Group 1: Financial Performance - Xtep Group reported a net profit increase of 21.5% for the first half of 2025, reaching a historical high of 914 million yuan [2] - The company's revenue for the same period was 6.838 billion yuan, reflecting a year-on-year growth of 7.1% [2] - The main brand revenue amounted to 6.053 billion yuan, indicating a strong market foundation [2] Group 2: Product Development and Innovation - Xtep has focused on creating running shoes tailored to the foot shape of Chinese consumers since the 2008 Beijing Olympics [3] - The company has made significant advancements in shoe technology, including improvements in heel wrapping and the use of aerospace-grade PI fibers to enhance shoe performance [3] - The introduction of the 160X running shoe series involved feedback from over 35,000 runners, showcasing a commitment to addressing user needs [3] Group 3: Community Engagement and Growth - Xtep has established a running community called "Te Run Tribe," which has grown to 2.4 million members, emphasizing the importance of social connections among runners [11] - The community operates 6,200 running groups and has set up 70 running clubs in key locations to support runners' diverse needs [13] - The brand's initiatives have led to a significant increase in participation in running events, with 749 road running events held in 2024, attracting 7.0486 million participants [15] Group 4: Market Position and Strategy - Xtep's running shoes have become the most worn brand in major marathons, indicating strong market acceptance [15] - The company has shifted the perception of running from a "middle-class sport" to a common hobby for the general public, making it more accessible [15] - Xtep has invested over 15 million yuan in the "National Speed" strategy to support athletes, contributing to improved performance in Chinese marathon events [16]

Core Viewpoint - Xtep Group reported a significant increase in net profit of 21.5%, reaching 914 million yuan in the first half of 2025, marking a historical high amidst a nationwide sports trend [3][6] - The company's revenue for the same period was 6.838 billion yuan, a year-on-year growth of 7.1%, with the main brand contributing 6.053 billion yuan [3][6] Revenue and Profit Growth - Xtep's revenue growth was driven by strong performance in its professional sports division, particularly with Saucony, which saw a revenue increase of 32.5% [3][6] - Saucony's operating profit surged by 236.8%, indicating improved profitability [3][6] Running Ecosystem Development - Xtep has focused on creating a complete running ecosystem, emphasizing the importance of suitable running shoes tailored to the needs of Chinese runners [4][15] - The establishment of the "Te Run Tribe" in 2012 has been pivotal in connecting runners and fostering community engagement, now boasting 2.4 million members [16][18] Community Engagement and Support - The company has invested in community operations, establishing 6,200 running groups and 70 running clubs across key locations to enhance runner interaction and support [18][20] - Xtep's commitment to research and development is evident in its innovative products, such as the 160X running shoe, which incorporates advanced materials for improved performance [20][21] Market Trends and Consumer Behavior - Running is evolving from a niche activity to a mainstream hobby, with 749 road running events held in China in 2024, attracting 7.0486 million participants [20][21] - The company recognizes the shift in consumer perception, making running accessible to a broader audience without the need for high-end equipment [20][21] Competitive Strategy - Xtep's "National Speed" strategy, initiated in collaboration with the Chinese Athletics Association, has seen over 15 million yuan invested in athlete support, contributing to improved national marathon performance [21] - The company aims to support runners at all levels, from beginners to elite athletes, solidifying its role as a key player in the Chinese running landscape [21]