Financial Results Announcement for the Six Months Ended 30 September 2025

SU

NART

Retail Group Limited

Stock Code: 6808

Financial Results Announcement For the six months ended 30 September 2025

免责声明

Potential investors, analysts and shareholders of Sun Art Retail Group Limited (the Company) and other recipients of this document are reminded that this document and any oral discussion made together with this document (the presentation) are provided for your information purposes only and you may not forward, publish, distribute, release or disseminate any part of the presentation directly or indirectly to any other person. This presentation should be read in conjunction with the Results Announcement and is qualified in its entirety by the more detailed information and financial information contained in the Results Announcement.

It is important to note that the contents of the presentation have not been audited or independently verified. Some comments, including comments relating to future events and our expectations about the performance of the Company's business, are based on a number of factors that we cannot accurately predict or control. We do not make, and expressly disclaim, any representations and warranties in respect of any matters contained in the presentation. We cannot provide any assurance that the information contained in the presentation is or will be accurate or complete and so they should not be relied on. From time to time as circumstances change we may update our website and will update the Hong Kong Stock Exchange when relevant to comply with our continuous disclosure obligations.

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Group Overview

• A retailer offering multi-format

and omni-channel services to customers.

• Network of 501 stores:

• 462 hypermarkets,

• 32 superstores,

• 7 membership stores, and

• 5 front warehouses.

• Total revenue has exceeded

RMB70 billion(1), underpinned

by a solid business foundation and extensive market coverage.

Operational Adjustments

and Progress

• Proactively advancing a series of operational optimization initiatives, covering:

  • Store layout upgrading;

  • Online channel expansion;

  • Product structure optimization;

  • Pricing strategy upgrading;

  • Management system enhancement.

• All initiatives are progressing

smoothly with initial results.

• We are confident that the

current strategic direction is correct and steadily moving towards the set goals.

Long-term Strategic Outlook

• Upon successful execution of this transformation, the Group will achieve the following breakthroughs:

  • Pioneer a full business model upgrade as the first large-scale retail operator in the industry.

  • Build a truly integrated O2O ecosystem by seamlessly merging hypermarkets and online operations;

  • Enhance gross margin through an optimized product mix, building a more profitable business model.

Note: (1) The total revenue of the Group for the fiscal year 2025 was RMB71.552 billion.

Risk Management and

Financial Resilience

• Despite challenges, we believe

the downside risks are contained.

• The Group is well positioned

with ample cash reserves and

substantial

considerable

property asset value as a risk

buffer, providing a solid financial support and confidence to execute our strategy.

1

As a leading retailer in China, the Group has an outstanding brand reputation and

widespread customer recognition.

2

Stable cash flow and solid tangible real estate value provide strong protection against downside risks.

3

There's significant room for the Group's operation improvement, and considerable potential for future efficiency improvement and profit growth.

Financial Review

Note: The Group has initially applied HKFRS 16 at 1 January 2019.

(1) Calculated as operating profit margin (EBIT) adjusted for: add-back of depreciation and amortization, impairment losses on investment properties and other property, plant and equipment, and goodwill impairment; with deduction of interest income (including interest income from financial assets measured at amortized cost and gains from financial assets at fair value through profit or loss).

Expanding in core regions through multi-format rollout, new transformation models and underperforming store closures.

No. of stores

GFA (000'sqm)

1

19

6

7

485

462

466

505 502 501 13,786

46

13,486 13,401

FY2024H1 FY2025H1 FY2026H1

Membership Store Superstore Hypermarket

FY2024H1 FY2025H1 FY2026H1

Membership Store Superstore Hypermarket

Secured

2

superstore sites

New opening of 3 hypermarkets

Covering 205 cities

Online B2C business demonstrated steady performance and showed a positive trajectory in customer traffic.

RMB (million)

35,768

140

34,708

111 1,508

Revenue Breakdown

28.0%

22.5%

24.1%

30,502

41 1,403

• Revenue of the Group amounted to RMB30,502 million, representing a year-on-year decrease of RMB4,206 million, or -12.1%.

  ◎ Both units per transaction and average selling price declined, resulting in lower basket value.

  1,543

  7,685

  26,400

◎ The calendar effect of the Mid-Autumn Festival shifting to October.

• Online B2C business remained stable. During the reporting period,

  ◎ B2C Sales Contribution continued to grow.

  ◎ Same-store order volume increased by approximately 7.4%, driving a 2.1% increase in SSSG.

  ◎ Average daily orders per store exceed 1,200.

  FY2024H1 FY2025H1 FY2026H1

  Membership Fee and Others
  Rental Income
  
  
  Online B2C Sales
  Offline and B2B Sales
  B2C Sales Contribution%
  
  

  • Excluding the impact of calendar effect in September, same-store order

volume from April to August increased by approximately 0.4%.

Gross margin increased by 0.6 percentage points, driven by product mix optimization and supply chain efficiency improvements.

Gross Profit and Gross Profit Margin

RMB (million)

24.9% 24.6%

7,719

8,889 8,526

25.3%

• Gross profit was RMB7,719 million, representing a year-on-year decrease of RMB807 million, or -9.5%.

• Gross margin was 25.3%, with merchandise margin at 21.7%, representing a year-on-year increase of 0.7 and 0.6 percentage respectively. Merchandise margin improvement was driven by:

◎ Optimizing the product mix by phasing out long-tail and low-efficiency items.

◎ Accelerating new product launches and enhancing private brand penetration.

◎ Strengthening supply-chain collaboration and efficiency gains.

FY2024H1 FY2025H1 FY2026H1

Gross Profit GP Margin