Bosideng International Holdings Limited (the "Company") – Notice of Publication of 2025/26 Interim Report (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communication are available on the Company's website (https://company.bosideng.com) and the website of HKEXnews (www.hkexnews.hk). If you have elected to receive the Corporate Communications in printed form, the printed copies of the Current Corporate Communication in your selected language(s) are ...

– Notice of Publication of 2025/26 Interim Report (the "Current Corporate Communication") (incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立之有限責任公司 ) (Stock Code 股份代號：3998) Dear Registered Shareholder(s), Bosideng International Holdings Limited (the "Company") * Actionable Corporate Communication is any corporate communication that seeks instructions from an issuer's securities holders on how they wish to exercise their rights or make an election as the issuer's securities holder. The E ...

Financial Performance - For the first half of the fiscal year 2025/26, the company's revenue increased by 1.4% to approximately RMB 8,927.6 million[8]. - The profit attributable to equity shareholders rose by 5.3% to approximately RMB 1,189.4 million, with a profit margin of 13.3%[8]. - The operating profit margin improved by 0.3 percentage points to 17.0%[8]. - The gross profit for the same period was RMB 4,466,703, representing a gross margin of approximately 50%[190]. - Operating profit increased to RMB 1,516,841, up from RMB 1,471,805, reflecting a growth of 3.1% year-over-year[190]. - Net profit for the period was RMB 1,201,206, compared to RMB 1,142,078 in 2024, marking a year-over-year increase of 5.2%[191]. - The group's income tax expense for the first half of the fiscal year 2025/26 increased to approximately RMB 478.7 million, with an effective tax rate of about 28.5%, a slight increase of 1.8 percentage points year-on-year[124]. - The company incurred a cash outflow of RMB (2,370,161) thousand from financing activities, compared to RMB (1,877,375) thousand in the same period of 2024[199]. Revenue Breakdown - The brand down jacket business generated revenue of approximately RMB 6,568.3 million, accounting for 73.6% of total revenue, with a year-on-year increase of 8.3%[13]. - The OEM management business recorded revenue of approximately RMB 2,044.4 million, representing 22.9% of total revenue, with a year-on-year decrease of 11.7%[13]. - The women's wear business generated revenue of approximately RMB 250.9 million, accounting for 2.8% of total revenue, with a year-on-year decrease of 18.6%[13]. - The diversified clothing business recorded revenue of approximately RMB 64.0 million, representing 0.7% of total revenue, with a year-on-year decrease of 45.3%[13]. - The revenue for the Xuezhongfei brand in the first half of the 2025/26 fiscal year was approximately RMB 377.9 million, representing a slight decline of 3.2% year-on-year[66]. - The Binjora brand, previously known as Bengen, reported revenue of approximately RMB 15.3 million in the first half of the 2025/26 fiscal year, a decrease of 26.0% year-on-year due to brand repositioning efforts[70]. Brand Strategy and Development - The company aims to become a world-leading fashion functional technology apparel group, focusing on the core down jacket business and fashion technology apparel[12]. - The company is committed to enhancing brand competitiveness through innovation and digital transformation, aiming to create long-term value for customers and society[11]. - The company is focusing on enhancing brand leadership, product categories, channel operations, and customer experience to strengthen its core competitiveness in the down jacket industry[16]. - The company aims to solidify its position as the "global leading down jacket expert" through strategic brand building and emotional storytelling[18]. - The brand was ranked 45th in the Brand Finance Apparel 50 2025 list, indicating a steady improvement in brand value[21]. - Bosideng's brand focus on product innovation and consumer preferences led to the launch of four award-winning products in the first half of the 2025/26 fiscal year, including the "Children's Three-in-One Down Jacket" and "CIRCULAR 3.0" which received the ISPO Award[54]. Innovation and Technology - Continuous investment in research and technology aims to enhance product innovation capabilities, including