Summary of Bosideng's 2025 Half-Year Earnings Call Company Overview - **Company**: Bosideng - **Fiscal Year**: 2025 - **Industry**: Apparel, specifically down jackets Key Financial Highlights - **Revenue**: Achieved 11.9 billion CNY in the first half of FY2025, a 3% year-on-year increase, marking a historical high for the period [2][3] - **Operating Profit**: Increased by 3.1% year-on-year, reaching 11.9 billion CNY, also a historical high [3] - **Gross Margin**: Slightly improved to 50%, up by 0.1 percentage points [3] - **Inventory Turnover Days**: Decreased significantly to 178 days, down by 11 days year-on-year, indicating improved operational efficiency [3] Business Segment Performance - **Down Jacket Business**: - Revenue grew by 8.3% to 65.68 billion CNY, accounting for 74% of total revenue [2][5] - The main brand performed well, with spring/summer product sales increasing from 15% to 18% of total sales [5] - Offline direct sales channels saw a comparable store growth of 6% [5] - **OEM Segment**: - Revenue declined by 11.7% to 20.4 billion CNY, impacted by external factors such as tariffs and geopolitical issues [5] - **Women's Wear and Diversified Apparel**: - Slight decline in revenue, but minimal impact on overall group performance [5] Market Strategy and Product Development - **New Products and Designer Collaborations**: - Demand for new and designer items exceeded expectations, particularly for the "Puff" product line, which is expected to see significant growth [6][15] - Classic items like the Extreme Cold series are anticipated to remain popular during peak season [6] - **E-commerce Strategy**: - Traditional e-commerce platforms (e.g., Tmall, JD) showed steady growth, with Tmall ranking second and JD first during the Double Eleven shopping festival [7][8] - Douyin (TikTok) saw rapid growth after restructuring its official flagship store [8] Inventory and Channel Management - **Inventory Management**: - Focused on destocking in the first half of FY2025 due to excess inventory from a warm winter in 2024 [9] - Healthy inventory levels maintained, with no anticipated burdens for the second half of the fiscal year [13] - **Channel Strategy**: - Expected revenue split between self-operated and distribution channels to be approximately 70:30 [4][9] Future Outlook - **Growth Projections**: - The company aims for a double-digit growth rate of 10% for the full fiscal year, with the down jacket segment expected to exceed 10% growth in the second half [4][11] - **Pricing Strategy**: - Average selling price (ASP) expected to remain stable or slightly increase compared to the previous year [18][19] - **Store Expansion**: - Anticipated slight increase in total store count, with plans to open and close several stores [20] Brand-Specific Strategies - **Xuezhongfei and Bingjie Brands**: - Focus on online sales with minimal changes in offline store strategy; Xuezhongfei aims to solidify its position in the ice and snow sports market [21] - **Response to Seasonal Sales Pressure**: - Sales performance aligns with expectations due to significant adjustments in inventory, channels, and product innovation [22] Additional Insights - **OEM Order Visibility**: - Long-term demand from large brands is promising, but immediate growth is not expected for the current fiscal year [12] - **Women's Wear Challenges**: - Short-term revenue and profit growth not anticipated; strategies include personnel optimization and product mix adjustments [16][17]

