Financial Performance - The company's revenue increased by 37.5% to RMB 5,684 million[2,4] - Profit attributable to ordinary equity holders increased by 38.4% to RMB 590 million[2,4] - The core Xtep brand revenue reached RMB 4,898 million[2] - Interim dividend per share was HK 13.0 cents, with a payout ratio of 50.3%[2] Core Xtep Brand - Core Xtep brand revenue increased by 36.2% to RMB 4,898 million[10,55] - Xtep Kids' revenue increased by 84% to RMB 721 million, accounting for approximately 15% of the core Xtep brand's revenue[30] Athleisure (K-Swiss & Palladium) - Revenue increased by 36.3% to RMB 629 million[35] - Gross profit margin decreased by 3.7% points to 39.8%[35] Professional Sports (Saucony & Merrell) - Revenue increased by 106.4% to RMB 157 million[42,70] - Gross profit increased by 109.0% to RMB 90 million[42] Retail Network - There are 6,251 Xtep branded stores in Mainland China and overseas[2,27]

Financial Performance - Group revenue reached RMB 12,930 million, a 29.1% increase year-over-year[2,6] - Core Xtep brand revenue grew to RMB 11,128 million, representing a 25.9% increase[2,6] - Group's operating profit increased to RMB 1,464 million, a 4.9% increase[2,6] - Profit attributable to ordinary equity holders of the Company increased to RMB 922 million, a 1.5% increase[2,6] Core Xtep Brand Analysis - Core Xtep brand's operating profit increased to RMB 1,759 million, a 9.4% increase[2,81] - Core Xtep brand's net profit increased to RMB 1,345 million, a 10.7% increase[2,81] - Xtep Kids' revenue increased by 52% to RMB 1,671 million, accounting for 15% of the core Xtep brand's revenue in 2022[42] Brand Portfolio Performance - Athleisure brands (K-Swiss & Palladium) revenue increased by 44.4% to RMB 1,402 million[48,70] - Professional sports brands (Saucony & Merrell) revenue increased by 99.0% to RMB 400 million[55,70]

Xtep International Holdings Limited (Incorporated in the Cayman Islands with Limited Liability) Stock Code: 1368.HK 2023 Interim Results Presentation 23 August 2023 2023 Interim Results Highlights Core Xtep branded stores in Mainland China and overseas as at 30 June 2023 8,031 RMB 665 m 12.7% RMB 5,430 m 10.9% Core Xtep brand'srevenue Core Xtep brand's net profit RMB 871 m 12.7% RMB 6,522 m 14.8% Group's revenue Profit attributable to ordinary equity holders of the Company HK 13.7 cents Payout ratio: 50.0% ...

Financial Performance - Group revenue reached RMB 13,577 million, a 6.5% increase year-over-year[2] - Profit attributable to ordinary equity holders of the Company increased by 20.2% to RMB 1,238 million[7] - Operating profit increased by 9.3% to RMB 1,966 million[7] - Gross profit margin increased by 1.4 percentage points to 43.2%[10] Segment Performance - Mass market revenue grew by 3.2% to RMB 12,327 million[66] - Professional sports segment revenue increased significantly by 57.2% to RMB 1,250 million[66] - Saucony's revenue exceeded RMB 1 billion, demonstrating sustained high growth[41] Retail and E-commerce - E-commerce fueled revenue growth by approximately 20%[40] - The company plans to reclaim distribution rights from approximately 400-500 Xtep branded stores in 2H2025 & 2026[61] Strategic Initiatives - The company will invest RMB 500 million in Capex in 2025-2026 to implement its DTC (Direct-to-Consumer) strategy[60] - The full year payout ratio (including special dividend) is 138.2%[7] - The company aims to enhance efficiency and build momentum by focusing on running and creating a professional image[57]

