Slides
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Xtep International Holdings Limited (Incorporated in the Cayman Islands with Limited Liability) Stock Code: 1368.HK 2026 Interim Results Presentation 25 August 2026
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2026 Interim Results Highlights 1 2 3 4 Group’s revenue RMB6,795 m 0.6% Mass market RMB5,920 m 2.2% Professional sports RMB875 m 11.4% Group’s gross profit margin 46.4% 1.4% pts Interim dividend per Share 53.8%HK 18.0 cents Payout ratio 2 Operating cash flow RMB847 m 9.5% Steady business with robust performance in the professional sports segment Strong brand momentum with solid gross profit margin improvement Sound financial position with strong operating cash flow and net cash Stable dividend payout to enhance shareholder returns Net cash RMB2,326 m 36.3% Compared with 31 December 2025 Group’s net profit RMB818 m 12.0% Net profit margin
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Financial Review
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11.5% 88.5% 12.9% 87.1% 1H2025 Mass market Professional sports Group’s revenue 0.6% Mass market 2.2% Professional sports RMB875 m 11.4% % of revenue 1H2026 Mass market Professional sports Mass market: E-commerce and kids business lead growth alongside active channel optimization Professional sports: Premiumization strategy for high-quality growth Revenue - Steady Business with Robust Performance in the Professional Sports Segment 4 RMB6,795 m RMB5,920 m
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Group’s gross profit RMB3,155 m 2.6% Gross profit margin (%) Mass market: Enhanced gross profit margin in the e-commerce and kids business with an increasing mix of functional products 45.1% 45.0% 46.4% 43.9% 43.6% 45.1% 56.8% 55.2% 55.5% 1H2024 1H2025 1H2026 Professional sports Group Mass market Mass market Professional sportsGroup Professional sports: Premiumization strategy to improve flagship product discounting and economies of scale in apparel and lifestyle offerings Gross Profit and Gross Profit Margin 5
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1Excluding the staff costs related to manufacturing and R&D Expense ratio (%) 12.6% 12.6% 12.0% 2.5% 2.8% 2.7% 5.8% 5.6% 5.7% 1H2024 1H2025 1H2026 Advertising and promotions Research and developmentStaff costs1 Advertising and promotions (A&P) Staff costs1 Research and development (R&D) 12.0% 0.6% pt A&P expenses as a % to revenue 2.7% 0.1% pt R&D expenses as a % to revenue Enhance operational efficiency Prioritize sponsorships in premier marathons and running events Core Xtep brand: Upgrade flagship products and expand product offerings Saucony: Increase investment in the R&D of apparel and lifestyle products Selling & Distribution and General & Administrative Expenses Premiumization strategy of Saucony 6
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18.6% 18.8% 17.7% 1H2024 1H2025 1H2026 Group’s adjusted operating profit1 RMB1,204 m 6.2% Group’s adjusted operating profit margin1 Operating Profit and Operating Profit Margin 7 Segment operating profit RMB1,120 m 7.3% RMB91 m 15.5% 20.6% 20.0% 18.9% 3.9% 10.0% 10.4% 1H2024 1H2025 1H2026 Segment operating profit margin Mass market: Increase in e-commerce logistics, platform fees and DTC-related operating costs Professional sports: Effective cost control and expanding economies of scale Mass market Professional sports 1Excluding RMB43 million of share award expenses in 1H2026, and the reversal of RMB21 million of share award expenses in 1H2025 Mass market Professional sports
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Group’s net profit RMB 818 m 10.5% 11.8% 13.4% 12.0% 1H2024 1H2025 1H2026 Group’s net profit margin Interim dividend payout ratio 50.3% 50.0% 50.0% 50.0% 53.8% 1H2022 1H2023 1H2024 1H2025 1H2026 Net Profit and Shareholder Returns 8 Interim dividend per Share HK 18.0 cents
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1 Remark: Turnover days are calculated on a 12-month rolling basis 87 90 110 112 68 91 77 105 120 118 120 123 101 119 87 116 FY2024 (31 Dec) 1H2025 (30 Jun) FY2025 (31 Dec) 1H2026 (30 Jun) Overall working capital turnover Inventory turnover Trade receivables turnover Trade payables turnover Working capital turnover (day) Working Capital Analysis1 9
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RMB m 30 Jun 2026 31 Dec 2025 Change Cash and cash equivalents (A) 3,449 3,457 0.2% Pledged bank deposits and term deposits (B) 786 681 15.4% Bank borrowings (C) 637 1,097 41.9% Convertible bonds (D) 1,272 1,334 4.7% Net cash and cash equivalents = (A)+(B)-(C)-(D) 2,326 1,707 36.3% Current asset ratio (times) 2.5x 2.4x 0.1x Net asset value per Share RMB 3.88 RMB 3.64 6.6% RMB m 1H2026 1H2025 YoY change Net operating cash inflow 847 774 9.5% Capital expenditure 22 90 75.8% Financial Position and Cash Flow 10
