[Report Overview](index=1&type=section&id=Report%20Overview) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported significant declines in revenue, gross profit, operating profit, and profit attributable to owners for the six months ended June 30, 2025, alongside reduced margins and dividends Financial Performance for the Six Months Ended June 30 | Financial Performance (RMB thousands) | 2025 | 2024 | Change | | :---------------------------------- | :------- | :------- | :----- | | Revenue | 9,159,425 | 9,983,269 | -8.3% | | Gross Profit | 3,069,210 | 3,415,700 | -10.1% | | Operating Profit | 281,596 | 482,555 | -41.6% | | Profit Attributable to Owners of the Company | 187,615 | 335,722 | -44.1% | | Gross Profit Margin (%) | 33.5% | 34.2% | -0.7 percentage points | | Operating Profit Margin (%) | 3.1% | 4.8% | -1.7 percentage points | | Basic Earnings Per Share (RMB cents) | 3.62 | 6.48 | -44.1% | | Interim Dividend (HKD) | 0.0115 | 0.02 | -42.5% | | Special Dividend (HKD) | 0.0115 | 0.02 | -42.5% | Financial Position as of June 30 | Financial Position (RMB thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------- | :--------------- | :----- | | Inventories | 4,865,388 | 4,946,314 | -1.6% | | Trade and Other Receivables | 2,009,997 | 2,124,515 | -5.4% | | Cash and Cash Equivalents | 1,232,169 | 1,419,052 | -13.2% | | Bank Borrowings | 196,778 | 39,273 | 401.1% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, revenue declined 8.3% to RMB 9,159,425 thousand, with significant drops in gross profit, operating profit, and profit attributable to owners Key Data from Condensed Consolidated Statement of Profit or Loss | Metric (RMB thousands) | 2025 | 2024 | | :--------------------- | :------- | :------- | | Revenue | 9,159,425 | 9,983,269 | | Cost of Sales | (6,090,215) | (6,567,569) | | Gross Profit | 3,069,210 | 3,415,700 | | Operating Profit | 281,596 | 482,555 | | Profit for the Period | 200,106 | 338,006 | | Attributable to Owners of the Company | 187,615 | 335,722 | | Basic Earnings Per Share | RMB 3.62 cents | RMB 6.48 cents | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Profit for the period was RMB 200,106 thousand, but fair value losses and exchange differences increased other comprehensive expenses, reducing total comprehensive income to RMB 197,764 thousand Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric (RMB thousands) | 2025 | 2024 | | :--------------------- | :------- | :------- | | Profit for the Period | 200,106 | 338,006 | | Fair value (loss) gain on equity instruments at fair value through other comprehensive income | (716) | 1,256 | | Exchange differences arising from translation of foreign operations | (1,626) | 3,313 | | Other comprehensive (expense) income for the period | (2,342) | 4,569 | | Total comprehensive income for the period | 197,764 | 342,575 | | Attributable to Owners of the Company | 185,273 | 340,291 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, both non-current and current assets decreased, with a notable increase in bank borrowings despite a slight growth in net assets Key Data from Condensed Consolidated Statement of Financial Position | Metric (RMB thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------- | :--------------- | | Non-current assets | 3,329,854 | 3,630,267 | | Current assets | 9,261,076 | 9,407,623 | | Inventories | 4,865,388 | 4,946,314 | | Trade and other receivables | 2,009,997 | 2,124,515 | | Cash and cash equivalents | 1,232,169 | 1,419,052 | | Current liabilities | 2,844,523 | 3,253,830 | | Trade and other payables | 1,857,721 | 2,349,583 | | Bank borrowings | 196,778 | 39,273 | | Net assets | 8,977,358 | 8,870,796 | | Total equity | 8,977,358 | 8,870,796 | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Basis of Preparation and Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The financial statements are prepared under HKAS 34 and Listing Rules, using historical cost, consistent with prior policies, with no material impact from new HFRS revisions - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) - The condensed consolidated financial statements are prepared on the historical cost basis, except for certain properties and financial instruments that are measured at revalued amounts or fair values, and the accounting policies and methods of computation are consistent with those used in the annual consolidated financial statements for the prior year[10](index=10&type=chunk) - The revised Hong Kong Financial Reporting Standards (HKAS 21 (Amendment) Lack of Exchangeability) applied for the first time in the current interim period had no significant impact on the Group's financial position and performance for the current and prior periods[11](index=11&type=chunk) [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) The Group's main business is sportswear and footwear distribution and retail, plus concessionaire sales commissions, with total revenue of RMB 9,159,425 thousand for the