Earnings release
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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. East Buy Holding Limited ʮ̡ (Incorporated in the Cayman Islands with limited liability) (Stock code: 1797) ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 MAY 2026 The Board of East Buy Holding Limited is pleased to announce the consolidated results of our Group for the Reporting Period, being the financial year ended 31 May 2026. These annual results have been audited by our Company ’s external auditor, Deloitte Touche Tohmatsu, and reviewed by the Audit Committee. In this announcement: (a) “we”, “us”, and “our” refer to the Company and where the context otherwise requires, the Group; and (b) our consolidated financial statements are presented in Renminbi unless otherwise stated, which is our Group ’s primary functional currency, and presented figures are approximations that are rounded to the nearest whole number or one decimal place, as appropriate. FINANCIAL HIGHLIGHTS FY2026 FY2025 Change RMB’000 RMB’000 Revenue 5,701,007 4,392,071 29.8% Operating profit 663,391 (109,884) 703.7% Profit before tax 684,360 60,745 1,026.6% Profit for the year 543,870 6,191 8,684.8% Profit for the year attributable to: – Owners of our Company 543,549 5,735 9,377.8% – Non-controlling interests 321 456 (29.6%) Earnings per share – Basic (RMB) 0.52 0.01 5,100.0% – Diluted (RMB) 0.51 0.01 5,000.0% Non-IFRS measure: Adjusted profit for the year (unaudited) (1) 628,600 173,546 262.2% Non-IFRS measure: Adjusted EBITDA (unaudited) (2) 792,619 98,893 701.5%
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2 Notes: (1) Adjusted profit ( “Adjusted Profit ”) for the year represents profit for the year less loss on fair value changes of financial assets at FVTPL (non-current), gain on disposal of a financial asset at FVTPL (non-current) and loss on disposal of an associate, plus share-based compensation expenses for the financial year. (2) Adjusted EBITDA ( “Adjusted EBITDA ”) (or earnings before interest, taxes, depreciation, and amortisation) represents profit for the year plus income tax expenses, share-based compensation expenses, finance costs, impairment losses recognised under expected credit loss model, net, depreciation of property and equipment, depreciation of right-of-use assets, less other income, gains and losses for the financial year. BUSINESS OVERVIEW AND OUTLOOK Our business We have positioned our Company as a private label products and livestreaming e-commerce platform that focuses on carefully selecting premium products for our customers, an outstanding product and technology company that continually provides agricultural products as its core product under our private label brand, “East Buy ” (˙ေ፯ ), and a cultural communication company that provides customers with a pleasant experience. Through the provision of high-quality products and services, the promotion of traditional Chinese culture and positive values, we hope to provide every customer and viewer with a better, healthier, and high-quality life. Since 2021, we have expanded our businesses in private label products and livestreaming e-commerce and established “East Buy ”, which has become a well-known online platform for selling top-quality and good value for money agricultural and other products. Not only does the platform offer an alternative channel for producers and local companies to sell high-quality agricultural and other products to a broader customer base, it also provides consumers with a platform which offers a wide range of high-quality products with transparency in pricing. Leveraging our deep understanding of customers ’ needs, we select quality agricultural and other products for our customers through our integrated supply chain management and diversified cooperation with various third parties. We create value for consumers by providing various private label products under the “East Buy ” brand, which are designed to be healthy and high-quality with good value for money, including fresh foods, grocery, health and nutrition foods, apparel and underwear, personal care and household cleaners, makeup and cosmetics, paper goods and wipes, stationery, books and other products, etc. Through direct cooperation with producers and local enterprises, we aspire to promote quality products that have traditionally lacked sales channels and to improve the operational efficiency of the industry supply chain, so as to accelerate rural revitalisation and contribute long-term value to the relevant upstream and downstream industry.
