2025 Annual Results Presentation •This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company specifically disclaims all responsibilities in respect of any use of or reliance on any information, whether financial or otherwise, contained in this presentation. •The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Company in any jurisdictio ...

Group 1: Market Overview - The Hong Kong stock market showed strong performance with all three major indices rising, including the Hang Seng Index up by 1.78%, the Hang Seng Tech Index up by 4.22%, and the Hang Seng China Enterprises Index up by 2.24%, all reaching new highs [2] - The total market turnover increased to HKD 360.3 billion, with the short-selling amount on the main board at HKD 40.3 billion, representing a decrease in the short-selling ratio to 12.54% [2] - Southbound capital flow reversed from a previous net outflow to a net inflow of HKD 9.44 billion, with Alibaba, Tencent, and Changfei Optical Fiber being the most actively traded stocks [2] Group 2: Sector Performance - Technology stocks led the market rally, with Baidu surging over 15% and other major players like Alibaba, JD.com, and Meituan also showing significant gains [3] - The semiconductor sector experienced a strong rise, with global semiconductor equipment shipments reaching USD 33.07 billion in Q2 2025, a 24% year-on-year increase, boosting stocks like SMIC and Hua Hong Semiconductor [3] - The automotive sector saw substantial gains, driven by a new government plan targeting a 20% annual growth in new energy vehicle sales, positively impacting companies like NIO, Li Auto, and BYD [3] Group 3: Company Analysis - Youzan - Youzan, established in 2012, provides SaaS and PaaS services to help merchants establish e-commerce channels across various platforms, with a focus on small and medium enterprises [9] - In H1 2025, Youzan's GMV reached approximately RMB 49.8 billion, a 31.6% year-on-year increase, while the average sales per merchant rose by about 11% [10] - The company is shifting its strategy from increasing customer numbers to enhancing customer quality and value, with a decline in total merchants but an increase in ARPU by 15% [10] Group 4: Revenue Breakdown - Youzan's subscription solutions generated approximately RMB 374 million in H1 2025, a slight decline of 1.0%, while merchant solutions saw a 10.3% increase in revenue to about RMB 338 million [11] - The growth in merchant solutions is primarily driven by logistics solutions, which have expanded rapidly [11] Group 5: AI Empowerment and Future Plans - Youzan has integrated AI technology into its operations since 2023, enhancing customer acquisition and operational efficiency through various AI-driven solutions [12] - The company announced plans to explore the possibility of transferring its listing from the GEM to the main board, which could improve its valuation if successful [12]