period - The Group's principal activities are the distribution and retail of sportswear and footwear products, and earning concessionaire sales commissions by providing mall space[12](index=12&type=chunk) Revenue Analysis | Revenue (RMB thousands) | 2025 | 2024 | | :---------------------- | :------- | :------- | | Sales of sportswear and footwear products | 9,105,516 | 9,924,029 | | Concessionaire sales commissions | 53,909 | 59,240 | | **Total Revenue** | **9,159,425** | **9,983,269** | [Income Tax Expense](index=7&type=section&id=Income%20Tax%20Expense) Total income tax expense for the six months ended June 30, 2025, significantly decreased to RMB 74,998 thousand, mainly due to increased deferred tax credits Income Tax Expense Details | Income Tax Expense (RMB thousands) | 2025 | 2024 | | :--------------------------------- | :------- | :------- | | PRC Enterprise Income Tax - Current period | 121,652 | 125,213 | | PRC Enterprise Income Tax - Over-provision in prior periods | (24,819) | (11,547) | | Withholding tax on dividends | 15,000 | 15,254 | | Current tax expense – total | 111,833 | 128,920 | | Deferred tax (credit) expense | (36,835) | 7,985 | | **Total Income Tax Expense** | **74,998** | **136,905** | [Finance Costs and Profit for the Period](index=8&type=section&id=Finance%20Costs%20and%20Profit%20for%20the%20Period) Finance costs for the six months ended June 30, 2025, totaled RMB 28,091 thousand, mainly from lease liabilities, with profit calculated after various cost deductions Finance Costs Details | Finance Costs (RMB thousands) | 2025 | 2024 | | :---------------------------- | :------- | :------- | | Interest expense on bank borrowings | 1,482 | 1,191 | | Interest expense on advances from related parties | 47 | 50 | | Interest expense on lease liabilities | 26,562 | 34,139 | | **Total Finance Costs** | **28,091** | **35,380** | - Profit for the period is arrived at after charging total employee costs of **RMB 1,053,815 thousand**, depreciation of right-of-use assets of **RMB 337,733 thousand**, and depreciation of property, plant and equipment of **RMB 153,813 thousand**[17](index=17&type=chunk) - Net change in provision for inventories was **RMB 18,754 thousand**, which has been included in cost of sales[17](index=17&type=chunk) [Dividends](index=9&type=section&id=Dividends) Total dividends recognized were RMB 94,736 thousand, with the Board declaring an interim dividend of HKD 0.0115 and a special dividend of HKD 0.0115 per share Dividends Recognized During the Period | Dividends (RMB thousands) | 2025 | 2024 | | :------------------------ | :------- | :------- | | 2024 final dividend | 47,368 | 56,652 | | 2024 special dividend | 47,368 | – | | **Total** | **94,736** | **56,652** | - The Board resolved to declare an interim dividend of **HKD 0.0115** per share and a special dividend of **HKD 0.0115** per share, totaling **HKD 0.0230** per share, with a payout ratio of **60%**[18](index=18&type=chunk) [Earnings Per Share](index=9&type=section&id=Earnings%20Per%20Share) Profit attributable to owners was RMB 187,615 thousand, with weighted average ordinary shares of 5,183,714,855 for basic EPS and 5,195,697,858 for diluted EPS Earnings Per Share Calculation Data | Metric (RMB thousands) | 2025 | 2024 | | :--------------------- | :------- | :------- | | Profit for the period attributable to owners of the Company | 187,615 | 335,722 | Weighted Average Number of Ordinary Shares | Metric | 2025 | 2024 | | :--- | :------- | :------- | | Weighted average number of ordinary shares for the purpose of calculating basic earnings per share | 5,183,714,855 | 5,181,024,601 | | Effect of dilutive potential ordinary shares – unvested award shares | 11,983,003 | 2,662,649 | | Weighted average number of ordinary shares for the purpose of calculating diluted earnings per share | 5,195,697,858 | 5,183,687,250 | [Trade and Other Receivables and Payables](index=10&type=section&id=Trade%20and%20Other%20Receivables%20and%20Payables) As of June 30, 2025, trade and other receivables totaled RMB 918,539 thousand, while trade and other payables were RMB 684,224 thousand, with shifts in aging profiles - The Group generally grants credit periods of **30 to 60 days**[22](index=22&type=chunk) Aging Analysis of Trade and Other Receivables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :---------------------------- | :-------------------------------- | | 0 – 30 days | 899,678 | 955,328 | | 31 – 90 days | 18,646 | 18,373 | | Over 90 days | 215 | – | | **Total** | **918,539** | **973,701** | Aging Analysis of Trade and Other Payables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :---------------------------- | :-------------------------------- | | 0 – 30 days | 678,616 | 954,011 | | 31 – 90 days | – | 12,968 | | Over 90 days | 5,608 | 5,011 | | **Total** | **684,224** | **971,990** | [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=12&type=section&id=Business%20Review) Amidst a volatile consumption