The meeting introduced the company's financial and operating results for the first half of the year, including revenue growth, profit improvement and cash flow, emphasized healthy inventory levels and shareholder return commitments, mentioned the challenges of the retail environment, and looked forward to future strategic direction and operational progress.

The report pointed out that the company faced challenges such as weather disruptions, weakening demand and deepening discounts, which led to pressure on retail sales. Nevertheless, overall revenue increased slightly, and some businesses such as training, sports and leisure and outdoor products performed well. Sales of footwear and accessories slowed, mainly due to weak consumption and extreme weather. The channel structure remained stable, with both online and offline sales increasing, but offline discounts deepening. In the future, the company will optimize the distribution model, strengthen system management, improve operational efficiency, in order to promote the development of healthy channels.

By optimizing the structure of e-commerce channels and cost control, enterprises have achieved profit growth, while increasing investment in professional sports resources to enhance brand competitiveness. Despite increased costs such as marketing and logistics, overall operational efficiency improved, inventory management was healthy and after-tax profits remained stable. Investment in sports resources will be increased in the future, and marketing expenses are expected to rise further in the second quarter.

The report highlighted the company's solid performance in financial management in the first half of the year, including healthy cash flow, accounts receivable turnover and flexible adjustments to the supply chain. In the face of challenges such as the differentiation of the consumer market structure and the increasing pressure on the traditional consumer industry, the company adjusted its annual revenue and profit targets and became more cautious and pragmatic. At the same time, the company will continue to increase brand marketing investment and optimize supply chain management to adapt to the rapidly changing market environment. Policy support and the expansion of sports consumption scenarios provide a good environment for the long-term healthy development of the industry.

By deepening cooperation with professional sports organizations and strengthening the brand's participation in international events, the company continues to optimize product innovation and channel layout, promote the steady growth of core businesses such as running, basketball, and training, and actively explore emerging fields such as outdoor sports. Consolidate market leadership and enhance brand influence.

In the first half of 2026, in the face of fluctuations in the retail environment, the Company achieved steady growth in revenue and profit by strengthening its professional product line and optimizing its cost structure and channel layout. Professional products accounted for 57%, running shoes technology continued to innovate, the total sales of more than 14.8 million pairs. At the same time, outdoor, lifestyle and basketball product lines have their own focus, e-commerce channels have performed steadily, and children's business efficiency has improved. In the future, the company will allocate resources scientifically to promote healthy and sustainable development.

The strategic adjustment of international top brands in the Chinese market and its impact on local brands are discussed. International brands return to brand and product-driven business models and avoid price wars, which pose a challenge to local brands. Local brands see this as an opportunity for self-improvement and are committed to professional sports, technological innovation and consumer experience, accelerating brand building and returning to a brand-led business model. At the same time, the reasons for the decline in operating cash flow and the impact of the project with Curry were mentioned.

The dialogue discussed adjustments to performance guidance, the reasons for the decline in second quarter performance, the ongoing challenges faced in the third quarter, and the pressure on cash flow. Difficulties in the market environment, increased marketing spending, adverse effects of the retail environment, and responses to reductions in government subsidies were highlighted. At the same time, it is proposed to deal with the current challenges by controlling risks, optimizing resource allocation and enhancing brand influence, and maintain a healthy level of cash flow.

This paper discusses how sports brands can maintain their competitiveness through technological innovation and market expansion under the background of increasing competition in traditional sports categories such as running shoes and basketball shoes. At the same time, brands need to respond quickly to emerging sports trends, strengthen emotional connection with consumers, and enhance brand recognition and market share. Brand strategy needs to balance long-term brand building and short-term return on investment, especially in the discount pressure to maintain the brand image.

Discussed the market performance in the fields of running shoes, basketball shoes and lifestyle products. Although the overall growth is negative, we maintain a high degree of attention and confidence in the basketball shoes business, plan to strengthen investment and international cooperation, enhance professional image, and consolidate high-end market share, Avoid price wars, and commit to long-term development and the establishment of market leadership.

Discussed the brand development strategy for the next two to three years, emphasizing the promotion of brand influence through high-quality products, innovation and sports experience, and the cooperation with basketball stars is not limited to product promotion, but also lies in the win-win development of the brand and athletes. Build the brand into one of the most popular brands in China and even the world.

The dialogue revolves around the market performance and future growth strategy of the core IP of running shoes. It is pointed out that some IPs such as the sixth generation Rapid Pro affect sales due to price confusion and product iteration problems, and the need to optimize product iteration, channel planning and price stability is proposed. Looking to the future, we plan to reduce the market burden by controlling the existing product inventory and launching a new generation of products, with a view to achieving PPT sales growth in the next fiscal year and exploring new market segment opportunities.

The dialogue focused on the potential and challenges of sports brands in the running shoe market, emphasized the satisfaction of the needs of female consumers and core runners, and proposed to enhance competitiveness by optimizing technology platforms, product lines and market strategies. At the same time, the importance of marketing investment is discussed, especially the brand exposure in the Olympic Games and other large-scale events, as well as the strategy of coping with market pressure and maintaining gross profit margin through cost control and efficiency improvement.

The brand's strategy of balancing professional sports and lifestyle products is discussed, emphasizing the importance of market potential and changes in consumer demand. By optimizing product mix, channel adjustment and new series development, such as Jinbiao and Longdian, to adapt to different consumption scenarios and enhance brand competitiveness. At the same time, the integration of technical material innovation and core brand advantages is mentioned, as well as positive signals for future market development.

Discusses the penetration strategy of Glory Gold Label series products in different consumer groups, as well as the opening plan of independent stores and the business philosophy of quality first. At the same time, mentioned the NBA new season marketing plan, designed to show the spirit of basketball and enhance brand influence.