(27 May 2026 - Hong Kong) 悟空体育 International Holdings Limited (“悟空体育” or the “Company”; Stock Code: 6110) is pleased to announce the audited consolidated results of the Company and its subsidiaries (together, the “Group”) for the year ended 28 February 2026 (the “Reporting Period”).

During the Reporting Period, against a complex and volatile external backdrop, China’s macroeconomy continued its steady-to-positive momentum, with GDP growing by around 5% in 2025. Nevertheless, the consumption market remained rather subdued. Consumer confidence stayed sluggish and overall consumption momentum remained weak. Consumers have grown increasingly prudent in spending decisions, and discretionary goods including sports footwear and apparel have borne the brunt of the downturn. The industry is moving toward a cycle where refined operation and in-depth professional competence stand as core competitive strengths. Offline retail has long departed from the passive customer-attracting model, while online operations can no longer rely on extensive and stereotyped strategies. In response, the Group has acted with steady strategic resolve. The Group prioritizes operational efficiency and leverages omni-channel retail network layout and in-depth digital and intelligent capabilities, while elevating operational quality through lean management. The Group sustains steady cash flow and financial resilience to support long-term sustainable value creation. 悟空体育 is committed to building an all-in-one omni-channel retail operation model, enabling it to mitigate external risks across key areas, as reflected in its overall results performance during the period. 悟空体育 maintains close collaboration with its partners, remains attuned to consumer needs, and fosters symbiotic growth with its employees, all while delivering healthy and sustainable value to shareholders as part of its commitment to “become the one-stop omni-channel operations provider for diverse brand partners in China across diverse categories.”

Operational Resilience Maintains Steady Cash Generation and Upholds Shareholder Value Creation

During the Reporting Period, as a result of the sluggish macro consumption environment and declining offline foot traffic weighing on the overall retail market, the Group’s revenue decreased by 4.7% year-on-year to RMB25,739.9 million. Supported by its omni-channel retail strengths, online retail business registered year-on-year growth, partially offsetting the foot traffic pressure faced by offline retail operations.

In terms of gross profit margin, fierce promotional activities in China’s online sports footwear and apparel market, together with a higher proportion of online retail sales recorded in the period, led to deeper year-on-year discounts, which served as the main drag on gross margin. The Group’s gross profit margin declined by 0.4 percentage points year-on-year to 38.0% in the reporting period.

On selling and distribution expenses and general and administrative expenses, while weak offline footfall during the period exerted operating deleverage pressure on traditional store-based retail, the Group benefited from the continued broadening and refinement of its omni-channel retail network, including steady optimization of offline store networks, in-depth restructuring of online channels and improved cost efficiency. As a result, selling and distribution expenses and general and administrative expenses decreased year-on-year by 6.7%, with the corresponding expense ratio decreasing by 0.7 percentage points year-on-year to 32.4%. This reflects the Group's disciplined approach to expense management in a volatile market environment, and the flexibility and efficiency delivered by its omni-channel retail network.

Profit attributable to the Company’s equity holders decreased by 1.5% year-on-year to RMB1,266.8 million, with profit margin attributable to the Company's equity holders improved 0.1 percentage points year-on-year to 4.9%.

Cash serves as the cornerstone for sustainable corporate development. As at 28 February 2026, the Group’s Bank balances and cash stood at RMB2,073.5 million, and net cash generated from operating activities amounted to RMB2,728.4 million. Against this backdrop, the Board proposes a final dividend of RMB3.00 cents per ordinary share and a special dividend of RMB 12.00 cents per ordinary share for the financial year ended 28 February 2026. Together with the interim dividend of RMB13.00 cents per ordinary share already distributed, the total dividend for the full financial year will be RMB28.00 cents per ordinary share, representing a dividend payout ratio of 137.1%. Since its listing in 2019, the Company has distributed aggregate dividends of RMB14.64 billion, with a cumulative dividend payout ratio reaching 107.3%. Amid market fluctuations, maintaining an industry-leading dividend payout ratio fully demonstrates the Group’s firm commitment to delivering steady cash returns and creating long-term value for shareholders.

