12 Nov 2025 Pou Sheng International 2025 9M Results Disclaimer Yue Yuen and Pou Sheng have taken every reasonable care in preparing this presentation. However, please be reminded that the information, materials, opinions and statements contained or referred to in this presentation are all provided on an "as is" basis. None of the aforesaid information, materials, opinions and statements constitutes or will be viewed as investment advice or an offer, or a solicitation, recommendation or suggestion by Yue Yue ...

Investment Rating - The investment rating for the company has been downgraded from "Buy" to "Outperform" [3][7]. Core Insights - The company reported a profit turnaround in Q3 2025, with a single-quarter revenue of 1.092 billion yuan, a year-on-year decline of 10%, and a net profit of 25 million yuan, indicating a successful shift from loss to profit [7]. - Revenue for the first three quarters of 2025 was 3.464 billion yuan, down 13.8% year-on-year, with a net profit of 272 million yuan, down 34.5% year-on-year [7]. - The company has streamlined its product line, which has led to revenue pressure but improved profitability through reduced promotional expenses [7]. - The Q4 outlook is optimistic due to strong sales during the Double 11 shopping festival, with the main brand ranking 8th in beauty sales on Tmall [7]. - The company is focusing on brand building and member operations, with a strategy to reduce promotional rights and streamline product offerings [7]. Financial Summary - Total revenue for 2025 is projected at 5.354 billion yuan, with a year-on-year decline of 6.7% [2]. - The net profit forecast for 2025 is 402 million yuan, a decrease of 20.2% year-on-year [2]. - The gross profit margin is expected to be 74.9% in 2025, with a return on equity (ROE) of 6.5% [2]. - The company has adjusted its revenue forecasts for 2025-2027, now expecting 5.354 billion yuan, 5.804 billion yuan, and 6.467 billion yuan respectively [7].

Core Viewpoint - The report from Guosen Securities expresses optimism about the operational resilience and long-term cash returns of Tabo (06110), highlighting a narrowing decline in retail sales and stable gross margins despite a challenging retail environment [1] Group 1: Financial Performance - In the first half of the 2026 fiscal year, Tabo's revenue decreased by 5.8% year-on-year to 12.3 billion, with retail channel revenue at 10.6 billion (down 3.0%) and wholesale channel revenue at 1.62 billion (down 20.3%) [1] - The main brands, Nike and Adidas, generated 10.81 billion in revenue, down 4.8%, while other brands saw a 12.2% decline to 1.41 billion [1] - Net profit attributable to shareholders fell by 9.8% to 790 million, with a slight decrease in gross margin to 41.0% and a net profit margin of 6.4% [1] Group 2: Cash Flow and Dividends - Operating cash flow decreased by 48.2% year-on-year to 1.35 billion, with a net cash ratio of 1.7 [1] - The interim dividend payout ratio was 102.2%, with a dividend of 0.13 per share [1] Group 3: Store and Membership Strategy - As of August 2025, the number of direct-operated stores decreased by 1,125 to 4,688 (down 19.4%), while total sales area declined by 14.1% [2] - The cumulative user base reached 89.1 million, with membership contributing 92.9% of sales, and high-value members accounting for nearly 35% of sales [2] Group 4: Market Position and Growth Strategy - The company is strategically enhancing its presence in the running and outdoor segments, partnering with high-end brands and opening specialized stores [2] - Online retail business experienced double-digit growth, with significant contributions from content e-commerce and private domain operations [2]