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3 Being consistent with our Company ’s history, we continue to stand by a “customer-centric ” long-term development strategy. Through innovative livestreaming activities and providing premium services, we provide our customers with a unique and entertaining shopping experience that involves the sharing of knowledge, wisdom and Chinese culture and history. We have an established team of talented livestreamers and have adopted a multi-channel strategy to reach a wider consumer base. We have set up various livestreaming channels, including East Buy Beautiful Life (ݺand East Buy Private Label (ۜon Douyin (ࠪ ,) which focus on different product categories to continually create positive, unique and interesting content to attract and retain user viewership, while at the same time, promote traditional Chinese culture and share knowledge with consumers. During the Reporting Period, we have adopted a multi-platform strategy and sold our private label products on various platforms, such as Taobao (ଇᘒ), JD.com (؇Pinduoduo (εε), REDnote (ࣣߎMini Program (ʃҏ ), Mini Shops (ֳand our own APP. Our Company has also established a membership system which has provided members with unique and exclusive membership services and offered members with lower prices on a limited selection of nationally-branded and private label products in a wide range of merchandise categories on our own APP since October 2023. In 2026, we have accelerated the development of our offline channels and have established three offline experience stores in Beijing, Xi ’an, and Zhengzhou. Additionally, the Company ’s on-demand retail business has been officially launched in Shanghai and Beijing. The Company remains steadfastly committed to a “customer-centric ” philosophy. Guided by our “Three Highs ” product standards { “high safety, high-quality taste, and high value for money ” (“Зe৷ሯᄆˢ ”). The “East Buy” brand has become increasingly prominent in the industry, quickly becoming synonymous with “quality, accessibility, and lifestyle culture ” in China, particularly as related to agricultural and other daily necessities products, and thereby, our brand is gaining millions of loyal viewers/ followers and returning customers. The key operating metrics in the livestreaming e-commerce business are summarised below: FY2026 FY2025 Key operating data GMV (RMB) (billion) (1) 10.2 8.7 GMV of private label products (RMB) (billion) 5.4 3.8 Number of paid orders on Douyin (million) 97.4 91.6 Number of paid membership subscriptions on East Buy ’s APP (thousand) (2) 353.3 264.3 Notes: (1) Includes the paid GMV from all sales channels such as Douyin, Taobao and our own APP, etc. (2) Includes the number of paid members on East Buy ’s APP.
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4 Business developments Our financial performance We are pleased to deliver strong full-year results for FY2026, with sustained vigorous growth across our private label product business and livestreaming e-commerce business. Over the past years, the Group has steadily advanced strategic business transformation and internal organizational upgrading amid ongoing cyclical changes in external environment, while proactively navigating periodic public opinion challenges. Throughout the transformative journey, the Group has remained firmly focused on private label products-driven development and upheld user trust as the bedrock of all business operations, continuously consolidating operational fundamentals and enhancing the long-term certainty of our business growth. Our long-standing corporate principle remains unchanged: supplying consumers with carefully selected high-quality goods and considerate customer services under the “Three Highs ” product standards { “high safety, high-quality taste, and high value for money ” (“Зe৷ሯᄆˢ ”). During the Reporting Period, the Group has exhibited remarkable operational robustness and anti-risk capability. Centered on our long-term development strategy, we effectively coped with external market volatility and realised comprehensive improvement in top-line revenue and bottom-line profitability on a year-on-year basis. If we exclude the revenue amount generated by the livestreaming channel of Time with Yuhui, our total net revenue increased by 36.3% from RMB4.2 billion for FY2025 to RMB5.7 billion for FY2026; if we include the revenue amount generated by the livestreaming channel of Time with Yuhui, our total net revenue increased by 29.8% from RMB4.4 billion for FY2025 to RMB5.7 billion for FY2026. Operating profit turned from a loss of RMB 109.9 million for FY2025 to a profit of RMB 663.4 million for FY2026; if we exclude the impact of share-based compensation expenses, operating profit increased by 1,366.4% from RMB 50.8 million for FY2025 to RMB 744.5 million for FY2026. Operating profit margin increased significantly from a loss margin of 2.5% for FY2025 to a profit margin of 11.6% for FY2026. Meanwhile, net profit increased by 8,684.8% from RMB6.2 million for FY2025 to a net profit of RMB543.9 million for FY2026. Adjusted net