Investment Rating - The investment rating for the company is "Buy" [4] Core Insights - The company, Xtep International, reported a revenue growth of 4.2% to 14.151 billion yuan in 2025, with a net profit attributable to shareholders increasing by 10.8% to 1.372 billion yuan, indicating overall stable performance [1][7] - The main brand, Xtep, focused on a running strategy, achieving a revenue growth of 1.5% to 12.515 billion yuan, although the gross margin slightly decreased by 0.6 percentage points to 41.2% due to increased promotional subsidies and discount rates [1] - The professional sports segment, including Saucony and Myle, saw a significant revenue increase of 30.8% to 1.636 billion yuan, with an operating profit growth of 46.4% to 114 million yuan, benefiting from strong retail performance and effective cost management [2] Financial Performance - The company's operating cash flow for 2025 was 952 million yuan, with inventory at 1.829 billion yuan, reflecting a year-on-year increase of 14.6% [3][7] - The net profit margin improved by 0.6 percentage points to 9.7%, with a dividend payout ratio of 50.4% [1] - The company expects a revenue growth of 5.4% in 2026, with a projected net profit of 1.260 billion yuan, a decrease of 8.1% year-on-year due to short-term expense pressures [7] Future Outlook - The company aims to enhance its direct-to-consumer (DTC) strategy, with a focus on optimizing retail efficiency and expanding its overseas business, which is expected to continue its rapid growth [6][7] - The Xtep youth segment, rebranded as "Xtep Youth," is expected to drive long-term growth in the youth sports market with innovative products [6]

Group 1: IPO Applications - Maiwei Biotech, Jitai Technology, and Xinghuan Technology have submitted their listing applications to the Hong Kong Stock Exchange [1] - Maiwei Biotech is known for its drug research and development capabilities, covering the entire process from drug discovery to commercialization [1] - Jitai Technology is a leader in AI nanomaterials innovation, focusing on effective payload delivery across all life forms [1] - Xinghuan Technology is one of the first companies in China to specialize in AI and big data infrastructure software development, offering enterprise-level AI infrastructure software and services [1] Group 2: Financial Performance - Xtep International reported a 4.2% increase in revenue to 14.15 billion yuan for the fiscal year 2025, with net profit rising by 10.8% to 1.372 billion yuan [2] - The board of Xtep International proposed a final dividend of 0.095 HKD per share, with a total payout ratio of 50.4% [2] - Kangchen Pharmaceutical achieved a revenue of 3.417 billion yuan, a year-on-year increase of 15.17%, with net profit attributable to shareholders rising by 18.41% to 1.078 billion yuan [3] - Kuaishou reported total revenue of 142.8 billion yuan for 2025, a 12.5% year-on-year growth, with adjusted net profit increasing by 16.5% to 20.6 billion yuan [4] - Kuaishou's revenue from online marketing services reached 81.462 billion yuan, driven by the accelerated penetration and innovative applications of AI [4] Group 3: Market Performance - The Hang Seng Index closed at 24,856.43, down 1.89% on March 26 [5] - The Hang Seng Tech Index fell by 3.28% to 4,761.54 [5] - The Hang Seng China Enterprises Index decreased by 2.25% to 8,389.93 [5]

| 香港中央證券登記有限公司 | | | --- | --- | | 灣仔皇后大道東183號 | | | 股份過戶登記處及其地址 | 合和中心17樓 | | 1712–1716號舖 | | | 香港 | | | 代扣所得稅信息 | | | 股息所涉及的代扣所得稅 | 不適用 | | 發行人所發行上市權證/可轉換債券的相關信息 | | | 發行人所發行上市權證/可轉換債券 | 不適用 | | 其他信息 | | | 其他信息 | 不適用 | | 發行人董事 | | | 於本公佈刊發日期，本公司執行董事為丁水波先生 、丁美清女士、丁明忠先生及楊鷺彬先生；非執行董事為陳偉成先生；及獨立 | | | 非執行董事為鮑明曉博士、胡家慈博士及陳綺華博士。 | | EF003 免責聲明 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，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 | 公告全部或任何部份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。 | | --- | --- | | | 股票發行人現金股息（可選擇以股份代替）公告 | | 發行人名稱 | 特步國際控股有限公司 | ...