Core Viewpoint - Bosideng's FY25/26 interim results show a steady performance with revenue growth of 1.4% to 8.93 billion yuan and a net profit increase of 5.3% to 1.19 billion yuan, indicating high-quality growth and operational resilience since the strategic transformation in 2018 [1][4] Financial Performance - The company declared an interim dividend of 0.063 HKD per share, with a payout ratio of approximately 55% [1] - The brand's down jacket business, as the core engine, saw an 8.3% revenue increase to 6.57 billion yuan, accounting for 73.6% of total revenue [1] - The main brand, Bosideng, achieved an 8.3% revenue growth to 5.72 billion yuan, while the Snow Flying brand experienced a slight decline of 3.2% [1] - The OEM processing business faced a revenue decline of 11.7% to 2.04 billion yuan due to uncertainties from tariff policies and geopolitical factors [1] Channel Performance - Both self-operated and franchised channels showed steady growth, with self-operated revenue increasing by 6.6% to 2.41 billion yuan and franchise revenue rising by 7.9% to 3.70 billion yuan [2] - The total number of retail outlets for the down jacket business increased by 88 to 3,558, with 3 new self-operated stores and 85 new franchise stores [2] Operational Efficiency - The company's gross profit margin slightly increased by 0.1 percentage points to 50.0% [2] - The net profit margin improved by 0.5 percentage points to 13.3%, despite an increase in sales expense ratio by 1.7 percentage points to 27.5% [3] - Inventory turnover days decreased significantly by 11 days to 178 days, indicating effective inventory management [3] - Cash and cash equivalents reached approximately 3 billion yuan, with net cash value increasing by 38.8 billion yuan year-on-year [3] Long-term Outlook - Bosideng has over 40 years of experience in the down jacket industry, with strong consumer recognition and ongoing expansion into outdoor and functional apparel segments [4] - The company maintains profit forecasts for FY26-28, expecting net profits of 3.9 billion, 4.34 billion, and 4.75 billion yuan, with corresponding P/E ratios of 13, 12, and 11 times [4]

Investment Rating - The industry investment rating is "Positive" and maintained [6] Core Insights - In FY2025Q3 (July 1, 2025 - September 30, 2025), Amer Sports achieved revenue of $1.76 billion, a year-on-year increase of 30% (28% at constant exchange rates), exceeding Bloomberg consensus expectations of $1.72 billion. The gross margin increased by 1.6 percentage points to 56.8%, primarily driven by channel, regional, and product mix optimization. Adjusted EBITDA rose by 38% to $350 million, with an adjusted EBITDA margin of 20.1%, up 1.2 percentage points year-on-year. Net profit attributable to shareholders surged by 156% to $140 million, with a net profit margin of 8.1%, an increase of 4.0 percentage points year-on-year [2][4][5]. Revenue Breakdown - Revenue growth was strong across all segments: 1. By product: Technical Apparel/Outdoor Performance/Ball & Racquet Sports revenues increased by 31%/36%/16% to $680 million/$720 million/$350 million, respectively, with constant exchange rates showing similar growth [5]. 2. By channel: Direct-to-Consumer (DTC) and wholesale revenues grew by 51% and 18% to $720 million and $1.03 billion, respectively, maintaining high growth across channels [5]. 3. By region: Revenues in the Americas/EMEA/Asia-Pacific/Greater China increased by 18%/23%/54%/47% to $570 million/$530 million/$190 million/$460 million, with all regions accelerating growth [5]. Inventory and Guidance - As of FY2025Q3, the company's inventory amounted to $1.71 billion, a year-on-year increase of 28%, with inventory levels remaining moderately high. The growth in inventory was mainly due to increases in Arcteryx inventory and exchange rate effects, with expectations for inventory growth to normalize by the second half of 2026 [10]. - The company raised its full-year guidance, projecting FY2025 revenue growth of 23% to 24% (previously 20% to 21%). Specific segment forecasts include Technical Apparel at 26% to 27%, Outdoor Performance at 28% to 29%, and Ball & Racquet Sports at 10% to 11%. The expected FY2025 gross margin is approximately 58% (previously 57.5%), with operating profit margins between 12.5% and 12.7% (previously 11.8% to 12.2%). EPS is projected to be between $0.88 and $0.92 (previously $0.77 to $0.82) [10].

