Summary of Xtep International Conference Call Company Overview - **Company**: Xtep International - **Date**: November 6, 2025 Key Points Industry and Sales Performance - Xtep International's online sales continue to show strong growth, with e-commerce channels achieving double-digit growth year-to-date, particularly in the running shoe segment, supported significantly by live streaming platforms [2][3] - Sales in shopping centers and outlet channels have also performed well due to store upgrades and accelerated layout [2][3] - The Saucony brand has seen strong offline performance in China, with a growth rate exceeding 30% in Q3 and continuing double-digit growth in October [2][6] Inventory Management and Pricing Strategy - Xtep maintains a healthy inventory level of 4 to 4.5 months, allowing for stable discount rates during promotional periods, such as 30% to 25% off during Double Eleven [2][5][14] - Strict inventory management and legal actions against gray market activities have effectively reduced low-price competition [2][5][7] Saucony Brand Development - Saucony's footwear sales account for over 80% in China, with apparel sales increasing from 0% to 20%, expected to rise to 30%-40% in the future [4][9] - The average monthly sales per store for Saucony have reached over 400,000 yuan, with top-performing stores achieving 700,000 to 800,000 yuan [2][8] - Saucony plans to open 30 to 50 new stores this year, building on its current network of over 170 stores [6][8] Sales and Growth Projections - The adult running shoe segment has shown double-digit growth, with the Champion family series expected to double its sales this year [4][16][17] - Saucony aims for over 30% sales growth for the year, supported by the introduction of high-margin winter apparel [6][10] Children's Business Strategy - Xtep has rebranded its children's business to "Xtep Youth," focusing on professionalization and scientific growth concepts [18] - The "Xtep Growth Shoes" have received positive feedback, addressing parents' concerns about children's height and overall development [19] Market Trends and Future Outlook - The overall industry inventory level is healthy, with Xtep's inventory management allowing for stable pricing strategies without significant discounting [15] - The demand for running shoes is expected to increase due to a surge in marathon events in the upcoming months [16][17] Additional Insights - Saucony's product mix includes collaborations with overseas brands, enhancing its market presence and driving sales growth in non-functional categories [9][12][13] - The company is leveraging partnerships with educational institutions to enhance product development for its children's line [18] This summary encapsulates the key insights from the conference call, highlighting Xtep International's performance, strategies, and future plans within the competitive landscape of the sportswear industry.

Investment Rating - The report maintains an "Accumulate" rating for the textile and apparel industry [6] Core Insights - The textile and apparel industry is experiencing a weak recovery, with the jewelry sector showing better growth compared to clothing [14] - The domestic sportswear market is expected to maintain long-term growth resilience despite short-term fluctuations in offline sales [1] - The report highlights the importance of inventory management and the impact of promotional events on sales performance [1][2][26] Summary by Sections 1. Sports Footwear and Apparel - The sports footwear and apparel sector showed weaker performance in Q3 2025 compared to Q2 but still outperformed the overall apparel market [1] - Offline sales for domestic sports brands remain weak, while e-commerce channels are performing better [1] - Inventory levels for domestic sports brands increased in Q3 due to preparations for the National Day holiday and Double Eleven sales [1] - Adidas reported a 6% year-on-year revenue growth in Greater China for Q3 2025, while Nike's sales in the region declined [1][18] 2. Brand Apparel - The brand apparel sector showed improvement in Q3 2025, with revenue and net profit growth of 3.1% and 23.2% respectively, driven by a low base effect [2] - The home textile segment benefited from product updates, while the fashion apparel category faced weak demand due to low consumer confidence [2] - The report anticipates continued reasonable expense management and stable profit growth for some companies in Q4 2025 [2] 3. Textile Manufacturing - Revenue for key textile manufacturing companies remained relatively stable, with a slight decline in net profit [3] - Companies with different customer structures showed varied performance, with some like Huayi Group achieving a 7% revenue growth by expanding their client base [3] - The report suggests that as inventory levels normalize, there may be a recovery in orders from upstream manufacturing companies [3] 4. Gold and Jewelry - The gold and jewelry sector experienced performance differentiation, with retail sales of gold and silver jewelry increasing by 11.5% year-on-year in the first nine months of 2025 [4] - Companies with fewer stores or a direct sales model reported excellent revenue growth, with some like Chao Hong Ji and Man Ka Long achieving revenue increases of 28.3% and 29.3% respectively [4] - The report recommends focusing on companies with strong product and channel capabilities in the jewelry sector [4] 5. Investment Recommendations - The report recommends several companies based on their performance and market positioning, including Shenzhou International, Anta Sports, Li Ning, and Chow Tai Fook, highlighting their respective PE ratios for 2025 [4][9]

