Financial Results Announcement for the Twelve Months Ended 31 March 2026

SUNART

Retail Gr>>R*imited

Stock Code: 6808

Financial Results Announcement

For the twelve months ended 31 March 2026

Financial Overview

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).

2026

2025

2024

RMB in million

+ Cash and Cash Equivalents, Time Deposits, Financial Assets (not restricted deposits)

18,268 14,029 11,913

Business Progress and Highlights

Steady Growth in Fresh Food with Improved Quality and Efficiency

Driven by high-efficient traffic acquisition as a core strategy, fresh food taps into customer demand, lifts the repurchase rate and strengthens core competitiveness.

Business Performance Category Positioning and Strategy Operation Highlights

Overall Sales Volume Growth

+3% (Comparable)

Units Per Transaction

+1.2% (Comparable)

Gross Profit Margin Up by

+0.8 percentage points

Penetration Rate

>40%

Financial Results Announcement

For the twelve months ended 31 March 2026

Vegetable

High-efficient Traffic Acquisition & Traffic Core Driver

Seafood

Differentiated Edge & Unique Moat Barrier

Fruit

Higher Ticket Size

& Profit Growth Engine

Meat

High-Frequency Essentials & Core Customer Stickiness

Popularity

Viral Products Traffic & Trending Topics

Seasonality

Seasonal Wellness

& Seasonal Limited Offerings

Local Features

Deep Local Roots

& Regionally Tailored Curation

- 7 -

In-Depth Diversified Partnerships with Premium Brands, Value Creation via National Joint Procurement

National joint procurement builds a sustainable, self-reinforcing business ecosystem, the supply chain upgrade forms the moat of core competitiveness.

Triple Win Outcome

Supply Chain Deepening Goals

For Suppliers

For Retailers

For Customers

Fresh Food:

Increase national joint procurement to

FMCG:

30% 60%

of sales

Focus on core business

▎Leverage mature sales network

▎Focus on production and R&D

▎Unleash core productivity

Drive cost reduction

& efficiency gains

▎Access to:

• Better supply chain support

• Improved quality

  Premium quality at affordable prices

  ▎ Better experience

  • Safety

  • Freshness

    Increase national joint procurement to of sales

    National Self-operated Pork Performance

    (Jan-Mar 2026)

    • Faster delivery to market

      ▎Substantially optimize operating costs

  • High quality

  • High value-for-money

    ▎Lower consumption costs

    Comparable Sales Volume Growth:

    20%+

  • Achieved positive sales growth in East

    China and North China regions.

  • Synergistic expansion in poultry category.

    Financial Results Announcement

    - 8 -

    PB delivers rapid expansion and strategic upgrade to forge differentiated competitive edges.

    ▍ Performance: Strong momentum with targets met ▍Dual-brand driven, optimized structure

    YoY Sales Growth

    +60%

    Sales Penetration

    3.2%

    (March 2026)

    Target Proportion of FY2027 Sales

    5%

    • Super Saver: Performance driver

      focusing on extreme value-for-money and price competitiveness.

    • RT-Mart Select: Core gross profit contributor focusing on differentiation and quality to value ratio.

    • Future Focus: Drive portfolio optimization to

      improve overall gross margin.

      ▍Customers: Premium base with exceptional loyalty ▍Strategy: Multi-dimensional initiatives and moat-building in action

      Core family shoppers (aged 30-49)

      Sales contribution over

      60%

      Overall YoY repeat purchase rate increased by

      +4.5%

      Five Strategies:

      • Brand revitalization

      • Category restructuring

      • Science-backed pricing

      • Differentiated development

      • Scenario-based operations

      Category deep dive:

      • Fresh Food: Focus on healthy sourcing.

      • FMCG: Build moat via organic wellness & craftsmanship innovation.

        Financial Results Announcement

        - 9 -

        
        
        

        Store renovation continues to roll forward, while the supermarket format drives quality and efficiency gains.

        Store Transformation Plan Supermarket Format

        Piloting · Low-cost · Rapid Replication

        Fresh Food Zone

        Reset

        Low-cost Fixture Refresh Iteration

        Proven Model · Operations Optimized for Quality & Efficiency Gains

        Network Expansion & Model Optimization

        Initial planned rollout

        100+

        Morning market 2nd entrance coverage

        240+

        Initial deployment across

        45

        Investment per store

        200,000

        Store number

        34

        Sales proportion of

        fresh produce

        35%

        Curated SKUs

        ~8,000

        Unit economics

        Cash flow turned

        Positive

        stores stores stores RMB

        Gallery - Traffic Driver

        Underperforming Store Closure

        Online Business Rapid Growth

        Proportion of F&B, entertainment & service up by

        5%

        Planned closure store number

        9

        Sales penetration

        31%

        Comparable sales growth

        +15%

        Comparable order

        volume growth

        +25%

        Financial Results Announcement

        - 10 -

        
        
        

        Steady front warehouse network expansion, embedding fresh food-focused customer perception.

        New Engine for Online Growth

        Hypermarket Catchment Extension · 3-10km Radius

        Regional warehouses proving viable, early signs of growth potential

        Accelerated Rollout With Standardized Model

        Model Milestone (March 2026) On track unit

        3

        • 2 in North China

        • 1 in Northeast China

      Ave. time to target

      7.7months

• Period range: 5~9 months

  Warehouse

  number

  Investment

  per unit

  Curated SKUs Footprint per unit

  Low-cost Operation Lowers Profitability Threshold

  9 ~400RMB ('000)

  ~6,000 500 m2

  ▎ Resource Synergy

  • Leverage hypermarket inventory

  ▎ Lean Cost Control

  • Adopt hourly labor

    High-frequency Perception Drives Customer Growth

    Sales share of fresh food, dairy and chilled & frozen

    • Reuse proven online capabilities

      ▎ Operational Playbook

  • Select low-rent locations

    ▎ Merchandising & Margin

    ~50%

  • Build a high-frequency daily essential mindset

  • Effectively driving stickiness and repeat rate

    • Precise unit model building

    • End-to-end refined management

  • High-density fresh food penetration

  • Balance products stickiness and

gross margin

Financial Results Announcement

- 11 -

Financial Review

Deepening our presence in hypermarkets and superstores, with a focus on refined store management.

