Core Insights - The performance of the four major domestic sports brands in the first half of 2025 shows a divergent trend, with Anta Sports leading in revenue but facing a decline in net profit [1] - Inventory turnover days have increased for most brands, indicating rising inventory pressure across the industry [1] Group 1: Company Performance - Anta Sports reported revenue of 38.544 billion yuan and a net profit of 7.031 billion yuan, maintaining its position as the industry leader, although net profit decreased by 8.9% year-on-year [1] - Li Ning's net profit has declined for three consecutive years, with a year-on-year drop of 11.0% to 1.737 billion yuan, despite having the best inventory turnover efficiency at 61 days [1][3] - Xtep benefited from a specialized running shoe strategy, achieving a net profit growth of 21.5%, the highest among the four brands [1] - 361 Degrees reported revenue of 5.705 billion yuan, a year-on-year increase of 11.0%, but its inventory turnover days increased by 24 days to 109 days, indicating heightened inventory pressure [1] Group 2: Industry Trends - The overall trend in the industry shows a focus on scaling and profitability, with all brands facing pressures related to channel and inventory adjustments [1] - There is a consensus in the industry on the need to enhance operational efficiency and pursue high-quality development, as evidenced by a collective reduction in store numbers across the four brands [1]

Core Insights - The four major domestic sports brands, Anta Sports, Li Ning, Xtep International, and 361 Degrees, reported a combined revenue of 65.9 billion yuan and a profit of 11.6 billion yuan for the first half of 2025, indicating stable revenue growth but significant divergence in profitability among them [2][3] Revenue and Profit Analysis - Anta Sports achieved a revenue of 38.544 billion yuan, a year-on-year increase of 14.3%, and a net profit of 7.031 billion yuan, which is double the combined profit of the other three companies [3] - Li Ning's revenue was 14.817 billion yuan, with a modest growth of 3.3%, and its net profit decreased by 11% to 1.737 billion yuan, marking the lowest profit growth among the four [3][4] - Xtep International reported a revenue of 6.838 billion yuan, up 7.1%, and a net profit of 914 million yuan, with a significant growth of 21.5% [3][4] - 361 Degrees had a revenue of 5.705 billion yuan, an 11% increase, but its net profit growth was only 8.6%, the lowest in five years [3][4] Market Dynamics and Competitive Landscape - The sportswear industry is facing intense competition, which has impacted Li Ning's performance, leading to a decline in net profit for three consecutive years [3][4] - Despite profitability pressures, Li Ning maintains healthy cash flow and asset quality [4] - Xtep International and 361 Degrees both achieved revenue and profit growth, with Xtep's net profit growth being the highest among the four [4][5] Inventory and Operational Efficiency - Anta Sports' average inventory turnover days increased from 114 to 136 days, indicating rising inventory pressure [5] - Li Ning, Xtep International, and 361 Degrees reported average inventory turnover days of 61, 94, and 109 days, respectively [5] Product Category Performance - Anta Sports' apparel category led with a revenue share of 54.2% and a gross margin of approximately 67.3%, while accessories saw the highest revenue growth of about 24.6% [6] - Li Ning's footwear category accounted for 55.6% of its revenue, with a growth rate of 4.9%, and its running category saw a retail sales increase of 15% [6] - Xtep International's footwear revenue share was 60.8%, but its growth rate was lower than that of its apparel category [6] Research and Development Investments - All brands, except Anta Sports, increased or maintained their R&D spending ratios, with Li Ning investing 3.45 billion yuan, a year-on-year increase of 8.7% [7][8] - 361 Degrees announced a strategic partnership with Stand Robotics for the development of wearable robotics and smart materials [8] Store Expansion and Channel Strategy - The four brands are slowing down their store expansion and focusing on improving store efficiency and quality [9][10] - Anta Sports has over 13,000 stores, with a focus on enhancing store performance rather than increasing the number of stores [10] - Li Ning closed 51 stores to optimize its store structure, concentrating resources on flagship and outlet stores [11][12] - The brands are increasingly investing in outlet stores, which have seen a rise in consumer interest, with a reported 12.8% increase in sales in the second quarter of 2025 [12]