本月底法定/註冊股本總額： HKD 1,000,000,000 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年10月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 特步國際控股有限公司 呈交日期: 2025年11月3日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01368 | 說明 | 不適用 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 100,000,000,000 | HKD | | 0.01 | HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 100,000,000,000 | H ...

Group 1 - UBS upgraded the rating of Xtep International (01368) from "Neutral" to "Buy" and raised the target price from HKD 6.4 to HKD 7.6 [1] - The net profit forecast for 2025 to 2027 was increased by 1% to 9%, with expected profit contributions from Saucony and Merrell rising from 5% in 2024 to 16% in 2027 [1] - Anta Sports (02020) is also viewed positively, with profit contributions from vertical brands expected to increase from 9% in 2024 to 31% in 2027, maintaining a "Buy" rating and a target price of HKD 127 [1] Group 2 - Chinese sportswear stocks have seen an average decline of approximately 20% since August, reflecting market concerns over weak third-quarter sales and a growing consumer preference for specialized sports segments and vertical brands [1] - The estimated compound annual growth rate for the outdoor products market from 2025 to 2027 is projected to be 16%, significantly higher than the overall sports apparel growth rate of 5% [1] - Categories such as tennis and high-end running products are expected to have strong potential [1]

Core Viewpoint - UBS upgraded the rating of Xtep International (01368) from "Neutral" to "Buy," raising the target price from HKD 6.4 to HKD 7.6, while increasing net profit forecasts for 2025 to 2027 by 1% to 9% [1] Group 1: Company Analysis - The contribution of Xtep's brands Saucony and Merrell to profits is expected to rise significantly from 5% in 2024 to 16% by 2027 [1] - Anta Sports (02020) is also viewed positively, with expected profit contributions from vertical brands increasing from 9% in 2024 to 31% in 2027, maintaining a "Buy" rating and a target price of HKD 127 [1] Group 2: Market Trends - Chinese sportswear stocks have seen an average decline of approximately 20% since August, reflecting market concerns over weak sales in the third quarter and a growing consumer preference for specialized sports segments and vertical brands [1] - The outdoor products market is projected to have a compound annual growth rate of 16% from 2025 to 2027, significantly higher than the overall sports apparel growth rate of 5%, with strong potential seen in categories like tennis and high-end running products [1]