landscape, the Group adjusted strategies, optimized inventory, and enhanced omnichannel capabilities, achieving significant growth in private domain traffic and improving consumer experience [Business Environment](index=12&type=section&id=Business%20Environment) China's consumption environment saw normalized promotions, declining physical traffic, and intensified e-commerce, impacting the Group's profitability despite GDP and retail sales growth - China's H1 GDP grew by **5.3%** year-on-year, and total retail sales of consumer goods grew by **5.0%**, but the footwear and apparel retail sector continued to underperform[25](index=25&type=chunk) - The Group dynamically adjusted promotional strategies in response to market trends, cautiously implementing orderly discounts, but declining sales volume led to operating deleverage, and increased discount rates impacted profitability[25](index=25&type=chunk) - The Group continuously enhanced its omnichannel capabilities, with excellent performance in private domain traffic channels, and live streaming sales recorded **over 100% growth**[25](index=25&type=chunk) [Integrated Channel Management - Physical Stores](index=12&type=section&id=Integrated%20Channel%20Management%20-%20Physical%20Stores) Physical store traffic was weak, with same-store sales declining 10-20%, leading the Group to optimize its 3,408 direct stores in Greater China through refined retail strategies - Physical store traffic was weak, with same-store sales recording a **mid-teen decline of 10% to 20%**, and franchise channel performance deteriorated quarter-on-quarter[27](index=27&type=chunk) - As of June 30, 2025, the Group had **3,408 directly operated stores** in Greater China, with a net decrease of **40 stores** during the period[27](index=27&type=chunk)[28](index=28&type=chunk) - The Group continued to optimize its store portfolio and enhance digital capabilities, integrating its pan-micro-store ecosystem, membership programs, and other digital services with its physical store network to enrich consumer experience, and expanded its multi-brand outlet stores 'YYsports Warehouse'[28](index=28&type=chunk) [Integrated Channel Management - Omnichannel](index=14&type=section&id=Integrated%20Channel%20Management%20-%20Omnichannel) Omnichannel sales grew by **16%**, contributing **33%** to total sales, offsetting physical store weakness, with the Group leveraging its pan-micro-store ecosystem and Douyin live streaming for efficiency - The Group's omnichannel sales grew by approximately **16%** year-on-year, increasing its contribution to total sales to approximately **33%**, which helps efficient inventory management[30](index=30&type=chunk) - The pan-micro-store ecosystem, as an extension of the physical store network, drives conversion rates through quality, personalized services, and upgrades localized operations by integrating Douyin live streaming and nationwide inventory synchronization[30](index=30&type=chunk) [Strengthening Strategic Alliances with Business Partners](index=14&type=section&id=Strengthening%20Strategic%20Alliances%20with%20Business%20Partners) The Group enhanced digital membership via YYsports WeChat and live streaming, boosted member growth and sales through brand partner integration and Douyin authorization, and invested in joint marketing for improved logistics and inventory - The Group continued to empower its digital membership integration program through the YYsports WeChat mini-program and live streaming, supporting in-depth member management and promoting online-offline consumer experience[31](index=31&type=chunk) - By strengthening the integration with brand partner membership programs and expanding Douyin account authorizations, the Group further drove member growth and increased current season sales[31](index=31&type=chunk) - Continued investment in joint marketing platforms to enhance merchandise allocation and logistics management efficiency, and strengthen inventory integration plans with brand partners[32](index=32&type=chunk) [Digital Transformation for Operational Excellence](index=15&type=section&id=Digital%20Transformation%20for%20Operational%20Excellence) The Group advanced digital transformation by perfecting SAP system integration for business-finance optimization and upgrading business intelligence systems to enhance management decision-making and retail excellence - The Group continued to perfect the integration and upgrade of its SAP system, achieving business-finance integration and optimization, and enhancing management decision-making efficiency[33](index=33&type=chunk) - By integrating business intelligence systems and optimizing digital management tools, the Group can more efficiently oversee overall operations, improve in-store real-time efficiency, optimize resources, and digitally empower member services[33](index=33&type=chunk) [Performance Analysis](index=15&type=section&id=Performance%20Analysis) Revenue declined 8.3% and