Core Viewpoint - Gao Xin Retail announced a leadership change with Li Weiping appointed as the new Executive Director and CEO, effective December 1, 2025, following Shen Hui's resignation due to family reasons [1] Group 1: Leadership Change - Li Weiping has 26 years of experience in the retail industry and joined Hema in 2018, where she held significant positions including General Manager of North China and CEO of Hema Fresh [1] - The board anticipates that Li Weiping's innovative management style will align with Gao Xin Retail's strategic planning and inject new growth momentum into the company [1] Group 2: Background of New CEO - Li Weiping successfully led the Hema team from regional losses to national operations, showcasing her capability in driving profitability and growth [1]

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份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 SUN ART RETAIL GROUP LIMITED （於香港註冊成立之有限公司） （股份代號：06808） 董事名單與其角色和職能 自二零二五年十二月一日起生效，高鑫零售有限公司的董事會（「董事會」）成員載 列如下： 執行董事 李衛平 （首席執行官） 非執行董事 華裕能 （主席） 王冠男 梅夢雪 獨立非執行董事 張挹芬 陳尚偉 葉禮德 高鑫零售有限公司 董事會設立了3個委員會，分別為審核委員會、提名委員會、薪酬委員會。下表 提供各董事會成員在這些委員會中所擔任的職位。 1 | | 委員會 | 審核委員會 | 提名委員會 | 薪酬委員會 | | --- | --- | --- | --- | --- | | 董事 | | | | | | 華裕能 | | – | – | M | | 李衛平 | | – | – | – | | 王冠男 | | – | M | – | | 梅夢雪 | | M | – | ...

Core Points - Gao Xin Retail (06808) announced that Mr. Shen Hui will resign as Executive Director, CEO, and Authorized Representative effective December 1, 2025 [1] - Ms. Li Weiping has been appointed as Executive Director, CEO, and Authorized Representative of the company [1] Company Changes - Mr. Shen Hui's resignation marks a significant leadership change within Gao Xin Retail [1] - The appointment of Ms. Li Weiping indicates a transition in the company's executive management [1]

Core Viewpoint - Gao Xin Retail Co., Ltd. announced the appointment of Li Weiping as the new Executive Director and CEO, effective December 1, 2025, following the resignation of Shen Hui due to family reasons [1] Group 1: Management Changes - Li Weiping has 26 years of experience in the retail industry and joined Hema in 2018, where she held several key positions including General Manager of North China and CEO of Hema Fresh [1] - Shen Hui will resign from his roles as Executive Director and CEO of Gao Xin Retail due to personal family matters, with the changes taking effect on December 1, 2025 [1] Group 2: Leadership Background - Li Weiping successfully led the Hema team from regional profitability to overseeing national operations, demonstrating her agile and innovative management skills [1] - The board of directors expects Li Weiping to inject new development momentum into Gao Xin Retail, aligning with the company's strategic planning needs [1]

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。 高鑫零售有限公司（「本公司」，連同其附屬公司統稱為「本集團」）董事（「董事」） 會（「董事會」）宣佈： SUN ART RETAIL GROUP LIMITED 高鑫零售有限公司 （於香港註冊成立之有限公司） （股份代號：06808） 有關 (1) 執行董事變更； (2) 首席執行官變更；及 (3) 授權代表變更的公告 本公告乃根據香港聯合交易所有限公司（「聯交所」）《證券上市規則》（「《上市規 則》」）第13.51(2)條作出。 (1) 沈輝先生辭任本公司執行董事兼首席執行官 董事會謹此宣佈，沈輝先生（「沈先生」）因需要投入更多時間於其家庭事務， 辭任本公司執行董事兼首席執行官，由二零二五年十二月一日起生效。沈先 生已確認，彼與董事會並無任何意見分歧，且概無有關其辭任執行董事兼首 席執行官之其他事宜須提請本公司股東（「股東」）或聯交所垂注。 1 (1) 由二零二五年十二月一日起，沈輝先生辭任本公司執行 ...