the establishment of an AI laboratory for design data integration[34]. - The company has launched an AI-powered design innovation model, creating an AI design lab to drive apparel design through big data, significantly reducing sample development time and costs[41]. - The company has implemented a data-driven single-store operation model, generating weekly diagnostic reports and targeted improvement strategies for each store, enhancing operational efficiency[44]. - The company has developed a smart supply chain ecosystem that enhances response speed and collaboration efficiency, enabling proactive supply chain management[43]. - The company is focused on quality excellence, implementing a digital quality control system to ensure real-time monitoring and traceability[34]. Operational Efficiency - The company has implemented a dynamic order adjustment system based on sales feedback, significantly improving channel efficiency and product management flexibility during peak sales periods[27]. - Inventory turnover days decreased significantly to 178 days, down 11 days year-on-year from the same period in 2024[29]. - The company implemented inventory destocking measures to enhance operational efficiency and prepare for peak season sales[29]. - The supply chain's flexibility and rapid response capabilities are key competitive advantages, with a focus on a dynamic order adjustment model based on market sales data[32]. - The company achieved a 99% replenishment availability rate for top-selling items, setting a new high challenge for replenishment availability of exceptional items[33]. Sustainability and ESG Initiatives - The group published its first climate responsibility report on September 29, 2025, outlining its innovative models for managing climate volatility risks[134]. - The group was included in the S&P Global "Sustainability Yearbook (China Edition)" for 2024 and 2025, highlighting its outstanding performance in ESG among over 1,700 assessed companies[136]. - The MSCI ESG rating for the group was upgraded from AA to AAA as of October 22, 2025, marking three consecutive years of improvement in ESG ratings[137]. - The group aims to achieve over 60% green electricity usage in operations by 2030 and aims for net-zero emissions within its operational scope by 2038[141]. - The company has implemented various measures in sustainable supply chains, circular design, and innovative materials during the first half of the fiscal year 2025/26[142]. Membership and Customer Engagement - In the first half of the 2025/26 fiscal year, the company added approximately 400,000 members on Tmall and JD platforms, bringing the total membership to about 21.4 million as of September 30, 2025[45]. - The company has restructured its membership system to enhance customer loyalty and satisfaction, focusing on core user experience upgrades[48]. - The company is focusing on member services and high-end customization to enhance customer experience and brand culture[93]. - The integration of member operations and emotional connections with consumers is being prioritized to enhance customer loyalty and retention[85]. Financial Management and Risk - The group aims to enhance its financial risk management through prudent financing and cash management strategies, primarily relying on cash generated from operating activities and bank borrowings[161]. - The group has implemented a systematic talent development system, focusing on the identification and development of strategic key employees to meet current organizational development needs[166]. - The group is actively utilizing forward foreign exchange contracts and currency swaps to mitigate risks associated with currency fluctuations, particularly given its operations primarily in China[162]. Employee Development and Corporate Culture - The group has trained a total of 1,035 outstanding university students, 207 excellent reserve managers, 58 excellent reserve directors, and 25 excellent retail company general managers as part of the "Eagle System" project by September 30, 2025, laying a solid talent foundation for strategic goals[179]. - The company emphasizes the importance of corporate culture as a core driver for achieving development goals and strategic implementation[175]. - The group aims to enhance its employer brand influence, aiming to attract top university graduates through various recruitment programs[166].