gross profit 10.1% due to a challenging retail environment, leading to a 41.6% drop in operating profit and a 44.1% decrease in profit attributable to owners [Financial Review](index=15&type=section&id=Financial%20Review) Revenue decreased 8.3% to RMB 9,159.4 million, gross profit fell 10.1% to RMB 3,069.2 million, and operating profit dropped 41.6% to RMB 281.6 million, impacting overall profitability - Revenue decreased by **8.3%** to **RMB 9,159.4 million**, primarily due to a volatile retail environment, fluctuating store traffic, and deteriorating performance of franchise channels[34](index=34&type=chunk)[35](index=35&type=chunk) - Gross profit was **RMB 3,069.2 million**, with gross profit margin decreasing by **0.7 percentage points** to **33.5%**, mainly affected by price competition in the retail industry and increased average discount rates[36](index=36&type=chunk) - Selling and distribution expenses and administrative expenses combined decreased by **5.3%** year-on-year to **RMB 2,890.3 million**, accounting for **31.6%** of total revenue[37](index=37&type=chunk) - Operating profit decreased by **41.6%** to **RMB 281.6 million**, with operating profit margin decreasing by **1.7 percentage points** year-on-year to **3.1%**[38](index=38&type=chunk) - Financial income was **RMB 21.6 million**, and finance costs decreased by **20.6%** to **RMB 28.1 million**, primarily benefiting from reduced interest expense on lease liabilities[39](index=39&type=chunk) - Profit attributable to owners of the company was **RMB 187.6 million**, with profit margin attributable to owners of **2.0%**, a year-on-year decrease of **1.4 percentage points**[40](index=40&type=chunk) [Working Capital Efficiency](index=17&type=section&id=Working%20Capital%20Efficiency) Average inventory turnover was **146 days**, with inventory value decreasing to **RMB 4,865.4 million**, while average trade receivables and payables turnover periods were **19** and **25 days**, respectively - Average inventory turnover period was **146 days** (H1 2024: 130 days), with less than **10%** of inventories over 12 months at period-end[41](index=41&type=chunk) - Inventory value decreased from **RMB 4,946.3 million** as of December 31, 2024, to **RMB 4,865.4 million** as of June 30, 2025[41](index=41&type=chunk) - Average trade receivables turnover period was **19 days** (H1 2024: 18 days), and average trade payables turnover period was **25 days** (H1 2024: 32 days)[41](index=41&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group maintained a robust financial position with **RMB 2,694.1 million** in cash, **RMB 6,416.6 million** in working capital, and a **2.2%** gearing ratio - Bank balances and cash (including bank deposits over three months and cash and cash equivalents) reached **RMB 2,694.1 million**[42](index=42&type=chunk) - Working capital (current assets less current liabilities) was **RMB 6,416.6 million**[42](index=42&type=chunk) - Total bank borrowings were **RMB 196.8 million**, with a gearing ratio of **2.2%** (December 31, 2024: 0.4%)[42](index=42&type=chunk) - Net cash generated from operating activities was **RMB 399.3 million**[43](index=43&type=chunk) [Capital Expenditure](index=17&type=section&id=Capital%20Expenditure) Capital expenditure decreased to **RMB 119.4 million**, primarily for new stores, upgrades, and digital transformation, with **RMB 23.5 million** in contracted but unprovided capital expenditure - Total capital expenditure decreased to **RMB 119.4 million** (H1 2024: RMB 190.8 million)[44](index=44&type=chunk) - Capital expenditure covered strategic new store openings, continuous upgrades of experience-oriented physical stores, and further advancement of long-term digital transformation strategies[44](index=44&type=chunk) - As of June 30, 2025, capital expenditure contracted but not provided for in the consolidated financial statements related to the acquisition of property, plant and equipment was **RMB 23.5 million**[45](index=45&type=chunk) [Foreign Currency Exchange](index=18&type=section&id=Foreign%20Currency%20Exchange) The Group primarily operates in Greater China with RMB-denominated transactions, currently without foreign exchange hedging, but may use derivatives to manage future currency risks - The Group primarily operates in Greater China, with most transactions denominated in **RMB**[46](index=46&type=chunk) - As of June 30, 2025, the Group had not used foreign exchange hedging financial instruments[46](index=46&type=chunk) - The Group may enter into forward contracts, currency swaps, or options as needed to hedge currency risks arising from foreign currency transactions[46](index=46&type=chunk) [Outlook and Future Developments](index=18&type=section&id=Outlook%20and%20Future%20Developments) [Strategic Focus and Development Directions](index=18&type=section&id=Strategic%20Focus%20and%20Development%20Directions) The Group will pursue operational excellence and digital transformation, focusing