Core Insights - The case of the former head of the East China Operations of RT-Mart, Guan, highlights systemic corruption within the retail supply chain, revealing a three-year power-money transaction chain involving over 7 million yuan [1][2][3] Group 1: Corruption Case Details - The investigation into Guan's case began with anonymous reports of his interference in bidding processes and asset misappropriation, leading to a two-month police investigation that uncovered a clear trajectory of gradual corruption [2] - Guan established a relationship with a logistics supplier, Xiao, during his tenure in Anhui, receiving gifts to facilitate future corrupt transactions, culminating in a "loan" of over 300,000 yuan without formal agreements [2][3] - Guan's corrupt activities became normalized, with him receiving over 7 million yuan in total, using a complete chain of "bribery-transfer-concealment" to hide his illegal gains [3] Group 2: Corporate Governance and Anti-Corruption Efforts - The timing of Guan's case coincides with a critical period for Gao Xin Retail, the parent company of RT-Mart, as it undergoes a shift in ownership and governance, reflecting varying attitudes towards corporate integrity among different capital stakeholders [4] - Following the acquisition by Dehong Capital, Gao Xin Retail has implemented a multi-level supervision system to investigate corruption cases, requiring suppliers to sign integrity commitments and establishing a public reporting channel for violations [6] - The company has emphasized that individual misconduct does not reflect its overall values, committing to compliance and integrity as core principles, and has initiated personnel adjustments to ensure stable business operations [5][8] Group 3: Financial Performance and Long-term Implications - Gao Xin Retail reported a revenue of 30.502 billion yuan for the six months ending September 30, 2025, with a gross margin of 25.3%, indicating a slight year-on-year improvement [7] - The anti-corruption measures have caused short-term disruptions, including increased logistics costs and operational fluctuations, but are expected to enhance supply chain efficiency and cost control in the long run [7][8] - The retail industry generally faces low profit margins, and reducing hidden costs through anti-corruption efforts is seen as a crucial strategy for improving net profit levels [8] Group 4: Industry-Wide Implications - Guan's case serves as a warning for the entire retail sector, highlighting the significant potential for power rent-seeking in operations, procurement, and logistics, necessitating effective supervision mechanisms [9] - The governance practices of Gao Xin Retail illustrate that ownership changes can drive governance reforms, which must be institutionalized to achieve lasting effects [9] - Companies are encouraged to build transparent supply chains, enhance reporting and accountability mechanisms, and link integrity initiatives to performance assessments to foster a culture of compliance and integrity [9]

Core Insights - The company's FY26 interim performance is below expectations, with a revenue of 30.5 billion yuan, a year-on-year decline of 12.1%, and a net loss attributable to shareholders of 120 million yuan, compared to a net profit of 210 million yuan in the same period last year [1][2] Revenue and Performance - Revenue from merchandise retail is 29.08 billion yuan, down 12.4% year-on-year, primarily due to intensified market competition leading to a decrease in average transaction value; same-store sales fell by 11.7% [1] - Online B2C business remains resilient, with order volume increasing by 7.4%, contributing to a 2.1% increase in online same-store sales [1] - Rental income is 1.4 billion yuan, a year-on-year decrease of 7.0%, attributed to rental reductions, tenant structure optimization, and shopping street adjustments [1] - Membership fees generated 18 million yuan, an increase of 28.6% [1] Profitability and Cost Structure - Gross margin increased by 0.7 percentage points to 25.3%, driven by the elimination of low-performing products and improved private label penetration [2] - Sales expense ratio increased by 1.8 percentage points to 23.9% due to rigid costs such as rent; administrative expense ratio decreased by 0.2 percentage points to 2.5% due to organizational optimization [2] - Net profit margin decreased by 0.9 percentage points to -0.4% [2] Strategic Developments - The company announced a three-year strategy to accelerate channel restructuring and product enhancement, aiming to complete over 200 store adjustments by the end of FY27, reducing the number of stores to approximately 6,000 and simplifying SKUs to 15,000 [2] - The company plans to increase the share of private label revenue to 10% by FY28, focusing on health trends and cost-effectiveness [2] - The goal is to expand online sales to account for 40-50% of total sales [2] Earnings Forecast and Valuation - Due to pressure on same-store sales and adjustment costs, FY26/FY27 earnings forecasts have been revised down by 86% and 28% to 100 million yuan and 680 million yuan, respectively [2] - The current stock price corresponds to a FY27 price-to-earnings ratio of 22.8 times; the target price has been adjusted down by 21% to 2.2 HKD, reflecting a 20% upside potential [2]