Investment Rating - The report maintains a "Buy" rating for key companies in the sports footwear and apparel sector, including Anta Sports, Li Ning, and Xtep International, with respective 2025 PE ratios of 18x, 19x, and 12x [5][9][10]. Core Insights - The sports footwear and apparel sector shows robust growth, with a 9.1% year-on-year revenue increase to 65.9 billion yuan in H1 2025, and a net profit growth of 8.2% to 10.54 billion yuan after adjusting for one-time gains and losses from the previous year [1][17]. - A-shares in the branded apparel sector experienced stable revenue but significant profit pressure, with a slight revenue decline of 0.1% and a net profit drop of 17.5% in H1 2025 [2][17]. - The textile manufacturing sector faced a weakening trend in Q2 2025 compared to Q1, with a revenue increase of 2.7% but a net profit decline of 9.8% [3][17]. - The gold and jewelry sector saw weak demand, with gold jewelry consumption down 27% and 24% in Q1 and Q2 2025, respectively, highlighting the importance of product and brand strength [4][17]. Summary by Sections H-Shares Sports Footwear and Apparel - Revenue for key companies grew 9.1% to 65.9 billion yuan, with net profit increasing 8.2% to 10.54 billion yuan after adjustments [1][17]. - Companies are focusing on expanding differentiated store formats and enhancing product performance in running shoes while entering new outdoor categories for long-term growth [1][17]. A-Shares Branded Apparel - Revenue remained stable with a slight decline of 0.1%, while net profit fell 17.5% due to increased sales expenses [2][17]. - The home textile category showed stable demand, while fashion and leisure apparel companies exhibited varied performance [2][17]. - The outlook for H2 2025 suggests potential easing of profit pressure as companies manage expenses more effectively [2][17]. Textile Manufacturing - The sector's performance weakened in Q2 2025, with revenue growth of 2.7% and a net profit decline of 9.8% [3][17]. - The impact of changing tariff policies is noted, with Southeast Asian products gaining market share in the U.S. [3][17]. - Companies with integrated and international supply chains are expected to benefit from market share gains in the long term [3][17]. Gold and Jewelry - Overall demand for gold jewelry remains weak, with significant declines in consumption [4][17]. - Companies with strong product and brand capabilities are focusing on product development and marketing to differentiate themselves in a competitive market [4][17].

Core Insights - The sports children's clothing market is increasingly focusing on the youth demographic, with brands like Li Ning and Skechers launching dedicated youth stores, reflecting a shift in consumer targeting [1][2][6] - Anta's children's division has achieved significant sales, surpassing 10 billion yuan, indicating a strong market presence and growth potential in the youth segment [1][2] - The rise of the "alpha generation" (children born after 2010) is influencing purchasing decisions, as they exhibit independent aesthetic awareness and decision-making capabilities [2][4] Market Trends - The market for children's sportswear is evolving, with brands shifting focus from younger children to the larger youth demographic due to declining birth rates and changing consumer preferences [2][6] - Brands are increasingly recognizing the need for specialized marketing strategies that engage youth directly, rather than solely targeting parents [2][4] - The trend towards more sophisticated and nuanced consumer preferences among youth is driving brands to adopt refined operational strategies [5][6] Retail Innovations - The physical retail landscape is adapting to cater to youth consumers, with a variety of store formats emerging, including specialized youth stores and concept stores [6][8] - Anta's strategy includes separating children's and infant's business lines, focusing on enhancing store efficiency for youth products [6][8] - The expansion of store sizes and the introduction of interactive and experiential elements are becoming common, with brands creating dedicated areas for specific sports and activities [12][19] Product Development - Brands are increasingly offering products that cater to niche sports and activities, reflecting a broader range of consumer interests and preferences [12][19] - The integration of technology in product design and retail experiences is becoming more prevalent, with brands focusing on specialized footwear and apparel for youth [16][19] - The emphasis on functionality and professional-grade products is evident, as brands like Anta and Skechers introduce advanced materials and designs tailored for young athletes [16][19] Consumer Engagement - The approach to engaging young consumers is evolving, with brands implementing interactive experiences in stores to attract and retain youth customers [19][21] - The use of technology for personalized services, such as foot arch assessments and AI-driven recommendations, is becoming a key differentiator in the retail experience [19][21] - The trend towards immersive retail environments, such as Nike's "active experience store," highlights the importance of creating engaging shopping experiences for young consumers [21]

