Core Viewpoint - Xtep Group reported a significant increase in net profit of 21.5%, reaching 914 million yuan in the first half of 2025, marking a historical high amidst a nationwide sports trend [3][6] - The company's revenue for the same period was 6.838 billion yuan, a year-on-year growth of 7.1%, with the main brand contributing 6.053 billion yuan [3][6] Revenue and Profit Growth - Xtep's revenue growth was driven by strong performance in its professional sports division, particularly with Saucony, which saw a revenue increase of 32.5% [3][6] - Saucony's operating profit surged by 236.8%, indicating improved profitability [3][6] Running Ecosystem Development - Xtep has focused on creating a complete running ecosystem, emphasizing the importance of suitable running shoes tailored to the needs of Chinese runners [4][15] - The establishment of the "Te Run Tribe" in 2012 has been pivotal in connecting runners and fostering community engagement, now boasting 2.4 million members [16][18] Community Engagement and Support - The company has invested in community operations, establishing 6,200 running groups and 70 running clubs across key locations to enhance runner interaction and support [18][20] - Xtep's commitment to research and development is evident in its innovative products, such as the 160X running shoe, which incorporates advanced materials for improved performance [20][21] Market Trends and Consumer Behavior - Running is evolving from a niche activity to a mainstream hobby, with 749 road running events held in China in 2024, attracting 7.0486 million participants [20][21] - The company recognizes the shift in consumer perception, making running accessible to a broader audience without the need for high-end equipment [20][21] Competitive Strategy - Xtep's "National Speed" strategy, initiated in collaboration with the Chinese Athletics Association, has seen over 15 million yuan invested in athlete support, contributing to improved national marathon performance [21] - The company aims to support runners at all levels, from beginners to elite athletes, solidifying its role as a key player in the Chinese running landscape [21]