Financial Performance - Revenue increased by 4.2% to RMB 14,151.1 million, driven by the strong performance of the Xtep brand and a 30.8% growth in the professional sports segment[3]. - Xtep brand revenue rose by 1.5% to RMB 12,515.1 million, while the professional sports segment revenue grew significantly by 30.8% to RMB 1,636.0 million[3]. - Operating profit increased to RMB 2,018.8 million, with a substantial 46.4% growth in the professional sports segment's operating profit to RMB 114.5 million[3]. - Profit attributable to ordinary shareholders reached RMB 1,371.6 million, marking a 10.8% increase[3]. - Gross profit margin for 2025 was 42.8%, slightly down from 43.2% in 2024[43]. - Basic earnings per share for 2025 were RMB 51.35, up from RMB 48.67 in 2024[35]. - The group's total revenue for the year was approximately RMB 14.2 billion, a year-on-year increase of 4.2% compared to RMB 13.6 billion in 2024[116]. - The professional sports segment saw a significant revenue increase of 30.8%, reaching RMB 1,636.0 million, while the mass sports segment grew by 1.5%[114]. - The group's net profit attributable to equity holders rose by 10.8% to RMB 1,371.6 million, improving the net profit margin from 9.1% to 9.7%[135]. Cash Flow and Assets - Net cash surged by 73.4% to RMB 1,707.0 million, with net asset value per share increasing by 12.3% to RMB 3.64[3]. - As of December 31, 2025, the group's cash and cash equivalents increased by approximately RMB 477.9 million to about RMB 3,457.1 million, compared to RMB 2,979.2 million on December 31, 2024[147]. - The total assets of the group as of December 31, 2025, amounted to RMB 16,898.8 million, an increase from RMB 15,968.1 million in 2024, with total liabilities decreasing to RMB 6,696.3 million from RMB 7,265.6 million[150]. - The net cash flow from operating activities for the year ended December 31, 2025, was RMB 952.4 million, down from RMB 1,228.1 million in 2024, reflecting ongoing efforts to enhance operational efficiency[148]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.095 per share, resulting in a total annual payout ratio of 50.4%[3]. - The total dividend for 2025 is proposed at HKD 0.275 per share, with a payout ratio of 50.4%, down from 138.2% in 2024[136]. Market Presence and Strategy - As of December 31, 2025, the group operated 6,357 adult Xtep stores and 1,488 youth Xtep stores in mainland China and abroad[3]. - The company maintains a strong focus on running, targeting both mass and premium markets[28]. - The company is expanding its product matrix to drive business growth and strengthen its leadership in the running sector[51]. - The company plans to implement a Direct-to-Consumer (DTC) model in 2025 to enhance consumer interaction and brand loyalty[108]. - The company is actively expanding its market presence through strategic initiatives and product innovation[175]. Product Development and Innovation - The "160X" champion running shoe series has helped numerous athletes break records, solidifying the company's leadership in the running sector[32]. - The flagship "2000 Kilometers" running shoe series saw strong sales performance, achieving a doubling in sales in 2025[80]. - The introduction of the "Qingyun" flagship running shoe series aims to expand the mass market with a focus on high cost-performance and comfort[64]. - The company launched two high-performance outdoor product lines in 2025, including the "Feishi" hiking shoes and "Mountain Cat" trail running shoes, enhancing retail sales growth[71]. - The brand's flagship running shoes utilize advanced foam technology, achieving over 85% rebound and a 38.5% improvement in slip resistance[59]. Community Engagement and Sponsorship - The company sponsored 74 major running events in 2025, including the Xiamen Marathon, showcasing its commitment to the development of running culture in China[66]. - The partnership with Tsinghua x-lab focused on sustainable sports and youth growth solutions, completing a study with 330,000 sets of children's foot data[85]. - The company donated sports equipment and cash valued at over RMB 64 million to various charitable projects in 2025[101]. Sustainability and Corporate Governance - Xtep's MSCI ESG rating was upgraded to "A," reflecting its commitment to sustainable practices and social responsibility[97]. - The company launched a waste textile recycling initiative, recovering 51.3 tons of production scraps, contributing to a circular economy[98]. - The company has a strong focus on environmental, social, and corporate governance, receiving accolades in this area[180]. Employee and Operational Insights - As of December 31, 2025, the company employed approximately 8,800 staff, with production employees making up 58.8% of the workforce[105]. - The company’s self-owned production facility in Shishi, Fujian, spans 170,000 square meters and has enhanced production capacity to meet growing market demand[104]. - The company emphasizes smart manufacturing and information management to improve operational efficiency and product quality[194]. Investor Relations and Market Communication - The company engaged over 80 investors and analysts during a reverse roadshow showcasing R&D and retail management capabilities[167]. - The company organized 36 reverse roadshows in 2025 to enhance understanding of its operations and showcase retail experiences[175]. - The company aims to enhance investor relations and communication through various investor strategy meetings scheduled throughout 2025[173].