Core Insights - The four major sports brands in Hong Kong—Anta Sports, Li Ning, Xtep International, and 361 Degrees—achieved revenue growth in the first half of 2025, but profit performance varied significantly [1][5] - Increased discounting has become a common strategy in the industry, impacting profit growth and gross margins [1][2] - Trends such as "opening large stores" and professional upgrades are becoming prominent in the industry [1][8] Revenue and Growth - In the first half of 2025, Anta Sports led with revenue of 38.54 billion yuan, a growth rate of 14.26%. Li Ning, Xtep International, and 361 Degrees reported revenues of 14.82 billion yuan, 6.838 billion yuan, and 5.705 billion yuan, with growth rates of 3.29%, 7.14%, and 10.96% respectively [2] - Over the past three years, except for Anta Sports, the other three brands showed a decline in growth rates: Xtep's growth fell from 14.76% to 7.14%, 361 Degrees from 18.00% to 10.96%, and Li Ning from 12.98% to 3.29% [2] - Anta Sports has maintained double-digit revenue growth for four consecutive years, but its main brands, Anta and FILA, have seen growth rates drop to single digits, with over 10% growth driven by outdoor brands like Descente and Kolon [2] Online Sales Performance - Online channels have become a common growth highlight for all four companies, but they have also negatively impacted gross margins. In the first half of 2025, online revenue growth rates were 17.6% for Anta Sports, 7.4% for Li Ning, and 45% for 361 Degrees [2][3] - The online revenue share for Anta Sports, Li Ning, and 361 Degrees was 34.8%, 29%, and 31.8% respectively, indicating that online business has become an important revenue pillar [3] Gross Margin Analysis - Anta Sports' gross margin decreased by 0.7 percentage points to 63.37%, attributed to increased costs in professional categories and higher online discounting [3] - Li Ning's gross margin fell by 0.4 percentage points to 50.04%, due to changes in channel structure and intensified promotional competition [3] - 361 Degrees experienced a unique situation where its gross margin increased by 0.2 percentage points to 41.5%, driven by a "price for volume" strategy that lowered average wholesale prices while increasing sales [3] Net Profit Performance - The net profit performance of the four brands showed divergence, with Anta Sports and 361 Degrees facing slowing net profit growth, while Li Ning experienced a decline. Li Ning's net profit was 1.737 billion yuan, down 10.99% year-on-year [5] - Anta Sports reported a net profit of 7.031 billion yuan, a decrease of 8.9%. However, excluding the impact of Amer Sports' listing in the previous year, net profit grew by 14.5% [5] - 361 Degrees' net profit was 858 million yuan, reflecting a growth of 8.61%, down from 12.23% in the previous year [5] Industry Trends - The industry is witnessing significant trends in market behavior and strategic layout, particularly in the competitive running shoe market, where brands are focusing on original research and development [7] - Brands are increasingly targeting niche markets and launching "precisely segmented" running shoes to meet diverse consumer needs [7] - The trend of "opening large stores" is common among the four brands, with flagship stores often exceeding 1,000 square meters and offering a mix of experience, service, and social interaction [8]

Summary of Xtep International Conference Call Company Overview - **Company**: Xtep International - **Key Brand**: Saucony Industry Insights - **Running Shoe Market**: Anticipated growth driven by marathon events in the second half of the year, with Saucony emerging as a leading brand in this segment [2][4] - **Sales Performance**: Saucony's sales in July and August showed improvement over June, indicating a positive market recovery [4][11] Key Financial Metrics - **Sales Growth**: Xtep's main brand revenue grew by 4.5% in the first half of the year, primarily driven by volume increases rather than price adjustments [8] - **Sales Volume**: Expected total sales for the year are projected to reach 60 million pairs, with the Champion series expected to sell 8 million pairs, doubling from last year [2][6] - **Inventory Turnover**: Maintained at a healthy level of 4 to 4.5 months, with discounts stable at 30% to 32% [2][5] Product Strategy - **Product Range**: The product matrix includes high-end carbon plate shoes, mid-range options, and a mass-market series priced between 200 to 500 RMB [6][9] - **High-End Segment**: High-end running shoes are expected to account for over 10% of total sales, reflecting a growing demand for premium products [7] - **DTC Model**: All stores are now direct-to-consumer (DTC), enhancing operational efficiency and responsiveness to market changes [15][12] Marketing and Sponsorship - **Marketing Investment**: Xtep allocates 11% to 13% of revenue for marketing, with a significant portion directed towards marathon sponsorships [10] - **Brand Positioning**: Focus on high cost-performance and functional products to meet diverse consumer needs, particularly in urban areas [9][10] Future Outlook - **Revenue Projections**: Saucony's revenue is expected to grow by 30% to 40% this year, with a target of reaching 2 billion RMB in three years [4][22] - **Store Expansion**: Plans to open 30 to 50 new stores, with a focus on core urban areas, aiming for improved store efficiency [3][11] - **Product Development**: Continued emphasis on high-quality, functional products to cater to both casual and serious runners [9][20] Supply Chain and Production - **Supply Chain**: Saucony's international products are produced in Cambodia and Vietnam, while domestic products are entirely manufactured in China [16] - **SKU Expansion**: Increasing the number of SKUs in stores to enhance product variety and meet consumer demand [11] Additional Insights - **Children's Apparel**: Stable performance in children's clothing with no significant expansion plans, maintaining a good sales level [19] - **Future Acquisitions**: No current plans for acquiring additional running brands, focusing instead on maximizing the potential of existing brands [21] Conclusion Xtep International is positioned for growth in the running shoe market, leveraging its strong brand presence, effective marketing strategies, and a focus on product quality and consumer needs. The company anticipates significant revenue growth and improved profitability in the coming years.

