Core Insights - Shanghai is becoming a central hub for trendy sneaker culture, with multiple international brands establishing flagship stores and headquarters in the city [1][4][5] Brand Expansion - Adidas has opened its first global flagship store in Shanghai, showcasing its highest level of design, product, and service [1] - HOKA has launched its global first brand experience center in the New天地商圈, emphasizing its commitment to the Asian market [2] - Other brands like Craft, ECCO, and Brooks are also expanding their presence in Shanghai, indicating a growing trend of high-performance and lifestyle brands entering the market [1][2][4] Market Dynamics - The influx of international brands has transformed Shanghai into a starting point for sneaker culture, with significant consumer engagement, as evidenced by Adidas' flagship store attracting over 10,000 visitors daily during the holiday period [3] - The establishment of brand headquarters in Shanghai allows for a broader consumer reach across China and the Asia-Pacific region, with brands like ANTA and Li Ning also setting up their global operations in the city [4][5] Cultural Integration - The sneaker culture in Shanghai is being enriched by a variety of new retail formats, including concept stores and cafes, creating vibrant consumer experiences [6] - Online platforms like 得物 are fostering community engagement and innovative collaborations, such as the partnership between ANTA and pop culture brand Pop Mart [7]

Company Overview - Xtep International Holdings Limited is a leading multi-brand sportswear company listed on the Hong Kong Stock Exchange since 2008, primarily engaged in the design, research and development, manufacturing, sales, marketing, and brand management of sports products for adults and children, including footwear, apparel, and accessories [3] Financial Performance - As of December 31, 2024, Xtep International reported total revenue of 13.577 billion yuan, representing a year-on-year growth of 6.55% - The net profit attributable to shareholders was 1.238 billion yuan, showing a year-on-year increase of 20.23% - The gross profit margin stood at 43.2%, while the debt-to-asset ratio was 45.5% [2] Stock Performance - On May 28, the stock price of Xtep International closed at 6.2 HKD per share, marking a 7.45% increase with a trading volume of 43.227 million shares and a turnover of 264 million HKD, with a price fluctuation of 7.8% [1] - Over the past month, Xtep International has seen a cumulative increase of 19.79%, while year-to-date, the stock has risen by 4.07%, underperforming the Hang Seng Index, which has increased by 16.56% [2] Valuation Metrics - Currently, there are no institutional investment ratings for Xtep International - The company's price-to-earnings (P/E) ratio is 11.97, ranking 39th in the industry, while the average P/E ratio for the textile and apparel industry is -5.77, with a median of -0.17 [3]

Group 1 - Nike plans to implement a price increase on a wide range of products, with shoes priced between $100 and $150 increasing by $5, and those over $150 increasing by $10, expected to take effect as early as this week [1] - The People's Bank of China and other departments issued guidelines to enhance financial support for the sports industry, focusing on the financial needs of sports goods manufacturing and service sectors [1] - Morgan Stanley reported a mild improvement in demand for sports apparel in China since the beginning of the year, with expectations of inventory clearance by Q2 2025 leading to a price recovery in the industry [1] Group 2 - Emerging markets have become a new growth engine for the global footwear and apparel market, with domestic brands rapidly gaining market share, particularly in the sports footwear sector [2] - In 2022, China's sports footwear market CR10 increased by 18.6% from 2015 to 36.8%, indicating a concentration of market share among leading brands [2] - Domestic brands are experiencing growth due to changing consumer preferences, while international brands are losing market share [2] Group 3 - Relevant concept stocks in the sports industry include Anta Sports (02020), Li Ning (02331), Xtep International (01368), and Tabo (06110) [3] - The manufacturing partner mentioned is Shenzhou International (02313) [3]

Group 1 - The Hong Kong stock market's sportswear sector has shown strength, with Anta Sports (02020.HK) rising over 6% [1] - Bosideng International (03813.HK) increased by more than 4% [1] - Other companies such as Li Ning (02331.HK) and Xtep International (01368.HK) also experienced gains [1]

Financial Performance - The company's revenue increased by 37.5% to RMB 5,684 million[2,4] - Profit attributable to ordinary equity holders increased by 38.4% to RMB 590 million[2,4] - The core Xtep brand revenue reached RMB 4,898 million[2] - Interim dividend per share was HK 13.0 cents, with a payout ratio of 50.3%[2] Core Xtep Brand - Core Xtep brand revenue increased by 36.2% to RMB 4,898 million[10,55] - Xtep Kids' revenue increased by 84% to RMB 721 million, accounting for approximately 15% of the core Xtep brand's revenue[30] Athleisure (K-Swiss & Palladium) - Revenue increased by 36.3% to RMB 629 million[35] - Gross profit margin decreased by 3.7% points to 39.8%[35] Professional Sports (Saucony & Merrell) - Revenue increased by 106.4% to RMB 157 million[42,70] - Gross profit increased by 109.0% to RMB 90 million[42] Retail Network - There are 6,251 Xtep branded stores in Mainland China and overseas[2,27]