profit increased by 262.2% from RMB173.5 million for FY2025 to a net profit of RMB628.6 million for FY2026. Benefiting from the investments on the product side, improved user experience, expansion of livestreaming matrix and refined overall operational management, growth momentum picked up remarkably in the second half of FY2026, delivering outstanding performance. Specifically, the revenue for the second half of FY2026 amounted to RMB3.4 billion, as compared to RMB2.2 billion recorded in the second half of FY2025, representing year-on-year growth of approximately 53.7%. Meanwhile, the operating profit for the second half of FY2026 reached RMB398.9 million, an increase of RMB134.3 million compared with the first half of FY2026. Operating profit margin also rose from 11.4% in the first half of FY2026 to 11.8% in the second half of FY2026. The net profit for the second half of FY2026 amounted to RMB304.8 million, as compared with the net profit of RMB102.7 million in the corresponding period of FY2025, representing year-on-year growth of 196.8%. The Group maintained robust profitability throughout the Reporting Period, steadily consolidating the fundamental strengths required for stable and sustainable long-term corporate growth.
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5 Core performance of private label products During the Reporting Period, the Group made significant progress in private-label product development and supply chain management. As of 31 May 2026, cumulative private-label SPUs reached 1,009 (732 as of 31 May 2025). The product categories have expanded from the initial fresh food and snacks to a much broader matrix { healthcare products, paper towels and wet wipes, personal care and household cleaning, home textiles, as well as apparel and underwear { with new offerings such as herbal foot-soak packs, maternity and baby products, low-GI food and skincare products in development, continuously filling gaps across family scenarios. Guided by its three product standards of “high safety, high quality taste and high value for money ”, the Group is shifting its business model from traffic-driven to product-driven. On one front, it accelerates the launch of new products and fills category gaps to build a richer product portfolio around Chinese households ’ core needs for health and convenience; on the other, it continuously speeds up the iteration and upgrading of existing products, holding the quality bottom line with a perfectionist attitude { “polishing nearly twenty formula versions of a single product before it is allowed to launch, and sourcing from over a hundred supply-chain partners ”. To uphold these standards, the Group has established a full-chain quality control system spanning “raw-material traceability { factory audit { in-production inspection { ex-factory testing { delivery fulfilment ”, and adheres to a clean-label philosophy (no trans fats, artificial flavours, artificial colours or preservatives unless essential; real ingredients, rejecting additive stacking on the ingredient list). The origin of core raw materials and suppliers is fully traceable, and the Group builds a differentiated private-label advantage over peers through solid quality and transparent information, bringing consumers a more reassuring and better product experience. In terms of private-label food products, over 200 new private-label products were launched during the year. Strategic categories such as health & nutrition and seafood & aquatic products scaled up rapidly and formed differentiated category barriers; peeled shrimps, pure milk, probiotics and the seasonal product cherries became blockbuster hits. Behind this lies a user-data-driven product logic: member and consumer demands and feedbacks are used to push formula and process upgrades, concentrating resources to build a “buy-without-thinking ” benchmark hit in a category rather than stacking SPUs through sprawling assortments. In non-food (daily necessities) private-label products, new-product development and legacy-product iteration accelerated in tandem. Both fronts are underpinned by the full-chain quality control system: the product-manager and quality-control teams have been continuously expanded, with staff conducting products traceability at source factories and reviewing ingredient lists item by item, proactively halting and scrapping products that fail internal control standards. The Group follows a “broad categories, refined single products ” selection logic, benchmarking against industry-leading supply chain standards to build a proprietary high standard system so as to select partner factories and participating in end-to-end control from seed/origin to delivery. The Group builds a differentiated product strength of “good ingredients, clean formulas, great experience ” on the foundation of real ingredients, clean labels and traceability, ensuring stable delivery and continuous optimization of its rich product portfolio. We are pleased that our private label products have become a key growth driver, accounting for approximately 52.6% of total GMV in FY2026.