Core Viewpoint - The article highlights the intense competition in the sportswear industry, leading to increased discounting practices that negatively impact profit growth and gross margins [2][4]. Revenue and Growth - In the first half of 2025, the four major sports brands in Hong Kong—Anta Sports, Li Ning, Xtep International, and 361 Degrees—achieved revenue growth, with Anta leading at 38.54 billion yuan and a growth rate of 14.26%. Li Ning, Xtep, and 361 Degrees reported revenues of 14.82 billion yuan, 6.838 billion yuan, and 5.705 billion yuan, with growth rates of 3.29%, 7.14%, and 10.96% respectively [4]. - Over the past three years, except for Anta, the other three brands have shown a decline in growth rates, with Xtep's revenue growth dropping from 14.76% to 7.14%, 361 Degrees from 18.00% to 10.96%, and Li Ning from 12.98% to 3.29% [4]. - Anta's revenue growth is primarily driven by its outdoor brands, while its main brands, Anta and FILA, have seen growth rates decline to single digits [4]. Online Channel Performance - Online channels have become a common growth highlight for the four companies, with Anta, Li Ning, and 361 Degrees reporting online revenue growth rates of 17.6%, 7.4%, and 45% respectively. Xtep did not disclose its overall online growth but noted that its main brand's e-commerce business grew and accounted for over 30% of total revenue [4][5]. - The online business expansion has negatively impacted gross margins, with Anta's gross margin decreasing by 0.7 percentage points to 63.37%, attributed to increased costs and discounts [5]. - Li Ning's gross margin fell by 0.4 percentage points to 50.04%, due to changes in channel structure and increased promotional discounts [5]. Profitability Analysis - Despite 361 Degrees experiencing a slight increase in gross margin by 0.2 percentage points to 41.5%, its net profit margin declined due to a significant rise in sales expenses, which increased by 13.2% to 1.037 billion yuan [6][7]. - Anta's net profit for the first half of 2025 was 7.031 billion yuan, a decrease of 8.9% year-on-year, while Li Ning's net profit fell by 10.99% to 1.737 billion yuan [7]. Industry Trends - The industry is witnessing a trend towards professionalization and specialization, with brands focusing on core categories and launching targeted products [9]. - The "big store" strategy is being adopted by all four brands, with flagship stores exceeding 1,000 square meters, offering a mix of sales, experience, and service [10]. - Overall, while the four major sports brands in Hong Kong reported revenue growth in the first half of 2025, they face challenges of differentiated growth rates and profit pressures, actively responding to industry competition through online initiatives, product segmentation, and channel upgrades [10].

呈交日期: 2025年9月2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 | HKD | | 0.01 | 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8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 ...

