01XTEPQUARTERLYHIGHLIGHTS

03 Run to Green! Xtep’s Green Initiative Takes Center Stage at the Xtep Running Club of Huandong in Xiamen

07
Xtep X-runners Conquer Epic 81-Day, 5500km Yellow River Run, Set Sights on the Greater Bay Area Next!

03 ORGANIZATIONAL EMPOWERMENT

19
Empowering Exceptional Store
Managers
Paladin 2024 National Retail Training
Camp Concludes Successfully

04 PRODUCT FOCUS

02 XTEP'S JOURNEY

13
Leveraging Flagship
Lines for Groundbreaking
Innovation
Decoding the Success of
the \{\}+ Project”

23

Why Does It Keep Dominating North America’s Tennis Shoe Sales? Hypercourt Express 2 Test Report Now Available

25

Introducing the New Member of the Palladium Platform Shoe Family Palladium’s Mushroom Shoes: A Sweet and Cool Debut

05
BU
INFORMATION 29
K-Swiss Expands Presence in Hong Kong with New Flagship Store and Celebrity Involvement

PART 01

XTEP QUARTERLYHIGHLIGHTS

Run to Xtep’s Gr een Initiative Takes Center Stage at the Xtep Running Club of Huandong in Xiamen

On December 22, Xtep launched its “Run to Green” exhibition at the Xtep Running Club of Huandong in Xiamen, marking the brand’s firstever direct showcase of its environmental achievements to the running community. Located near the starting line of the Huandong Half Marathon, the exhibition opened on race day, underscoring Xtep’s innovative efforts to merge the energy of running with environmental responsibilities.

Through the transparent exterior walls of the running club, the bold “Run to Green” installation in the exhibition zone visually articulates Xtep’s environmental commitment. At the heart of the exhibition, the Xtep logo is crafted from vibrant green plants, flanked by mannequins wearing the C&D Xiamen Marathon 2024 T-shirt and the Windbreaker PRO racing vest. Both pieces were made using a sustainable “bottle-to-fabric” recycling process. The Windbreaker PRO Racing Vest has secured the ECO-NOVA Sustainable Fashion Award by achieving functional and stylistic enhancements through eco-friendly material sourcing and manufacturing processes.

“成为可持续发展的领跑者

ESG补给站

环境Environment

社会 Social

指组银对人、文化和往区的影响，并关注多样性、包容性人叔和供应疑的社会影响。

治理 Governance

服装已经成为全球污染第二大行业，仅次于石油行业。

生产一件棉衬衫需要约2700升水，服装生产造成的废水量占全球废水量20%

一条牛仔裤整个生产过程的碳排放量能够高达33.4千克，每生产1吨纺织品就会排放17电温室气体，纺织服装行业的温室气体排放量占据全球温室气体排放总量的4%

特步集团以成为可持续发展的领跑者为愿景，致力于打造可持续供应链，优化自主经营，赋能员工发展推出了多款绿色环保产品，积极倡导可持续消费。

开启可持续生活的十件小事

·随手关灯 ·低碳出行·少坐电梯，多走楼梯 ·自备环保袋·户外徒步 ·进行一次回收·光盘行动 进行一次有氧运动·垃圾分类 ·自带水杯

我们不追求一而就的短期效益而是长期主义的坚守，
可持续是场马拉松，
让我们一起Run to Green。

特步碳中和目标

2030年将自营范围的温室气体绝对排放量减少42%天晚于2050年实现碳中和

Run to Green

The exhibition includes an ATRenew station where visitors can contribute old clothing for recycling. The message on the station reads: “Old clothes of any brand can be recycled, giving them a second life and supporting sustainable development.”
Together, we can power the green movement—Run to Green.

Xtep X-runners Conquer Epic 81-Day, 5500km Yellow River Run, Set Sights on the Greater Bay Area Next!

