A：NingShao Group's revenue in the second quarter and mid -26 was 11.5 billion billion yuan, up 22.4 percent year-on-year; diluted earnings per share increased 8.2 percent year-on-year; operating cash flow increased 46 percent year-on-year; and the number of stores worldwide reached 8674.

A：In the first half of 2026, China's total retail sales of consumer retail goods increased by 1.3 year-on-year, while Ningshao Group's domestic revenue in the first half of the year increased by 26.2 year-on-year, far exceeding market data, and the fastest year-on-year growth rate in the last three years. By the end of the second quarter, the number of secret lock domestic stores had reached 4665, with a net closure of 121 stores, of which 59 were paradise stores and 159 were flagship stores.

A：The number of domestic stores increased by 8% over the same period last year, revenue increased by 26%, and the output of single stores increased significantly. Ping effect and registration ratio two-way verification Luoyang stores ping effect is about twice that of ordinary stores, new stores and existing stores, although the area has increased but ping effect to maintain optimization, the new store type for shopping malls is not only a rent bearer, but also the passenger flow engine.

A：The channel upgrade strategy has achieved initial results, and there is still a lot of room for upgrade in the domestic store network. This is based on two facts: first, the number of stores that have been transferred is very low, and second, the store model is constantly innovating. The super mini hand launched this year has become an important innovative member, helping to complete the brand upgrade from life department store to IP park.

A：As a free IP, Yoyo has entered 53 countries around the world, with related revenue of nearly 0.5 billion yuan in the first half of the year. Landmark events include the joint cooperation with Disney Toy Story Five and the launch of hot-selling products in several domestic stores. At the same time, Yoyo formed its own IP matrix in the main brand and achieved remarkable results.

A：The advantages of Mingchuang Youpin in the free IP strategy lie in its flexible and expansive product category, strong channel control and innovation ability, comprehensive store network with global layout and full link advantages, which enable it to achieve leapfrog development in the free IP field.

A：The value of the membership strategy is gradually being realized. In the first half of the year, the number of domestic members increased by 31% year-on-year to 0.13 billion; the contribution rate of member sales continued to increase, from 57% in the same period last year to 77% now. Membership has become the core driver of performance growth, reflected in the increase in unit price and active membership two levels.

A：In the first half of this year, overseas revenue increased by 14.9 to 4.06 billion yuan, with 3644 stores, but the performance fell short of expectations, causing a certain drag on the group's profits, while the contribution of the business to the company's profits declined. In addition, agency revenue declined, with the exception of North America, which is not yet profitable, and the store model still needs to be polished during the capital market investment phase.

A：We have decided to be more focused and prudent in the expansion of overseas direct stores, focusing on evaluating the return on investment of new stores, and focusing our resources on key markets. For new stores, we must ensure 100% confidence in success before opening them. The main focus in the second half of the year will be on the operation and management of the existing nearly 800 direct stores, which will be fully replicated after the single store model is mature.

A：We believe that the overseas market has developed for ten years, and now it is a critical moment to upgrade again. As a result, we have made significant adjustments and transformations to our overseas business, with the pace of adjustment including correcting the past model of heavy scale and store growth, focusing instead on a healthy closed loop between terminal growth, inventory turnover and headquarters shipping rates, and extending China's successful business model overseas. At this stage, the focus of overseas business is on polishing the model, while also actively replicating China's transformation experience to overseas markets. I express my deep respect for the work of overseas teams. Since 2015, they have gone through 11 years in the sea business. Rooting overseas and making a sustainable profit is a daunting challenge that tests not only product power and supply chain, but also organizational capabilities, control models and localization capabilities. Although the overseas business has been profitable so far, in the face of new challenges, we must settle down to do a good job in fine operation, localization and system construction, strengthen the global management and control mode, and consolidate the management foundation, so as to cope with the pressure brought by the second transformation of global consumption structure.

A：The Chinese market has achieved a successful transformation from horse racing enclosure to refined operation in three years, which shows the importance of shifting from scale priority to quality priority. The same methodology is now applied to overseas businesses, with the goal of polishing the single-store model and improving the level of refined operations. We believe that by giving enough time and patience to overseas teams, they will overcome difficulties and achieve better results.

A：Top too's revenue increased by 32.7 in the first half of the year, with the number of global stores reaching 365, including 48 overseas stores in Jingdong. This quarter focused on the landing of the first store in New York's Times Square, which became the first Taiwanese brand to enter the crossroads of the world. Free brands accounted for more than 10%, and the landing activities of its own IP received enthusiastic response, with Hangzhou's first stop selling more than 15 million in a single month.