on refined retail, optimizing channels, expanding 'YYsports Warehouse', introducing new brands, and enhancing omnichannel traffic to boost competitiveness - The Group will continue to implement operational excellence and digital transformation strategies, strengthening its business model, diversifying channel mix, enhancing operational efficiency, strategically managing dynamic inventory, and efficiently managing working capital[47](index=47&type=chunk) - The Group will strengthen its own channel – multi-brand outlet store 'YYsports Warehouse' strategy, as an efficient channel for inventory clearance and new brand incubation[48](index=48&type=chunk) - The Group will expand the scale of popular Korean yoga brand XEXYMIX, open more Crocs and Pony 1972 mono-brand stores, and target the outdoor market with Dynafit[48](index=48&type=chunk) - The Group will strengthen omnichannel public and private domain traffic channels, including Douyin live streaming inventory synchronization, platform store cluster initiatives, instant retail, and Xiaohongshu seeding marketing[48](index=48&type=chunk) - The Group will continue to expand strategic cooperation with business partners, deepen inventory sharing and membership integration programs, and advance SAP system integration and optimization, leveraging upgraded business intelligence systems[49](index=49&type=chunk) [Industry Outlook](index=20&type=section&id=Industry%20Outlook) Despite challenges, the Greater China sports industry is promising, with China's sports industry value projected to reach **RMB 5 trillion** by 2025, driven by outdoor sports and major sporting events - The Greater China sports industry outlook remains promising, with China's sports industry value expected to expand to **RMB 5 trillion** by **2025**[50](index=50&type=chunk) - The outdoor sports industry is expected to exceed **RMB 3 trillion** by **2025**[50](index=50&type=chunk) - Upcoming major events such as the **2025 World Games**, **Women's Rugby World Cup**, **2026 Winter Olympics and Paralympics**, and **2026 FIFA World Cup** will drive sports goods consumption growth, especially in niche and women's sports markets[50](index=50&type=chunk) [Human Resources and Share Award Scheme](index=20&type=section&id=Human%20Resources%20and%20Share%20Award%20Scheme) [Human Resources](index=20&type=section&id=Human%20Resources) As of June 30, 2025, the Group employed approximately **19,200** staff, offering competitive remuneration, a share award scheme, and comprehensive benefits - As of June 30, 2025, the Group had approximately **19,200 employees**[51](index=51&type=chunk) - The Group provides market-competitive remuneration, share awards, and employee benefits such as social insurance, mandatory provident fund, medical benefits, and training programs[51](index=51&type=chunk) [Share Award Scheme](index=20&type=section&id=Share%20Award%20Scheme) The share award scheme uses existing shares, with total awards capped at **4%** of issued shares; **133,721,810** shares awarded to date, with **19,200,000** unvested - The share award scheme involves existing shares only and does not involve the issuance of new shares[52](index=52&type=chunk) - The total number of award shares shall not exceed **4%** (i.e., **213,047,184 shares**) of the number of issued shares on the date of grant[52](index=52&type=chunk) - As of the date of this announcement, the total number of shares awarded under the share award scheme was **133,721,810 shares**, representing approximately **2.51%** of the issued shares[52](index=52&type=chunk) - For the six months ended June 30, 2025, no award shares were granted, **2,880,000** award shares lapsed or were cancelled, and **19,200,000** award shares remained unvested[53](index=53&type=chunk) [Dividend Policy](index=21&type=section&id=Dividend%20Policy) [Interim and Special Dividends](index=21&type=section&id=Interim%20and%20Special%20Dividends) The Board declared an interim dividend of **HKD 0.0115** and a special dividend of **HKD 0.0115** per share, totaling **HKD 0.0230** per share, with a **60%** payout ratio - The Board resolved to declare an interim dividend of **HKD 0.0115** per share (H1 2024: HKD 0.02 per share)[54](index=54&type=chunk) - The Board resolved to declare a special dividend of **HKD 0.0115** per share (H1 2024: HKD 0.02 per share)[54](index=54&type=chunk) - Total dividends paid for the period were **HKD 0.0230** per share, with a payout ratio of **60%**[54](index=54&type=chunk) [Closure of Register of Members](index=21&type=section&id=Closure%20of%20Register%20of%20Members) The register of members will be closed from **September 16 to September 18, 2025**, for interim and special dividend eligibility, with transfer documents due by **September 15, 2025** - The Company will suspend the registration of members from **Tuesday, September 16, 2025, to Thursday, September 18, 2025**[55](index=55&type=chunk) - To qualify for the interim and special