Topsports (06110-HK) shares continued their downturn at the open on July 24, briefly trading at HK$1.29. The catalyst was a formal notice from Nike received on July 21: effective January 1, 2027, Topsports’ online sales business for Nike products in mainland China will be fully discontinued. Nike’s online sales account for about 22% of Topsports’ total revenue, with the related business size at approximately RMB 5.6 billion.
Topsports’ market cap erodes by HK$3 billion, leaving about HK$9 billion
Based on market data for July 24, 2026, Topsports’ stock market cap eroded by about HK$3 billion, and the closing market cap was only about HK$9 billion.
On July 21, Topsports received Nike’s formal notice announcing the termination of its online sales business for Nike product lines in mainland China effective January 1, 2027, which directly triggered the sharp selloff in the stock.
Financial impact and timeline of Nike’s termination of its China online authorization
According to Topsports’ announcement and financial data, the key details of this business termination are as follows:
Topsports total revenue for fiscal 2025–2026: RMB 25.74 billion
Nike online sales share: about 22% (about RMB 5.6 billion)
Business termination date: January 1, 2027
Start year of cooperation between the two parties: 1999 (more than 27 years of partnership)
Status of offline business: Both parties stated that their China offline sales cooperation will continue
Wording in Topsports’ announcement: “This matter will have a material impact on business in the short term”
Nike Greater China GM: reclaiming online authorization aims to rebuild China’s market pricing order
According to an open letter by Cathy Sparks, Nike’s General Manager for Greater China, the purpose of Nike’s return of its online authorization is to “build a stronger, more sustainable market ecosystem.” The move will “promote long-term growth for Nike and its partners.” She also said that retail partners will still “play a key role in bringing sports into the community.”
On the industry side, currently, when consumers search for Nike products on shopping platforms, they see multiple prices from different distributors—making it difficult to distinguish official, authorized, and parallel-import channels—and brand value is diluted by discounting. In June, industry reports already said Nike was preparing to rebuild the pricing order through official channels.
FAQ
What was Topsports’ share drop on July 22?
Based on market data for July 22, 2026, Topsports shares fell 24% at the close, with market cap eroding by about HK$3 billion, and the closing market cap down to only about HK$9 billion.
What are the business scale and timeline for Nike to end its China online authorization for Topsports?
According to Topsports’ announcement, Nike’s online sales account for about 22% of Topsports’ total revenue for fiscal 2025–2026 (RMB 25.74 billion), with the related business size at about RMB 5.6 billion; the termination date is January 1, 2027.
Will the offline cooperation between Nike and Topsports continue?
According to both parties’ announcements, the offline cooperation will continue. Topsports said it will strengthen offline new-concept stores and premium experience stores, among other initiatives. Cathy Sparks, Nike’s General Manager for Greater China, also said that retail partners will continue to play a key role in bringing sports into the community.