No. of stores

GFA (000'sqm)

507

505 502

462

465

3 7 6

13,518 13,494

12,923

13,008

229

134 252

13,388

FY2024 FY2025 FY2026

Membership Store Superstore Hypermarket

FY2024 FY2025 FY2026

Membership Store Superstore Hypermarket

New opening of 3 hypermarkets

New opening of 3 superstores

Covering 207 cities

Against overlapping headwinds, revenue faced phased challenges.

RMB (million)

21.9% 23.4% 26.0%

72,567 71,552

• Revenue of the Group amounted to RMB63,442 million, representing a year-on-year decrease of RMB8,110 million, or -11.3%.

  Revenue Breakdown

  
  
  

  ◎ Impacted by CPI fluctuations and sluggish customer demand.

  ◎ Intense homogeneous industry competition continued to divert in-

  2,802

54 88

63,442

69

store foot traffic and reduce units per transaction.

Fresh food profit & private brand penetration both up; gross margin up 0.1pp year-over-year.

Gross Profit and Gross Profit Margin

RMB (million)

24.7%

24.1%

24.2%

17,236

15,372

17,958

FY2024 FY2025 FY2026

• Gross profit was RMB15,372 million, representing a year-on-year decrease of RMB1,864 million, or -10.8%.

• Gross margin was 24.2%, with merchandise margin at 20.8%, both up

  0.1 percentage points year-on-year.

• Driven by supply chain optimization, product mix adjustments and enhanced operational efficiency, the fresh food segment delivered better margin performance, coupled with the increased penetration of private brand products, helped to offset the short-term margin pressure in the fast-moving consumer goods category resulting from product and supply chain transitions.

Gross Profit GP Margin

Expenses amounted to RMB16,005 million, representing a decrease of RMB936 million or -5.5% year-on-year.

3

Total Expenses

• Expenses amounted to RMB16,005 million, representing a year-on-year decrease of RMB936 million, or -5.5%. The decrease in expenses was mainly resulted from:

◎ Continuous optimization of store workforce structure and

increased part-time utilization of employees.

◎ Enhanced centralized resource coordination at headquarters to drive cost savings.

◎ Retal cost reduction negotiations across store networks.

RMB (million)

20,429

16,941

16,005

FY2024 FY2025 FY2026

Total Expenses

• Adjusted EBITDA was RMB3,157 million, with an adjusted EBITDA margin of 5.0%.

Adjusted EBITDA amounted to RMB3,157 million, with core operating profitability holding firm.

Adjusted EBITDA and Adjusted EBITDA%

RMB (million)

5.7%

5.0%

4.3%

4,092

3,122

3,157

,

,

FY2024 FY2025 FY2026

Adjusted EBITDA Adjusted EBITDA margin

Strong core property holdings and ample cash reserves, supporting a robust financial structure and long-term operational resilience.

Property Valuation and Net Cash Position

RMB (million)

46,164

10,063

10,063

24,758

• The Group's net cash position reached RMB10,063 million and the valuation value of self-owned properties was RMB36,101 million.

• Due to a temporary softening in real estate valuation conditions and the impact of upcoming land-use rights expirations, combined with changes in net cash levels, total assets adjusted to RMB46,164 million.

  Net Cash

  +

  Valuation Value of Self-Owned Land and Buildings

  (1)

  Net Cash

  +

  Net Value of Self-Owned Land and Buildings

  (2)

  • The Group maintains a strong cash position and high-quality self-owned properties, with its core financial strength and operational fundamentals remaining stable.

Net Cash Value of Self-Owned Land and Buildings

Note: (1) From the valuation report as of March 31, 2026

(2) Net value as of March 31, 2026.

Strategic Advancement

Group Vision and Three-Year Strategy

Our Vision

Trusted by Customers, and Embraced by Employees.

Three-Year Strategic Goal

Be preferred 'Daily Essentials Hub' for all customers within a 3-kilometer radius, building community lifestyle centers with "Healthy Products, Enjoyable Experiences and Caring Services".

Product and Experience Upgrade

Focus on core strengths, reshape store value.

• Strengthen trend-forward categories to build differentiated product edge.

• Redesign store traffic flow to enhance shopping experience.

• Explore diversified services to broaden experience beyond just shopping.

Digitalization & Supply Chain Optimization

Tech-enabled to drive efficiency & customer stickiness.

• Data-driven assortment and marketing to boost

  precision and relevance.

• National joint procurement and logistics upgrade to lower operating costs.

• Optimize member engagement to build a high-loyalty customer base.

  Multi-Format & Omni-

  Channel deployment

  Focus on advantageous regions, solidify online business.

  • Fully upgrade B2C operations, drive catchment penetration & improve basket economics.

  • Accelerate front warehouse deployment, explore profitable models, build a new online growth engine.

  • Optimize supermarket model, focus on quality & efficiency gains.

    Organizational Enablement & Talent Development

    Build an agile organization to power strategy execution.

    Financial Results Announcement

    For the twelve months ended 31 March 2026

    • Establish the Commercial Operations Department to promote general merchandise and fresh produce.

    • Proactively develop incentive programs to energize the organization.

    • Recruit and grow young talents, foster an ethical, high-integrity culture.

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Financial Results Announcement For the twelve months ended 31 March 2026