Core Insights - Xtep International Holdings Limited reported a revenue of 6.838 billion yuan for the first half of 2025, representing a year-on-year increase of 7.1% [1] - The profit attributable to ordinary shareholders reached 914 million yuan, up 21.5% year-on-year [1] - The company declared an interim dividend of 0.18 HKD per share, a 15.4% increase, maintaining a payout ratio of 50% [1] Company Performance - The main brand revenue increased by 4.5% to 6.053 billion yuan, with e-commerce contributing over 30% of this revenue [2] - The group’s operating cash inflow was 774 million yuan, and R&D expenses rose by 20.25% to 190 million yuan, accounting for 2.8% of total revenue [1][2] - The professional sports division, including Saucony and Merrell, generated 785 million yuan, a 32.5% increase, and operating profit surged by 236.8% to 79 million yuan [4] Strategic Focus - The company emphasizes a strategy focused on running, aiming to solidify its position as a leading brand in China’s running market [1] - Xtep plans to launch a direct-to-consumer strategy in the second half of the year to enhance retail network management and consumer interaction [2] - The introduction of the 160X7 running shoe series aims to strengthen Xtep's technical advantage in competitive running shoes [3] Market Position - Saucony has become a leading brand in professional running shoes, achieving the highest wearing rate among elite runners in key marathons [3][4] - The company is optimistic about the industry outlook for the second half of 2025, supported by resilient demand for sports products [5] - Xtep's diversified brand matrix covers both mass and professional sports markets, positioning it strongly in the competitive landscape [5]