So far, we have focused on ANTA’s operating margin outperformance, presenting evidence that ANTA secretly controls its distributors and shifts costs to them. However, in this part, we focus on ANTA’s seemingly largest purported “third party” supplier, which is also a secretly controlled counterparty. We believe that ANTA shifts costs from its production entities onto this supplier. The supplier is owned by a proxy we mentioned in Part 1, Peng Qingqi. Mr. Peng is a senior ANTA employee. Once again, ANTA’s financials cannot be relied upon.
By secretly exercising control of counterparties, ANTA keeps these entities outside of its integrated audit. We believe that without these controlled entities, ANTA’s financials would show materially lower margins, belying the notion that ANTA is a strong operator. The reality of ANTA is much less flattering than what it presents.
In this report, we also reveal Peng Qingqi’s ownership of four online stores, including two called ANTA Ruidong and Jinjiang Dingdian. This revelation shows yet another bald-faced lie about ANTA’s operations, and reinforces that ANTA’s financials and Fila’s numbers cannot be relied upon.
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