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Business Review
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Mass market No. 1 running brand in China Premium market Group’s Strategic Framework 12 Continuous focus on running
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360X 3.0 FLY Leverage Professional Expertise to Expand into the Mass Market No. 1 running brand in China No.1 overall wear rate in marathons 160X 8.0 PRO 13 Feng Peiyou Broke national record with a time of 2:05:58 42% 44% 30% 34% 45% 7% 7% 9% 12% 9% Renshou Chongqing Wuxi Wuhan Xiamen 54% 46% 39% 51% 49% LING YUN MAX 160X 8.0 ULTRA Continue to expand product offerings
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Core Xtep Brand- E-commerce and Overseas Business Steer Growth Amid Continuous Channel Optimization Number of stores in Chinese Mainland and overseas 6,308 Channel optimization with smooth DTC progress Overseas revenue doubled with rapid expansion in Southeast Asia E-commerce drives growth Fueled by flagship products 14 Large-format county-level store in Yinchuan, Ningxia Image store in Johor Bahru, Malaysia
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New “Xtep A+ Growth Sneaker” X Young achieved steady growth Precise positioning to support height development with sports “Growth Store” drives differentiated experience and store productivity Stores in Chinese Mainland 1,455 Li Yongqiu X Young spokesperson Champion of the junior category at the “Juste Debout” Finals in Paris X Young “Dancing to the Stars” X Young - Sports Science to Support Height Development 15
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16 Focus on premium marketing campaigns Exclusive running events for elites TRIUMPH 24 KINVARA 1 1898 series Empower diverse elite lifestyles Saucony - Elevate a Century-Old Running Heritage Through Brand Premiumization 16 Focus on running Improve flagship product discounting Expand apparel and lifestyle offerings Hood to Coast Relay
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Focus on prime locations in high-tier cities with image and flagship stores 180 Number of Stores in China Image store at K11 Art Mall in Hong Kong Image store at West Bund Central in Shanghai Saucony - Prioritize Premium Channels to Solidify Brand Momentum 17
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Trail running Hiking Outdoor lifestyle“VAST SKY” trail running shoe MOAB 3 Leverage e-commerce to achieve high-quality growth Prioritize core product line for hiking lifestyle Merrell - Professional Outdoor Sports Brand 18
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Protect the planet Sustainable value chain Put people first 160X 7.0 PRO Eco-friendly shoe Upper made from recycled PET plastic bottles Carbon reduction of 12.7g/pair “Return to New Life · Run for a Clean Future” Labor Day cleanup run Total weight of fabric waste recycled from supply chain reached 92 tons Published the Sustainable Chemicals Management Manual Supported suppliers to achieve ZDHC MRSL Level 3 compliance for 74 chemical products ESG training for supply chain management Cash and supplies donations RMB 14+million Female in management Marathon and running event sponsorship MSCI ESG “A” rating S&P ESG score Outperformed over 84% of textile peers Authoritative ratings Sustainability - Key Achievements in 1H2026 19Project Hope · Xtep Campus Charity Initiative 37% 38
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20 Prospects
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Prospects Focus on running Build momentum Reinforce running position to achieve “professional-to-mass influence” strategy Optimize channel structure and drive DTC transformation to improve operational efficiency A century-old running heritageachieving long-term high-quality growth Drive brand premiumization through marketing, product, and channel strategies Actively expand into elite consumers and reinforce brand image Expand presence at prime locations across high-tier cities and enhance store productivity 21 Continuously invest in product and e-commerce platform to capture the growth potential of the outdoor industry Leverage flagship products to accelerate mass market penetration and enhance professional running leadership
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Appendix