Core Insights - The 2025 World Brand 500 list was announced, with 50 Chinese brands included, maintaining the country's position as the third globally [1] - Five brands from Suzhou made the list: Hengli (347th), Shenghong (369th), Hengtong (386th), Bosideng (449th), and Tongding (496th), with Tongding being a first-time entrant [1] - The evaluation criteria for the World Brand 500 include market share, brand loyalty, and global leadership, assessing over 8,000 brands [1] Group 1: Suzhou Brands - Hengli has been on the list for eight consecutive years, improving its position by 16 spots from the previous year [1] - Shenghong has also been recognized for five consecutive years, moving up 11 places this year [2] - Hengtong has established 12 overseas industrial bases and over 40 technical service companies, creating a network covering more than 150 countries [2] Group 2: Brand Strategies - Shenghong is integrating artificial intelligence into its core strategy for industrial upgrade and brand building, focusing on smart industry and green branding [2] - Tongding, a leader in information communication and energy infrastructure, is enhancing its global strategy, exporting products to various countries and increasing brand visibility along the Belt and Road Initiative [2] - Hengtong has undertaken over 150 information and energy interconnection projects globally, enhancing the reputation of Chinese manufacturing [2]

Market Overview - The domestic retail sales in November 2025 showed a year-on-year growth of 1.3%, which is below market expectations, with a total retail sales amounting to 4.39 trillion yuan [8] - Cumulative retail sales from January to November 2025 reached 45.61 trillion yuan, reflecting a year-on-year growth of 4.0% [8] - The consumer confidence index in October 2025 was recorded at 89.4, indicating a slight decline of 0.2 from the previous month [8] Industry Insights Textile and Apparel Sector - The textile and apparel retail sales growth in November 2025 decreased by 2.8 percentage points, with a year-on-year growth of 3.5% [7][10] - The performance of major brands such as Bosideng is expected to remain strong due to continuous innovation in core products and a favorable comparison to last year's low base [7] - Recommendations include brands like 361 Degrees and Anta Sports, with a focus on their potential for growth in the upcoming seasons [7] Jewelry and Retail Sector - The jewelry retail sales in November 2025 increased by 8.5% year-on-year, driven primarily by price increases, despite a slight month-on-month decline [10] - Companies with strong terminal performance and differentiated products in the jewelry sector are recommended for investment [10] Electric Equipment and New Energy Sector - The report highlights that the company UBTECH has secured orders exceeding 50 million yuan for humanoid robots, indicating a growing demand in the AI and robotics market [11] - The central economic meeting emphasized the importance of green transformation and the establishment of a new energy system, which could benefit companies in the renewable energy sector [12] Supply Chain and Pricing Trends - The report notes that the prices of polysilicon and silicon wafers have remained stable, with polysilicon prices at 52.0 yuan/kg and silicon wafer prices showing signs of stabilization after previous declines [12] - The battery cell prices have seen a slight decrease, with N-type battery cells priced at 0.28 yuan/W, indicating ongoing price pressures in the market [12] Investment Recommendations - The report recommends focusing on companies in the photovoltaic sector such as LONGi Green Energy and Aiko Solar, as well as those involved in supply chain improvements and market-oriented energy solutions [13] - Companies like Miniso and Yonghui Supermarket are highlighted for their strong performance and growth potential in the retail sector [10]

Core Insights - The report emphasizes the optimism surrounding new consumption opportunities driven by quality supply, indicating that the "new consumption upgrade" will extend beyond 2025, focusing on innovative and user-centric supply rather than just cost reduction [3][4] - The report highlights the shift from "internal competition" to "external expansion," noting that Chinese manufacturing capabilities are now positioned to explore global supply chain opportunities, particularly in personal care and home goods [4] - The integration of AI in consumer products is identified as a significant growth area, with AI-powered devices like smart glasses expected to gain traction in 2025 and beyond [5] - The report discusses the K-shaped recovery in purchasing power, suggesting that luxury and experiential consumption will remain resilient as consumers continue to seek status through their purchases [6] Group 1: New Consumption Trends - The essence of new consumption is a supply-driven upgrade, focusing on innovative products that meet previously unmet consumer needs, such as ergonomic furniture and outdoor sports equipment [3] - The report anticipates that the alignment of quality supply and demand will continue to evolve, with new categories emerging beyond those already recognized in the market [3] Group 2: Global Expansion of Quality Supply - Chinese manufacturers are expected to capitalize on their competitive advantages in efficiency and innovation to expand into international markets, particularly through e-commerce [4] - The report notes that the personal care supply chain in China is significantly stronger than in Western markets, presenting a threefold expansion opportunity for Chinese brands abroad [4] Group 3: AI and Consumer Products - AI applications are projected to enhance consumer products, with smart glasses expected to enter mass production and drive new market dynamics [5] - The report suggests that 3D printing will also play a crucial role in the future of AI-enabled consumer goods [5] Group 4: Luxury and Experiential Consumption - The report identifies a persistent demand for symbolic consumption, particularly in luxury goods, as consumers continue to compete for status [6] - The luxury market is shifting towards services and experiences, with brands like Hermes and private jet companies expected to benefit from this trend [6] Group 5: Market Dynamics and Company Performance - The report outlines the competitive landscape for companies in the IP-driven consumer goods sector, emphasizing the importance of a diversified IP portfolio and localized marketing strategies for success [52][58] - Companies like Pop Mart are highlighted for their successful global strategies and the ability to create emotional connections with consumers through their IP offerings [58]

Group 1 - The "Creating Sustainable Brands" vision initiative was officially launched by nine leading Chinese companies at the UNEP headquarters in Nairobi, showcasing China's commitment to sustainable transformation on an international platform [1][5] - This initiative, also known as the "Geneva Vision Initiative," was co-launched by the Sustainable Business Leaders Forum (SBLF) and the China Standardization Association's Sustainable Business and Brand Committee (SBBC) [2] - The initiative aims to find representative cases that deeply integrate sustainable development with brand value creation, providing actionable methods for the global sustainable business ecosystem [5][7] Group 2 - The initiative outlines a systematic approach for companies to incorporate sustainable development into their business and brand value creation, advocating actions in five main areas: integrating sustainability into corporate strategy, establishing responsible business operations, leveraging technological innovation, enhancing product and service sustainability, and incorporating sustainability into brand building [7][8] - This five-dimensional framework addresses common challenges faced by companies in their sustainable exploration efforts [8]