Group 1: Global Economic Outlook - The International Monetary Fund (IMF) has lowered the global economic growth forecast from 3.3% to 2.8% for 2025, indicating a trend of reduced growth across major economies [1] - The volatility and uncertainty in the global economy have become the new normal, prompting companies to explore new growth paradigms through strategies like "stabilizing and expanding new domains" [1] Group 2: China's Fast-Moving Consumer Goods (FMCG) Market - In Q1 2025, China's urban FMCG market sales grew by 4.2% year-on-year, with beverages leading the growth while food categories faced pressure [2] - Beverage categories showed strong performance, with growth exceeding 10% in Q1 and Q2 of 2024, and maintaining a 6.09% growth in Q1 2025 [2][4] - Food categories experienced modest growth, with only a slight increase of 2.5% in Q1 2025 after a stagnant 2024 [2] Group 3: Corporate Strategic Transformation - In response to economic pressures, 61.3% of companies have adopted a "stabilizing" strategy, an increase of 2.5 percentage points from 2024, while 46.4% prioritize profit growth, reflecting a significant 20% year-on-year increase [7] - Companies are balancing the need for stability through cost optimization and non-core business contraction with the desire for profit breakthroughs via technological empowerment and innovative models [7][9] Group 4: Resilience in Business Operations - Companies are actively building resilience rather than merely defending against risks, as seen in the diversified supply chain strategies of brands like Nongfu Spring and McDonald's [9] - The focus on resource integration and efficiency enhancement is crucial for strengthening companies' risk management capabilities [9] Group 5: Profitability and Brand Strategy - Companies are shifting from extensive expansion to lean operations, with brands like Dongpeng Beverage and Weilong leveraging high-value products to boost profit margins [10] - Brand building has become a strategic priority, with 87.7% of advertisers recognizing brand equity as a core competitive advantage, leading to a focus on long-term brand strategies [10] Group 6: International Expansion Challenges - Chinese companies are adopting cautious and diversified strategies for international expansion, with brands like Pop Mart and BYD successfully increasing their overseas revenue [11] - Challenges such as consumer behavior differences and geopolitical factors remain significant hurdles for companies venturing abroad [11] Group 7: Technology and AI Integration - The adoption rate of AI among Chinese companies reached 75% in 2024, marking a 27 percentage point increase from 2023, indicating a shift from exploration to value realization [13] - AI applications are enhancing operational efficiency across various domains, although concerns regarding data privacy and compliance risks persist [13] Group 8: Strategic Recommendations for Growth - To thrive in the current economic climate, companies should focus on deepening their market presence, embracing new technologies, and optimizing resource allocation for global expansion [14] - Strengthening supply chain resilience and brand value is essential for establishing a solid growth foundation [14]

Summary of Anta Sports Conference Call Company Overview - **Company**: Anta Sports - **Date**: May 9, 2025 Key Points Industry and Market Performance - Anta Sports maintains stable discount levels at retail, with manageable inventory, expecting sales growth driven by the 618 shopping festival, while remaining cautious about the domestic economic situation's impact on future months [2][4] - The company reported good revenue growth in Q1 2025, with a positive outlook for Q2 despite slight early July fatigue, supported by strong performance during the May Day holiday [4] Brand Acquisition and Strategy - The acquisition of the Jack Wolfskin brand is expected to be completed between Q2 and Q3 of 2025, with a focus on integrating operations over the next six months to a year, prioritizing the Chinese market and adopting a Direct-to-Consumer (DTC) model [2][5][6] - Anta anticipates significant improvement potential for Jack Wolfskin in both the Chinese and German markets, with a transition period expected in 2025-2026 [2][7] FILA Brand Performance - FILA has shown stable performance, with expectations for continued growth under the new leadership of Jiang Yan, focusing on core products and reducing SKU counts to create best-sellers [2][8][9] Future Product and Channel Strategy - Anta plans to continue its investor strategy in 2025, with new products expected to launch in Q1 2026, emphasizing multi-scenario consumption and maintaining VIP customer loyalty [2][9] - The company is optimizing its online channel strategy to increase the online sales proportion of its main brand [3][14] Store Expansion and Innovation - Anta is expanding its store formats, with plans to increase the number of Champion stores from 80 to 120 and Super Anta stores from 50 to 100 by the end of 2025 [11] - The Super Anta stores are designed to attract high-end consumers, while the regular Anta stores will gradually decrease in number [13] Stock Buyback and Market Confidence - Anta Group plans to repurchase HKD 10 billion worth of shares, having completed HKD 2 billion so far, indicating confidence in market prospects [3][18] Pricing and Sales Strategy - The pricing strategy for FILA remains stable, with adjustments made to certain series to attract more customers, particularly in children's apparel [10] - Anta is focusing on reducing return rates during major sales events by optimizing promotional strategies and prioritizing low-return products [15][16] Urban Market Dynamics - Profitability varies by city tier, with second and third-tier cities showing the highest profitability, while first-tier cities face lower single-store profitability due to high rent [21] - Anta plans to close 100 to 200 outdated stores in lower-tier cities due to reduced foot traffic [21] Sales Performance During Holidays - During the May Day holiday, high-end small brands performed well, while Anta and FILA met expectations overall [22]

Group 1 - The "Ten Chains, Hundred Groups, and Ten Thousand Enterprises" integration and solidification chain initiative was launched in Shandong, focusing on 19 key industrial chains [1] - Shandong has implemented an upgraded "chain leader system" with a structure of "total chain leader + chain leader + chain master," aiming to enhance the engagement of leading enterprises in the integration and solidification of chains [1] - The initiative plans to hold 30 provincial-level matching events and around 600 various activities at the municipal level throughout the year, targeting to serve over 100,000 small and medium-sized enterprises [1] Group 2 - Shandong is developing a policy system that includes fixed and optional lists, focusing on key sectors such as integrated circuits, robotics, commercial aerospace, and new energy vehicles [2] - A total of 1,156 major investment projects and 1,500 key guiding directory projects have been broken down to align with industrial chains, with actual output value of 519.88 billion yuan in the first quarter, an increase of 133.34 billion yuan year-on-year [2] - The initiative aims to enhance the resilience of industrial chains by linking vertical supply chains with horizontal platform resources, exemplified by the integration with JD's industrial digital procurement platform [2]