dividends, all transfer documents must be lodged with Computershare Hong Kong Investor Services Limited not later than **4:30 p.m. on Monday, September 15, 2025**[55](index=55&type=chunk) [Dealings in Listed Securities](index=21&type=section&id=Dealings%20in%20Listed%20Securities) [Purchase, Sale or Redemption of Listed Securities](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor held any treasury shares for the six months ended June 30, 2025 - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries had purchased, sold, or redeemed any of its listed securities[56](index=56&type=chunk) - As at June 30, 2025, the Company did not hold any treasury shares in the Central Clearing and Settlement System or otherwise[56](index=56&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) [Review of Accounts](index=22&type=section&id=Review%20of%20Accounts) The Audit Committee, management, and independent auditor Deloitte Touche Tohmatsu reviewed the Group's unaudited interim financial information for the six months ended June 30, 2025 - The Audit Committee of the Board has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, with management and the independent auditor[57](index=57&type=chunk) - Deloitte Touche Tohmatsu, the independent auditor, has reviewed the Group's unaudited condensed consolidated financial information in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[57](index=57&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) The company applied and complied with the Corporate Governance Code principles and provisions in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The Company has applied the principles set out in the Corporate Governance Code in Appendix C1 to the Listing Rules and has complied with all applicable code provisions and recommended best practices[58](index=58&type=chunk) [Standard Code for Securities Transactions by Directors](index=22&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Standard Code for Securities Transactions by Directors, and all directors confirmed compliance throughout the period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as its code of conduct regarding directors’ dealings in the Company’s securities[59](index=59&type=chunk) - Following specific enquiry by the Company, all Directors confirmed that they had complied with the required standards set out in the Standard Code throughout the six months ended June 30, 2025[59](index=59&type=chunk) [Publication of Results Announcement and Interim Report](index=22&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This announcement is published on the company and HKEX websites, with the 2025 interim report to be published and dispatched to shareholders in due course - This announcement has been published on the Company’s website (www.pousheng.com) and the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk)[60](index=60&type=chunk) - The Company’s 2025 interim report containing all applicable information required by the Listing Rules will be published on the above websites and dispatched to shareholders in due course in the manner required by the Listing Rules[60](index=60&type=chunk) [Acknowledgements and Board of Directors](index=22&type=section&id=Acknowledgements%20and%20Board%20of%20Directors) [Acknowledgements](index=22&type=section&id=Acknowledgements) Chairman Mr. George Chou expressed gratitude to customers, suppliers, shareholders, fellow directors, and all employees for their support and dedicated service - Mr. George Chou, the Chairman, sincerely thanked all customers, suppliers, and shareholders for their support, and fellow directors for their valuable contributions and all employees of the Group for their full commitment and dedicated service during the period[61](index=61&type=chunk)[62](index=62&type=chunk) [Board of Directors](index=23&type=section&id=Board%20of%20Directors) As of the announcement date, the Board comprises non-executive, executive, and independent non-executive directors, including Chairman Mr. George Chou, CEO Ms. Sharon Chang, and CFO Mr. Jason Chen - The Board of Directors includes Non-executive Directors Mr. George Chou (Chairman), Ms. Patty Tsai, and Mr. Lee Yi-Nan[64](index=64&type=chunk) - Executive Directors include Mr. Hu Chia-Ho, Ms. Sharon Chang (Chief Executive Officer), and Mr. Jason Chen (Chief Financial Officer)[64](index=64&type=chunk) - Independent Non-executive Directors include Mr. Chen Huan-Chung, Mr. Fung Raymond, and Mr. Liu Shih-Liang[64](index=64&type=chunk)

寶勝國際（ 控 股 ）有 限公司 （於百慕達註冊成立之有限公司） （股份代號：3813） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 POU SHENG INTERNATIONAL (HOLDINGS) LIMITED 香港，二零二五年八月十一日 於本公告日期，董事會成員包括： 二零二五年七月之每月收益公告 本公司為聯交所主板上市公司裕元的子公司。按照國際財務報告準則，裕元被 視為臺灣證交所上市公司寶成工業之子公司。寶成工業根據臺灣證券交易所的 規例規定刊發每月收益公告。 由於裕元於今日公佈其若干綜合財務資料，故本公司根據上市規則第13.09(2)條 及證券及期貨條例第XIVA部刊發本公告，確保及時向投資者提供最新資料。 寶勝國際（控股）有限公司（「本公司」）為香港聯合交易所有限公司（「聯交所」）主 板上市公司裕元工業（集團）有限公司（「裕元」）的子公司。按照國際財務報告準則， 裕元被視為臺灣證券交易所股份有限公司（「臺灣證交所」）上市公司寶成工 ...