On October 19, the Xtep X-runners stormed to a triumphant finish in Dongying, Shandong, capping off their monumental “Run the Yellow River” expedition. This grueling 81- day, 5500-kilometer odyssey across 8 provinces and 30 cities wasn’t just a run—it was a relentless pursuit and a deep dive into the soul of Yellow River culture, marking a defining moment in the Xtep X-runners’ storied legacy.

Embracing Heritage, Unleashing Power

Kicking off on August 1 from Xining, Qinghai, this epic journey carved a path through rugged terrains and vibrant communities across Qinghai, Gansu, Ningxia, Inner Mongolia, Shanxi, Shaanxi, Henan, and Shandong, culminating at the awe-inspiring Yellow River estuary in Dongying. The Xtep X-runners dominated every mile, powering through towering mountains, crossing raging rivers, and connecting with the ancient pulse of Chinese civilization. They forged bonds with runners nationwide, sharing sweat and inspiration while living the creed: “Only a true hero dares to conquer the Great Wall, and only a true champion runs the Yellow River.”

Uniting Strength Embarking on the Next Challenge

During the closing ceremony, 30 elite Xtep X-runners, led by Dr. Wu Lianyin, completed the iconic Ji-shaped (similar to Omegashaped) route along the Yellow River, bringing together 30 bottles of Yellow River water they gathered throughout the journey. This act symbolized the triumphant completion of the “Run the Yellow River” challenge.

During the
ceremony, the Xtep X-runners bestowed the prestigious
title “Vanguards
of the Running
Revolution” upon
three distinguished athletic leaders: Yang Jiayu, Li Xiaobai, and Yu Changjiu. These
luminaries will now partner with the Xtep X-runners to amplify the transformative
power of endurance athletics.

A Run for Greater Good A Legacy of Impact

The challenge transcended athletic achievement to deliver meaningful community impact throughout its course. With every stride, Xtep X-runners embodied the mantra “Run for Health, Run for Greater Good,” delivering vital funds and premium Xtep gear to young athletes at Henan’s

Jiaozuo Sports School and the Cangzhou Youth Running Group. The initiative gained further momentum through partnerships with respected ambassadors from the professional running community who joined forces to amplify these charitable efforts. At the ceremony’s peak, Wu Guangbo—China’s legendary hearing-impaired runner known as “Son of the Wind”—was named Ambassador for the Greater Bay Area Philanthropic Initiative. By transforming his GPS-tracked running routes into digital masterpieces, he’ll turn kilometers of perseverance into brushstrokes of compassion, proving that every stride can paint a bridge of love across the world.

Online and Offline, Running Together

Since its inception, the “Run the Yellow River” event has ignited an unmatched passion among runners. With participation both online and offline, over 60,000 runners joined the movement, collectively covering more than 7.27 million kilometers—1,321 times the length of the Yellow River.

joined the movement runners 60,000

collectively covering more than
727
million kilometers
length of the Yellow River
1321
times

short videos amassed plays across platforms

3.5 million

The event became a viral sensation as it was streamed live on the Xtep X-runners' WeChat Channels and Douyin accounts. The Douyin hashtag skyrocketed to over 1.888 million views, while short videos amassed over 3.5 million plays across platforms, capturing the energy, enthusiasm, and incredible journey of this momentous event. Official media outlets from cities along the route also provided continuous coverage, amplifying the event’s social impact and giving even more people the chance to experience this awe-inspiring feat.

The Next Horizon: Running Toward the Greater Bay Area

As we set our sights on 2025, the Xtep X-runners are ready to take on a bold new challenge: Run the Greater Bay Area. With the rallying cry “Run the Greater Bay Area, Showcase the Unique You,” Xtep is leading the way in promoting healthy running through a dynamic series of exciting and impactful events. Together, we’ll harness the power of movement and inspire every runner to unleash their true potential.

PART02

Leveraging Flagship Lines for Groundbreaking Innovation

Decoding the Success of the “1+ Project”

The ^{\ast}1+ Project” has fueled continuous brand evolution since 2024 by adopting a refined, systematic approach, pushing the boundaries from professional to mass-market with relentless pursuit of excellence.

