On March 26, XTEP International (01368), known as "China's leading running brand," released its 2025 annual report. The financial results revealed that the company achieved a 4.2% increase in revenue from continuing operations to RMB 14.151 billion, setting a new historical record. Specifically, revenue from the core XTEP brand grew by 1.5% to RMB 12.515 billion, while the professional sports segment saw a significant revenue surge of 30.8% to RMB 1.636 billion. Net profit attributable to shareholders rose by 10.8% to RMB 1.372 billion, also reaching a record high, and net cash increased substantially by 73.4% to RMB 1.707 billion.
An analysis report highlighted that XTEP International maintained robust overall operational conditions in 2025, with the core brand's running strategy delivering notable results and its professional reputation being continuously reinforced. The professional sports segment experienced rapid expansion and steady improvement in profitability. As a leading domestic sports apparel company, XTEP holds significant advantages in the professional running sector, leading the report to maintain a "Buy" rating.
Competitive achievements serve as a testament to professional prowess, with the company's strengths in the running category being further solidified. XTEP has consistently validated its product capabilities through athletic performance, carving out a distinct professional pathway. Breakthroughs in race results and leading wear rates in major events provide the most direct evidence of its professional competence. XTEP running ambassador He Jie won the marathon championship at the 15th National Games, while another ambassador, Feng Peiyou, broke the Chinese marathon record and achieved the top Asian ranking in international competitions. Furthermore, XTEP secured the highest overall wear rate in China's six major marathon events, maintained the top wear rate in the Chinese men's marathon top 100 rankings for four consecutive years, and led the women's rankings for three consecutive years, fully validating its professional competitiveness.
This competitive edge is not accidental but the result of two decades of cumulative investment exceeding RMB 2 billion in research and development. Through the "Chinese Elite Speed" initiative, XTEP has developed systematic capabilities in athlete support, technological innovation, and event operations, achieving four Chinese marathon record breakthroughs in three years. The 160X champion running shoe series has helped over a hundred athletes secure more than 600 championships, with the professional product portfolio continuously being refined. Financially, this specialized investment has translated into tangible operational outcomes. In 2025, XTEP's footwear revenue increased by 4.5% year-on-year to RMB 8.42 billion, outpacing overall revenue growth, with professional running products serving as the core engine for performance growth. Athletic success builds brand trust, while R&D investment solidifies product strength, ultimately driving steady increases in revenue and profit.
The translation of professional influence into market performance relies on XTEP's integrated and efficient operational system. In 2025, the company sponsored 74 major running events across the country and supported the Xiamen Marathon, a World Athletics Platinum Label race, for the 17th consecutive year, leveraging premier event resources to reinforce its professional image. Simultaneously, 71 XTEP running clubs covered key cities nationwide, providing training guidance, event organization, and support services to over 2.4 million members of the XTEP Runner Club, converting professional influence into a highly engaged user base. Deep integration of events and community engagement with core runners enhances user loyalty and repeat purchases more effectively than traditional marketing, establishing a stable brand foundation.
At the channel level, XTEP accelerated its direct-to-consumer (DTC) transformation and optimized store structures, advancing both the Shanghai Gold Label flagship store and XTEP Select outlet stores to enhance brand image and operational efficiency simultaneously. Online channels emerged as a significant growth driver, with content e-commerce platforms such as Douyin and Weixin Channels experiencing rapid expansion. By establishing a complete cycle of "event-driven traffic, community engagement, and channel conversion," XTEP successfully translated professional brand strength into solid sales performance.
A separate analysis report indicated that, in the short term, XTEP's push for a DTC strategy for its core brand is expected to improve operational efficiency and store performance, facilitating deeper and more personalized consumer interactions, increasing brand loyalty, and enhancing customer retention to support long-term development. Meanwhile, the company's Southeast Asia expansion progressed steadily, with the launch of a running club in Singapore and a flagship store in Malaysia, gradually building an overseas running ecosystem. By focusing on running as the core entry point in international markets, XTEP can more quickly establish differentiated recognition and reduce expansion costs.
If the 160X series established XTEP's professional standing, the 2,000 Kilometers series has solidified its foundation in the mass market, serving as the best illustration of the "professional influence driving mass appeal" strategy. In 2025, this series achieved doubled sales via e-commerce channels, becoming a phenomenal national running shoe, thanks to its advanced cushioning technology and highly durable outsole. Its success is underpinned by clear, market-aligned logic: extreme durability suitable for both jogging and daily commuting, combined with high cost-effectiveness that makes professional technology accessible to a broader audience, driving sustained repurchases through word-of-mouth. The iterative upgrade to the 2,000 Kilometers 5th generation further strengthened its positioning as the "go-to daily running shoe."
The key significance of the 2,000 Kilometers series lies in bringing core technologies from professional running shoes down to mass-market price points, appealing to everyday users through genuine usage experiences and breaking down barriers between professional and general consumers. From elite carbon-plated shoes to mass-market cushioning models, XTEP's comprehensive product matrix caters to runners across all levels and scenarios, effectively translating professional R&D capabilities into the mass market and providing stable support for performance growth.
Guided by a focus on high-quality growth, XTEP built long-term competitive advantages in 2025. The company adopted "high-quality growth and efficiency wins" as its core operational strategy, leading to simultaneous improvements in operational quality and financial health. Financial data demonstrates that high-quality growth is not merely a slogan but reflected in synchronized enhancements in revenue, profit, and cash flow, resulting in healthier and more sustainable profitability. The core brand reinforced its leadership in running, while XTEP Kids cultivated the next generation of sports enthusiasts through a philosophy of growth through movement. Within the professional sports division, Saucony targeted "dual elite" demographics, forming a tiered coverage strategy alongside the core brand's professional line.
The synergistic efforts of the core brand and professional sports division completed a full lifecycle layout, from youth initiation to elite competition. The multi-brand matrix achieved complementarity in target demographics, price points, and usage scenarios within the running category, further enhancing overall risk resilience and long-term growth potential. From a developmental perspective, XTEP's growth stems from a dual-drive model of "professional leadership and mass market consolidation." By building core barriers through R&D and competitive achievements, expanding market scale with hit products and omnichannel reach, and accumulating user value through a running ecosystem, this model demonstrates strong growth resilience and anti-cyclical capabilities amid the ongoing expansion of China's road-running population. XTEP's continuous investment in perfecting the running ecosystem also contributes long-term momentum to the high-quality development of China's running industry.
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