Financial Data and Key Metrics Changes - The group's total revenue increased by 7.1% to JPY 6,838 million [7] - Operating profit rose by 9.1% to JPY 1,305 million, with an operating profit margin improvement of 0.4 percentage points to 19.19% [8] - Net profit for the first half of the year was JPY 914 million, reflecting a year-on-year increase of 21.5% [9] - Annualized return on equity increased by 3.3 percentage points to 19.7% [9] - Operating cash flows were CHF 774 million, with net cash increasing by 94.3% to CHF 1.913 billion [9] Business Line Data and Key Metrics Changes - Revenue from the XTEP core brand increased by 4.5% to JPY 6,053 million, while the professional sports division, including Saucony and Merrell, saw revenue growth of over 32% to JPY 785 million [8][16] - The mass market segment's gross profit increased by 4% to JPY 2,641 million, with a slight decrease in gross margin by 0.3 percentage points [15] - The professional sports division's operating profit surged nearly 2.4 times to JPY 79 million, with an operating profit margin improvement to 10% [17] Market Data and Key Metrics Changes - Over 300 marathons were held in China in the first half of the year, with more than 3 million participants, indicating a growing interest in running events [24] - The group's brands maintained high wear rates in major marathons, with Saucony achieving second place in overall wear rates at the Wuxi Marathon [25] Company Strategy and Development Direction - The company is focused on strengthening its core strategy of running, enhancing synergies among its brands, and expanding its product portfolio [23][35] - Plans include optimizing retail channel management, improving customer experience, and expanding into shopping malls and outlets [27] - The company aims to reinforce its position as China's leading running brand through flagship products and a professional to mass influence strategy [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term development of the sports industry, supported by government investments in public health and sports activities [3][5] - The company plans to implement refined operational management to improve efficiency and create greater returns for investors [6] - The outlook remains positive, with expectations of continued growth driven by the popularity of running and marathon events in China [24][36] Other Important Information - The company declared an interim dividend of HKD 0.18 per share, a year-on-year increase of 15.4%, maintaining a dividend payout ratio of 50% [9] - The company achieved an AA rating in the 2025 MSCI ESG rating, marking its fourth consecutive year of rating improvement [34] Q&A Session Summary Question: What is the outlook for the running market in China? - Management highlighted the increasing popularity of marathons, with over 300 events and 3 million participants in the first half of the year, indicating strong growth potential in the running market [24] Question: How does the company plan to enhance its brand image? - The company will continue to reinforce its high-end sports brand image through flagship products and marketing campaigns, particularly for Saucony [31][36] Question: What are the expectations for the professional sports division? - The professional sports division is expected to maintain a mid to high single-digit operating profit margin for the full year, with continued product launches and marketing efforts [17][36]