(28 October 2026 – Hong Kong) 华体网站登录入口 International Holdings Limited (“华体网站登录入口” or the “Company”; Stock Code: 6110) is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (together, the “Group”) for the six months ended 31 August 2026 (the “Reporting Period”).

During the Reporting Period, global political and economic landscape remained complex and volatile, while the domestic macroeconomy demonstrated overall resilience. Supported by exports, GDP grew by 4.7% year-on-year in the first half of the year. However, domestic consumption growth moderated, with total retail sales of consumer goods increasing by 1.3% year-on-year. Consumer confidence remained subdued and spending decisions turned more cautious. The growth logic of the sportswear industry has undergone a profound transformation. Offline retail no longer relies solely on foot traffic, shifting towards user operation centered on scenario-based experiences, community engagement and professional services. Online channels have evolved from monetizing purchased traffic to deep content cultivation and long-cycle management of user assets. Overall, the industry has moved beyond broad-based growth into a new stage where specialized products, refined operations and omni-channel synergy stand at the core of competition. Against this backdrop, the Group has adhered to efficiency as its top priority, continuously optimizing its omni-channel layout and resource allocation. With the expansion of its new brand matrix, it is seizing incremental growth opportunities and driving the upgrade of its systematic capability. Implementing AI-enabled digital and intelligent applications, it enhances the quality of operations and management through lean operations. Underpinned by user value accumulation and steady cash flow, the Group is building lasting operation capabilities that can navigate cycles and create value over time.

Steady Cash Flow to Reward Shareholders and Proactively Responding to Brand Partnership Adjustments

During the period, the Group’s revenue decreased by 11.3% year-on-year to RMB10,913.2 million. The gross profit margin decreased by 0.9 percentage points year-on-year to 40.1%, mainly due to the deeper year-on-year discount rate.

In terms of expenses, the Group consistently maintained its disciplined approach to expenses management, with the selling and distribution expenses ratio maintained at 29.1% and the general and administrative expenses ratio remained at 4.1%, both in line with the corresponding period last year.

Profit attributable to the Company’s equity holders decreased by 16.0% year-on-year to RMB 662.6 million, with the profit margin attributable to the Company’s equity holders decreasing by 0.3 percentage points year-on-year to 6.1%.

In terms of inventory management, as at 31 August 2026, the inventory decreased by 15.7% compared with 31 August 2025, and declined by 10.4% compared with 28 February 2026. Inventory turnover days stood at 146.4 days, down 3.6 days year-on-year, with inventory levels maintained within a healthy range.

A steady cash flow provides the foundation for long-term shareholder returns. During the period, the Group’s net cash generated from operating activities amounted to RMB1,844.1 million. As at 31 August 2026, the Group’s bank balances and cash stood at RMB3,087.6 million. Against this backdrop, the Board has resolved to declare an interim dividend of RMB11.00 cents per ordinary share for the financial year ending 28 February 2027, with a dividend payout ratio of 102.9%.

On 21 July 2026, the Group received official notice from its key brand partner Nike that the Group’s existing online sales of Nike’s products in mainland China would terminate completely with effect from 1 January 2027. The Group believes that the short-term negative impact on the business would be significant. Compounded by the ongoing subdued consumption environment, the Group will face considerable business challenges for some time in the future and it will continue to assess the corresponding impact. As Nike's largest distributor in mainland China, 华体网站登录入口' partnership with Nike spans over decades, and we always uphold the principle of mutual benefit, win-win collaboration and shared growth. The Group remains committed to working closely with Nike on the offline sales arrangements on a mutually beneficial basis.

Omni-channel Retail: From Unified Operation to Brand-Differentiated Operation

Against the backdrop of evolving consumer shopping habits and scenario-specific demands, the Group has remained anchored on its physical store network as the foundation of business, progressively advancing the development of its omni-channel retail framework. Based on consumers’ diversified consumption scenarios, it has integrated the capabilities of multiple online channels to empower physical terminals, driving the upgrade of store functions and thus achieving the integration of public-domain traffic acquisition, user retention and fulfillment services.

With sales per square meter and workforce productivity as core metrics, the Group has accelerated the iteration of offline store positioning to drive channel structure optimization, and implemented brand-specific structure adjustments on targeted stores. It adheres to quality-first principles for newly-opened stores and applies differentiated investment strategies for renovated and upgraded outlets. As at 31 August 2026, the Group operated 3,872 directly-managed stores, with store count decreasing by 17.4% year-on-year. Total selling area dropped by 12.9% year-on-year, with the decline in selling area minor than the change in store count. The selling area per store increased by 5.5% year-on-year, reflecting the continuous optimization of the store structure. Capital expenditure was reasonably scaled back, effectively mitigating the operational pressure arising from declining foot traffic.

Looking ahead, the Group will progressively upgrade from a unified omni-channel retail model to a brand-differentiated one, allocating omni-channel resources on a tiered basis according to each brand’s authorization status, life-cycle stage and strategic positioning. It will precisely match resource inputs with each brand’s development stage, thereby better meeting the growth needs of brands at different development stages.

