Core Viewpoint - The report from GF Securities indicates that Xtep International (01368) plans to upgrade its retail strategy and implement DTC reforms in the second half of 2025, aiming to enhance consumer responsiveness and operational efficiency, with minimal short-term financial impact expected [1] Group 1 - In Q4 2025, Xtep's main brand revenue remained flat year-on-year, with a slight decline compared to Q3 due to factors such as warmer weather and a later Spring Festival affecting winter apparel sales [2] - Retail discounts for Xtep were maintained at 70-75%, consistent with Q3, while channel inventory turnover increased slightly to approximately 4.5 months, remaining at a healthy level [2] - E-commerce channels are expected to continue the double-digit growth trend observed in the first half of 2025, and Xtep's children's line is anticipated to achieve rapid growth with the launch of growth shoes under the "Xtep Youth" branding [2] Group 2 - In Q4 2025, Saucony's revenue saw over 30% year-on-year growth, accelerating from over 20% growth in Q3, attributed to adjustments made to the e-commerce channel starting in Q2 [3] - Saucony focuses on elite runners and professional products, expanding its presence in high-end shopping centers in major cities with new flagship and concept stores to enhance customer reach and store efficiency [3] - The synergy between Xtep's main brand and Saucony in the running sector is expected to strengthen, further increasing market share, with Xtep and Saucony leading in the joint wearing rate among marathon participants in 2025 [3]