Deepening the Core: Omni-channel Operations — Enhancing Quality and Efficiency

Against the backdrop of evolving consumer shopping habits and scenario-specific demands, 悟空体育 continues to deepen the development and practical implementation of its omni-channel retail framework. Adopting the mirrored operation model of "1 (offline store) + N (corresponding multi-scenario online presence)", each physical store undertakes multiple functions including public domain traffic acquisition, private domain user cultivation, instant order fulfillment and content marketing. The Group streamlines nationwide merchandise circulation and achieves in-depth online-offline synergy, thereby building flexible, efficient, and scalable omni-channel operational strengths that effectively mitigate headwinds amid the challenging macro business environment.

In terms of the iteration of offline store networks, the Group allocates resources in a more focused manner. The Group keeps optimizing resource inputs centered on improving single-store efficiency and omni-channel synergy. The Group formulates brand-specific store restructuring plans by fully considering the distinct positioning, target customer profiles and product attributes of each brand. As at 28 February 2026, the Group operated 4,360 directly-managed stores. The year-on-year decline in store numbers stood at 13.1%, narrowing from the drop of 18.3% recorded in the same period last year, mainly attributable to fewer store closures year on year. Total selling area dropped by 9.7% year on year, broadly in line with the movement in store count. The selling area per store edged up slightly by 3.9% year on year, a marked slowdown from the 7.2% growth seen a year earlier, which further reflects the Group’s core business philosophy of prioritizing store-level operational efficiency and sales per unit area. The performance of newly opened and renovated stores in the current period outshone that in the same period of last year, and the loss reduction effect from store closures also improved year on year. The Group fully recognizes the core value of physical stores in the sports retail sector. The Group continues to upgrade stores with growth potential, and adopts differentiated strategies to expand their omni-channel operational capabilities. The Group iterates its store layout in step with evolving consumption trends. Meanwhile, through diversified traffic acquisition and refined operations, 悟空体育 strives to tap new growth drivers for business development.

Centering on the nationwide physical store network, 悟空体育 fully covers three major consumption scenarios including in-store shopping, home delivery and on-site experiences. The Group drives the omni-channel capability upgrade of traditional brick-and-mortar stores via online channels such as content e-commerce, private domain operation, local lifestyle services and instant retail. More specifically, the Group builds an account matrix operation centered on interest-driven consumption, upgrades private domains from sales channel to core hub for user retention and value cultivation, while developing urban instant fulfillment capabilities, and collaborates with local lifestyle platforms to drive foot traffic to physical outlets through online coupon issuance and offline redemption. As of the end of the period, 悟空体育 operated more than 700 official accounts on Douyin and WeChat Channels, over 3,700 mini-program stores, and around 3,800 stores were accessible via instant retail services.

To underpin the efficient operation of its omni-channel system, the Group has independently developed intelligent in-store operational tools and launched the exclusive store management system Panoramic Compass. It consists of four core modules: unified omni-channel SOPs, single-store business models, store management diagnosis and AI intelligent Q&A, which precisely address four key operational scenarios: implementation standards, daily management, performance optimization and professional learning. This system shifts store management from manual data retrieval to intelligent data-driven services. It standardizes multi-dimensional omni-channel retail practices into routine workflows, fully empowering frontline teams in business analysis and practical execution. It helps unlock single-store operational potential and enhance individual staff competency.

Users: Tiered In-depth Cultivation & Value-oriented Operation

As at 28 February 2026, the Group’s cumulative user base (including members and prospective members) reached 92.90 million. 悟空体育 remains consumer-centric and builds a diversified user value system by following the logic of demand matching, occasion penetration and experience value. The Group taps into latent user potential and fosters a sound ecosystem for sustained in-depth user relationship development.