Financial Performance - Revenue decreased by 8.3% YoY from RMB 9,983 million to RMB 9,159 million[12] - Gross profit decreased by 10.2% YoY from RMB 3,416 million to RMB 3,069 million, with gross profit margin decreasing by 0.7 percentage points to 33.5%[12] - Operating profit decreased significantly by 41.6% YoY from RMB 483 million to RMB 282 million, with operating profit margin decreasing by 1.7 percentage points to 3.1%[12] - Profit for the period decreased by 40.8% YoY from RMB 338 million to RMB 200 million[12] - Profit attributable to owners of Pou Sheng decreased by 44.0% YoY from RMB 336 million to RMB 188 million[12] Financial Ratios and Management - SG&A expenses decreased by 5.3% YoY from RMB 3,052 million to RMB 2,890 million[12] - The number of employees decreased by 7% YoY from 20,700 to 19,200, reflecting active management on people efficiency[22] - Total borrowings increased significantly by 431.9% YoY from RMB 37 million to RMB 196.8 million[31] - Net cash decreased by 18.7% YoY from RMB 3,071.5 million to RMB 2,497.4 million[31] - Inventory days increased from 130 days in 1H24 to 146 days in 1H25[9] Channel Performance and Strategy - Online contribution reached a historical high, accounting for 33% of total sales, a 16% YoY increase[9] - Livestreaming sales increased by over 100% YoY[9] - Same Store Sales Growth in 1H25 experienced mid-teens percentage growth YoY[8] - The number of directly operated stores decreased by 2% YoY[22]

Core Viewpoint - Traditional sports brand distributors are facing significant challenges due to the dual pressures of direct retail and e-commerce, leading to declining sales and profitability [1][2][3] Group 1: Company Performance - Baosheng International (03813.HK) reported a projected revenue of approximately RMB 91.59 billion for the six months ending June 30, 2025, a decrease of about 8.3% year-on-year, with a profit attributable to shareholders of approximately RMB 1.88 billion, down 44.1% [1] - For the fiscal year 2024, Baosheng International's revenue was approximately RMB 184.54 billion, a decline of 8% year-on-year, while profit attributable to shareholders increased by 0.2% to RMB 4.91 billion [1] - Tmall (06110.HK) announced a total revenue decline of 6.64% to RMB 270.13 billion for the fiscal year 2024/25, with net profit dropping by 41.89% to RMB 12.86 billion [2] Group 2: Market Challenges - Both Baosheng International and Tmall are experiencing store closures, attributed to their reliance on traditional distribution channels, which are becoming less viable in a rapidly changing market [2] - The shift in strategy from some international brands towards direct retail and factory outlet stores has further squeezed the margins and customer base of traditional distributors [2] Group 3: Strategic Adjustments - Baosheng International has begun to seek transformation by partnering with new brands, such as Dynafit and XEXYMIX, to diversify its offerings and enter new market segments like yoga apparel and outdoor sports [3] - Tmall is also pursuing diversification by introducing partnerships with niche brands like norda and Mitchell & Ness, as well as outdoor brands like Norrøna [3] - Despite these efforts, the new brands lack the recognition and market scale of established names like Nike and Adidas, posing a challenge for growth [3] Group 4: Market Dynamics - The commercial real estate sector is witnessing a surge in international sports brands opening new stores in China, indicating a competitive landscape where new brands are eager to establish a presence in high-end commercial projects [4]

致：香港交易及結算所有限公司 公司名稱: 寶勝國際(控股)有限公司 呈交日期: 2025年8月4日 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03813 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 30,000,000,000 | HKD | | 0.01 | HKD | | 300,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | | | 本月底結存 | | | 30,000,000,000 | HKD | | 0.01 | HKD | | 300,000,000 | 本月 ...