Core Insights - The four major sports brands in Hong Kong, Anta Sports, Li Ning, Xtep International, and 361 Degrees, all achieved revenue growth in the first half of 2025, but profit performance varied significantly [1][8] - Increased discounting has become a common strategy among these companies, impacting profit growth and gross margins [1][8] - The industry is witnessing a trend towards "opening large stores" and professional upgrades [1][8] Revenue and Growth - Anta Sports led with a revenue of 38.54 billion yuan, growing at 14.26%, while Li Ning, Xtep International, and 361 Degrees reported revenues of 14.82 billion yuan, 6.838 billion yuan, and 5.705 billion yuan, with growth rates of 3.29%, 7.14%, and 10.96% respectively [2] - Over the past three years, except for Anta Sports, the other three brands have shown a decline in growth rates [2] - Anta Sports has maintained double-digit revenue growth for four consecutive years, but its main brands, Anta and FILA, have seen growth rates drop to single digits, with over 10% growth driven by outdoor brands like Descente and Kolon [2] Online Sales Performance - Online channels have become a common growth highlight for all four companies, although they have negatively impacted gross margins [2][3] - In the first half of 2025, online revenue growth rates for Anta Sports, Li Ning, and 361 Degrees were 17.6%, 7.4%, and 45% respectively [2] - The online revenue share for Anta Sports, Li Ning, and 361 Degrees stands at 34.8%, 29%, and 31.8% respectively, indicating the importance of online business [3] Gross Margin Analysis - Anta Sports' gross margin decreased by 0.7 percentage points to 63.37%, attributed to increased costs in professional categories and higher online discounts [3] - Li Ning's gross margin fell by 0.4 percentage points to 50.04%, due to changes in channel structure and intensified promotional discounts [3] - 361 Degrees experienced a unique situation where its gross margin increased by 0.2 percentage points to 41.5%, driven by a "price for volume" strategy [3] Net Profit Performance - The net profit performance among the four brands showed divergence, with Anta Sports and 361 Degrees facing slowing growth, while Li Ning experienced a decline [5] - Li Ning's net profit for the first half of 2025 was 1.737 billion yuan, a decrease of 10.99% year-on-year [5] - Anta Sports reported a net profit of 7.031 billion yuan, down 8.9%, but excluding the impact of Amer Sports' listing, the net profit grew by 14.5% [5] Industry Trends - The industry is characterized by a significant trend towards specialization and upgrading, particularly in the competitive running shoe market [6][7] - All four brands are focusing on original research and development to create and upgrade their flagship running shoe IPs [6] - The trend of "opening large stores" is evident, with flagship stores exceeding 1,000 square meters, offering a mix of sales, experience, and social interaction [7]

Core Insights - The financial reports for the first half of 2025 from China's four major sportswear companies, Anta, Li Ning, Xtep, and 361 Degrees, reveal significant disparities in performance, with Anta leading in revenue and Xtep showing the fastest profit growth [1][2]. Revenue Performance - Anta achieved a record revenue of 38.54 billion yuan, a year-on-year increase of 14.3%, surpassing the combined revenue of Li Ning, Xtep, and 361 Degrees [2][3]. - Li Ning's revenue grew by 3.3% to 14.82 billion yuan, while Xtep reported a revenue of 6.84 billion yuan, up 7.1%. 361 Degrees saw an 11% increase in revenue to 5.705 billion yuan [2][3]. Profitability Analysis - Anta's net profit reached 7.031 billion yuan, nearly double that of the other three companies combined [3]. - Xtep's net profit grew by 21.5% to 910 million yuan, marking the highest growth rate among the four companies. 361 Degrees' net profit increased by 8.6% to 860 million yuan, while Li Ning's net profit fell by 11% to 1.737 billion yuan [3]. Strategic Focus and Business Lines - Anta continues to implement a "single focus, multi-brand, global" strategy, with its core brand revenue increasing by 5.4% to 16.95 billion yuan and FILA's revenue rising by 8.6% to 14.18 billion yuan [4][5]. - Li Ning is investing heavily in top-tier professional sports resources and increasing R&D spending by 8.7%, focusing on running, basketball, and training categories, which account for 67% of retail sales [5]. - Xtep is concentrating on the running segment, with its high-end running shoe brand Saucony achieving a 32.5% revenue increase to 785 million yuan, representing 11.5% of total revenue [5][6]. - 361 Degrees is pursuing a strategy of "professionalization, youthfulness, and internationalization," with its children's business and e-commerce showing rapid growth [6]. Operational Challenges - Anta's average inventory turnover days increased from 114 to 136 days, indicating rising inventory pressure. The overall gross margin decreased by 0.7 percentage points to 63.4% due to a higher contribution from lower-margin e-commerce and footwear products [8]. - Li Ning reported a net cash inflow of 2.41 billion yuan, with a cash cycle of 31 days, but faced challenges from reduced offline foot traffic impacting sales [9]. - Xtep's main brand revenue growth slowed to 4.5%, below the previous year's 6.6%, with Saucony not yet sufficiently supporting its "second growth curve" despite its high growth rate [10].