CICC: Under the influence of policies, ice and snow sports and ice and snow tourism are expected to achieve high-quality development. Bullish on the growth potential of functional apparel and leading companies in ice and snow tourism.

CICC released a research report stating that it is optimistic about the ice and snow economy becoming an important growth point for expanding domestic demand. With policy support, ice and snow sports and tourism are expected to achieve high-quality development, and there is potential for growth in functional clothing and leading companies in the ice and snow tourism industry. Under policy support, it is optimistic about the high-quality development of the ice and snow economy and its importance in expanding domestic demand. Recently, a series of policies supporting the ice and snow economy have been announced, proposing that by 2027/2030, the total scale of the ice and snow economy will reach 1.2/1.5 trillion yuan. Emphasis is placed on ice and snow consumption becoming an important growth point for expanding domestic demand, and measures are proposed to promote ice and snow sports, ice and snow tourism, infrastructure, and ice and snow equipment. CICC believes that this series of policies promoting the ice and snow economy take into account both the quality upgrading of the supply side and the direct stimulus to the demand side, emphasizing industrial chain cooperation, and are expected to promote the high-quality development of the ice and snow economy. Meanwhile, local governments are vigorously promoting the development of ice and snow consumption, such as the measures taken by the Harbin government to drive the success of "Harbin". Functional clothing directly benefits from the ice and snow economy. China already has a good base for mass participation in ice and snow sports. According to the "Mass Ice and Snow Consumer Market Research Report" and "China Ice and Snow Industry Development Research Report (2024)", during the 2023-2024 winter season, the number of participants in various ice and snow sports in China reached 264 million, and the number of people engaged in ice and snow leisure tourism exceeded 385 million, with sports equipment including functional clothing being the main consumption item for residents participating in ice and snow sports. Since entering the peak season for the sale of warm clothing in the fourth quarter, down jackets and outdoor clothing on e-commerce platforms have seen strong sales. CICC is optimistic about the outstanding growth performance of the functional clothing sector against the backdrop of the booming development of the ice and snow economy. It is optimistic about the continued release of the enthusiasm for ice and snow tourism consumption and the development potential of leading destinations. The Asian Winter Games will be held in Harbin in February 2025, and combined with policies to promote ice and snow tourism announced since November-December, CICC is optimistic about the continuous release of enthusiasm for ice and snow tourism consumption. Data from FlightAI shows that as of December 20th, searches for ice and snow tourism destinations such as Harbin, Changchun, Shenyang, Dalian are among the top and have seen rapid growth compared to the same period last year. The main tourist area of Changbai Mountain Tourism received 24% more visitors from January to November 2024 compared to the previous year. Risks Policies and effects falling short of expectations; Consumer spending recovering less than expected; Increased industry competition.