In this episode of “XTEP'S JOURNEY” executive column, we sit down with the three key figures behind the \mathbf{\dot{\Delta}_{1+}} Project”—Lu Yijia, Wang Qiang, and Chen Mingmin—as they share insights into the strategic framework, market approach, and how they’ve tackled challenges.

Expanding from Professional to Mass Market Leveraging Flagship Lines to Break Category Boundaries

With over 20 years of expertise, Xtep has established itself as a dominant force in the professional running market, consistently achieving the highest wear rates in major events across all time slots. While the buying power within the professional running community remains steady, the scale and untapped potential of the mass-market running consumer base present a vast opportunity. Lu Yijia emphasized: “Up until now, many mainstream consumers still view Xtep as being stuck in the ‘Experience the Difference’ phase, and this perception must evolve.”

When a brand’s actions remain confined within familiar circles, they tend to foster excitement only among niche consumers. Additionally, the pressure to boost store-level revenue and the challenges of sustainable growth have highlighted the need for change within the \mathbf{\hat{\Delta}_{1+}} Project” team. So, how can Xtep’s established authority in the professional running market be expanded to a broader base of everyday running enthusiasts? This is the challenge at hand.

To succeed in new markets, it’s critical to break away from old, ingrained habits. After conducting extensive market research and gaining valuable consumer insights, the ^{\bullet}1+ Project” team shifted its focus to external markets. They found inspiration in successful cross-industry flagship strategies. The team began from the ground up, sparking creative discussions and brainstorming sessions. Over time, a clear and structured approach for flagship operations began to take shape. Rather than the traditional strategy of launching a wide array of SKUs, they pivoted to a focused, “Vanfleet ammunition-style” strategy, emphasizing a full range of approaches to effectively introduce flagship products into the market. Additionally, the team moved away from the previous segmented, isolated efforts and implemented an integrated, endto-end management model instead.

“Previously, each department worked in isolation, and the outcome of our goals was always uncertain.” Chen Mingmin explained that within the new framework, a crossfunctional team— including personnel from marketing, sales, product development, supply chain, manufacturing, and finance—must now manage and track the entire product lifecycle. “Now, we have more collaboration, and importantly, everyone is held accountable for delivering the final commercial objectives.”

Ensuring Quality, Quantity, and Timely Deliver Maximizing Investment and Collaboration to Achieve Ambitious Goalsy

The first step is always the most challenging. Entering new markets and expanding customer segments naturally comes with its share of obstacles. At the order meeting in early 2024, prior to the launch of the cherry blossom-colored products, the \mathbf{\hat{\Delta}_{1+}} Project” team faced significant skepticism regarding the product’s color scheme and its sales targets. “This color looks too extravagant. Will consumers really buy it?" "To hit these high targets, we would need to sell 2 to 2.5 times more—how is that even possible?"

samples on campuses 300

Despite the doubts, the \mathbf{\hat{\Delta}_{1+}} Project” team embraced the challenge, enduring immense pressure. They committed to in-depth market research, analyzing target consumer data and needs to ensure their strategy was grounded in insights. This consumer-centric approach gave the team a solid foundation amid mounting pressure.

“We validated over 300 samples on campuses. The cherry blossom color—it’s what students love. This wasn’t an impulsive decision; it was based on careful research.”

By precisely identifying their target demographic and conducting thorough consumer research, the \mathbf{\hat{\Delta}_{1+}} Project” team worked in unison, ensuring that product decisions were always driven by the actual needs of their consumers. They also ensured that every part of the process met high standards of quality and was delivered on time. With significant investment and collaboration, the team reached their ambitious goals. Ultimately, the new color variant exceeded expectations with an impressive sales surge.