Brand Matrix: Transferable Capability Built in Diversified Professional Segments

Sports consumption is evolving toward professional, segmented and scenario-based experiences. Consumers value product functionality, as well as the social and emotional satisfaction. Riding this trend, the Group has stepped up its presence in professional segments such as running and outdoor sports, and enriched its lineup of exclusive professional sports brands.

During the period, the Group steadily advanced the end-to-end operations of exclusive partner brands including Ciele, norda?, Norr?na and Soar, and newly secured the exclusive operation rights of Sierra Designs in the China market. Premium outdoor brand Norr?na launched at SKP Chengdu in July, while ektos, a running specialty store aggregating more than 20 global leading running brands, opened a new store in Aranya during the period. Beyond the single store and one-off event, the enduring value lies in the transferable capability these initiatives have built, a full-spectrum capability system covering brand strategic positioning, professional brand operations, community cultivation and localized content creation. The Group will deepen its presence in diversified sports segments and strive to become an all-round one-stop operation partner for more quality brands.

User Assets: Deep Engagement with 95 Million Users

Regardless of market fluctuations, users have always been the Group’s most important long-term asset. During the reporting period, the Group continued to serve users’ needs with precision along the three directions of “demand matching, scenario penetration and experience value”. In user acquisition, it strengthened members’ mindshare and actively expanded emerging channels. In existing user operations, it deepened the accumulation of private domain user assets to enhance user stickiness and repurchase rates. Leveraging various sports scenarios and diversified user activities, it continued to reinforce emotional connections with consumers.

Through sustained deep engagement initiatives, the Group’s cumulative user base (including members and potential members) continued to grow and reached 95 million as at 31 August 2026. Members contributed over 90% of total retail sales (including VAT) from offline stores and WeChat Mini Programs, repurchasing members accounted for approximately 60% of member retail sales, and high-value members steadily contributed around 35% of total sales from members.

AI and Efficiency: From Pilots to Scaled Deployment

2026 is a pivotal stage for AI technology to move from pilots to scaled deployment. During the period, the Group established an AI Empowerment Center, developing a set of reusable digital and intelligent foundation capabilities and embedding technological capabilities throughout the entire business process.

In merchandise operations and supply chain, it leverages digital and intelligent tools to optimize product selection, ordering, pricing, order allocation and refine inventory management, enhancing merchandise turnover efficiency. Across omni-channel retail terminals, it uses AI-assisted applications to improve the matching efficiency among consumers, products and occasions, lifting user conversion rate in terminals. In user operations and marketing, AI empowers content production and customer services, tapping into users’ full lifecycle value. In business management, through a unified data platform, it develops business analysis and budgeting management tools to enhance decision-making efficiency. Meanwhile, it deploys a corporate knowledge platform to empower overall organization effectiveness. Digitalization and AI initiatives continue to underpin the high-quality business development.

Corporate Governance and Sustainable Development

During the reporting period, the Group’s influence in the industry continued to be recognized. It has been named to the Fortune China 500 list for the third straight year and retains its place in the top 10 of the China Chain Store & Franchise Association’s “China Fashion Retail & Fashion Consumption TOP 100” for the fourth consecutive year. In terms of environment, social and governance (ESG), the Group has been rated AA by MSCI for three consecutive years, reflecting recognition from international institutions for its independent governance structure, information disclosure, supply chain management and protection of employees’ rights and interests, demonstrating the tangible results the Company has achieved in sustainable development.

Outlook

Currently, driven by multiple factors including policy supports, technological advancement and diverging consumer demand, the landscape of the sports consumption industry continues to evolve, with intensifying competition. In a complex market landscape, the Group has chosen to remain true to its original aspirations, respond proactively and confront challenges head-on. Through forward-looking strategic layout and agile execution, it continuously sharpens its core competitiveness in sports retail. It strives to deliver high-quality full-scenario services to consumers, build a mutually beneficial and symbiotic value ecosystem together with brand partners, and create sustainable long-term returns for shareholders.

Management stated: “Looking ahead, the Group will steadily advance long-term development around four core directions: prioritize operational efficiency to sustain steadiness of core business fundamentals; pursue systematic positioning to optimize the professional segment matrix and upgrade core capabilities; empower development via digital intelligence to deepen omni-channel digital transformation and AI implementation; and pursue win-win collaboration while following an ESG development path with distinctive corporate features.”

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About 华体网站登录入口 International Holdings Limited

华体网站登录入口 is a leading sportswear retail operator in China. It has an extensive and deeply penetrated retail network across the country and an omni-channel interconnected layout of online and offline touchpoints, with in-depth cooperation with more than 20 well-known sports brands. 华体网站登录入口 is committed to providing consumers with first-class sports goods and services, and creating a never-ending, active, healthy and joyful sports lifestyle experience.

This press release is issued by CHRISTENSEN CHINA LIMITED on behalf of 华体网站登录入口 International Holdings Limited