TOPSPORTS (06110) Interim Report: From Deep Channel Cultivation to Full-Chain Value Creation, Continuously Expanding the Boundaries of Sports Retail

On the evening of October 28, TOPSPORTS (06110), a leading sports retail operator in China, released its interim results announcement for the 2026/27 fiscal year. For the six months ended August 31, 2026, TOPSPORTS achieved operating revenue of RMB10.91 billion and net profit of RMB660 million; inventory amount decreased by 15.7% year-on-year, with inventory levels maintained in a healthy range; net cash generated from operating activities was RMB1.84 billion, and bank balances and cash were RMB3.09 billion, reflecting solid cash flow; the interim dividend payout ratio was 102.9%, with cumulative dividends of RMB16.25 billion since listing, demonstrating a continued emphasis on shareholder returns. Strengthening the Foundation of Omnichannel Operations, Continuously Forging Endogenous Momentum At the retail operations level, TOPSPORTS continues to closely follow changes in market trends, repositioning and dynamically adjusting the roles of various channels from an omnichannel perspective. With its physical store network as the business foundation, it connects multi-dimensional online channel capabilities around consumers' diverse consumption scenarios, driving quality and efficiency improvements in overall operations. At the same time, TOPSPORTS maintains close long-term partnerships with its partner brands. Leveraging the omnichannel network, consumer recognition, and operational synergy accumulated through years of cooperation, TOPSPORTS continues to play the important role of retail terminals in brand display, consumer experience, and product sales, providing support for the long-term development of partner brands in the Chinese market. Offline, TOPSPORTS focuses on sales per square meter and sales per employee as core levers, continuously iterating store role positioning and driving channel structure optimization, transforming stores into composite nodes integrating brand experience, omnichannel fulfillment, and user operations, continuously unleashing the omnichannel hub value of stores. Online, TOPSPORTS further optimizes and refines consumer touchpoints, relying on diverse channels such as local life services, instant retail, and private domains to respond to consumer needs across multiple dimensions, forming deep synergy with offline stores. Meanwhile, TOPSPORTS dynamically optimizes omnichannel resource allocation around the differentiated positioning and development stages of different partner brands, to better support brand development needs at different stages. At the same time, TOPSPORTS focuses on the three dimensions of "demand matchingscenario penetrationexperience value," deepening refined user operations. Relying on rich sports scenarios and diverse user activities, it continuously deepens consumer connections, constantly exploring and activating user value. As of the end of August 2026, TOPSPORTS' cumulative user count reached 95 million, with members contributing over 90% of total retail sales across offline stores and WeChat mini-programs; repeat-purchase members maintained a contribution of approximately 60% to member consumption, with high-value members accounting for approximately 35% of that contribution. In addition, TOPSPORTS continues to deepen digital and intelligent applications, integrating AI and other technologies throughout core areas such as merchandise and supply chain management, omnichannel retail operations, user marketing, business management, and organizational management, driving high-quality business development through technology empowerment. Continuing to Increase Investment in Sports Niche Tracks, Accelerating the Accumulation of Full-Chain Operational Capabilities Facing the increasingly diversified and professional development trend of sports consumption demand, TOPSPORTS continues to increase investment in niche tracks such as running and outdoor, continuously expanding its brand partnership matrix to better meet consumer needs. In exclusive operating partnerships, TOPSPORTS leverages full-chain operational capabilities covering brand communication, marketing, omnichannel sales, and consumer operations to continuously advance the domestic market operations of top outdoor brand Norrna and professional running brands norda, Soar, and Ciele, with brand operation capabilities continuously being realized. During the period, Norrna opened at Chengdu SKP, further improving its premium commercial district channel layout and continuously connecting with high-net-worth outdoor customer groups; norda opened a limited-time experience space at Beijing SKP, creating a gathering place for runners; Ciele's Tmall official flagship store officially launched, and it landed at popular running landmarks in Shanghai with a mobile experience space and appeared at the Moganshan Trail Race, deeply reaching core running communities. In August this year, TOPSPORTS added a new piece to its outdoor layout, obtaining exclusive operating rights for professional outdoor brand Sierra Designs in the Chinese market. Founded in 1965, Sierra Designs combines professional outdoor DNA with pioneering aesthetic design. With the addition of Sierra Designs, TOPSPORTS' outdoor footprint further expands, covering a broader range of scenarios and consumer groups. While continuously introducing professional sports brands, TOPSPORTS actively explores innovative formats, deepening connections with young consumer groups through running ecosystem brand ektos. With the philosophy of "co-creation with runners," ektos brings together more than 20 top professional running brands, covering diverse scenarios such as urban road running, trail running, and marathons. During the period, ektos opened its second store in Aranya, Qinhuangdao, while continuing to unite runner communities and accompany runners through diverse forms such as store experience creation, professional race participation, and community activity organization. Furthermore, TOPSPORTS consistently upholds a long-term development philosophy, integrating sustainable development into every aspect of business management and value creation, continuously improving ESG governance standards. With outstanding performance in comprehensive ESG governance, TOPSPORTS continues to be recognized by internationally authoritative rating agencies, with its MSCI ESG rating maintained at AA level, leading the industry. In the future, TOPSPORTS will anchor itself to the omnichannel retail foundation and niche track layout, continuously honing brand operation capabilities, expanding the value boundaries of sports retail, and achieving steady, sustainable long-term development.