Core Viewpoint - High Xin Retail reported a revenue of 30.5 billion yuan for 1HFY26, a year-on-year decrease of 12.1%, and a net loss of 120 million yuan, aligning with profit warning expectations. The performance was pressured by intensified market competition and a weak overall consumption environment. The new management outlined a three-year reform plan focusing on supply chain, store, and organizational changes, with a commitment from major shareholder Dehong Capital regarding cash flow and shareholder returns. The company declared an interim dividend of 0.085 HKD per share, with an expected annual dividend yield of approximately 9%, highlighting its defensive positioning in the consumer sector while awaiting the impact of reform measures on profitability [1][2][3]. Revenue and Sales Performance - The merchandise sales revenue was 29.08 billion yuan, down 12.4% year-on-year, primarily due to increased market competition and weak consumer spending leading to lower average transaction values. Same-store sales declined by 11.7%. Online channels showed resilience, with online order volume increasing by 7.4%, contributing to a 2.1% rise in online same-store sales. Rental income was 1.4 billion yuan, down 7.0% year-on-year, affected by rent reductions and ongoing tenant structure optimization. Membership fees generated 20 million yuan in revenue, up 28.6% year-on-year. The total number of hypermarket stores decreased by 3 to 462, while medium-sized supermarkets decreased by 1 to 32, with M membership stores remaining at 7. The company plans to actively seek new store openings while maintaining a stable total store count [1][2]. Profitability and Cost Management - The gross margin for 1HFY26 increased by 0.7 percentage points to 25.3%, attributed to the gradual elimination of long-tail SKUs, product mix optimization, and enhanced private label penetration. The sales expense ratio rose by 1.9 percentage points to 23.9%, while the management expense ratio decreased by 0.1 percentage points to 2.3%. The increase in sales expense ratio was due to operational leverage from declining revenue, while management expenses remained stable due to regional structure optimization and strict personnel cost control. Adjusted EBITDA margin decreased by 0.4 percentage points to 5.2%, and net profit margin decreased by 1.0 percentage points to -1.0% [2]. Strategic Initiatives - The company announced a three-year strategic plan aimed at driving transformation. Key initiatives include: 1. Product optimization through national procurement to reduce costs, with a focus on private labels that have seen over 50% sales growth in more than 50 categories. The goal is for private label contributions to reach 10% in three years. 2. Store transformation towards community life centers, with plans to complete over 30 store renovations in FY26 and over 200 by the end of the next fiscal year. 3. Enhancing online and offline synergy through the establishment of front warehouses, with plans to increase online sales contribution to 40-50% over the next three years [2]. Profit Forecast and Valuation - Given the ongoing intense market competition and the transitional phase involving short-term investments, the recovery of profitability may be delayed. The projected net profit for FY26-28 is 40 million, 440 million, and 710 million yuan, respectively. The target price is set at 2.18 HKD, based on a 45x PE for FY27E, reflecting a premium for the company's high dividend yield [3].

SUN ART RETAIL GROUP LIMITED 高鑫零售有限公司 (Incorporated in Hong Kong with limited liability) （於香港註冊成立之有限公司） (Stock Code 股份代號：6808) Dear non-registered shareholder(s), Sun Art Retail Group Limited (the "Company") - Notice of Publication of Circular together with Notice of Extraordinary General Meeting (collectively "Current Corporate Communications") The Company's Extraordinary General Meeting will be held at 24/F., Admiralty Centre 1, 18 Harcourt Road, Admiralty, Hong Kong on Thursday, 4 December 2025 at 5:00 p ...

SUN ART RETAIL GROUP LIMITED 高鑫零售有限公司 (Incorporated in Hong Kong with limited liability) （於香港註冊成立之有限公司） (Stock Code 股份代號：6808) 14 November 2025 Dear registered shareholder(s), Sun Art Retail Group Limited (the "Company") - Notice of publication of Circular together with Notice and Form of Proxy of Extraordinary General Meeting (collectively "Current Corporate Communications") The Company's Extraordinary General Meeting will be held at 24/F., Admiralty Centre 1, 18 Harcourt Road, Admiralty, Hong Kong on Thur ...