“From initial silos of individual work to a seamless, unified effort, the \mathbf{\dot{\Delta}_{1+}} Project’ team came together with a clear consumer-first mindset, all working toward the same commercial goal. The full supply chain—development, marketing, and sales—was tightly integrated, and this collaboration gave us a significant market edge,” Chen Mingmin remarked.

Lu Yijia added, “This victory not only marked a breakthrough in sales but was also a massive confidence boost for the team. Because we believed, we could make it. Every low point is simply a stepping stone on the way to greater heights.”

Innovative Content Marketing Strategies that Create Blockbuster Products and Drive Brand Upgrade

To elevate the brand, the “1+ Project” team embarked on a series of consumer-driven innovative initiatives. In traditional resource-based marketing, sports brands often relied heavily on sponsorship of high-profile events like marathons to gain exposure. However, with shifting market dynamics and increasingly diverse consumer preferences, relying solely on raw resources is no longer enough to captivate the audience.

As Wang Qiang explained: “We need to view things from the consumer’s perspective, deeply integrating our products with event content. Through storytelling in our content marketing, we convey the essence of our brand. For instance, in event coverage, we shift focus from just the race itself to the real-life application of our products, highlighting the stories of runners and showcasing how Xtep supports every passionate athlete.” This consumer-centric marketing approach not only strengthens the brand’s emotional connection with its users but also brings Xtep’s brand narrative to life in a more relatable and authentic way.

Moreover, as the product lineup continues to expand, the ^{\ast}1+ Project” team has meticulously matched the right products to consumer needs at various times and events, ensuring maximum relevance and impact. For instance, the Sakura colorway of the 360X, launched in spring, was designed based on an in-depth understanding of the aesthetic preferences of the students. This move quickly propelled the product into becoming a must-have among young consumers. This consumercentric promotional strategy not only amplified Xtep’s reach but also secured a greater following among younger users, enhancing Xtep's market presence. Notably, Xtep, as the brand sponsoring the most road running events in China, has consistently championed the growth of national fitness initiatives. At the same time, Xtep supports the advancement of competitive sports by offering top-tier products and technical expertise. This two-pronged strategy not only meets consumer demands but also further strengthens Xtep’s position in the professional running sector.

Looking ahead, the ^{\bullet}\mathbf{1}^{+} Project” plan aims to maintain market sensitivity through structured growth and continuous innovation, ensuring that the product lineup stays competitive.
“Despite the more challenging external market conditions, we firmly believe this path is the right one,” said Lu Yijia. In 2025, the team will leverage the success of the project to scale quickly across the entire running shoe range.

PART 03

ORGANIZATIONAL EMPOWERMENT

Empowering Exceptional Store Managers

Palladium 2024 National Retail Training Camp Concludes Successfully

Q1 2025 Season Kick-Off Training

From December 3 to December 5, Palladium’s 2024 National Retail Training Camp took place in Xiamen, gathering staff members from operations, training, display departments, and store managers nationwide. The training sessions focused on the following: 2025 Q1 product strategies, integrated marketing and retail support initiatives, RedNote marketing strategies, market promotion and membership growth tactics, in-depth product knowledge training, and display strategies and guidelines for the full range of Q1 products.

Interactive Sharing Session

The camp featured four of China’s top staff members, who shared success stories on how they achieved impressive sales results. They discussed topics such as overcoming sales challenges, mastering store operations, efficiently opening new locations, and how to generate 70% of sales from 30% of the featured products. Their expert insights offered valuable takeaways for attendees. Additionally, several outstanding staff members were recognized for their achievements and rewarded accordingly.

Exceptional Store Manager Training Cam

To boost the performance of Palladium’s benchmark stores in 2025, the brand invited top-performing store managers to join the training camp. The merchandise department will increase the replenishment frequency for these benchmark stores, ensuring efficient stock replenishment and prioritizing the top products. OTO (order-to-order) stock guarantees will be put in place for inventory stability. The space and display department will identify store display assistants and provide them with props and materials to support their work. Through the High-sales Performer Training Initiative, Xtep is building a team of top sales talent. The training also includes a robust store group-buying incentive program and multi-channel business expansion strategies. A comprehensive benchmark store training plan for 2025 will be rolled out, along with on-site training sessions to empower store teams with the knowledge and tools they need to succeed.