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6 Additionally, East Buy continued to optimize its existing warehouse network layout and enhance operational capabilities. In FY2026, East Buy established an integrated nationwide warehousing and fulfillment network, to form a centralized management network for all product categories. Leveraging refined operational measures such as warehouse network optimization and bulk shipping, cost reductions were achieved on the fulfillment side: logistics costs as a percentage of GMV continued to be optimized, and per-unit warehousing costs decreased. In FY2026, our customer service team has cumulatively served over 10 million customers, achieving a customer satisfaction rate of 97%. We continue to strengthen our customer service capabilities by leveraging AI technology to empower core service processes, releasing manpower at scale, accumulating intelligent agent expertise, and building an intelligent operational foundation capable of supporting business fluctuations. We have also normalized the Voice of the Customer (VOC) program, using service insights to drive improvements in front-end business operations. The East Buy proprietary APP is positioned as the core vehicle of the brand ’s private domain, the primary base for membership operations, and a one-stop family consumption solution platform. During the Reporting Period, we continued to invest heavily in the APP ’s technology iteration, supply-chain onboarding, content operations, and membership benefits system. The APP ’s user base, transaction volume, and paying customer average order value all achieved continuous and steady growth; user stickiness, and per-customer value were further enhanced, and the membership-economy business model continued to improve. In FY2026, the East Buy APP featured over 10,000 products, accumulated more than 10 million registered users. The Company adopts the multi-platform, multi-matrix strategy to expand its reach for a wider consumer base and increase brand awareness and influence. As a core public domain traffic platform, Douyin continued to be a key focus for the Group, where we launched or upgraded 11 new Douyin vertical accounts, expanding its matrix to 18 channels, optimized our traffic delivery strategy, and successfully expanded our intended customer groups. Meanwhile, we expand our sales reach through new approaches such as short-video, influencer cooperation, and product recommendation and sales, thereby driving the sustainable growth of GMV. While continuing to enrich the products and services in online shop channels in different platforms, e.g. Mini Programs, Mini Shops, Tmall, JD.com, Pinduoduo, REDnote, we began to explore offline channels leveraging strong brand recognition and New Oriental ’s Learning Centers network.
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7 We have launched the vending machine project and have deployed over 100 vending machines across different regions nationwide, with operations in 26 cities. These vending machines are currently placed primarily on New Oriental ’s school campuses. We plan to scale this initiative further, expanding coverage to office buildings, residential communities, schools, corporate campuses, and other locations to supplement offline sales channels. We are encouraged that our first offline experience store in Beijing ’s Zhongguancun ( ̏ԯʕᗫӀ ) has delivered better-than-expected traction since commencing trial operations in early May 2026. The approximately 400-square-metre store offers consumers a one-stop “shopping + leisure + social interaction ” experience. The store showcases the Group ’s private-label products across a full range of categories { including fresh produce, snacks, daily necessities and home goods { which now account for over 75% of the store ’s assortment, alongside a curated selection of third-party quality offerings. It features interactive zones such as product traceability display areas and tasting stations, using tangible quality demonstrations to strengthen consumer trust in our products. With a focus on neighborhood consumption needs, it provides convenient services including online ordering, in-store delivery and pickup, and instant retail serving surrounding communities, as well as member-exclusive benefits under our unified membership program. The store serves as a physical showcase for our private-label system and an integral touchpoint within the Company ’s “livestreaming + shelf-based retail + offline instant retail ” omni-channel network. The Company will continue to expand its offline stores and nationwide instant retail front warehouses in the future. To further extend our offline network, in July 2026 the Company has partnered with campuses of the New Oriental to open stores in Zhengzhou and Xi ’an, extending the offline experience from a benchmark directly-operated store to a “cooperative