Group 1: Report Industry Investment Rating - No relevant information provided Group 2: Core Views - For methanol, Iranian plants have started to shut down, leading to a resonance rebound between ports and the inland, with a slight strengthening of the basis. Port inventory has decreased for two consecutive weeks, but considering the large floating storage, it is expected to return to a state of inventory accumulation. In November, Iran shipped 1.1 million tons, and it is difficult to expect a significant decline in imports from December to January. The 01 contract on the futures market offers a risk - free arbitrage opportunity for imports, and it is believed that the end - state of the 01 contract will still be high inventory. It is advisable to take advantage of high prices to conduct a 1 - 5 reverse spread operation [1]. - For polyethylene, the inventory of the two major oil companies is at a neutral level compared to the same period. Upstream, the two major oil companies and coal - chemical enterprises are reducing inventory, while social inventory remains unchanged. Downstream, raw material and finished - product inventories are also neutral. Overall inventory is neutral. The 09 contract basis is around - 110 in North China and - 50 in East China. The overseas markets in Europe, America, and Southeast Asia are stable. The import profit is around - 200, with no further increase for the time being. The price of non - standard HD injection molding remains stable, other price differentials fluctuate, and LD is weakening. The number of maintenance operations in September is the same as the previous month, and the domestic linear production has recently decreased month - on - month. Attention should be paid to the LL - HD conversion situation and the US quotation. In 2025, the pressure from new plants is significant, and the commissioning of new plants should be monitored [6]. - For polypropylene, the upstream inventory of the two major oil companies and the middle - stream inventory are decreasing. In terms of valuation, the basis is - 60, the non - standard price differential is neutral, and the import profit is around - 700. Exports have been performing well this year. The non - standard price differential is neutral. The European and American markets are stable. The PDH profit is around - 400, propylene prices are fluctuating, and the powder production start - up rate remains stable. The proportion of drawing production is neutral. The subsequent supply is expected to increase slightly month - on - month. Currently, downstream orders are average, and raw material and finished - product inventories are neutral. Against the background of over - capacity, the 01 contract is expected to face a moderately excessive supply pressure. If exports continue to increase significantly or there are many PDH plant maintenance operations, the supply pressure can be alleviated to a neutral level [6]. - For PVC, the basis of the 01 contract remains at - 270, and the factory - delivery basis is - 480. Downstream operating rates are seasonally weakening, but there is a strong willingness to hold inventory at low prices. The inventory of the middle and upstream is continuously accumulating. During the summer, the northwest plants undergo seasonal maintenance, and the load center is between the spring maintenance and the high - production period in Q1. In Q4, attention should be paid to the commissioning of new plants and the sustainability of exports. Recently, the near - end export orders have slightly declined. The sentiment in the coal market is positive, the cost of semi - coke is stable, and the profit of calcium carbide is under pressure due to PVC maintenance. The counter - offer for caustic soda exports is FOB380. Attention should be paid to whether subsequent export orders can support high - price caustic soda. The comprehensive profit of PVC is - 100. Currently, the static inventory contradiction is accumulating slowly, the cost is stable, the downstream performance is mediocre, and the macro - environment is neutral. Attention should be paid to exports, coal prices, commercial housing sales, terminal orders, and operating rates [6]. Group 3: Summaries by Commodity Methanol - **Price Data**: From November 24 - 28, 2025, the动力煤期货price remained at 801. The prices of江苏现货,华南现货,鲁南折盘面,西南折盘面,河北折盘面,西北折盘面, CFR中国, and CFR东南亚 showed various changes. For example, the江苏 spot price increased from 2053 to 2100, and the CFR China price increased from 237 to 247 [1]. - **Inventory and Market Situation**: Iranian plants have shut down, leading to a resonance rebound between ports and the inland. The basis has strengthened slightly, and