Discount StrategyWhile the narrower sales decline is encouraging, it comes at a cost of deeper discount, which has deepened vs. Nov-q.
Financial PerformanceSales dropped by 8% YoY to RMB 13.1bn while net profit tanked by 35% YoY to RMB 874mn in 1H25, completely inline with the pro-announced profit warning.
OutlookThe outlook for 2H25E is still grim, likely due to Topsports’ offline distributor nature and Nike reforms.