A：Group revenue grew 22.4 per cent year-on-year in the first half, beating our growth guidance of 20 to 22 per cent. Among them, the domestic famous revenue growth of 26.2, Q2 growth of 23%. Revenue from overseas business increased by 15%, lower than the expected high double-digit growth, mainly due to negative revenue growth in overseas agency business. Nevertheless, adjusted operating profit increased by 5 percentage points year-on-year, mainly affected by the decline in agency business revenue. However, overseas offline GMV grew 14% year-on-year to 8.3 billion.

A：Asian market terminal GMV increased by the first number of units year-on-year, revenue decreased by the number of units year-on-year, while wholesale revenue in Latin America fell by double digits year-on-year. North American market revenue increased 37% year-on-year, with single-digit same-store growth. For the future, we will continue to strengthen our understanding of the Asian market, improve our localization operation capability, and focus on channel upgrading and pallet adjustment. In the Latin American market, despite multiple external challenges, terminal demand is still resilient. As external disturbances subside and commodity strategies adjust, we maintain confidence in its long-term development. In the North American market, despite the slowdown in Q2 growth, however, medium-and long-term growth remains resilient, thanks to the optimization of the new pace of IP products and the increase in direct stores.

A：For the whole year, the North American market is expected to achieve 4 billion scale and 0.4 billion profits, with a net profit margin of 10%; the European market is currently in the early stage of development, and its performance will fluctuate. In the first half of this year, the revenue growth rate will slow to 20%, and the same store will decline. Single digit.

A：Mingchuang China's same-store growth was in line with expectations, laying the foundation for the full-year target. Mingchuang's overseas same-store showed a low-unit decline, with North American same-store growth in the second quarter, but growth slowed down due to the shortage of some best-selling products, especially IP products.

A：In the first half of the year, the group's gross profit margin was 44.3, the same as the same period last year; Q2 gross profit margin was 45.3, an increase of 1 percentage point year-on-year, mainly due to the positive impact of US tariff rebates. The sales expense ratio rose from 23.1 per cent in the first half of last year to 25.8 per cent in the first half of this year, with four expenses related to directly operated stores accounting for 0.8 percentage points of revenue compared with the same period last year.

A：The adjusted net profit was 14.9B, down 6 percentage points from the same period last year, and up 5 percentage points if the exchange effect is deducted. The adjusted net profit margin decreased by 2.6 percentage points year-on-year, mainly due to changes in the revenue structure, the decline in the contribution of franchise and agency business revenue, and the increase in the contribution of overseas direct business revenue, but it is still a low unit loss.

A：In the first half of the year, the Group's inventory turnover days were 102 days, Mingchuang China's inventory turnover days were 67 days, and Mingchuang's overseas days were 273 days. Overseas must focus on inventory health and take revitalization measures to support the shift from high-speed expansion to high-quality growth.

A：As of the end of June 26, the company's cash reserves were RMB 7.39 billion, and net cash inflow from operating activities in the first half of the year was the 1.48 billion, up 45% year-on-year. The company returns funds to shareholders through dividends and buybacks, with buybacks exceeding the total for the whole of 2025, showing confidence in the future.

A：It is expected that in the second half of the year, the group's revenue will increase by a high single digit year-on-year, and the annual revenue will increase by a mid-double digit year-on-year; in the second half of the year, the revenue of large domestic stores will increase year-on-year, but the overseas revenue will increase by a low number of units year-on-year., Direct stores maintain low double-digit growth. For the full-year profit forecast, the adjusted operating profit is expected to drop by a high number of units year-on-year, and the adjusted operating profit margin is expected to drop by 3 to 4 percentage points from the same period last year.

A：Well, the current national consumer goods retail sales data is pessimistic, declining in June and growing by only 0.6 in July. However, China has performed strongly, up 20% year-on-year since July. We achieved mid-single-digit sales growth in July by optimizing the store structure (growth in the large and medium-sized electric park series) and improving the efficiency of the same store. Revenue is expected to grow in the second half of the year. Consumer trends, interest in consumer sentiment value of product categories and business models are growing rapidly, such as outdoor tide play. We speed up the opening of paradise stores, create IP scenarios to meet future consumer trends, and strengthen member operations and fine-tune store management. At the same time, many AP and own IP products have been developed on the commodity side, providing products with high cost performance and rich emotional value. Among them, such products are growing rapidly, and online sales account for double-digit growth.