Financial Data and Key Metrics Changes - The group's total revenue increased by 4.2% to CNY 14.151 billion, with net profit rising by 10.8% to CNY 1.372 billion [5][6][8] - Gross profit rose by 3.4% to CNY 6.063 billion, while the gross profit margin was 42.8% [6][8] - Net cash increased by 73.4% to CNY 1.707 billion, and net asset value per share rose by 12.3% to CNY 3.64 [6][9] Business Line Data and Key Metrics Changes - Revenue from the Xtep core brand grew by 1.5% to CNY 12.515 billion, while the professional sports segment, including Saucony and Merrell, saw revenue growth of over 30% to CNY 1.636 billion [5][11] - Operating profit for the professional sports sector rose by 46.4% year-on-year to CNY 114 million, with an operating profit margin of 7% [11][12] Market Data and Key Metrics Changes - The number of runners in China increased from fewer than 90 million to 300 million by 2025, with marathon participants growing by over 20% annually [2] - Xtep maintained the number one position in overall wear rates at major marathon events in China [2][16] Company Strategy and Development Direction - The company aims to solidify its position as China's number one running brand, focusing on running as a core strategy and enhancing brand quality and efficiency [4][25] - Plans include expanding product offerings, optimizing retail channels, and enhancing e-commerce capabilities [18][25] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a complex and volatile global economic environment but emphasized steady growth driven by a focus on running [2][4] - The company anticipates significant growth opportunities in the national sports industry, projected to exceed CNY 7 trillion by 2030 [4] Other Important Information - The company has maintained a dividend payout ratio of no less than 50% for 18 consecutive years, with an annual dividend payout ratio of 50.4% [6][7] - The company is committed to sustainable development and social responsibility, including recycling initiatives and donations exceeding CNY 64 million [24][25] Q&A Session Summary Question: What are the growth strategies for the Xtep core brand? - The company will continue to focus on running, using flagship products as growth engines and expanding the product matrix [25] Question: How is the company addressing e-commerce growth? - E-commerce for the Xtep core brand achieved double-digit growth, accounting for over 30% of revenue, with plans to enhance flagship products [18] Question: What are the future plans for Saucony and Merrell? - Saucony will maintain its premium positioning and focus on professional products, while Merrell will concentrate on outdoor sports [21][24]

Group's revenue RMB 14,151 m 4.2% Mass market Professional sports RMB 12,515 m RMB 1,636 m 1.5% 30.8% Profit attributable to ordinary equity holders of the Company RMB 1,372 m 10.8% RMB 3.64 12.3% Net cash RMB 1,707 m Final dividend per Share HK 9.5 cents1 Payout ratio: 50.4% Return on equity 14.5% 0.4% pt 73.4% Xtep International Holdings Limited (Incorporated in the Cayman Islands with Limited Liability) Stock Code: 1368.HK 2025 Annual Results Presentation 26 March 2026 2025 Annual Results Highlights 4 Co ...

Investment Rating - The report maintains a "Buy" rating for key companies in the textile and apparel industry, indicating a positive outlook for the sector in 2026 [4]. Core Insights - The textile manufacturing sector is expected to recover in Q1 2026, driven by improved export orders as U.S. tariff policies become clearer. This recovery is anticipated to benefit leading companies in sub-industries such as wool spinning, dyeing, cotton spinning, and nylon, which are expected to see performance exceed expectations due to inventory appreciation and management improvements [3]. - The apparel and home textile sector is projected to perform well, benefiting from a recovering consumer market and an extended sales season due to the later timing of the Spring Festival in 2026. Leading companies in the home textile sub-industry and sports brands are expected to outperform the sector [3]. - Significant growth in textile and apparel exports was noted in January and February 2026, with textile exports increasing by 20.5% and apparel exports by 14.8% year-on-year, marking the highest growth rates since 2022 [3]. - Retail sales of apparel, shoes, and textiles from major enterprises showed a year-on-year increase of 10.4% in early 2026, with online retail sales of clothing items growing by 18.0% [3]. Summary by Sections Q1 2026 Performance Forecast - The report forecasts a positive performance for various segments, including sports apparel, children's clothing, and home textiles, with expected revenue growth across multiple companies [11][12]. - Specific companies such as 比音勒芬 (Biyinlefen) and 海澜之家 (Hailan Home) are projected to see significant revenue increases, with 比音勒芬 expected to grow by 17% and 海澜之家 by 7% year-on-year [11]. Export Growth of Textiles and Apparel - The textile export value is projected to grow significantly, with a year-on-year increase of 20.5% in early 2026, while apparel exports are expected to rise by 14.8% [16][19]. Retail Sales Growth of Major Enterprises - Retail sales for apparel, shoes, and textiles from major enterprises are expected to increase by 10.4% year-on-year in early 2026, indicating a strong recovery in consumer demand [24]. Online Retail Growth - Online retail sales for clothing categories are anticipated to grow by 18.0%, reflecting a robust shift towards e-commerce in the apparel sector [27]. Key Company Valuations and Financial Analysis - The report includes detailed financial projections for key companies, with several firms expected to see improvements in earnings per share (EPS) and return on equity (ROE) in 2026, indicating a favorable investment environment [4].