Financial Performance - Group revenue reached RMB 12,930 million, a 29.1% increase year-over-year[2,6] - Core Xtep brand revenue grew to RMB 11,128 million, representing a 25.9% increase[2,6] - Group's operating profit increased to RMB 1,464 million, a 4.9% increase[2,6] - Profit attributable to ordinary equity holders of the Company increased to RMB 922 million, a 1.5% increase[2,6] Core Xtep Brand Analysis - Core Xtep brand's operating profit increased to RMB 1,759 million, a 9.4% increase[2,81] - Core Xtep brand's net profit increased to RMB 1,345 million, a 10.7% increase[2,81] - Xtep Kids' revenue increased by 52% to RMB 1,671 million, accounting for 15% of the core Xtep brand's revenue in 2022[42] Brand Portfolio Performance - Athleisure brands (K-Swiss & Palladium) revenue increased by 44.4% to RMB 1,402 million[48,70] - Professional sports brands (Saucony & Merrell) revenue increased by 99.0% to RMB 400 million[55,70]

Xtep International Holdings Limited (Incorporated in the Cayman Islands with Limited Liability) Stock Code: 1368.HK 2023 Interim Results Presentation 23 August 2023 2023 Interim Results Highlights Core Xtep branded stores in Mainland China and overseas as at 30 June 2023 8,031 RMB 665 m 12.7% RMB 5,430 m 10.9% Core Xtep brand'srevenue Core Xtep brand's net profit RMB 871 m 12.7% RMB 6,522 m 14.8% Group's revenue Profit attributable to ordinary equity holders of the Company HK 13.7 cents Payout ratio: 50.0% ...

2023 Annual Results Presentation 18 March 2024 2023 Annual ResultsHighlights RMB 14,346 m 10.9% Group's revenue RMB 1,030 m 11.8% globally as at 31 December 2023 8,583 branded stores Core Xtep brand's revenue Profit attributable to ordinary equity holders of the Company Professional sports segment's revenue Athleisure segment's revenue (Mainland China) RMB 11,947 m RMB 796 m RMB 465 m HK 8.0 cents1 Full year payout ratio: 50.0% Final dividend per Share RMB 1,794 m 21.6% Group's inventories RMB 1,255 m 119.5 ...

Financial Performance - The group's revenue reached RMB 7,203 million, a 10.4% increase year-over-year[2] - Gross profit margin improved to 46.0%, up by 3.1 percentage points[3] - Profit attributable to ordinary equity holders of the company increased by 13.0% to RMB 752 million[4] - Interim dividend per share is HK15.6 cents, with a payout ratio of 50.0%[7] Brand Performance - Core Xtep brand revenue grew by 6.6% to RMB 5,789 million[9] - Professional sports segment revenue increased significantly by 72.2% to RMB 593 million[9] - Athleisure segment revenue increased by 9.7% to RMB 821 million[9] Balance Sheet Highlights - Net cash and cash equivalents increased by 51.7% to RMB 1,414 million[13] - Bank borrowings decreased by 22.6% to RMB 2,047 million[13] Sustainability - MSCI ESG rating upgraded to "A"[8] - Charity donations reached RMB 28.8 million[60]

Financial Performance - Group revenue reached RMB 13,577 million, a 6.5% increase year-over-year[2] - Profit attributable to ordinary equity holders of the Company increased by 20.2% to RMB 1,238 million[7] - Operating profit increased by 9.3% to RMB 1,966 million[7] - Gross profit margin increased by 1.4 percentage points to 43.2%[10] Segment Performance - Mass market revenue grew by 3.2% to RMB 12,327 million[66] - Professional sports segment revenue increased significantly by 57.2% to RMB 1,250 million[66] - Saucony's revenue exceeded RMB 1 billion, demonstrating sustained high growth[41] Retail and E-commerce - E-commerce fueled revenue growth by approximately 20%[40] - The company plans to reclaim distribution rights from approximately 400-500 Xtep branded stores in 2H2025 & 2026[61] Strategic Initiatives - The company will invest RMB 500 million in Capex in 2025-2026 to implement its DTC (Direct-to-Consumer) strategy[60] - The full year payout ratio (including special dividend) is 138.2%[7] - The company aims to enhance efficiency and build momentum by focusing on running and creating a professional image[57]