During the Reporting Period, the Group optimized and upgraded its membership system. By launching innovative offerings such as exclusive online cards and co-branded cards, the Group optimized membership payment models to enable flexible purchase periods and extended benefit validity, thereby building a base of high?value loyal customers. The Group also restructured its membership tiers, upgrading the original four tiers to five tiers ranging from T1 Rookie to T5 Legend. The new naming convention better resonates with sports consumers, while the revised tier classification expands the mid-tier member base for a healthier overall membership structure. In addition, tier-up incentive campaigns have successfully driven incremental sales revenue.

In terms of the full-lifecycle user value operation system, the Group customized exclusive benefit matrices and precise outreach strategies tailored to differentiated core user profiles. Innovative interactive marketing also stood as a key strategic focus during the period. While the Group boosted repeat purchases and reactivated inactive users via engaging activities, the Group upgraded offline consumption occasions. Through in-store interactive facilities and omni-channel collaboration with external platforms including Meituan and Douyin, the Group further strengthened user connections and drove sales growth and conversion efficiency.

To deepen emotional resonance with young consumers, the Group has strengthened community connections across multiple dimensions and launched IP co-branding campaigns and offline community events. In terms of IP collaboration, the Group jointly launched co-branded products with trendy ACG IPs and participated in offline themed fairs. For offline experiences, leveraging stores as gathering hubs for sports enthusiasts, the Group partnered with brand allies to stage athlete China tour events. Meanwhile, its own 悟空体育 community IP has joined hands with brand partners, shopping malls and sports groups to organize diverse offline activities. By expanding diversified "sports-plus" scenarios, the Group has built stronger value alignment with younger generations, effectively enhancing users’ sense of belonging and brand preference.

Systematic Positioning: Diversified Matrix & Capability Upgrade of Professional Sports Segments

As running communities keep expanding and public sports participation grows more professional, consumer demand for professional functionality and emotional value keeps rising. Against this backdrop, backed by a diversified brand portfolio covering comprehensive sports, professional sports, casual sports and IP culture, the Company stepped up efforts in high-growth segmented tracks such as running and outdoor sports. By continuing to enrich brand lineup and product offerings, and fostering full-spectrum supporting operational capabilities, the Group has secured a forward-looking position in high-potential niche markets.

As the exclusive operational partner of Norr?na, norda?, Soar, Ciele and other brands in the Chinese market, 悟空体育 undertook full-spectrum operations including brand strategic positioning, localized content creation, omni-channel retail implementation and sports community cultivation for these brands across the country. In the outdoor segment, leveraging its accumulated experience in outdoor business operations, Norr?na has further improved its professional layout and service capabilities in the high-end outdoor market. In the running segment, in light of the distinct features of each brand, the Group steadily advanced the omni-channel layout of norda?, Soar, Ciele and other brands. The Group keeps catering to core groups of trail running and high-end sports enthusiasts, and continuously deepens exploration and practice in localized brand operation.

Meanwhile, the Group launched ektos—its first running lifestyle concept store in Shanghai. Built on multi-brand retail operations, the venue serves as both a space for running-themed cultural events and a hub for community bonding, aiming to build a local running cultural brand rooted in the domestic market. During the period, ektos gradually built solid market reputation and gained recognition among professional runners by participating in marathon expos, launching trail running pop-up events and regularly organizing running club and community activities.

Intelligence-Led Future: Digital Intelligence and AI Solidifying Intrinsic Development Impetus

The Group is fully aware that its complex business landscape featuring multi-brand portfolio management, extensive SKU operations and omni-channel layout, coupled with a massive user base, creates ideal conditions for AI to deliver large-scale efficiency gains and targeted business empowerment. In this fiscal year, the Group’s digital platform has undergone in-depth intelligent upgrading. Centering on precision and efficiency, the Group closely aligns digital transformation with business strategies. This shift drives business decision-making from experience-based judgment to intelligent data-driven governance, and builds a comprehensive intelligent capability system spanning frontline execution to senior management decision-making.