Market Review - The A-share textile and apparel index has underperformed the broader market since March, with brand apparel performing better than textile manufacturing, showing declines of -1.8% and -3.2% respectively. The Hong Kong textile and apparel index has dropped by 10.9% during the same period [1][14]. Brand Apparel Insights - Retail sales of clothing in January-February grew by 10.4% year-on-year, with a notable acceleration in growth compared to previous months. The strong performance in February was attributed to the Spring Festival season, with sports retailer BaoSheng International reporting an 81.5% increase in operating income [2]. - International brand forecasts indicate Adidas expects high single-digit revenue growth by 2026, while PUMA anticipates a mid-single-digit decline. Bloomberg's projections for Nike suggest a 2.2% revenue increase, while Converse and Vans are expected to decline by 13.6% and 0.5% respectively. HOKA and UGG are projected to grow by 11.8% and 3.1%, while Uniqlo expects a 13.5% increase [2]. - E-commerce growth rebounded in January-February, driven by strong consumer demand during the Spring Festival. Outdoor apparel led growth with categories like sportswear, outdoor wear, and leisurewear showing year-on-year increases of 11%, 25%, and 10% respectively [2]. - The fan growth on Xiaohongshu for sports and outdoor brands is notable, with Adidas, Li Ning, and Anta leading with growth rates of 27.0%, 22.6%, and 18.8% respectively [2]. Textile Manufacturing Insights - On a macro level, Vietnam's textile exports increased by 1.2% year-on-year in January-February, while China's textile, apparel, and footwear exports rose by 20.5%, 14.8%, and 6.1% respectively. The PMI for Indonesia, India, and Vietnam has also shown increases [3]. - Domestic cotton prices have risen by 8.5% to 16,884 RMB/ton, while foreign cotton prices have decreased by 0.1% to 12,962 RMB/ton. Wool prices have surged by 24.6% to 12.72 USD/kg, marking a significant increase from last year's lows [3]. - In February, Taiwanese companies faced revenue pressure due to reduced working days during the Lunar New Year, but the outlook remains optimistic with clear growth momentum. Companies like Zhiqiang and Ruhong reported revenue declines of 24.9% and 7.4% respectively, while others like Weihong and Yuqi showed positive growth [4]. Investment Recommendations - The report recommends focusing on brands with high domestic demand and high dividend yields, particularly in the sports and outdoor segments. Brands like Anta Sports and Li Ning are highlighted for their strong sales recovery in Q1, while home textile leader Luolai Life and luxury brand Jiangnan Buyi are also recommended [7]. - In textile manufacturing, attention is drawn to companies benefiting from rising raw material prices and high order visibility. Companies like Bailong Oriental and Xin'ao are expected to perform well due to their strong order books and low-cost raw material inventories [8].

Group 1 - The core viewpoint of the news is that Hong Kong sportswear stocks have generally risen, driven by increased outdoor activity as temperatures rise, with notable gains for companies like Li Ning, Anta, and Xtep [1] - Sales of outdoor equipment have doubled year-on-year since March, with significant increases in professional mountaineering shoes and lightweight jackets [1] - Consumers are increasingly willing to purchase professional-grade outdoor apparel and equipment, focusing on specific parameters such as UPF values for sun protection clothing and RET values for breathability [1] Group 2 - The stock performance of key companies includes Li Ning rising approximately 5%, Anta up 2.74%, and Xtep increasing by 2.62% [2] - Other companies like Tmall, Yuyuan Group, and Eagle Beauty also saw gains, with increases ranging from 1.24% to 1.74% [2] - The trend indicates a growing trust in professional brands among consumers, suggesting a favorable development opportunity for leading brands in the sports and outdoor sector [1]

Group 1 - The core viewpoint of the article highlights a significant increase in the stock prices of sportswear companies in Hong Kong, driven by rising outdoor activity as temperatures warm up [1] - Li Ning's stock rose approximately 5%, while Anta and Xtep increased by 3%, and other companies like Toray and 361 Degrees also saw gains of over 1% [1] - Sales of outdoor equipment have doubled year-on-year since March, with notable increases in professional hiking shoes and lightweight jackets [1] Group 2 - A prominent trend in outdoor consumption this year is that consumers are increasingly willing to purchase professional-grade outdoor apparel and equipment, even for lightweight activities [1] - Consumers are focusing more on product specifications, such as the UPF value of sun-protective clothing and the RET value (breathability index) of jackets [1] - Trust in professional brands is growing, suggesting that leading brands in the sports and outdoor sector may experience significant growth opportunities [1]