Core Insights - The current consumer market values experiences over material goods, with consumers willing to pay for emotional resonance and unique memories [1] - The fifth "Super V Fun Season" by Huqiang captures this trend by integrating national IPs, city premieres, cultural circles, and anniversaries to create a multi-touchpoint emotional supply space [1][3] Group 1: Experience Economy - The experience economy is driving consumers to seek emotional connections and memorable moments, transforming commercial activities into deep dialogues with consumers [3][4] - Huqiang Commercial leverages city-level IP premieres and exclusive performances to reshape commercial spaces into social hotspots, effectively driving foot traffic and online engagement [3][4] Group 2: Cultural Integration - The integration of local culture and consumer interests is key, with events like the "Boonie Bears" zodiac exhibition and traditional performances enhancing the emotional connection with consumers [4][5] - The use of traditional art forms during celebrations creates a unique immersive experience, blending modern and traditional elements [4][5] Group 3: Emotional Engagement - Anniversary celebrations feature giant cakes shared with consumers, enhancing the sense of belonging and participation through ritualistic experiences [6][7] - The "balloon rain" event at shopping centers surprises consumers with gifts, fostering emotional interactions and closer connections [7] Group 4: Fan Economy - The rise of fan economy and social circles is evident, with events like fan support gatherings and themed activities attracting large crowds and driving significant traffic [8][10] - Innovative events that combine gaming and cultural elements, such as the "King of Glory" city competition, create new consumption scenarios by engaging diverse consumer groups [8][10] Group 5: Family and Youth Engagement - Family-oriented activities, such as youth sports events and hands-on cultural experiences, cater to the growing demand for quality family time and educational engagement [10][12] - Events designed for children not only enhance their experiences but also strengthen family bonds through shared activities [12] Group 6: Membership and Loyalty - Huqiang Commercial emphasizes the importance of membership systems for long-term consumer engagement, offering various benefits to enhance loyalty and belonging [13][14] - Regular consumer research and exclusive member events foster deeper emotional connections between consumers and the brand [14] Group 7: Future Strategies - The company plans to introduce more cross-industry collaborations and innovative experiences, continuously reshaping the social attributes and experiential value of commercial spaces [14]

Core Viewpoint - The company reported strong mid-year performance for 2025, with significant increases in revenue and net profit, driven by improved store operations and robust sales to enterprise clients [1][2]. Group 1: Financial Performance - Revenue for the first half of 2025 reached 3.24 billion RMB, a year-on-year increase of 21.6% [1] - Net profit was 190 million RMB, up 122.5% year-on-year [1] - Core operating profit also stood at 190 million RMB, reflecting a 52.3% increase [1] - The net profit attributable to shareholders was 183 million RMB, marking a 113.2% rise [1] Group 2: Operational Improvements - The company added 250 new stores in the first half of 2025, including 270 new stores in rural areas [1] - Franchise store revenue per store increased by 7.9% year-on-year, supported by the launch of 175 new hot pot and barbecue product SKUs [1] - Over 2,000 community stores underwent 24-hour unmanned retail transformations, enhancing store efficiency [1] Group 3: Membership and Supply Chain - The number of registered members exceeded 50 million, a 62.8% increase year-on-year, with prepaid card amounts reaching approximately 590 million RMB, up 37.2% [2] - The company achieved 3.2 billion platform exposures through a multi-tiered Douyin account matrix [2] - New production facilities and a digital central warehouse were established, with plans for further investment in Hainan and overseas markets [2] Group 4: Profitability and Future Outlook - The gross profit margin for the first half of 2025 was 22.1%, a decrease of 0.7 percentage points, attributed to the higher sales proportion of cost-effective package products [2] - The net profit margin and core operating profit margin were 5.9%, with the core operating profit margin increasing by 1.2 percentage points year-on-year [2] - The company plans to distribute an interim dividend of 0.0716 RMB per share, totaling approximately 190 million RMB, with a payout ratio close to 100% [2] Group 5: Earnings Forecast - The company is expected to accelerate store openings in the second half of the year, with same-store sales projected to achieve low single-digit growth [3] - Forecasted net profits attributable to shareholders for 2025-2027 are 450 million, 561 million, and 680 million RMB, corresponding to current price-to-earnings ratios of 20, 16, and 13 times, respectively [3]

正值盒马十周年和88VIP周年庆，相关的市场活动却让盒马付费会员陷入了混乱之中。 盒马X会员店的关闭背后，网经社电子商务研究中心特约研究员、新质生产力产业联盟秘书长段积超分析，盒马在会员店轻奢属性和生鲜基 因之间的定位撕裂，供应链采购端较山姆等存在的规模劣势以及过往会员权益专属价值和信任感严重透支，是盒马的问题所在。 这让部分此前购买了盒马会员的用户感到不满，许多付费用户涌入盒马客服要求退款。盒马目前向部分会员提供了剩余权益退费服务，8月5 日下午，一位准备联系盒马咨询退费问题的会员告诉记者，客服实时排队人数达到202位，排队时间远超平时。 盒马正在推出相应措施挽回付费会员。对于想要退费的会员，客服回应称，盒马黄金会员将于25年8月8日上线家庭卡权益，用户将获得一张 同效期副卡，并主动提出可为愿意保留会籍的会员申请30元无门槛红包，请消费者"再用用看"。但88VIP带来的会员价格差之下，许多用户 仍选择退费。 付费会员曾是盒马的重要收入来源之一，盒马曾披露，2022年末，付费会员规模接近300万名，每年仅会员费就可为盒马贡献营收达5.88 亿元。然而，近年来，盒马在付费会员战略上摇摆不断。2023年12月，盒 ...

