Winter Olympics partner Anta’s owner donates shares worth US$1.2 billion to charity amid China’s common prosperity push

The share transfer is part of Chinese tycoon Ding Shizhong and his family’s pledge to donate 10 billion yuan (US$1.6 billion) to Hemin Foundation

The donation will help the company’s image as it contributes to China’s common prosperity drive and meets investors demand on ESG, analyst says

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An Anta store in Shenzhen. The Chinese sportswear maker has been kitting out China’s Olympics team since 2016. Photo: CWH

Published: 3:01pm, 21 Dec 2021Updated: 3:35pm, 21 Dec 2021

The controlling shareholder of Anta Sports Products, an official partner of the 2022 Winter Olympics in Beijing, has donated 84.5 million shares to charity, according to a filing on Tuesday, the latest Chinese entrepreneur to support the country’s common prosperity drive.

The shares donated by the Chinese billionaire Ding Shizhong and his family were worth about HK$9.3 billion (US$1.2 billion) based on the stock’s closing price on Monday.

Anta Sports, one of the world’s largest sportswear companies, transferred to Hemin Holdings, which in turn will them pass on to Hong Kong-based charitable institution Hemin Foundation. The charity “will collaborate with the company on various aspects including community development and other charitable activities”, Ding, who is also the chairman of Anta, said in the filing. Ding is the 56th richest man in China with a net worth of US$8.5 billion, according to Forbes.

The share transfer is part of the Ding family’s pledge to donate 10 billion yuan (US$1.6 billion) to the Hemin Foundation. The endowment, which amounts to 3.13 per cent stake in the listed company, will reduce the family’s shareholding from 57.78 per cent to 54.65 per cent. The foundation can use the money to alleviate poverty and promote education among other cause in any part of the world.

Ding Shizhong, chairman of Anta Sports Products, pictured in August 2018. Photo: Edmond So

“The donation of the shares by the controlling shareholder will have a positive impact on the company’s image and reputation,” said Kenny Ng Lai-yin, a securities strategist at Everbright Sun Hung Kai.

This is also in keeping with the trend of Chinese tycoons contributing to the common prosperity drive and meet investors’ ESG (environmental, social and corporate governance) demands, he added.