Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown steady revenue growth, with a 7.1% year-on-year increase in revenue to 6.84 billion RMB in the first half of 2025, and a 21.5% increase in net profit to 910 million RMB, driven by the divestiture of loss-making brands [6][8] - The main brand continues to grow steadily, maintaining the top position in marathon apparel, with a revenue of 6.05 billion RMB, a 4.5% increase year-on-year [6] - The company is focusing on optimizing its multi-brand matrix and has initiated a Direct-to-Consumer (DTC) transformation to enhance market responsiveness and efficiency [6] Financial Data and Profit Forecast - Revenue projections for FY2023 to FY2027 are as follows: 143 billion RMB (2023), 136 billion RMB (2024), 143 billion RMB (2025E), 151 billion RMB (2026E), and 161 billion RMB (2027E) [5] - Net profit forecasts are: 10.3 billion RMB (2023), 12.4 billion RMB (2024), 13.7 billion RMB (2025E), 14.9 billion RMB (2026E), and 16.0 billion RMB (2027E) [5] - The company’s gross margin is projected to stabilize around 45% from 2025 to 2027, with a PE ratio of 11 for 2025 [6][5]

Group 1 - The 13th "Versailles Run" took place on June 29, attracting 23,000 participants from around the world, showcasing a blend of sports and culture [1][3] - The event, founded by the French Hugo Events Company in 2012, is a significant mass running event in France, featuring a course that passes through historical sites such as the Petit Trianon and the Versailles Canal [4] - The event emphasizes cultural heritage protection and sustainable development, having successfully funded the restoration of eight damaged statues in the Versailles Gardens and planted over 400 trees [4] Group 2 - Chinese sports brand Xtep has become the official clothing supplier for the 2025 "Versailles Run," marking the first collaboration with a Chinese brand in the event's history [5] - Chinese companies, including the intelligent robotics firm Yushu Technology and the electric vehicle manufacturer BYD, showcased their innovations at the event, injecting technological vitality and green concepts into this historical cultural landmark [5] - The event serves as an international platform for cultural exchange and brand value, with hopes to promote more Chinese brands globally [5]