port inventory has decreased for two consecutive weeks, but there is a large amount of floating storage. It is expected to return to inventory accumulation. In November, Iran shipped 1.1 million tons, and it is difficult to expect a significant decline in imports from December to January [1]. Polyethylene - **Price Data**: From November 24 - 28, 2025, the东北亚乙烯price remained at 730 on some days. The prices of华北LL,华东LL,华东LD,华东HD, LL美金, and LL美湾 showed fluctuations. For example, the华北LL price decreased from 6760 to 6680 and then increased to 6720 [6]. - **Inventory and Market Situation**: The inventory of the two major oil companies is neutral compared to the same period. Upstream, the two major oil companies and coal - chemical enterprises are reducing inventory, while social inventory remains unchanged. Downstream, raw material and finished - product inventories are neutral. Overall inventory is neutral. The 09 contract basis is around - 110 in North China and - 50 in East China. Overseas markets in Europe, America, and Southeast Asia are stable. Import profit is around - 200, with no further increase for the time being [6]. Polypropylene - **Price Data**: From November 24 - 28, 2025, the山东丙烯price changed from 5900 to 6000, and the东北亚丙烯price remained at 695 on some days. The prices of华东PP,华北PP,山东粉料,华东共聚, PP美金, and PP美湾 also showed fluctuations. For example, the华东PP price decreased from 6285 to 6205 and then increased to 6270 [6]. - **Inventory and Market Situation**: The upstream inventory of the two major oil companies and the middle - stream inventory are decreasing. The basis is - 60, the non - standard price differential is neutral, and the import profit is around - 700. Exports have been performing well this year. The non - standard price differential is neutral. The European and American markets are stable. The PDH profit is around - 400, propylene prices are fluctuating, and the powder production start - up rate remains stable [6]. PVC - **Price Data**: From November 24 - 28, 2025, the西北电石price increased from 2450 to 2500, and the山东烧碱price remained at 777 on some days. The prices of电石法 - 华东,乙烯法 - 华东,电石法 - 华南,电石法 - 西北,进口美金价, and出口利润 also showed changes. For example, the电石 - based PVC price in East China increased from 4530 to 4560 [6]. - **Inventory and Market Situation**: The basis of the 01 contract remains at - 270, and the factory - delivery basis is - 480. Downstream operating rates are seasonally weakening, but there is a strong willingness to hold inventory at low prices. The inventory of the middle and upstream is continuously accumulating. During the summer, the northwest plants undergo seasonal maintenance, and the load center is between the spring maintenance and the high - production period in Q1. In Q4, attention should be paid to the commissioning of new plants and the sustainability of exports [6].

二 〇 二 五 年 度 库存跟踪： 2025 年 11 月 30 日 镍：基本面限制上方弹性，低位震荡运行 不锈钢：库存偏高供需双弱，成本限制下方想象力 张再宇 投资咨询从业资格号：Z0021479 zhangzaiyu@gtht.com 报告导读： 沪镍基本面：现实基本面仍有压力，宏观与消息影响边际。精炼镍累库矛盾和湿法投产预期压制估值， 火法利润遭重导致 11 月精炼镍排产环比减少 6%至 31580 吨，部分企业将精炼镍转向非标镍生产，但由于 市场普遍预期隐性补库放缓，耐腐合金需求承压，叠加镍合金端使用镍铁取代镍板的比例有所提高，累库 矛盾尚未完全化解。同时，远端低成本湿法路径供应增加的预期未改，即中间品环节湿法出清火法的长线 逻辑或仍有拖累。从宏观与消息面看，美联储偏鸽派言论提振，降息预期回升，宏观压力阶段性缓和，同 时，印尼的资源治理动作频繁，低位追空仍需关注风险。印尼政府敦促企业重新提交了 2026 年 RKAB 预 算，且印尼能矿部也表示对明年或可能削减配额，仍需紧密关注印尼审批进展的下一步动作。因此，整体 而言，现实面和预期都存在压力，但是短线在还未实质出清的阶段，宏观情绪回升，叠加消息面仍存 ...

Core Viewpoint - HLA's IPO aims to deepen its global strategy and accelerate overseas business development, despite recent performance challenges and declining stock prices [2][12]. Group 1: Company Overview - HLA is the second-largest men's apparel brand globally by revenue in 2024 and has held the top position in the Asian men's apparel market for 11 consecutive years since 2014 [2][8]. - The company has over 7,200 stores worldwide as of June 30, 2025, and has expanded its brand portfolio to include women's wear, children's clothing, and collaborations with global sports brands [5][4]. Group 2: Financial Performance - In the first three quarters of 2025, HLA reported revenue of 15.599 billion RMB, a slight increase of 2.23%, but net profit decreased by 18.62 billion RMB, down 2.37% year-on-year [8]. - Revenue fluctuated between 17.9 billion RMB and 21.9 billion RMB from 2019 to 2024, indicating a lack of sustained growth, with 2024 revenue down nearly 7% [10][11]. Group 3: Market Challenges - HLA faces ongoing inventory issues, with stock reaching 11.518 billion RMB and an inventory turnover period of 323 days as of Q3 2025 [13]. - The company has been removed from the MSCI index, reflecting weakened international investor confidence in its growth and profitability prospects [12][13].