Core Insights - The Beijing Marathon is set to take place on November 2, highlighting the growing popularity of marathon events as a part of urban culture and tourism [1] - The demand for running gear and services has surged, with domestic brands gaining traction in the market [1][3] - The marathon is becoming a significant platform for brands to enhance their visibility and engage with consumers [1][4] Equipment Segment - Various running shoe brands are actively promoting their products, with Adidas and Li Ning recruiting elite runners for promotional events [3] - In the 2022 Beijing Marathon, international brands dominated the footwear market, with Nike at 45.37% and Adidas at 28.02%, while domestic brands like Jordan and Xtep had lower shares [3] - A shift occurred in 2024, with Xtep leading among sub-three-hour runners at 22.5%, followed closely by Adidas at 22.4% [4] - The competition among brands is intensifying, with sponsorships and collaborations with running groups becoming key marketing strategies [4] Consumer Behavior - The running community is increasingly spending on apparel and wearable technology, with expenditures on running clothing and shoes rising from 29.98% in 2023 to 35.02% in 2024 [5] - Li Ning's footwear accounted for 55.6% of its revenue in the first half of 2025, with a 15% increase in retail sales for its running category [5] New Professions - The emergence of marathon pacers has created a new service market, with earnings ranging from 500 to 6000 yuan per event depending on the service level [6] - Marathon photographers are also becoming prominent, with income varying based on their collaboration with brands or event organizers [7][8] Tourism and Logistics - Hotel bookings in Beijing surged by 28% around the marathon, with areas near the marathon route seeing a 52% increase in reservations [12] - Logistics companies like SF Express are implementing comprehensive support systems for the marathon, including storage and delivery of runners' gear and supplies [14][15] Commercial Integration - Local businesses are enhancing their offerings around the marathon, with food and retail services tailored to meet the needs of participants [10][11] - The integration of sports, culture, and commerce is evident in various initiatives aimed at creating a unique consumer experience during the marathon [10]

Core Viewpoint - Xtep International (01368) announced the issuance of 3.5786 million shares as a scrip dividend on October 30, 2025, based on the interim dividend for the six months ending June 30, 2025 [1] Summary by Category - Company Announcement - Xtep International will issue 3.5786 million shares as a scrip dividend [1]

Core Viewpoint - Xtep International (01368) announced the issuance of 3.5786 million shares as a scrip dividend on October 30, 2025, based on the interim dividend for the six months ending June 30, 2025 [1] Summary by Category - **Company Announcement** - Xtep International will issue 3.5786 million shares as a scrip dividend [1]

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 特步國際控股有限公司 呈交日期： 2025年10月30日 第 1 頁 共 5 頁 v 1.3.0 FF305 確認 根據《主板上市規則》第13.25C條 / 《GEM上市規則》第17.27C條，我們在此確認，據我們所知所信，第一章節所述的每項股份發行或庫存股份出售或轉讓已獲發行人董事會正式授權批准，並遵 照所有適用上市規則、法律及其他監管規定進行，並在適用的情況下： (註7) (i) 上市發行人已收取其在是次股份發行或庫存股份出售或轉讓應得的全部款項； (viii) 有關債券、借貸股份、票據或公司債券的信託契約/平邊契據經已製備及簽署，有關詳情已送呈公司註冊處處長存檔（如法律如此規定）。 第一章節註釋： 若股份曾以超過一個每股價格發行/出售/購回/贖回，則須提供每股成交量加權平均價格。 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公 ...

香 港 交易 及 結 算 所 有限 公 司 以 及香 港 聯 合 交 易所 有 限 公 司 對本 公 佈 的 內容 概 不 負責 ， 對 其 準 確性 或 完 整 性亦 不 發 表 任 何聲 明 ， 並 明 確表 示 ， 概 不對 因 本 公佈 全 部 或 任 何部 分 內 容 而產 生 或 因 倚 賴該 等 內 容 而 引致 的 任 何 損失 承擔任何責任。 Xtep International Holdings Limited 特 步 國 際 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1368） 調整可換股債券的換股價 根 據 二 零 二 一 年 可 換 股 債 券 、 二 零 二 四 年 可 換 股 債 券 及 二 零 二 五 年 可 換 股 債券（ 統 稱「可 換 股 債 券」）的 條 款 及 條 件， 並 因 本 公 司 宣派 及 派 付 二 零 二五年中期股息，(i)二零二一年可換股債券換股價將由8.1972港元調整至 7.9385 港 元 ； (ii ) 二 零 二 四 年 可 換 股 債 券 換 股 價 將 由 5. 4028 港 元 調 整 至 5.2323港元； ...