宝胜国际(3813.HK)现跌5.56%至0.51港元，最新市值27亿港元。宝胜国际公布，集团预期截至2025年6月30日止六个月将录得营业收入约人民币91.594亿元及 公司拥有人应占溢利约人民币1.876亿元，分别较去年同期减少约8.3%及44.1%。(格隆汇) ...

Group 1 - The core viewpoint of the article indicates that Baoshan International (03813) has issued a profit warning, leading to a decline of over 7% in its stock price, which is currently down 5.56% at HKD 0.51 with a trading volume of HKD 1.8409 million [1] - The company anticipates a revenue of approximately RMB 9.159 billion and a profit attributable to shareholders of about RMB 188 million for the six months ending June 30, 2025, representing a year-on-year decrease of approximately 8.3% and 44.1% respectively [1] - The announcement highlights that the group is facing a rapidly changing consumer landscape, with weak consumer confidence in mainland China and high inventory levels, resulting in sluggish foot traffic and intense price competition [1] Group 2 - The sales momentum of the retail network has further slowed down, leading to a same-store sales decline of 10% to 20% [1] - Lower-tier cities are also experiencing weak foot traffic, significantly impacting the performance of the group's franchise channels [1] - Despite stringent cost control measures, the decline in sales scale has resulted in operational leverage, compounded by increased discounting in a promotional environment, which has adversely affected the company's profitability [1]

Core Viewpoint - Baoshan International (03813) issued a profit warning, leading to a decline of over 7% in its stock price, which is currently down 5.56% at HKD 0.51, with a trading volume of HKD 1.8409 million [1] Financial Performance - The company expects to achieve a revenue of approximately RMB 9.159 billion and a profit attributable to shareholders of about RMB 188 million for the six months ending June 30, 2025, representing a year-on-year decrease of approximately 8.3% and 44.1% respectively [1] Market Conditions - The group is facing a rapidly changing consumer landscape, with weak consumer confidence in mainland China and high inventory levels, resulting in sluggish foot traffic and intense price competition [1] - The sales momentum of the retail network has further slowed, leading to a same-store sales decline of 10% to 20% [1] - Lower-tier cities are also experiencing weak foot traffic, significantly impacting the performance of the group's franchise channels [1] Operational Challenges - Despite ongoing stringent cost control measures, the decline in sales scale has resulted in operational leverage issues, compounded by increased discounting in a promotional environment, which has adversely affected the company's profitability [1]

Core Viewpoint - Baoshan International (03813) issued a profit warning, leading to a decline of over 7% in its stock price, currently trading at HKD 0.51 with a trading volume of HKD 1.8409 million [1] Financial Performance - The company expects to achieve a revenue of approximately RMB 9.159 billion and a net profit attributable to shareholders of about RMB 188 million for the six months ending June 30, 2025, representing a decrease of approximately 8.3% and 44.1% compared to the same period last year [1] Market Conditions - The group is facing a rapidly changing consumer landscape, with weak consumer confidence in mainland China and high inventory levels, resulting in sluggish foot traffic and intense price competition [1] - The sales momentum of the retail network has further slowed, leading to a same-store sales decline of 10% to 20% [1] - Lower-tier cities are also experiencing weak foot traffic, significantly impacting the performance of the group's franchise channels [1] Operational Challenges - Despite stringent cost control measures, the decline in sales scale has resulted in operational leverage, compounded by increased discounting in a promotional environment, which has adversely affected the company's profitability [1]

Core Viewpoint - Baoshan International (3813.HK) expects a mid-term profit attributable to shareholders of approximately 188 million yuan for the period ending June, representing a year-on-year decline of 44.1% [1] Financial Performance - The company anticipates a mid-term profit of 336 million yuan for the fiscal year 2024, with earnings per share of 6.48 cents [1] - Same-store sales are projected to decline between 10% to 20% due to various adverse factors [1] Market Conditions - Consumer confidence in mainland China remains low, leading to high inventory levels and weak customer traffic [1] - Intense price competition has further exacerbated the sales momentum of the retail network [1] Operational Challenges - The performance of the franchise channels has been significantly impacted by weak customer traffic in lower-tier cities [1] - Despite stringent cost control measures, the decline in sales scale has resulted in operational leverage issues, alongside increased discounting in a promotional environment, affecting the company's profitability [1]