Topsports International Holdings Limited · HKEX:6110
Topsports International — 1H FY2025/26 Earnings Presentation
29 slides from Topsports International's earnings presentation, 2025
Slide 1: FY 2025/26 Interim Results Presentation
FY 2025/26 INTERIM RESULTS PRESENTATION
Slide 2: Important Notice
Important Notice Presentation Content Exclusion of Liability This presentation and the accompanying documents (the “Presentation”) is prepared None of the Relevant Parties shall have any responsibility for the use of this Presentation by Certain information set forth in this Presentation is not inde
Slide 3: Prioritize the Rollout of Core Strategy and Proactively Address Market Shifts
Prioritize the Rollout of Core Strategy and Proactively Address Market Shifts Consumers as the core, proactively positioning in emerging presences and high-potential segments; continuous advancements in the efficiency and digital- 01 intelligent capabilities of Omni-channel retail platform. • Rooted
Slide 4: Financial Review
Financial Review
Slide 5: Revenue Analysis
Revenue Analysis Revenue YoY change Weak consumer demand and foot traffic performance RMB 12.30BN down 5.8% Revenue YoY Change Retail and Wholesale business as % of Principal and Other brands as % of revenue from sales of goods revenue from sales of goods 13,054.7 15.7% 13.3% 12.4% 11.6% 12,298.6 -5
Slide 6: Gross Margin Analysis
Gross Margin Analysis (For illustration purposes, reference only） -0.1 p.p. YoY Change in 41.1% Discount Rates Inventory Provision 41.0% Revenue Mix Change among and Others Retail and Wholesale 1H FY2024/25 change in discount rates 零售和批发业务占比变化 库存拨备及其他影响 1H FY2025/26 1H FY2024/25 1H FY2025/26 YoY Pos
Slide 7: Expense Ratio Analysis
Expense Ratio Analysis Selling, Distribution, General and Administrative Expenses Breakdown and as % of Total Revenue Total expense: Omni-channel layout and rigid cost control to mitigate operational pressure Expense amounts 33.1% YoY change 33.2% Total SG&A expense decreased by 5.5% YoY, total reve
Slide 8: Net Profit and Net Profit Margin Analysis
Net Profit and Net Profit Margin Analysis Net Profit YoY Change (RMB million) Net Profit Margin YoY Change -9.8% YoY -0.3 p.p. YoY -325.0 +236.1 -38.2 +41.3 -0.1 p.p. -0.1 p.p. -0.3 p.p. +0.2 p.p. 873.8 788.0 6.7% 6.4% 1H FY2024/25 TotalExpenses (1)(1) Other Gross Profit Total (2) Other Income (2) N
Slide 9: Operating Working Capital Efficiency
Operating Working Capital Efficiency (RMB million) 1H FY2024/25 1H FY2025/26 YoY Change Inventory 6,119.9 5,833.9 -4.7% Turnover Days 148.3 Days 150.0 Days +1.7 Days Trade Receivables 949.4 934.9 -1.5% Turnover Days 16.1 Days 12.6 Days -3.5 Days Trade Payables 846.8 304.5 -64.0% Turnover Days 14.8 D
Slide 10: Operating Working Capital Efficiency
Operating Working Capital Efficiency (RMB million) 6,515.5 6,222.5 6,464.3 Inventory Inventory Trade Receivables Trade Payables Working Capital (1) (1) 1H FY2023/24 1H FY2024/25 1H FY2025/26 (2) 营运资金占收入比重 (2) Working Capital as % of Revenue 23% 26% 26% Source: Company Interim Results Announcement 10
Slide 11: Solid Capital Reserve
Solid Capital Reserve (RMB million) Net CFO：+1,354.7 Net CFI：-90.3 Net CFF：-1,313.7 +1,425.6 -70.9 -132.7 +42.4 -570.7 +136.5 -11.4 -868.1 34% FCF (1) + 1,222.1 of beginning cash balance 2,587.4 2,538.1 Free Cash Flow (1) Beginning Cash Operating CF before Tax CAPEX Other Investing CF Lease Liabilit
Slide 12: Solid Cash Generation Capability to Lay Solid Foundation for Dividend Payout
Solid Cash Generation Capability to Lay Solid Foundation for Dividend Payout Capital Allocation Strategy （RMB MM） Cash Generation Free Cash Flow (1) 1,222.1 Total Dividend 806.2 1.5 times 1. Accelerate Organic Growth Net Profit (2) + 789.1 2. Invest in New Expansion Opportunities + From FY2019/20 to
Slide 13: Business Review
Business Review
Slide 14: Market Insights for the First Half of the Financial Year
Market Insights for the First Half of the Financial Year Macro Environment and Common Traits Among Sports Industry Consumers Retail Market Industry Players Fluctuating market demand Centred on core strategies Segmentation & diversification Deepening of Omni-channel integration Ramp up product R&D in
Slide 15: 3 Upgrades 2 Scale Ups
Prioritize the Rollout of Core Strategy and Proactively Address Market Shifts 2 Scale Ups 3 Upgrades Omni-channel efficiency Emerging scenarios Talent pipeline Promising market segments 89.0 million+ Users Digital-intelligent competence To provide the one-stop Omni-operation solution for more partne
Slide 16: Omni-Retail: Expansion, Lean Operation & Iteration-Alignment of Roles & Capabilities
