTA's years of deep cultivation and systematic construction across multiple dimensions. So, what exactly supports ANTA's ability to maintain high-quality growth during the industry downturn and hold the top spot in the Chinese market for five consecutive years? The answer lies in the deep moat built by ANTA Group, woven together from its brands, products, and channels.

Brand, Product, and Channel Strength Forge a Wide Moat, Highlighting Long-Term Investment Value

As mentioned in the book "The Little Book That Builds Wealth," if a company can sell the same product at a higher price solely based on its brand, then that brand is very likely to form an incredibly powerful moat. Judging by this standard within China's sportswear industry, ANTA Group is undoubtedly one of the players with the widest moat – when Chinese consumers think of sports brands, ANTA has long become an unavoidable name. In 2025, ANTA Group's market share in China climbed to 21.8% – meaning for every five pieces of sports gear purchased by Chinese consumers, at least one comes from ANTA. Today, the combined forces of brand power, product strength, and channel capability form a wide moat for ANTA.

The brand is ANTA Group's most important asset. The group's brand moat isn't the success of a single brand, but rather the synergistic strength of its multi-brand matrix across different niche tracks. The group continues to deepen its "Single Focus, Multi-Brand, Globalization" strategy, with each brand having clear positioning and growth paths. The ANTA main brand and FILA have shown strong operational resilience in a complex market environment, while Descente, Kolon Sport, and other brands have demonstrated explosive growth potential. Among them, the ANTA main brand maintains steady growth from a high base of over RMB 30 billion in annual revenue, holding the No.1 position among Chinese brands for 15 consecutive years. FILA continues to lead the industry in the high-end sports fashion segment. This year during the "618" festival, FILA performed remarkably, consistently ranking first in various product categories on mainstream e-commerce platforms. Brands like Descente and Kolon Sport are growing rapidly, precisely targeting professional sports and high-end outdoor niche markets, fully benefiting from the structural opportunities arising from the rise of the outdoor lifestyle.

This strong brand effect is inseparable from continuous breakthroughs in product R&D and technological innovation. ANTA Group consistently drives product innovation with technology. In H1 2026, the group continued to invest significantly more in R&D than the industry average, totaling approximately RMB 1.11 billion, representing 2.5% of revenue. Over the past decade, ANTA Group has cumulatively invested RMB 20 billion in innovation-related activities (including R&D), and plans to invest another RMB 20 billion in independent innovation and R&D over the next five years. As of 2025, ANTA Group had accumulated over 7,500 patent applications, leading the domestic industry in both scale and quality. The frequent emergence of hit products strongly validates ANTA Group's product strength: in 2026, the ANTA Innovation Lab, collaborating with transnational professor teams from institutions like Oxford University, launched the new ANTA FOLD paper-folding technology, which uses physics-based movable structures to achieve high cushioning and rapid energy return, opening a new track for the running shoe category. In H1, the ANTA C-family and Maher series, among its four major running shoe families, sold over 5.6 million pairs in total. Apparel hits like the "Storm Armor" created with the proprietary "ANTA Film" technology platform sold over 2 million pieces. FILA's dad shoes, including the Fern and Mushroom models, sold over 5 million pairs, maintaining the highest industry buzz, among other achievements.

ANTA Group's channel advantage is first reflected in the deep integration of its DTC direct-to-consumer model with a multi-brand differentiation strategy. Under the DTC model, the group directly controls consumer data through its own stores, quickly capturing demand shifts and ensuring consistency in brand image and experience at the terminal. In H1 2026, ANTA Group's various brands implemented differentiated channel layouts for their respective niche markets: the ANTA brand explored retail space innovation and channel optimization, with its Chengdu Arena store entering a core business district and "ANTA Market" landing in Shanghai and Shenyang, blending sports experiences with community interaction. FILA focused on retail upgrades and the launch of themed concept stores, enhancing store efficiency and consumer experience through refined operations. Descente adhered to a high-store-efficiency policy, strictly controlling its store expansion pace, deeply cultivating high-end business districts in first-tier and new first-tier cities, and implementing differentiated multi-store formats within the same city. Kolon Sport maintained a steady, restrained, high-quality, and intensive channel strategy, continuously expanding its coverage of the high-end outdoor market nationwide, with its new brand experience flagship store, "Natural Collection," officially opening at Beijing's China Central Place.

Regarding global channel expansion and digital empowerment, the group leverages its vertically integrated business model to extend its channel capabilities overseas. As of June 30, 2026, ANTA Group had approximately 500 mono-brand stores outside of China, including 250 ANTA brand stores, 16 FILA stores, 4 Descente stores, with the remainder being Jack Wolfskin stores and stores for Arc'teryx, Salomon, and Wilson operated as a distributor for Amer Sports. In H1 2026, ANTA's overseas brand turnover grew substantially by 150%.

The "three chariots" of product strength, brand power, and channel capability are driving in tandem, collectively building ANTA Group's formidable competitive barrier. On the product front, average annual R&D investment exceeding RMB 2 billion and over 7,500 patents solidify its product strength. On the brand front, the differentiated value of the multi-brand matrix precisely serves the segmented consumption needs of different sports communities, forming a clear-positioned, synergistic, and complementary brand ecosystem. On the channel front, with the DTC direct-to-consumer model at its core, combined with extreme efficiency management and a global layout, it has reshaped the retail value chain. These three layers of the moat are interlocking and progressive, ultimately cementing ANTA's unshakable absolute leading advantage in China's sportswear industry.