Core Insights - The recent promotional activities for the 88VIP anniversary have caused confusion among Hema's paid members, leading to a surge in refund requests [1][3] - Hema's membership pricing strategy has been disrupted, as the 88VIP membership offers significant savings compared to Hema's traditional membership fees [1][3] - The closure of Hema X membership stores has further diminished the value of existing memberships, prompting dissatisfaction among users [1][3] Membership Pricing and Strategy - Hema's paid membership was a significant revenue source, contributing approximately 588 million yuan annually with nearly 3 million members by the end of 2022 [3] - The company has experienced strategic shifts regarding its membership offerings, including a halt on new memberships in December 2023, followed by a reevaluation and resumption of membership renewals [3][4] - The introduction of the 88VIP membership has created a competitive pricing environment, potentially increasing user engagement and membership scale for Hema [4][5] Operational Challenges - The closure of Hema X membership stores highlights issues in Hema's positioning between premium offerings and its fresh produce roots, as well as supply chain disadvantages compared to competitors like Sam's Club [4] - Hema faces the challenge of maintaining member loyalty and protecting existing member benefits while aligning with Alibaba's broader strategy to integrate various platforms [4][5] - The company must address the confusion in its pricing strategy and ensure that existing members receive adequate compensation or upgraded services to maintain brand integrity [5]

Summary of Conference Call Records Industry Overview - The conference call discusses the intense competition in the instant retail sector, particularly among Alibaba, Meituan, and JD.com, indicating that the competition has entered a critical second phase with significant impacts on stock prices and market sentiment [2][4]. Key Points on Companies Alibaba - Alibaba has launched a 50 billion RMB subsidy plan aimed at enhancing e-commerce traffic and winning the instant retail market, focusing on increasing order volume and optimizing user experience [1][2]. - The company is integrating various departments, including Ele.me and Fliggy, to create a comprehensive consumption entry point, enhancing platform activity through AI assistance and resource sharing [3][17]. - The strategy emphasizes both short-term order volume increases and long-term service quality improvements, which are crucial for maintaining market position and user engagement [5][6]. - The 500 billion RMB subsidy for Taobao Flash Sale is expected to include budget reallocations from the e-commerce division, with an estimated new investment of 20-25 billion RMB for customer discounts [12][13]. - Recent performance metrics indicate that Taobao Flash Sale has increased the activity of the Taotian e-commerce platform by approximately 15-20%, with a user retention rate of 25-30% for new users [19][26]. Meituan - Meituan is adopting a defensive strategy, focusing on maintaining its market share in the food delivery sector through initiatives like 0 Yuan purchase promotions, although it faces long-term challenges [1][2][14]. - The company has increased its subsidy efforts in response to Ele.me's rapid order growth, indicating a strong execution capability [8][14]. - Meituan's delivery rider compensation has fluctuated, reflecting competitive pressures from Ele.me [8]. Tencent - Tencent has shown confidence in future growth through multiple stock buybacks and a robust performance in its advertising business, particularly in e-commerce and short video sectors [4][6]. - The company is diversifying its revenue sources by increasing investments in high-potential segments like Xiaohongshu and video accounts, leveraging AI technology to enhance advertising effectiveness [6][7]. JD.com - JD.com has faced challenges since initiating a retail war in February 2024, with a notable reduction in subsidy efforts by June 2024, raising concerns about its long-term sustainability [15][24]. - The company has seen a decline in order volume from a peak of approximately 25 million to around 10-15 million recently, indicating potential issues in maintaining market share [24]. Market Dynamics - The instant retail market is experiencing significant growth, particularly driven by Meituan, with order volumes increasing by 20-25% in 2023 [25]. - The market is characterized by a strong presence in first and second-tier cities, which account for 70% of GMV, while lower-tier cities are showing rapid growth [25]. - The competition is expected to continue, with companies needing to adapt their strategies to maintain market share and improve operational efficiencies [4][25]. Additional Insights - The integration of Ele.me into Taobao Flash Sale aims to enhance brand recognition and user engagement, shifting focus from mere order volume to user behavior metrics like retention and repurchase rates [9][10]. - The recent anti-monopoly discussions have led to operational changes that benefit Ele.me, allowing it to expand its lightning warehouse setup and improve service delivery [16]. - The collaboration between Taobao and B-end brand partners is enhancing supply chain efficiency, with initiatives to build regional warehouses and optimize inventory management [30][31]. This summary encapsulates the competitive landscape and strategic maneuvers of key players in the instant retail market, highlighting the ongoing adjustments and future directions of these companies.