Omni-Retail: Expansion, Lean Operation & Iteration-Alignment of Roles & Capabilities Transforming traditional stores’ singular function to multiple online fronts Platform-centric via an Omni-retail lens e-commerce Traditional offline Aligned online store setup Multi-point presence & Expanded product
Slide 17: Omni-Retail Synergy: Optimization and Role Elevation of Offline Stores
Omni-Retail Synergy: Optimization and Role Elevation of Offline Stores Prudent Expansion Number of directly-operated and Renovation, retail stores 4,688 stores -19.4% YoY -6.6% HoH with Moderate Closure Gross selling area -14.1% YoY -4.6% HoH Ongoing Same fluctuations in Brand-Tailored Selling area
Slide 18: Omni-Retail Synergy: Joint Exploration of Offline Multi-Value
Omni-Retail Synergy: Joint Exploration of Offline Multi-Value Pioneering driver Active co-creator of emerging offline format of diverse sports cultures Dedicated advocate for circular economy Exclusive partner in localized innovation 18
Slide 19: Omni-Retail Synergy: Expansion and Streamlining of Online
Omni-Retail Synergy: Expansion and Streamlining of Online Expansion of presence with integrated matrix approach tailored to scene-specific features YoY change of online retail sales(1) Double-digit growth Platform-centric Content-driven Private domain Instant retail e-commerce e-commerce operations
Slide 20: User Operations: Value Delivery and Value Creation
User Operations: Value Delivery and Value Creation Membership 89.0 million Users(1) Fostering joyous sports experiences and lifestyles Grades Product Content Coupon T5 In-store Off-store T4 T3 T2 Synchronize user grades with T1 equivalent rights across all channels New High-Value Growth Users Users
Slide 21: User Operations: Value Delivery and Value Creation
User Operations: Value Delivery and Value Creation Maintaining strong private domain user retention consistently in an Omni-channel ecosystem Member sales remain the main contributor to total sales 92.9% Contribution(3) of members to retail sales value(2) from offline stores and WeChat Mini Programs
Slide 22: A More Digital, Intelligent and Efficient Digital Platform
A More Digital, Intelligent and Efficient Digital Platform – Building Topsports' "Smart Retail Ecosystem" Precise + Efficient Scale Expansion + Cost-Effectiveness Omni-channel Omni-channel Omni-channel 用户连通 Integration Intelligence Panoramic Insights Linkage & Collaboration of Simplification & Effic
Slide 23: A More Digital, Intelligent and Efficient Digital Platform
A More Digital, Intelligent and Efficient Digital Platform – Building Topsports' "Smart Retail Ecosystem" Omni-channel Omni-channel Omni-channel Integration Intelligence Panoramic Insights • Merchandise: Maximize inventory sharing • Intelligent Supply Chain: Conduct end-to-end timeliness • User Ecos
Slide 24: New Business Models and Services: Expanded Brand Presence and Competence Breakthrough
New Business Models and Services: Expanded Brand Presence and Competence Breakthrough Omni-channel Community Brand Strategy Content Outreach Operations Cultivation Pivotal Direction Talent Acquisition Market Resonance Product Iteration Benchmark Image Scale Expansion China-Market Exclusive + Running
Slide 25: New Business Models and Services: Expanded Brand Presence and Competence Breakthrough
New Business Models and Services: Expanded Brand Presence and Competence Breakthrough norda™ unveiled a scenario-based standalone retail norda™ hosted its first official brand event in China, the "Mountain Breeze as Escort, Wild Trails into Zen" trail space at the Yunqiu Mountain Trail Run. running
Slide 26: New Business Models and Services: Multi-Functional Store Space Serving Running Culture and Community
New Business Models and Services: Multi-Functional Store Space Serving Running Culture and Community Runner Brand Culture Social Infrastructure Cutting-Edge Curated Selection Inter-Connection & Co-Creation *One-Stop Service Venue* *A Go-To Destination for Refined Goods* *Cultural Community Hub* 26
Slide 27: Future Plans For Development
Future Plans For Development Focus on Omni-channel retail, users, new business models and services 多元运动文化的积极共创者 to lay out plans for long-term growth 本土化尝试的 Consistently focus on efficiency and fortify the resilience of the retail platform 独家协作者 新门店类型的 Optimize and improve the “precise + efficient”
Slide 28: Q&A
Q&A
Slide 29: Appendix: Financial Overview
Appendix: Financial Overview 1H FY2025/26 1H FY2024/25 YoY / Change RMB million % RMB million % % p.p. Revenue 12,298.6 100.0 13,054.7 100.0 - 5.8 - Cost of Sales (7,261.2) - 59.0 (7,692.3) - 58.9 - 5.6 + 0.1 Gross Profit 5,037.4 41.0 5,362.4 41.1 - 6.1 - 0.1 Selling, Distribution, General and Admin
Topsports International Holdings — 1H FY2025/26 Earnings Presentation on 6ix