Xtep International Holdings Limited released its 2026 interim results, showing broadly stable top-line performance and solid profitability despite a mixed operating landscape.

Financial highlights (six months to 30 June 2026): • Revenue edged down 0.6% year on year to RMB 6.79 billion. • Gross profit margin widened by 1.4 percentage points to 46.4%. • Operating profit fell 11.0% to RMB 1.16 billion; operating margin closed at 17.1% (-2.0 ppts). • Net profit attributable to shareholders declined 10.5% to RMB 0.82 billion; net margin stood at 12.0%. • Basic EPS was RMB 30.02 cents. • Net operating cash inflow rose 9.5% to RMB 0.85 billion; net cash climbed 36.3% to RMB 2.33 billion. • Interim dividend declared at HK 18.0 cents per share (payout ratio 53.8%) with scrip option.

Segment performance: • Mass-market (core Xtep brand) revenue slipped 2.2% to RMB 5.92 billion. • Professional sports (Saucony, Merrell) revenue grew 11.4% to RMB 0.88 billion, contributing 12.9% of group revenue and lifting segment operating profit 15.5% to RMB 90.8 million.

Operating metrics and balance-sheet indicators: • Inventory turnover lengthened to 105 days (up 14 days); trade receivables turnover at 123 days (up 5 days); trade payables turnover improved to 116 days (down 3 days). • Current ratio improved to 2.5x from 2.4x; gearing ratio eased to 10.8%. • Net asset value per share rose 6.6% to RMB 3.88.

Operational developments: • Group store network comprised 6,308 Xtep Adult stores, 1,455 X Young stores and 180 Saucony outlets as at 30 June 2026. • Overseas business revenue more than doubled, supported by cross-border e-commerce and new Southeast Asian stores. • E-commerce accounted for over one-third of core-brand revenue, with Douyin and JD.com sales up more than 20%. • The Group repurchased its 2025 convertible bonds (HK$500 million) and issued new 2026 zero-coupon convertible bonds of equal size to refinance at favourable terms.

Outlook stated by management: Xtep will sustain its “running-centric” multi-brand strategy, continue direct-to-consumer channel expansion, and leverage Saucony’s premium positioning for high-quality growth while maintaining prudent capital management.

Dividend timetable: The register of members will close from 8 to 10 September 2026 (both days inclusive); payment is scheduled for 30 October 2026.