Investment Rating - The report maintains an investment rating of "A" for the textile and apparel industry [1] Core Insights - Adidas reported a 14% year-on-year revenue growth in its brand under constant currency for the first half of 2025, with total revenue reaching €12.105 billion, a 7% increase compared to the previous year [4][19] - The report highlights that all regional markets for Adidas achieved double-digit growth under constant currency [20] - The overall textile and apparel sector has shown a decline of 2.14% in the SW textile and apparel index, underperforming the broader market [22] Summary by Sections Company Performance - Adidas' FY2025H1 revenue increased by 7% to €12.105 billion, with a net profit growth of 121% to €798 million [4][19] - The company's gross margin improved by 0.9 percentage points to 51.9%, driven by lower product and transportation costs [5][19] - The report anticipates that for FY2025, Adidas will maintain its guidance of high single-digit revenue growth under constant currency, with operating profit expected to be between €1.7 billion and €1.8 billion [20] Market Dynamics - The textile and apparel sector's retail sales growth for the first half of 2025 was 3.1%, with sports and leisure goods showing a robust growth of 22.2% [11] - The report notes that the SW textile and apparel sector has lagged behind the broader market, with various sub-sectors experiencing declines [22] Regional Performance - In the European market, Adidas' revenue grew by 9% to €3.983 billion, while in North America, it increased by 6% to €2.523 billion [21] - The Greater China market saw an 8% revenue increase to €1.827 billion, and emerging markets experienced an 18% growth to €1.632 billion [21] Valuation Metrics - As of August 1, the PE-TTM for SW textile manufacturing was 20.94, while for SW apparel and home textiles, it was 27.69, indicating high valuation levels compared to historical averages [30]

Group 1: Gold Reserves and Production - China's gold reserves reached a historical high of 2298.55 tons as of June 2025, with an increase of 18.97 tons in the first half of the year [1] - Domestic gold production in the first half of 2025 was 252.761 tons, a year-on-year increase of 0.44%, despite a slight decrease in raw gold production [1] - Major gold enterprises are investing in infrastructure and technological upgrades for large mining projects, with significant progress in key gold mines such as Shandong Haiyu and Saling [1] Group 2: Gold Consumption and Market Activity - Gold consumption in China for the first half of 2025 was 505.205 tons, a decrease of 3.54% year-on-year, with a notable decline in gold jewelry consumption [2] - The Shanghai Gold Exchange reported a 12.70% increase in trading volume, with a total of 16786.870 tons traded in the first half of 2025 [2] - The introduction of an international board warehouse in Hong Kong by the Shanghai Gold Exchange aims to enhance trading capabilities and attract more international participants [2]

Group 1 - International precious metal futures experienced a general increase, with COMEX gold futures rising by 2.01% to $3416 per ounce, marking a weekly increase of 2.41% [1] - COMEX silver futures increased by 1.07% to $37.11 per ounce, but saw a weekly decline of 3.28% [1] Group 2 - The U.S. non-farm payroll data for July was significantly below expectations, contributing to heightened market risk aversion alongside trade protection measures and uncertainties in Federal Reserve policies [3] - China's gold consumption in the first half of 2025 is projected to be 505.21 tons, reflecting a year-on-year decrease of 3.54%, with gold jewelry consumption down by 26% to 199.83 tons, while gold bars and coins increased by 23.69% to 264.24 tons [3] - In Q2, China's gold consumption was 214.71 tons, a slight decrease of 0.06%, with gold jewelry at 65.30 tons, down 24.16%, and gold bars and coins at 126.22 tons, up 17.62% [3] - High gold prices are suppressing demand for gold jewelry, but products with strong design and high added value continue to be favored, leading to better profitability for merchants [3] Group 3 - The World Gold Council's report on global gold demand trends for Q2 2025 indicated that total global gold demand reached 1249 tons, a year-on-year increase of 3%, driven primarily by strong investment demand [3] - Although global gold jewelry demand decreased in volume, the value of global gold jewelry consumption still increased [3]

Group 1 - China's gold production in the first half of the year was 179.083 tons, a year-on-year decrease of 0.31%, while gold consumption was 505.205 tons, down 3.54% [1] - Gold production sources included 139.413 tons from gold mines and 39.670 tons from non-ferrous by-products, with imported raw gold reaching 76.678 tons, an increase of 2.29% [1] - Gold jewelry consumption fell significantly by 26% to 199.826 tons, while demand for gold bars and coins rose by 23.69% to 264.242 tons, and industrial gold usage increased by 2.59% to 41.137 tons [1] Group 2 - The average gold price in China rose significantly, with the Shanghai Gold Exchange's AU99.99 gold closing at 764.43 yuan per gram at the end of June, a 24.5% increase since the beginning of the year [2] - The weighted average price for gold in the first half of the year was 725.28 yuan per gram, reflecting a year-on-year increase of 41.07% [2] - Gold ETF holdings in China grew by 84.771 tons in the first half of the year, bringing the total to 199.505 tons by the end of June [2]

