Core Insights - The domestic sports goods industry is dominated by four major players: Anta, Li Ning, Xtep, and 361 Degrees, with Anta leading significantly in both revenue and growth [2][3][5] - Anta's revenue reached 38.544 billion yuan, surpassing the combined revenue of Li Ning, Xtep, and 361 Degrees, which totaled 65.904 billion yuan [2][5] - Profitability shows a stark contrast, with Anta's net profit at 7.031 billion yuan, nearly double that of the other three companies combined [2][5] Revenue Performance - Anta reported a revenue growth of 14.3% year-on-year, while Li Ning's growth was only 3.3% [3][4] - Xtep's revenue decreased by 5.07%, but its net profit increased by 21.5% to 914 million yuan, attributed to several operational factors [3][5] - 361 Degrees achieved a revenue growth of 11% and a net profit increase of 8.6%, both reaching historical highs [3][5] Profitability Analysis - Anta's net profit growth was 14.5%, but when excluding certain gains, it showed a decline of 8.94% [3][5] - Li Ning's net profit fell by 10.99%, indicating challenges in maintaining profitability amidst declining foot traffic [4][5] - Xtep's net profit growth of 21.5% was a highlight, driven by operational improvements and strategic decisions [3][5] Inventory Management - Anta's inventory turnover days increased to 136 days, up from 114 days the previous year, indicating a slowdown in inventory management efficiency [9][10] - Li Ning maintained a more efficient inventory turnover of 61 days, showcasing better inventory management compared to Anta [10] - The increase in Anta's inventory turnover days is linked to acquisitions and increased stock levels [9][10] Market Trends - The high-performance outdoor footwear and apparel market in China is experiencing rapid growth, with a projected compound annual growth rate of 15.5% from 2025 to 2029 [11] - The competitive landscape is intensifying as all four major companies are accelerating their strategies, albeit with different focuses [12][15] - Anta is pursuing a strategy of "single focus, multi-brand, globalization," while Li Ning is repositioning itself as a "professional sports equipment provider" [12][15] Strategic Focus - Companies are increasingly focusing on strengthening their competitive advantages while addressing their weaknesses to enhance market positioning [15] - Anta's acquisitions and brand diversification are aimed at building competitive barriers, while Li Ning is investing heavily in marketing and new channels [12][15] - Xtep is concentrating on the running segment, and 361 Degrees is focusing on youth and e-commerce to drive growth [12][15]