Investment Rating - The report does not explicitly provide an investment rating for the apparel industry Core Insights - The report highlights the growing popularity of loose-fitting pants over leggings, with market share for leggings expected to drop from 46.9% in 2022 to 38.7% by 2025, while loose pants gain traction [2] - Domestic watch brands like Seagull are experiencing significant sales growth in overseas markets, with a 95.63% increase during Black Friday promotions, driven by their high cost-performance ratio [1] - Luxury brands are increasingly entering the beauty market, with LVMH's perfume and cosmetics division generating €4 billion in revenue, accounting for 10% of the group's sales [4] Industry Trends - The trend of "de-streetification" is emerging among traditional streetwear brands, as they seek to elevate their image through quality and positioning, with brands like KITH and NOAH leading this transformation [3] - The luxury sector faces challenges in marketing, particularly during events like Qixi Festival, where brands struggle with cultural misinterpretation and market saturation [3] - The sportswear market is diversifying, with brands balancing the functionality of leggings with the comfort of loose pants, reflecting consumer demand for both performance and style [2] Top Brand News - Anta Sports reported a revenue of 38.54 billion yuan in the first half of 2025, a 14.3% increase, but faced an 8.27% drop in stock price due to concerns over growth potential [5] - FILA achieved a revenue of 14.18 billion yuan, growing 8.6% by focusing on high-end sports fashion and targeting middle-class consumers [5] - Bosideng ranked 45th in the 2025 global apparel brand value list with a brand value of $2.09 billion, reflecting its strong market position and commitment to innovation [8]

Group 1 - The imposition of a 39% tariff by the U.S. on Swiss exports has significantly impacted Switzerland's trade, with exports to the U.S. dropping by 22% in August compared to July [1] - The trade deficit with the U.S. has decreased to 2.06 billion francs (approximately 2.6 billion USD), marking the second-lowest level since 2020 [1] - The U.S. tariff is notably higher than the average tariff rate of 15% imposed by developed countries [2] Group 2 - The Swiss government is actively negotiating to lower the tariff, with U.S. Commerce Secretary indicating a potential agreement could be reached, although details remain unspecified [2] - Agricultural issues are particularly sensitive in Switzerland, with domestic groups opposing increased imports of U.S. beef or poultry due to a strong belief in food security and self-sufficiency [2] - In August, exports of luxury watches from Switzerland fell by 8.6%, while core pharmaceutical exports, which are exempt from the tariff, decreased by 1.3% [3] Group 3 - The Swiss economy is expected to slow down significantly due to the aggressive U.S. tax policies, despite showing resilience so far [3] - Switzerland is seeking to diversify its export markets, exemplified by a new free trade agreement signed with the Mercosur group [3]

Core Insights - The report by Zhiyan Consulting highlights the current state and investment directions of the Chinese watch industry from 2025 to 2031 [1] Import Data - In July 2025, China imported 80,000 mechanical watches, representing a year-on-year decrease of 7.5% [1] - The import value for the same period was $213 million, showing a year-on-year increase of 26.1% [1] Industry Analysis - Zhiyan Consulting is recognized as a leading industry consulting firm in China, specializing in in-depth industry research reports, business plans, feasibility studies, and customized services [1] - The firm emphasizes its professional approach, quality services, and keen market insights to provide comprehensive industry solutions that empower investment decisions [1]