Investment Rating - The report maintains an "OUTPERFORM" rating for Anta Sports, with a target price of HK$102.80, representing a potential upside of 9.4% from the current price of HK$94.05 [2][8]. Core Insights - Anta Sports continues to gain market share through product upgrades and channel innovations, with brand sell-through exceeding RMB 40 billion in FY24, achieving high single-digit growth [3][13]. - The acquisition of Jack Wolfskin is expected to enhance Anta's outdoor brand matrix, further solidifying its position in the high-end outdoor market [5][15]. - The FILA brand is experiencing growth due to a new CEO and an expanded product range, with sales expected to maintain mid-single-digit growth in 2025 and accelerate in subsequent years [4][16]. Summary by Sections Anta Brand Performance - Anta's brand revenue exceeded RMB 40 billion in 2024, driven by successful product upgrades and channel innovations, with a focus on high-end and mass-market positioning [3][13]. - The introduction of new product lines, such as the Anta Junior Series and various running shoe models, has contributed to significant sales growth [3][13]. FILA Brand Developments - FILA's revenue surpassed RMB 30 billion in 2024, with a strong online presence accounting for approximately 40% of sales [4][14]. - The brand's management transition is expected to support sustainable growth, with a focus on product positioning and brand development [4][14]. Other Brands and Acquisitions - Other brands under Anta, including DESCENTE and Kolon, reported significant revenue growth, with DESCENTE establishing a strong position in the high-end golf market [5][15]. - The planned acquisition of Jack Wolfskin for USD 290 million is anticipated to enhance Anta's outdoor product offerings and market presence [7][15]. Financial Projections - Revenue forecasts for Anta Sports are projected at RMB 78.97 billion for 2025, with a low double-digit growth rate expected through 2027 [8][16]. - Net profit estimates for the same period are RMB 13.39 billion in 2025, with a year-on-year growth of -14.1% due to one-off impacts in 2024 [8][16].

Core Viewpoint - The article emphasizes the need for comprehensive financial support measures to stabilize the market and expectations, particularly focusing on export enterprises, small and micro businesses, and employment groups affected by external demand shocks [1][5]. Group 1: Financial Policies - A total of ten incremental monetary policies and eight incremental financial policies were announced, along with three capital market initiatives [3]. - Two new monetary policy tools were introduced: a 500 billion yuan service consumption and pension re-loan, and a technology innovation bond risk-sharing tool, aimed at mitigating external demand disturbances [3]. - The technology innovation bond risk-sharing tool is designed to enhance the attractiveness and trading activity of technology innovation bonds, addressing the financing difficulties faced by tech enterprises [3]. Group 2: Economic Stability Measures - The article suggests establishing no less than 500 billion yuan in stable foreign trade and export re-loans, specifically targeting labor-intensive export enterprises transitioning to domestic sales or relocating production capacity [1][5]. - The need for coordinated economic cycles is highlighted, as any lag in one sector can negatively impact the overall economic structure, necessitating a "package" approach to policy implementation [5][6]. Group 3: Market Dynamics - The current external environment has led to a significant drop in new export orders, with the PMI reflecting this downturn, indicating a need for timely policy adjustments such as interest rate cuts [2]. - The article notes that the comprehensive tax rate imposed by the U.S. on Chinese exports exceeds 100%, which has a direct impact on China's trade surplus and domestic manufacturing investment [5]. - The relationship between stock market stability and consumer spending is emphasized, as wealth effects from a stable stock market can help boost consumption and mitigate declines in real estate investment [3].

Market Overview - The Hong Kong stock market saw all three major indices close higher on May 8, with the Hang Seng Index rising by 0.37%, the Hang Seng China Enterprises Index increasing by 0.7%, and the Hang Seng Tech Index up by 0.56% [1] Sector Performance - The pharmaceutical sector showed signs of recovery, with notable gains in companies such as Zhaoyan New Drug (up 5.63%), WuXi Biologics (up 3.92%), and Kanglong Chemical (up 1.62%) [1] - The automotive sector was active, highlighted by Li Auto-W, which rose by 4.96% ahead of the launch of its new L series models [1] - Technology-related stocks, including mobile gaming and cloud computing, mostly experienced gains, with Boyaa Interactive rising by 10.38% and Tencent Holdings increasing by 1.67% [2] Consumer Sector - The consumer sector saw collective movements in cosmetics, tobacco, and home appliances, with China Tobacco Hong Kong rising by 8.27% and JS Global Life increasing by 3.39% [2] - Conversely, retail and luxury goods stocks faced declines, with Samsonite dropping by 3.64% and Prada falling by 3.82% [2] Notable Stock Movements - Geely Automobile rose by 4.41% as it announced plans to privatize its brand Zeekr at a premium of 13.6% [4] - Youju Holdings surged by 150% following a change in controlling interest and a buyout offer at a 41.7% discount [5] - Shanghai Auntie saw a significant first-day listing increase of 40.03%, bringing its total market capitalization to HKD 16.225 billion [6]