Core Insights - The rising prices of down jackets have become a significant topic, with many well-known brands now entering the "2000 yuan era" for pricing [1][3] - A recent survey indicates a shift in consumer behavior, with a growing willingness to pay for preferred styles rather than just basic needs [4][11] Consumer Trends - Nearly 40% of respondents purchased down jackets this year, a significant increase from 20% last year [3] - The primary reason for purchasing down jackets has shifted to "liking a style," surpassing "basic need" and "promotional discounts" [4] - About 30% of consumers plan to increase their budget for down jackets this year, compared to only 7% last year [4] Income and Spending Patterns - The middle-income group, particularly those earning between 100,000 and 200,000 yuan annually, shows a strong desire to purchase higher-quality down jackets [5] - The proportion of consumers with a budget of 1,000 yuan or less has decreased from 77% to 51%, while those willing to spend 2,000 yuan or more has increased from 10% to 35% [6] Market Dynamics - The 2000 yuan price point has become a psychological anchor for middle-income consumers and a critical battleground for brands targeting the mid-to-high-end market [7] - Major brands like Bosideng and North Face have introduced products priced above 2000 yuan, reflecting the market's upward trend [7][9] Consumer Expectations - As prices exceed 2000 yuan, consumer expectations have evolved to prioritize design aesthetics, human-centered details, and professional specifications [13] - The focus on down quality remains, but consumers are increasingly interested in specific parameters like fill weight and loftiness [9][10] Brand Performance - High-end brands are seeing strong sales in the 2000 yuan price range, with products that blend traditional craftsmanship and modern aesthetics performing particularly well [11][12] - Outdoor brands are gaining popularity due to their dual value proposition of professional functionality and lifestyle appeal [13] Market Challenges - Despite the willingness to pay for high-quality down jackets, consumers express concerns about excessive price increases and product homogeneity [14] - The market faces a challenge where prices have risen significantly, but the differentiation in product value and quality has not kept pace, leading to skepticism among consumers [14]

Investment Rating - The textile and apparel sector is currently rated as underperforming compared to the overall market, with the SW textile and apparel index declining by 2.6% from December 8 to December 12, 2025, underperforming the SW All A index by 2.8 percentage points [4]. Core Insights - The report highlights a mixed performance in the textile and apparel sector, with a notable decline in exports and retail sales, but potential recovery in specific segments such as sports manufacturing and winter apparel due to seasonal demand [10][12]. - The report emphasizes the impact of a recent cold wave on winter apparel demand, particularly for brands like Bosideng, and suggests that the upcoming long holiday season may further boost sales [12][13]. - The report identifies opportunities in the sports manufacturing supply chain, particularly related to Nike's recovery, and recommends companies like Shenzhou International and Huayi Group for investment [10][12]. Industry Data Summary - Retail sales for clothing, shoes, and textiles in China reached 1,205.3 billion yuan from January to October 2025, showing a year-on-year growth of 3.5% [20]. - In November 2025, China's textile and apparel exports amounted to 23.87 billion USD, a year-on-year decline of 5.1%, with specific declines in apparel exports by 10.9% [26]. - Cotton prices in China increased slightly, with the national cotton price B index reported at 14,995 yuan per ton, up 0.5% [28]. - The Australian wool price index showed significant growth, with a year-on-year increase of 40.5%, indicating a bullish trend in the wool market [34].

纺织服饰 行 业 研 究 2025 年 12 月 14 日 朱本伦 A0230125090001 zhubl@swsresearch.com 寒潮催化下看好波司登，Nike 修复看好运动制造 中性 ——纺织服装行业周报 20251214 相关研究 《Nike 调整架构以贴近市场，看好运动产 业链机会——纺织服装行业周报 20251207》 2025/12/07 《 本周重磅发布策略报告，挖掘新消费、 看好全球制造——纺织服装行业周报 20251123》 2025/11/23 证券分析师 王立平 A0230511040052 wanglp@swsresearch.com 求佳峰 A0230523060001 qiujf@swsresearch.com 刘佩 A0230523070002 liupei@swsresearch.com 研究支持 朱本伦 A0230125090001 zhubl@swsresearch.com 联系人 本期投资提示： 点 评 证 券 研 究 报 告 请务必仔细阅读正文之后的各项信息披露与声明 本研究报告仅通过邮件提供给 中庚基金 使用。1 行 业 及 产 业 / 行 业 ⚫ 本周纺织 ...