Core Points - The 2025 Annual General Meeting of Compagnie Financière Richemont SA was held in Geneva, where all agenda items were approved by shareholders [2] - An ordinary dividend of CHF 3.00 per 'A' share and CHF 0.30 per 'B' share was approved, subject to Swiss withholding tax at 35% [3][4] - The remaining retained earnings after the dividend payment will be carried forward to the next business year [3] Dividend Payment Details - The dividend for 'A' shares traded on the SIX Swiss Stock Exchange is expected to be paid on 22 September 2025, while the payment for 'A' shares on the Johannesburg Stock Exchange will be on 29 September 2025 [4] - The rand amount for the Johannesburg Stock Exchange will be based on the exchange rate published on 10 September 2025 [4] Corporate Governance - The Non-Financial Report was approved by shareholders in compliance with Swiss law [5] - All Board members standing for re-election were re-elected for another one-year term [5] - Wendy Luhabe was designated as the representative of 'A' shareholders on the Board and re-elected [6] - KPMG SA was appointed as the new auditor, replacing PricewaterhouseCoopers, for a term of one year [6] Additional Information - Detailed voting results and the Chairman's address will be available for download on the Richemont website [7] - Richemont operates in three business areas: Jewellery Maisons, Specialist Watchmakers, and Fashion & Accessories Maisons [9] - Richemont 'A' shares are listed on the SIX Swiss Exchange and included in the Swiss Market Index [10]

Core Insights - The report by Zhiyan Consulting highlights the growth in China's electric watch imports, indicating a positive trend in the smart watch industry [1] Import Data Summary - In July 2025, China imported 730,000 electric watches, representing a year-on-year increase of 5.8% [1] - The import value for the same period reached $49 million, showing a year-on-year growth of 3.1% [1] Industry Analysis - Zhiyan Consulting is recognized as a leading industry consulting firm in China, specializing in in-depth industry research and providing comprehensive consulting services [1] - The firm has over a decade of experience in the industry research field, focusing on delivering quality insights and solutions to support investment decisions [1]

Core Insights - The report by Zhiyan Consulting highlights the current state and investment direction of the Chinese watch industry from 2025 to 2031 [1] Import Data Summary - In June 2025, the import quantity of mechanical watches in China was 70,000 units, representing a year-on-year decrease of 19.3% [1] - The import value for the same period was $18.9 million, which reflects a year-on-year decline of 10.9% [1]

Core Viewpoint - The financial performance of Feiyada (000026) for the first half of 2025 shows significant declines in revenue and net profit, indicating challenges in the company's operations and financial health [1][2]. Financial Performance - Total revenue for the first half of 2025 was 1.784 billion yuan, a year-on-year decrease of 14.08% [1]. - Net profit attributable to shareholders was 82.4455 million yuan, down 43.97% year-on-year [1]. - In Q2 2025, revenue was 860 million yuan, a decline of 14.96% compared to the same quarter last year [1]. - Q2 net profit attributable to shareholders was 37.1391 million yuan, reflecting a 48.16% decrease year-on-year [1]. - The gross margin was 35.55%, down 4.36% year-on-year, while the net margin was 4.62%, a decrease of 34.79% [1]. - Total selling, administrative, and financial expenses amounted to 488 million yuan, accounting for 27.38% of revenue, an increase of 3.61% year-on-year [1]. - Earnings per share were 0.2 yuan, down 42.99% year-on-year, while operating cash flow per share increased by 84.25% to 0.62 yuan [1]. Accounts Receivable - The company's accounts receivable are substantial, with accounts receivable accounting for 134.13% of the latest annual net profit [1][2]. Market Outlook - The domestic watch market is expected to face short-term pressures, but the company is optimizing its watch business through improved products, channels, and marketing strategies, leading to relatively stable performance compared to the industry [2]. - The long-term outlook for the watch industry is optimistic, supported by the backdrop of national economic development [3]. Return on Investment - The company's return on invested capital (ROIC) was 6.19% last year, indicating average capital returns, with a historical median ROIC of 7.11% over the past decade [2]. - The net profit margin last year was 5.59%, suggesting that the added value of the company's products or services is average [2].