In merchandise operations and supply chain, supported by an AI-powered management system, the Group optimizes the entire process of product selection, ordering and pricing, enabling refined inventory management and enhancing inventory turnover efficiency. In omni-channel retail operation, the Group launches the intelligent in-store Panoramic Compass. Equipped with round-the-clock sales assistance, intelligent product recommendation and AI merchandise selection tools, it effectively improves the matching efficiency among consumers, products and occasions, and facilitates efficient user engagement and conversion. In user operation and marketing, the Group establishes an AIGC content production hub and precise marketing system, integrates omni-channel membership benefits and multi-occasion coupon management, drives sales conversion growth through AI-enabled mass content creation. In business management and decision-making, the Group has built a unified data middle platform and intelligent decision cockpit. The platform integrates full-scale business data and completes systematic upgrades, greatly improving operational efficiency and the accuracy of business analysis and judgment. In general administration, the Group deploys knowledge middle platforms and functional AI applications to accumulate corporate digital assets and elevate organizational efficiency. The Group independently develops multi-occasion AI tools and implements them in core business procedures, steadily building a scenario-oriented and data-interconnected AI-enabled business ecosystem.

Sustainable Development

During the period, aligned with its ESG vision, the Group further advanced sustainable development practices and integrated sustainable development concepts into its business processes. The Group actively responded to the UN Sustainable Development Goals (SDGs) and the national dual-carbon strategy, formulated a ten-year medium-to-long-term carbon reduction roadmap and quantified development targets, with absolute Scope 1 and Scope 2 greenhouse gas emissions dropping by 16% year-on-year. The Group also conducted climate scenario analysis for the first time to systematically study and assess relevant climate-related risks. Meanwhile, the Group advocates the green circular economy. Leveraging its public welfare IP GREENBOX, the Group launched regular used clothing recycling programs at offline stores. A total of nearly 3 tons of used clothes were recycled, equivalent to reducing carbon emissions by approximately 10 tons. In terms of social responsibility, we uphold a people-oriented philosophy, foster an equal, inclusive, healthy and friendly workplace, and build a sound training system as well as clear career development paths. We also take an active part in public welfare initiatives to fulfill corporate social responsibilities and give back to society. The Group has received sustained recognition from multiple authoritative institutions, with its MSCI ESG rating maintaining an industry-leading position, fully demonstrating the Company’s firm commitment to and solid progress in sustainable development.

Outlook

Driven by policy dividends, technological advancement and upgraded consumer demands, the sports consumption industry keeps evolving with increasingly fierce competition, presenting both opportunities and challenges. Faced with the complex market landscape, the Group adapts to market trends and takes on challenges head-on. Through forward-looking strategic layout and efficient execution, the Group continuously sharpens its core competitiveness in sports retail. The Group strives to deliver high-quality all-scenario services to consumers, build a mutually beneficial and symbiotic value ecosystem together with brand partners, and create steady and sustainable long-term returns for shareholders, while continuing to advance its long-term development.

Management stated: “Looking ahead, the Group will steadily advance long-term development around four core directions: prioritize operational efficiency to sustain steadiness of core business fundamentals; pursue systematic positioning to optimize the professional segment matrix and upgrade core capabilities; empower development via digital intelligence to deepen omni-channel digital transformation and AI implementation; and pursue win-win collaboration while following an ESG development path with distinctive corporate features.”

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About 悟空体育 International Holdings Limited

悟空体育 is a leading sportswear retail operator in China. It has an extensive and deeply penetrated retail network across the country and an omni-channel interconnected layout of online and offline touchpoints, with in-depth cooperation with more than 20 well-known sports brands. 悟空体育 is committed to providing consumers with first-class sports goods and services, and creating a never-ending, active, healthy and joyful sports lifestyle experience.