A：Our 2H20 plan will continue to advance the AP strategy to license APP and own IP dual-wheel drive. In terms of our own IP, we have cooperated with 180 global IP, covering animation, demonstration, star and other types, and accumulated experience in the whole process. For example, for Jenny and other star joint and free IP, we will focus on promoting through video blind boxes, fluffy bags and other products. At present, there are more than 70 design schemes. For the upcoming September, we will launch a number of new categories, such as the Rita IP series. The current market response is enthusiastic, and there will be more products that are inconvenient to disclose that will be launched globally, including the expansion of the Thai and Japanese markets.

A：The team has made significant progress in price strategy and category diversification, with a slight increase in prices this year but a better contribution to gross profit. We have increasingly rich experience in the field of star co-names, and successful cases include cooperation with Li Yiqiong, which reflect our capabilities and achievements in IP incubation and commercialization. Next, we will continue to introduce top-level authorized IP and star IP, strengthen the organic combination of IP and products, and improve the store experience and conversion rate of free IP by improving the store model and commodity strategy optimization.

A：We look at the North American business as a whole, with the U.S. market targeting sales of about 4 billion and full-chain margins of about 40%. At present, we are confident that we can achieve this goal because American Mingchuang is the fastest growing retailer in the United States in 2025. Since the direct operation in the fourth quarter of 2021, the compound growth rate of the US market has exceeded 120 percent. For margin improvement, we will rely on business model, operating leverage and store model optimization, especially new large-scale, high-margin stores, such as plus stores, which will further improve margins in the next 12 months.

A：In the first half of the year, we have accelerated the pace of net store opening in North America to 75, significantly higher than last year's more than 40. This is done to ensure that store opening is completed before the peak season to match the characteristics of the full-year sales and profit rhythm similar to that of typical North American retailers, I .e. lower profits in the first half of the year, mainly driven by the second half of the year, especially the Q4 peak season. Therefore, based on this strategy, our profits are indeed expected to usher in a significant growth acceleration in the second half of the year.

A：For the whole of last year, the profit of franchise and agency business remained at about 30%, while the profit margin of direct business mainly depended on the second half of the year. In the second half of this year, the profit margin of domestic famous franchise business is stable and expected to improve, and the profit margin of overseas agency business will also remain stable. The direct business is divided into two parts: the North American direct business is more mature, with a net profit margin of about 10 points; while the non-North American direct markets such as Europe, Australia and some Asian markets are still in the growth stage, and it is expected that sales in the peak season will drive losses in the second half of the year, but these markets will still lose money throughout the year, affecting overall profits. The full-year adjusted profit margin is expected to fall by 3 to 4 points year-on-year, but Ye always hopes that 2027 will be an inflection point in the group's profit margin.

A：S. business in the commodity strategy, has been adjusting overseas pallets, especially with the macro policy changes. In the first half of the year, the largest category in the U.S. market was Chang'an, with a sales contribution of more than 1/3. Among them, sugar gum wool products performed outstandingly. In the second half of the year, it is planned to launch free IP syrup packaging to increase sales growth, and will reduce the proportion of direct mining in the United States, and instead increase the development of Chinese products. In addition, the gross profit margin of the US market was around 65% to 70% in the first half of this year. Affected by tariff rebates, it is expected to increase in the second half of this year.

A：In the first half of the year, despite the good growth of single GMV in the agency market, agency revenue showed negative growth (10%) due to the slowdown in the pace of purchase. Agency revenue is expected to continue to decline by more than 10% in the second half of the year. The negative revenue growth does not mean that there is a problem with end demand, but is due to the exchange rate, the macro environment (some market turmoil in the Middle East and Asia, improved inventory in Latin America) and the inventory turnover in the top 18 markets, which is basically the same as last year. There was a net decrease of 41 agency stores. The company took the initiative to close a number of inefficient agency stores. It is expected that about 100 to 110 will be closed in the second half of the year. Although it will put pressure on agency revenue in the short term, it will help maintain the healthy and sustainable development of the entire agency business in the long run. The Latin American market is the main market for the company's overseas agents, with strong local agents, high-quality channels, and low single-digit growth in the same store, and stable terminal performance. The company will continue to eliminate inefficient low gross margin SKU, introduce high gross margin products and local popular products to drive sales, and help the agent market iterative marketing program, to fill the content short board.