Financial Data and Key Metrics Changes - The company reported record net sales of $1.3 billion for Q3 2025, up 7% year-over-year, marking the 12th consecutive quarter of growth [5][15] - Gross margin was 62.5% and operating margin was 12%, both impacted by approximately 210 basis points due to tariffs [6][17] - Earnings per share exceeded expectations at $2.36, compared to $2.50 in the previous year [7][17] - The company repurchased $100 million worth of shares in the quarter, totaling $350 million year-to-date, representing 9% of shares outstanding at the beginning of the year [5][18] Business Line Data and Key Metrics Changes - Abercrombie brands saw a net sales decline of 2% with comparable sales down 7%, primarily due to lower average unit retail (AUR) [8][16] - Hollister brands experienced a 16% increase in net sales and a 15% rise in comparable sales, benefiting from strong cross-channel traffic and lower promotions [10][16] Market Data and Key Metrics Changes - In the Americas, net sales increased by 7%, while EMEA also saw a 7% increase, offset by a 6% decline in APAC [15][19] - Comparable sales in the Americas were up 4%, EMEA up 2%, and APAC down 12% [15][19] Company Strategy and Development Direction - The company is focused on sustainable long-term growth through investments in marketing, stores, and technology, including AI enhancements in customer service [12][22] - The strategy includes a blend of owned and operated, franchise, wholesale, and licensing models to capture global growth opportunities [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fourth quarter outlook, narrowing full-year sales expectations to the upper end of the range, anticipating a strong finish to 2025 [6][19] - The company is prepared for the holiday season, having tested and learned from previous quarters to optimize inventory and product assortment [13][22] Other Important Information - The company plans to open 36 new stores by the end of the year and has made significant investments in digital technology to enhance customer experience [9][12] - The anticipated impact of tariffs for the full year is around $90 million, with ongoing efforts to mitigate these costs [19][21] Q&A Session Summary Question: Insights on Abercrombie brand performance by category and region - Management highlighted positive traffic and customer engagement, with a focus on denim, fleece, and sweaters for the fourth quarter [26][27] Question: Expectations for Hollister's momentum into 2026 - Management noted balanced growth across genders and categories, with strong customer engagement and inventory management [33][34] Question: Inventory composition and gross margin considerations for Q4 - Inventory is in good shape, with a 5% year-over-year increase at cost, and management expects continued AUR growth despite tariff impacts [42][43] Question: Marketing plans and promotional strategies - Management emphasized intentional marketing investments and a focus on brand building, with flexibility to adjust promotions based on demand [61][68] Question: Tariff impacts and pricing adjustments - Management anticipates a reduction in tariff headwinds in 2026, with pricing adjustments expected to take effect in early 2026 [82][84]

Summary of Rubber Industry Conference Call Industry Overview - The rubber processing profit in 2025 is under pressure due to high raw material prices and weak downstream demand, leading Thai processing plants to increase raw material purchase prices. Small private enterprises struggle to maintain inventory due to cash flow and financing cost issues [1][2][9] - Tire manufacturers are affected by EU anti-subsidy and anti-dumping policies, resulting in reduced profits. However, leading companies still show profitability, with a noticeable increase in procurement pace in the second half of the year due to low natural rubber inventory [1][3] - Overseas market demand remains weak, with a brief replenishment period from late September to the National Day holiday. Negotiations for 2026 long-term contracts are ongoing, with expected quantities and prices similar to 2025 [1][4] Key Points on Raw Material Prices - Thai raw material prices are expected to remain high due to supply-demand dynamics, with new production lines increasing demand but no significant supply increase anticipated for 2026 [1][5] - The current price of Thai rubber is around 55 THB, with expectations of limited improvement in 2026 due to persistent supply-demand contradictions [5][9] Market Dynamics and Challenges - The disappearance of the normal arbitrage position in 2025 and the large scale of reverse arbitrage positions have pressured the dollar-denominated product prices, leading to a forecasted decrease in import volumes in Q4 [1][6] - The impact of U.S. tariffs is significant, with profits for all-steel tires down by over 