Financial Data and Key Metrics Changes - The group's total revenue increased by 7.1% to JPY 6,838 million [6][9] - Operating profit rose by 9.1% to JPY 1,305 million, with an operating profit margin improvement of 0.4 percentage points to 19.19% [7][11] - Net profit for the first half of the year was JPY 914 million, reflecting a year-on-year increase of 21.5% [8][11] - Annualized return on equity increased by 3.3 percentage points to 19.7% [8] - Operating cash flows were CHF 774 million, with net cash increasing by 94.3% to CHF 1.913 billion [8] Business Line Data and Key Metrics Changes - Revenue from the XTEP core brand increased by 4.5% to JPY 6,053 million, while the professional sports division, including Saucony and Merrell, saw revenue growth of over 32% to JPY 785 million [7][16] - The mass market segment's gross profit increased by 4% to JPY 2,641 million, with a slight decrease in gross margin [15] - The professional sports division's operating profit surged nearly 2.4 times to JPY 79 million, with an operating profit margin improvement to 10% [17] Market Data and Key Metrics Changes - Over 300 marathons were held in China in the first half of the year, with more than 3 million participants, indicating a growing interest in running [22] - The group's brands maintained high wear rates in major marathon events, with Saucony achieving second place in overall wear rates at the Wuxi Marathon [23] Company Strategy and Development Direction - The company is focused on strengthening its core strategy of running, enhancing synergies among its brands, and expanding its product portfolio [21][33] - Plans include optimizing retail channel management, improving customer experience, and expanding into shopping malls and outlets [25][30] - The company aims to reinforce its position as China's leading running brand through flagship products and a professional to mass influence strategy [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term development of the sports industry, supported by government investments in public health and sports activities [2][4] - The company plans to implement refined operational management to improve efficiency and create greater returns for investors [5][20] - The outlook remains positive, with expectations for continued growth in the running sector and a focus on sustainable development [32][34] Other Important Information - The company declared an interim dividend of HKD 0.18 per share, a year-on-year increase of 15.4%, maintaining a dividend payout ratio of 50% [8] - The company achieved an AA rating in the 2025 MSCI ESG rating, marking its fourth consecutive year of rating improvement [32] Q&A Session Summary Question: What are the expectations for the second half of the year? - Management indicated plans to capitalize on the peak season for marathons and running events, leveraging synergies between the XTAP core brand and Saucony to expand market share [4][33] Question: How is the company addressing the increase in inventory levels? - The increase in inventory is attributed to preparations for the peak season and the launch of new products, with expectations for inventory levels to return to a healthy state by year-end [14] Question: What are the company's plans for e-commerce growth? - E-commerce operations are expected to continue driving growth, with a focus on refining the product portfolio and enhancing supply chain capabilities [28]