Investment Rating - The industry investment rating is "Overweight" indicating that the industry is expected to outperform the overall market [2][11]. Core Insights - The report highlights a slowdown in sales growth due to warm weather and delayed Spring Festival, with outdoor categories and high-cost performance brands leading the growth [3]. - Anta's main brand retail sales saw a low single-digit decline year-on-year, while FILA brand showed a mid-single-digit growth, and other brands like Descente and KOLON SPORT experienced significant growth [3]. - Li Ning's overall channel revenue declined in low single digits, but the decline rate narrowed compared to the previous quarter, benefiting from the National Day and Mid-Autumn Festival holidays [3]. - Xtep's main brand revenue remained flat, with a low single-digit growth for the year, while its subsidiary Saucony saw over 30% growth [3]. - 361 Degrees continued to lead the industry with a 10% growth in both adult and children's apparel, and high double-digit growth in e-commerce [3]. Summary by Sections Sales Performance - Anta's main brand offline discount rate was approximately 7.1, with a stock-to-sales ratio slightly above 5 times [3]. - Li Ning's discount rates deepened in December, with a stock-to-sales ratio of about 4-5 months [3]. - Xtep maintained a stable discount rate of 7-7.5, with a stock-to-sales ratio of about 4.5 months [3]. - 361 Degrees' discount rate remained stable at 7-7.1, with a stock-to-sales ratio in the range of 4.5-5 times [3]. Channel Development - Anta opened around 150 Champion series stores, achieving over 1 billion in revenue, and launched over 300 lighthouse stores with significantly higher productivity [3]. - Li Ning introduced new pop-up stores and plans to open flagship stores, receiving positive sales feedback [3]. - Xtep opened its first gold standard leading store and plans to add 20-30 more, with a strong performance in outlet channels [3]. - 361 Degrees expanded its super brand stores, exceeding expectations with a total of 126 stores by the end of 2025 [3]. Product Focus - Anta's outdoor brands performed well, with Descente becoming the third 10 billion brand, and KOLON SPORT showing substantial growth [3]. - Li Ning's outdoor category grew rapidly, applying advanced technologies to new professional sports products [3]. - Xtep's running category saw double-digit growth, extending technology to outdoor products [3]. - 361 Degrees accelerated its One Way layout, opening new stores covering professional skiing and outdoor products [3]. Future Outlook - The year 2026 is expected to be significant for events, with brands planning to increase marketing and product investments [3]. - Li Ning announced its collaboration with the Chinese Olympic Committee for the 2026 Milan Winter Olympics [3]. - Anta plans to increase brand marketing and product investment, which may lead to temporary fluctuations in profit margins [3]. - 361 Degrees announced a strategic partnership with the Asian Olympic Council, becoming the official supplier for the 2025 WTCC [3]. - Xtep focuses on core running business and continues to enhance its brand image through event marketing [3].

Core Viewpoint - Anta Sports has reported a positive retail performance for the year 2025, with varying growth rates across its brands [1] Group 1: Brand Performance - Anta brand products achieved low single-digit positive growth in retail value compared to the same period in 2024 [1] - FILA brand products experienced mid single-digit positive growth in retail value year-on-year [1] - Other brands, including DESCENTE and KOLON SPORT, saw a significant retail value increase of 45%-50% year-on-year [1]

Core Insights - Anta Sports reported a revenue growth of 13.6% to RMB 70.83 billion in the fiscal year 2024, marking its first time exceeding RMB 70 billion [1] - The operating profit margin decreased by 1.2 percentage points to 23.4% [1] - Shareholder profit increased by 7.1% to RMB 11.73 billion, excluding certain gains related to Amer Sports [1] - Including the impact of Amer Sports, shareholder profit surged by 52.4% to RMB 15.6 billion [1] Segment Performance - Anta's segment revenue grew by 10.6% to RMB 33.52 billion, with an operating profit margin decline of 1.2 percentage points to 21.0% [2] - FILA's revenue increased by 6.1% to RMB 26.63 billion, despite a challenging market environment, with an operating profit margin decrease of 2.3 percentage points to 25.3% [2] - DESCENTE and KOLON SPORT achieved significant growth, with combined revenue surpassing RMB 10.68 billion, a 53.7% increase [3] Digital and International Expansion - The group's e-commerce business saw a 21.8% increase, driven by enhanced consumer insights through digitalization [3] - Anta is focusing on Southeast Asia for international expansion, successfully entering markets such as Singapore, Malaysia, and Vietnam [3] - Strategic partnerships with leading retail distributors in mature markets have led to significant progress in global brand positioning [3]