50%, affecting pricing in other regions and increasing costs in the supply chain [1][7][8] - The processing plants are currently operating at 60-70% capacity utilization, with many facing losses due to high raw material prices and weak downstream demand [1][10][22] Inventory and Production Insights - Inventory levels in 2025 are lower than in previous years due to cash flow challenges and high financing costs, with many small private enterprises unable to maintain normal inventory levels [2][19] - The overall inventory situation is tight, with no significant replenishment willingness from upstream farmers or processing plants, as they prioritize cash flow [24][27] Regional Insights - In Indonesia, some factories have closed due to rising raw material prices leading to sales losses, and similar situations are observed in Thailand and Africa [11][25] - African rubber processing plants have seen a decrease in profit per ton by $100-200, with supply growth lagging behind demand growth [11] Future Outlook - The rubber processing industry is expected to face challenges in 2026, with both all-steel and semi-steel sectors likely to encounter difficulties [8][9] - The current high raw material prices are not expected to incentivize significant increases in production, as farmers are already motivated to tap into rubber production due to limited alternative income sources [17][18] Conclusion - The rubber industry is navigating a complex landscape characterized by high raw material prices, regulatory challenges, and fluctuating demand. The outlook for 2026 remains cautious, with potential supply shortages looming if current trends continue.

Core Viewpoint - In Q3 2025, the company experienced a decline in both revenue and net profit due to business restructuring and increased operational costs, indicating a phase of pressure on profitability [2][3]. Financial Performance - The company reported a revenue of 2.2 billion yuan in Q3 2025, representing a year-on-year decrease of 15% [2]. - The net profit attributable to shareholders was 12.67 million yuan, down 77% year-on-year [2]. - The gross margin decreased by 1.9 percentage points, while the sales expense ratio increased by 1.3 percentage points [2]. Inventory Management - The company has been optimizing inventory management, leading to a healthier business structure [2]. - Inventory reached 1.2 billion yuan, showing a slight decrease of 70 million yuan from the previous quarter [2]. - The company is implementing a systematic inventory screening and cleaning process to improve inventory structure [2]. Future Outlook - The company is expected to benefit from inventory structure optimization and new product introductions, leading to improved profitability [3]. - The management anticipates that the scale effect from new channel investments will gradually reduce expense ratios [3]. - Projected net profits for 2025, 2026, and 2027 are estimated to be 101 million yuan, 171 million yuan, and 334 million yuan, respectively [3].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - In Q3 2025, the company achieved operating revenue of 2.2 billion yuan, a year-on-year decrease of 15%, and a net profit attributable to shareholders of 12.67 million yuan, down 77% year-on-year [2][4]. - The decline in revenue and profit is attributed to a slowdown in revenue growth due to business structure adjustments, a decrease in gross margin by 1.9 percentage points, and an increase in sales expense ratio by 1.3 percentage points [11]. - The company is actively optimizing inventory management, with inventory amounting to 1.2 billion yuan, a slight decrease of 70 million yuan from the previous quarter, indicating a healthier inventory structure [11]. - Future expectations include improved profit contributions from the integration of business units and a gradual reduction in expense ratios as scale effects materialize, with projected net profits of 101 million, 171 million, and 334 million yuan for 2025, 2026, and 2027 respectively [11]. Summary by Sections Financial Performance - Q3 2025 operating revenue was 2.2 billion yuan, down 15% year-on-year, with a net profit of 12.67 million yuan, down 77% year-on-year [2][4]. - The gross margin decreased by 1.9 percentage points, while the sales expense ratio increased by 1.3 percentage points [11]. Inventory Management - The company is focusing on inventory optimization, with a current inventory of 1.2 billion yuan, reflecting a systematic approach to inventory management [11]. - The inventory structure is expected to improve as the company implements new inventory management strategies [11]. Future Outlook - The company anticipates a gradual improvement in profitability due to better inventory management and the integration of business units, with projected net profits increasing over the next three years [11].