A：The company achieved an operating profit of about $8.1 million in the second quarter, up about 118.9 percent from $3.7 million in the same period last year. Operating margins rose to 3.7 per cent from 1.9 per cent in the same period last year, up 1.8 percentage points from a year earlier. In this quarter, the company had a net exchange loss of US $4.34 million, which was a negative change of more than US $20 million compared with the net exchange gain of US $16.33 million in the same period last year. As a result, despite the improvement in operating profit in the quarter, the company's net loss after tax reached $1.93 million due to non-operating factors, compared with net profit of $16.39 million in the same period last year.

A：The Company's operating cash flow for the quarter was a net inflow of $28.24 million million, up 6.2 percent from the same period last year. As of June 30, 2026, the company’s cash reserves stood at approximately US$266 million, with ample overall liquidity, which will be allocated to the continued expansion of its retail stores and investment in its second-brand business.

A：The company received 8.1 million customers in the quarter, up 5.2 from the same period last year. The overall average turnover rate of the restaurant increased to 3.9 Lun per day, up 0.1 rounds per day from the same period last year. The average daily revenue of a single restaurant was $17400, a slight decrease of about 1.1 percent from $17600 in the same period last year. The overall revenue of restaurants in Southeast Asia increased by 3.9 year-on-year, and the average turnover rate increased from 3.6 rounds last year to 3.8 rounds, maintaining a steady and upward business situation. Restaurant revenue in East Asia increased by 9.9 year-on-year, and the average turnover rate increased from 4.6 rounds last year to 4.9 rounds, continuing to maintain a high level. Restaurant revenue in North America increased 6.6 percent year-on-year, with an increase in the number of stores, but the average turnover rate decreased and the average daily revenue of single restaurants decreased.

A：Overseas China and Taiwan Construction positions the headquarters as a platform for common capabilities, with regions and stores responsible for local business transformation and landing, emphasizing business judgment based on local market and customer needs. In the "Rainbow City" plan, there have been some successful projects such as high ball malatang and Japanese izakaya, through a small cost to verify the certainty of the way to carefully promote the new brand replication, to ensure that each new project in the run through the model before the scale of replication. In terms of cost control, the company will continue to optimize the allocation of resources to ensure the effective use of various costs, and continue to evaluate and adjust the cost structure to improve the overall cost efficiency while maintaining basic operating standards and food safety.

A：In terms of cost control, the company's focus is not on overall cost reduction, but on narrowing the gap in operating levels between stores. The goal is to improve the performance of the store to the average level, and maintain the overall profit margin contribution ratio in healthy stores continue to increase cost optimization. In order to achieve this goal, the company will improve through two ways: one is to use operating leverage to dilute fixed costs by increasing passenger flow and turnover rate in the second half of the peak season; the other is to optimize staffing, scheduling efficiency, supply chain and inventory consumption through daily fine management.

A：The company believes that with the increase in the acceptance of Chinese food and beverage by overseas consumers, the overall market has more room for development. Despite the competition, the company's main brand is still in the stage of cultivating the market and improving awareness, far from reaching the level of stock competition. Therefore, the company holds a positive attitude towards the entry of more Chinese brands, believing that this verifies the real existence of market demand and can accelerate the acceptance process of Chinese food by overseas customers. The company's red pomegranate project adopts a localized operation model, which pays more attention to the construction of models and capabilities, rather than simply relying on the brand first. At the same time, the company focuses on product services and store experience in overseas brand building, through marketing creativity and execution close to the local culture, combined with local IP cooperation, festival event planning and other ways to naturally increase the volume of sound, rather than relying on high marketing investment to buy exposure. In addition, the company uses the product itself as a communication carrier, designs a complete product portfolio around topical ingredients, triggers natural discussions and store-to-store conversion, and converts online attention into offline re-purchases and recommendations through member operations and community connections, thus truly precipitating brand influence.

A：The company's overall turnaround rate in the second quarter increased by 0.1 rounds year-on-year, showing a healthy trend, but there is differentiation between different regions. For example, in North America, the problem with some stores is that the customer base structure is relatively concentrated and the local mainstream customer base coverage is insufficient. In this regard, in the short term, it will pull the passenger flow to the store by adjusting the combination of dishes and off-peak operation. However, it is still necessary to optimize the customer structure, do a solid job in member operation, localized marketing and business circle development, and reduce the dependence on a single customer group. For geopolitically sensitive stores affected by external factors such as geopolitics, the Company will adjust its strategy in a timely manner according to the actual situation, control costs, maintain the resilience of store operations, make decisive adjustments or relocate stores that are not suitable for a long time, and avoid continuous investment in order to maintain the number of stores.

A：In Singapore and Malay markets, we have established a mature local procurement and supply chain system, which can stably purchase products that meet the requirements locally. The core seasonings and commodities with unstable local supply are provided by central kitchens or mature suppliers. The central kitchen determines the layout according to store density, distribution radius and capacity utilization, while improving capacity utilization efficiency and increasing revenue. For exchange rate fluctuations, the impact of exchange gains and losses on net income in the second quarter was significant, mainly for base reasons. The Company focuses on operating profit caliber and avoids speculative operations by addressing exchange rate risk through natural hedging (revenues and costs occur in the same market) and treasury management (monitoring cross-border settlement exposures and assessing appropriate treasury and exchange rate management).

A：The difference between new and mature stores is mainly in the business circle and operating level, not the number of years of opening. The performance of the first six months after the opening of the new store is particularly important, and the climbing speed is faster, thanks to the strict requirements of site selection standards, investment calculations, store design and store manager reserves in recent years. In terms of assessment and incentive, the store manager takes into account the implementation of employees and customers, and pays attention to customer satisfaction, staff training and long-term management quality of the store. The regional team focuses on business performance and growth quality. The headquarters functional team focuses on helping the front line to improve efficiency. Retaining talents not only depends on salary, but also provides growth space and business stage. The advantage of the company's early sailing is that it has trained a group of local store managers and regional managers who have a deep understanding of the company's culture and the local market, and share the results of business growth through incentives to ensure team stability.