Investment Rating - The report maintains a "Buy" rating for the company, with a projected dividend payout ratio of 50% for 2025 [5]. Core Insights - The company's main brand, Xtep, reported flat revenue year-on-year for Q4 2025, while the Saucony brand achieved over 30% revenue growth, indicating strong performance despite a challenging retail environment [1][2]. - The company is actively expanding its store formats and international presence, with plans to open 20-30 new stores in high-end urban areas in 2026 and significant growth in cross-border e-commerce [4]. Summary by Relevant Sections Main Brand Performance - Xtep's Q4 2025 revenue remained flat, with a low single-digit growth forecast for the full year, driven by double-digit growth in the running category and e-commerce channels [2]. - The brand's discount rate for Q4 2025 was stable at 70-75%, with a healthy inventory turnover of approximately 4.5 months [2]. Saucony Brand Performance - Saucony's revenue for Q4 2025 and the entire year grew by over 30%, successfully meeting annual targets, with a notable acceleration in growth in Q4 [3]. - The brand's strategic adjustments in e-commerce, including reducing low-priced products and tightening discounts, have positively impacted long-term growth [3]. New Store Formats and International Expansion - The introduction of new store formats is promising, with the first gold standard flagship store opened in Shanghai in December 2025, and plans for 20-30 new stores in 2026 [4]. - The company has also made strides in international markets, with new stores in Singapore, Malaysia, and Indonesia, and a significant increase in cross-border e-commerce growth exceeding 200% [4]. Financial Forecast and Valuation - The company forecasts net profit growth of 10.8% in 2025, reaching 1.371 billion yuan, with corresponding P/E ratios of 9.2, 8.3, and 7.5 for 2025, 2026, and 2027 respectively [5]. - The brand matrix is well-positioned, with Xtep leading in the mass running segment and Saucony and Merrell targeting high-end and trail running markets [5].

Core Viewpoint - The event "Marathon Champion City Tour • Xiamen Station" successfully integrated top-level marathon events with urban life, showcasing a vibrant practice of blending "business + culture + sports" in Xiamen [1][11]. Group 1: Event Overview - The event took place on January 11, 2026, in Xiamen, featuring a theme of "Marathon in the Streets" [1]. - It was organized by Xtep in collaboration with several local companies, creating a unique experience that connected historical spaces with modern life [1][11]. Group 2: Innovative Integration - Xtep, as the exclusive sports equipment sponsor, creatively combined the marathon route with the urban landscape of Zhongshan Road, allowing participants to experience the fusion of sports fashion and cultural heritage [3]. - The event featured multiple themed checkpoints along Zhongshan Road, enhancing the experience of both walking and running [3]. Group 3: Product Showcase - The Xtep Champion Edition running shoes, particularly the new 160X 7.0 PRO model, attracted significant attention for their lightweight feel and eye-catching design [5]. - A product experience area showcased various running shoes, allowing participants to try them on and engage with the technology and design concepts [9]. Group 4: Community Engagement - Marathon champions interacted with participants, sharing their experiences and fostering a sense of community [7]. - Influencers and key runners documented the event, amplifying its reach on social media and generating significant online engagement [9]. Group 5: Collaborative Efforts - The event exemplified a collaborative model involving government guidance, corporate sponsorship, and multi-party cooperation, ensuring high-quality execution [11]. - This innovative approach aims to activate historical public spaces and promote the integration of culture, commerce, tourism, and sports [11]. Group 6: Future Aspirations - The event highlighted the potential for sports to empower urban environments and connect historical narratives, promoting a vision of a vibrant, active city life [12].