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RMB m 1H2026 1H2025 YoY change Revenue 6,795 6,838 0.6% Gross profit 3,155 3,074 2.6% Selling & distribution and general & administrative expenses (“SG&A”) (2,323) (2,123) 9.5% Adjusted operating profit1 1,204 1,284 6.2% Operating profit 1,161 1,305 11.0% Profit attributable to ordinary equity holders 818 914 10.5% Basic earnings per Share RMB30.0 cents RMB34.6 cents 13.1% Gross profit margin 46.4% 45.0% 1.4% pts SG&A to revenue ratio 34.2% 31.0% 3.2% pts Adjusted operating profit margin1 17.7% 18.8% 1.1% pts Operating profit margin 17.1% 19.1% 2.0% pts Net profit margin 12.0% 13.4% 1.4% pts Consolidated Income Statement 231Excluding RMB43 million of share award expenses in 1H2026, and the reversal of RMB21 million of share award expenses in 1H2025
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1H2022 1H2023 1H2024 1H2025 1H2026 1H2026 1H2025 YoY change Footwear 48.7% 46.5% 2.2% pts Apparel 43.0% 42.9% 0.1% pt Accessories 36.6% 35.2% 1.4% pts Overall 46.4% 45.0% 1.4% pts Footwear Apparel Accessories 2.2% -0.6% +2.8% -5.9% -7.8% YoY change 60.8% 37.3% 1.9% 6,838 55.1% 42.7% 61.3% 36.5% Revenue by product1 (RMB m) Gross profit margin by product (%) 6,382 5,774 5,054 1 Revenue from continuing operations for 1H2022, 1H2023, and 1H2024 6,795 62.9% 35.3% 1.8% 56.8% 41.0% 2.2%2.2% Group’s Revenue and Gross Profit Analysis 24
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-22 191 -296 3,457 847 -454 -192 -82 3,449 Cash and cash equivalents (31 Dec 25) Cash and cash equivalents (30 Jun 26) Net operating cash inflow Pledged bank deposits Dividends paid Other movements Purchase of PPE Bank borrowings Term deposits Cash Flow Analysis (RMB m) 25
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KUANG YE3.0 PRO RMB1,299 160X 7.0 PRO RMB1,299 160X 8.0 PRO RMB1,299 160X 7.0 MONXTER RMB1,699 160X 8.0 ULTRA RMB1,699 2000 KMPRO RMB569 360X 3.0 FLY RMB599 360X 3.0 RMB599 LING YUN MAX RMB799 XTEP 100 3.0PRO RMB799 The shoes are equipped with carbon fiber plate QING YUN 2.0 GO RMB299 260X 3.0 RMB799 360X 3.0 LITE RMB499 2000 KM RMB499 REACTOVE COIL13 RMB499 FEATHER FOAM RMB439 ULTRA FAST RMB399 RMB 500 RMB 200 RMB 800 RMB 500 RMB 1,700 RMB 900 QING YUN 2.0 LITE RMB399 160X 7.0 RMB999 精英系列 Professional series Mass market series 160X 8.0 RMB999 LING YUN RMB599 Elite series Core Xtep Brand – Mainstream Performance Products 26
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KINVARA 4 RE RMB690 Running series Commuter series Lifestyle series Propulsion RMB 2,090 RMB 790 ENDORPHIN ELITE 3 RMB2,090 ENDORPHIN PRO 5 RMB1,690 ENDORPHIN SPEED 5 RMB1,390 SLAY 4 RMB990 KINVARA 16 RMB890 TRIUMPH 24 RMB1,390 RIDE 19 RMB990 PHOENIX INFERNO 5 RMB790 HURRICANE 25 RMB1,390 GUIDE 19 RMB990 TEMPUS 3 RMB1,390 Commuter RMB 1,490 TRIUMPH LFS PRM RMB1,490 GRIPPER VACATION RMB990 WHITE PRM RMB1,190 GUIDE ID 2 RMB950 Lifestyle RMB 990 RMB 690 SPIKES 80S RMB690 PEREGRINE 16 SHIFT RMB990 OMNI 9 RMB890 TRIUMPH 4 RMB890 KINVARA 1 RMB990 WHITE SL RMB990 TRIUMPH LFS WOOOLLY RMB1,390 RMB 950 Rebound Cushion Stability ENDORPHIN AZURA+ RMB1,190 Saucony – Comprehensive Collection 27
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9% 91% ApparelFootwear 32% 68% Outsourced In-house In-house Outsourced Group’s Production Capacity Allocation 28
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This presentation is prepared by Xtep International Holdings Limited (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or form any basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and do not purport to be a complete description of Company, its business, its current or historical operating results or its future prospects. This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company specifically disclaims all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation. This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company. These forward-looking statements represent the Company’s expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Certain statements, such as those that include the words “potential”, “estimated”, “expect”, “anticipates”, “objective”, “intends”, “plans”, “believes”, “estimates”, and similar expressions or variations on such expressions may be considered “forward-looking statements”. Forward-looking statements involve inherent risks and uncertainties. Readers should be cautioned that a number of factors could cause actual results to differ in some instances materially, from those anticipated or implied in any forward-looking statement. Forward-looking statements speak only as of the date they are made, and it should not be assumed that they have been reviewed or updated in the light of new information or future events. Trends and factors that are expected to affect the Company’s results of operations are described in the “Financial Analysis”, “Business Review” and “Future Plans”. Disclaimer 29