Special training

PART 04

Why Does It Keep Dominating North America’ s Tennis Shoe Sales?

Hypercourt Express 2 Test Report Now Available

Want to conquer the court, and command the game with power and precision? K-Swiss is proud to recommend the Hypercourt Express 2, a shoe that has been thoroughly tested and delivers top-tier performance in every key area.

Conclusion 1

Conclusion 2

Featherlight and Built to Last

Hypercourt Express 2

The Hypercourt Express 2 is lighter than most shoes in its category,with a streamlined design that amplifies its lightweight feel.
It features DuraWrap Flex technology for
superior toe protection,
while the durable rubber upper ensures
exceptional longevity.

Cushioned Comfort with Balanced Support

The upper is soft yet provides solid support, with a cushioned collar and tongue that hug your foot for a secure fit.
The SURGELITE midsole offers
high rebound, ensuring an incredibly
comfortable and responsive experience on the court.
The 180 PSC TPU plate in the midfoot ensures stability, while the forefoot and heel provide ample cushioning for explosive speed and
agility.

Wide-Foot Friendly, No Break-In Time

The shoe’s wider last design provides ample space, allowing for quick stops and smooth pivots without compromising stability.

Conclusion 4

Superior Traction for Bold Moves

The herringbone pattern on the sole, combined with Drag Guard’s full-coverage durable rubber,boosts traction and provides exceptional grip and slip resistance.Perfect for fast, confident footwork across all court surfaces.

Introducing the New Member of the Palladium Platform Shoe Family

Palladium’s Mushroom Shoes: A Sweet and Cool Debut

A New Addition to the Palladium Platform Shoe Family The vibrant color options exude energy, making every step playful and full of retro charm.

Upper

Sole

Crafted from a blend of leather and sandwich mesh materials, the upper is both lightweight and breathable, ensuring a comfortable fit all day long. The soft wrap of the upper provides added comfort, while the thickened sole helps elongate the legs for a flattering silhouette.

The thickened sole adds approximately 4cm of height. Made from highelastic EVA material, the sole is lightweight, comfortable, and built for all-day wear. OneShot Moldingensures a sleek, clean shape and a defined, stylish profile.

Outsole

Inspired by the natural texture of mushroom caps, the outsole pattern enhances both the design and slip resistance. A wide-area hollow rubber design reduces weight, making the shoe even lighter and easier to wear.

Shoe Body

The carefully crafted 3D mushroom details, combined with rounded shapes, create a sneaker that is both distinctive and nostalgic.

With artistic inspiration at its core, the Mushroom Shoes refresh your everyday style. Slip them on, feel your cool, and let your sweet energy come alive.

PART05

BU INFORMATION

K-Swiss Expands Presence in Hong Kong with New Flagship Store and Celebrity Involvement

Following the opening of the first K-Swiss counter with a new image at Sogo in Causeway Bay earlier this year, we have launched a second counter at Sogo Kai Tak in Q4. further strengthening the momentum for the brand's business development in Hong Kong. Apart from Sogo Kai Tak, a new K-Swiss store has successfully opened in Harbour City, located in the core commercial district of Tsim Sha Tsui, Hong Kong, which is the largest flatship store in Hong Kong. On the grand opening day, K-SWISS specially invited Tiffany Lau Wing Shuen and Owen Cheung Chun Long to serve as special one-day store managers, allowing them to experience the role firsthand and interact with customers while celebrating the grand opening. This store not only provides a significant opportunity to showcase our brand in Hong Kong and the Asia-Pacific region, but it also marks a major milestone in the development of the K-Swiss brand.

To Uphold Perseverance Innovation,Integrity Mutual Success