Core Viewpoint - The traditional allure of European luxury watches, once seen as a symbol of wealth and status in China, is diminishing as consumer preferences shift towards domestic brands and smartwatches, leading to a significant decline in the resale value of high-end Swiss watches [4][5][10]. Market Trends - The resale index for Rolex watches has dropped nearly one-third from its peak in March 2022 to March 2025, marking a four-year low [4][10]. - The sales of Swiss watches to mainland China fell by 26% last year, with exports to Hong Kong also declining by 19% [11]. Consumer Behavior - The middle-class consumer group, which has been a significant driver of luxury watch sales, is experiencing a decline in spending enthusiasm, with 45% reporting reduced luxury goods consumption in 2023-2024 [14][17]. - A survey indicated that 80% of consumers who are reducing luxury purchases believe that luxury goods lack cost-effectiveness [17]. Competitive Landscape - Domestic watch brands like Seagull and Fiyta are gaining traction, particularly with models associated with national leaders, while smartwatches from brands like Huawei and Xiaomi are becoming popular for their affordability and functionality [4][20]. - In 2024, Huawei led the smartwatch market in China with a shipment of 21.2 million units, reflecting a 34.2% year-on-year growth [19]. Brand Perception - The perception of European luxury watches as "hard currency" is fading, with consumers now prioritizing value for money over status symbols [5][11]. - The narrative surrounding luxury watches is changing, with younger consumers seeking personalized expressions rather than adhering to traditional brand stories [18][24]. Technological Advancements - Domestic watch manufacturers are improving their technical capabilities, with products like the Fiyta "Zhai Xing" automatic mechanical movement achieving recognition for quality [22][24]. - The gap in technology between domestic and Swiss watches is narrowing, as evidenced by advancements in domestic manufacturing processes [21][22]. Cultural Shifts - The cultural significance of luxury watches is evolving, with consumers increasingly valuing heritage and local craftsmanship in domestic brands [20][24]. - The rise of smartwatches and domestic brands reflects a broader shift in consumer values, moving away from ostentation towards practicality and personal relevance [20][24].

Core Viewpoint - The recent financial report of Feiyada (000026) shows a significant decline in revenue and net profit for the first half of 2025 compared to the previous year, indicating potential challenges in the company's performance and financial health [1]. Financial Performance - The total revenue for the first half of 2025 was 1.784 billion yuan, a decrease of 14.08% year-on-year [1]. - The net profit attributable to shareholders was 82.4455 million yuan, down 43.97% year-on-year [1]. - In Q2 2025, the revenue was 860 million yuan, reflecting a 14.96% decline year-on-year, while the net profit was 37.1391 million yuan, a decrease of 48.16% year-on-year [1]. - The gross profit margin was 35.55%, down 4.36% year-on-year, and the net profit margin was 4.62%, down 34.79% year-on-year [1]. - Total operating expenses (selling, administrative, and financial expenses) amounted to 488 million yuan, accounting for 27.38% of revenue, an increase of 3.61% year-on-year [1]. Balance Sheet Highlights - The company reported cash and cash equivalents of 539 million yuan, an increase of 33.37% year-on-year [1]. - Accounts receivable stood at 296 million yuan, a decrease of 16.86% year-on-year, but still represented 134.13% of the latest annual net profit [1]. - Interest-bearing debt decreased significantly to 197 million yuan, down 49.38% year-on-year [1]. Market and Business Outlook - The company's return on invested capital (ROIC) was 6.19%, indicating average capital returns, with a historical median ROIC of 7.11% over the past decade [3]. - The company relies heavily on marketing-driven performance, necessitating a closer examination of the underlying factors driving this model [3]. - Analysts expect the company's performance for 2025 to reach 239 million yuan, with an average earnings per share of 0.58 yuan [3]. Industry Perspective - The domestic watch market is currently facing short-term pressures, but the company is optimizing its product, channel, and marketing strategies to enhance operational efficiency [4]. - The long-term outlook for the watch industry remains optimistic, supported by the overall economic development of the country [4].

Group 1 - The company, Ebolu (01856), anticipates a net loss of approximately HKD 21.8 million for the six months ending June 30, 2025, which is a significant increase from a net loss of about HKD 5.3 million in the same period of 2024 [1] - The expected loss is primarily attributed to weak consumer market sentiment, slow economic recovery, and fragile consumer confidence [1] - The company has noted that macroeconomic uncertainties and geopolitical tensions have led to a more conservative order volume from clients [1]