Group 1 - The core viewpoint indicates a decline in China's gold consumption in the first half of 2025, with a total of 505.205 tons, a year-on-year decrease of 3.54% [1] - Gold jewelry consumption dropped significantly by 26% to 199.826 tons, while demand for gold bars and coins increased by 23.69% to 264.242 tons [1][3] - Industrial and other gold usage saw a slight increase of 2.59%, totaling 41.137 tons [1] Group 2 - High gold prices have suppressed gold jewelry consumption, but lightweight and high-value jewelry products remain popular, benefiting retailers [3] - The demand for gold bars continues to be strong, although profit margins are low [3] - The trend of "self-indulgent" gold consumption is becoming more prominent, with younger consumers favoring lightweight and culturally significant products [3] Group 3 - Geopolitical tensions and economic uncertainties have enhanced gold's role as a safe-haven asset, leading to a significant increase in demand for gold bars and coins [3] - In the first half of 2025, domestic gold ETF holdings increased by 173.73% year-on-year, reaching 199.505 tons by the end of June [3] Group 4 - International gold prices surged due to heightened risk aversion, with the London spot gold price reaching $3287.45 per ounce by the end of June, a 24.31% increase since the beginning of the year [4] - The average gold price in Shanghai was 764.43 yuan per gram at the end of June, reflecting a 24.50% increase year-to-date [4] Group 5 - In terms of reserves, China increased its gold holdings by 18.97 tons in the first half of 2025, bringing total reserves to 2298.55 tons [5] - Domestic gold production slightly decreased by 0.31% to 179.083 tons, while total gold production rose by 0.44% to 252.761 tons [5] - Significant growth in overseas mining operations was noted, with production increasing by 16.17% to 39.608 tons [5]

Core Viewpoint - Gold prices continue to decline, with spot gold dropping below $3360, currently at $3358.56 per ounce, while silver is at $38.98 per ounce [1][2]. Group 1: Market Trends - Domestic gold jewelry prices are also falling, with brands like Chow Tai Fook reporting a price drop below 1000 yuan, now at 990 yuan per gram [2]. - In the first half of the year, China's gold production was 179.083 tons, a year-on-year decrease of 0.31%, while consumption was 505.205 tons, down 3.54% [3]. - Gold jewelry consumption has seen a significant decline of 26% to 199.826 tons, while gold bars and coins increased by 23.69% to 264.242 tons [3]. Group 2: Consumer Behavior - The high gold prices have led to a decrease in gold jewelry purchases, with only essential or investment buyers remaining active in the market [3]. - Consumers are favoring lightweight, well-designed, and high-value jewelry products, which are helping merchants maintain profitability [3]. Group 3: Market Analysis - Recent market analysis indicates that as long as gold prices do not fall below $3200 per ounce, the overall trend remains bullish [3]. - There are concerns regarding potential risks that could impact gold prices, including Federal Reserve dynamics, trade and geopolitical risks, and structural arbitrage in funding [4][5].

Core Insights - In the first half of 2025, domestic gold production in China is reported at 179.083 tons, a slight decrease of 0.551 tons or 0.31% compared to the first half of 2024, remaining stable year-on-year [1] - Total gold production, including imported raw materials, reached 252.761 tons, reflecting a year-on-year growth of 0.44% [1] - Gold consumption in China for the first half of 2025 was 505.205 tons, showing a decline of 3.54% year-on-year [1] Production Summary - Domestic gold mine production accounted for 139.413 tons, while by-product gold from non-ferrous metals contributed 39.670 tons [1] - Imported raw material gold amounted to 76.678 tons, marking a year-on-year increase of 2.29% [1] Consumption Summary - Gold jewelry consumption fell significantly to 199.826 tons, down 26.00% year-on-year [1] - Gold bars and coins saw an increase in consumption to 264.242 tons, up 23.69% year-on-year [1] - Industrial and other gold usage rose to 41.137 tons, reflecting a growth of 2.59% year-on-year [1] Reserve Summary - China increased its gold reserves by 18.97 tons, bringing the total to 2298.55 tons as of the end of June 2025 [1]