Core Insights - The competition in instant retail is intensifying among Alibaba, JD.com, and Meituan, with a shift towards a unified consumer entry point and membership system to enhance AI integration [1][5] - Membership operations are becoming a core competitive advantage, with a focus on long-term user lifecycle maintenance rather than short-term marketing tactics [3][5] Group 1: Membership Strategies - Alibaba's 88VIP is normalizing large coupons and introducing dynamic subsidies, aiming to integrate more core resources and expand its membership benefits [6][12] - JD.com's PLUS membership emphasizes high-quality products and essential service benefits, enhancing user engagement through a broader range of lifestyle services [18][22] - Meituan's membership focuses on flexible local dynamic subsidies, offering a variety of small-scale discounts to cater to high-frequency local consumption [24][25] Group 2: Competitive Dynamics - All three companies are increasingly utilizing large promotional coupons and targeted subsidies to attract consumers, moving away from traditional marketing methods [2][5] - The shift towards personalized and dynamic subsidies is evident, with Meituan leveraging personalized discounts to retain users amidst competition from JD.com and Alibaba [26][29] - The integration of various services and benefits into membership programs is crucial for enhancing customer loyalty and driving consumption across different categories [18][24] Group 3: Market Trends - The trend of normalizing large discounts and dynamic subsidies is reshaping consumer engagement strategies, with companies adapting to consumer needs through targeted offers [8][12] - The competitive landscape is evolving, with companies needing to balance between expanding membership benefits and maintaining the perceived value of those memberships [14][16] - The focus on enhancing user experience through tailored services and benefits is becoming increasingly important in retaining and attracting consumers [22][31]

Core Viewpoint - The company reported a 5% year-on-year increase in revenue for FY25 H1, driven by online sales growth and an increase in offline stores [1][2]. Financial Performance - FY25 H1 revenue reached 3.16 billion RMB, with mature brands contributing 1.76 billion RMB (+4% YoY), growth brands at 1.2 billion RMB (-2% YoY), and emerging brands at 200 million RMB (+149% YoY) [1]. - Net profit for FY25 H1 was 600 million RMB, reflecting a 5.5% increase YoY [1]. - Gross margin stood at 65.1%, a slight decrease of 0.1 percentage points, while net margin was 19.1%, also down by 0.1 percentage points [1]. Dividend Announcement - The company declared an interim dividend of 0.45 HKD per share (approximately 0.43 RMB per share) [1]. Membership Insights - In 2024, over 80% of retail revenue was contributed by members, with active member accounts totaling 540,000, a slight decrease from 2023 [1][2]. - Membership accounts with total purchases exceeding 5,000 RMB numbered over 330,000, generating retail revenue of 4.68 billion RMB, contributing over 60% of offline retail revenue [1]. Strategic Initiatives - The company aims to strengthen its position as a leading designer brand group in China through various strategies, including optimizing brand and product mix via self-incubation or acquisitions, enhancing retail networks, and leveraging data-driven operations [2]. - The focus will be on creating value-added services for fans and improving the overall retail experience [2]. Earnings Forecast - The company maintains its earnings forecast, projecting revenues of 5.5 billion RMB, 6 billion RMB, and 6.6 billion RMB for FY25-27, with net profits of 880 million RMB, 900 million RMB, and 990 million RMB respectively [2]. - Expected EPS for FY25-27 is 1.69, 1.74, and 1.91 RMB per share, corresponding to PE ratios of 8, 8, and 7 times [2].