Core Viewpoint - Xtep International's financial performance shows a mixed picture, with revenue growth in core operations but significant challenges in brand positioning and market competitiveness [1][6][11]. Financial Performance - For the first half of 2025, Xtep reported a revenue increase of 7.1% to 6.838 billion yuan, operating profit up 9.1% to 1.305 billion yuan, and net profit up 21.47% to 914 million yuan [1]. - However, when including divested brands, actual revenue declined by 5.07% [1]. - From 2021 to 2023, Xtep's revenue growth rates were 22.53%, 29.13%, and 10.94%, dropping significantly to 6.55% in 2024 [1]. Market Position and Comparison - Xtep's revenue in 2024 was 13.577 billion yuan, less than one-fifth of Anta's 70.826 billion yuan and below half of Li Ning's 28.676 billion yuan [2]. - Net profit for 2024 was 1.238 billion yuan, significantly lower than Anta's 16.989 billion yuan and Li Ning's 3.013 billion yuan, with Anta's net profit being 13.7 times that of Xtep [2]. Operational Efficiency - Xtep's accounts receivable turnover days increased from 107.76 days in 2022 to 132.40 days in 2024, indicating lower operational efficiency compared to Anta and Li Ning [4]. - In 2024, Xtep's net cash flow from operating activities was 1.228 billion yuan, far below Anta's 16.741 billion yuan and Li Ning's 5.268 billion yuan [5]. Brand Strategy and Challenges - Xtep's multi-brand strategy has faced setbacks, with a heavy reliance on its main brand, which accounted for 88.5% of revenue in 2025 [7]. - The main brand's revenue growth was only 4.5% in the first half of 2025, below the overall group growth rate, and its gross margin decreased by 0.3 percentage points [9]. - Xtep's brand recognition is heavily focused on running shoes, limiting its diversification and market competitiveness compared to brands like Anta and Li Ning [6][7]. Brand Image and Consumer Sentiment - Xtep has faced negative public sentiment due to various incidents, including a controversial social media post and product quality issues, leading to consumer complaints [11][12]. - The company has received 1,688 complaints related to quality and service, indicating significant challenges in maintaining brand reputation [12].