operation ” model. Leveraging the brand influence of New Oriental, as well as the high-frequency foot traffic and community nature of its campuses, this model brings the Company ’s high-quality private-label products and healthy lifestyle proposition to more Chinese households. Further, we have emphasised talent training, strengthening organisational structure building, and advocating a unified set of values to ensure that our employees can maximise their potential in their respective positions and collectively contribute to the Company ’s long-term development. As of 31 May 2026, the total number of personnel in our private label products and livestreaming e-commerce team reached 1,812, of which 1,233 were full-time employees and 579 were part-time employees. We also had 983 personnel dedicated to our supply chain and product, of which 715 were full-time employees and 268 were part-time employees. Driven by the implementation of the aforementioned strategies, our GMV has grown in tandem. If we exclude the GMV generated by the livestreaming channel of Time with Yuhui, our GMV increased by 36.4% from RMB7.5 billion for FY2025 to RMB10.2 billion for FY2026; if we include the GMV generated by the livestreaming channel of Time with Yuhui, our GMV increased by 17.6% from RMB8.7 billion in fiscal year 2025 to RMB10.2 billion in fiscal year 2026. More specifically, our GMV increased by 54.5% from RMB3.9 billion for the second half of FY2025 to RMB6.1 billion for the second half of FY2026. While the GMV from Douyin represented a large majority of our GMV, the total number of paid orders from our third-party products and our private label products on Douyin for FY2026 increased to approximately 97.4 million.
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8 FUTURE OUTLOOK BEYOND THE REPORTING PERIOD Future plans for the private label products and livestreaming e-commerce business We are embracing a new beginning and continue to be committed to providing users with high-quality products and services. Our strategic positioning is firm and clear. In the future, we will continue to strive to become a livestreaming platform that focuses on carefully selecting premium products for our customers, an outstanding product and technology company that continually provides private label products as its core product under our brand, “East Buy ”, and a cultural communication company that provides customers with pleasant experience. We firmly believe in our mission of promoting public welfare and creating value for society. Going forward, we will focus our efforts in the following key areas: User trust serves as the foundation of everything User trust is the fundamental cornerstone for East Buy ’s long-term operations and the robust development of its membership program. The recognition and trust from our broad user base has been the core confidence driving the Company ’s efforts to refine products, iterate services, and expand its online and offline retail presence. Striving for long-term development, the Company will steadfastly uphold its commitment to operating with integrity, and will continuously upgrade its products and service system across different pillars: long-term value creation, consumption experience, as well as customer services and assurance, safeguarding user trust through actions. We adhere to the core principle of “Share value creation gains with customers ”(“௴ , ᚃΫ㉿͜˒ ”). In the future, we will establish a unified cross-channel membership benefits mechanism which spans across WeChat Video Accounts (ൖ᎖ ), the official APP, and offline experience stores, in order to solidify an exclusive membership discount system. We will continue to expand monthly coupon packages for members, renewal incentives, priority access to new products, and other basic benefits, while establishing a price difference guarantee mechanism for member purchases, ensuring that the value of each member ’s subscription is visible, measurable, and tangible. Leveraging full-chain product traceability and regular quality inspection disclosure mechanisms, we have published inspection reports and origin traceability information for our private label products, using stringent quality control to build the first line of defense for trust, enabling users to consume or use our products with confidence and peace of mind. Leveraging the livestreaming matrix and APP community, we will build a platform for members ’ intellectual engagement, integrating knowledge value and cultural attributes into the membership service system via creative livestreaming events and offline events. We will regularly offer senior members exclusive in-depth benefits such as, themed tours, and co-creation opportunities, sharing the origin stories behind every private label product, listening to customers ’ genuine suggestions on product selection, services, and activities, and incorporating user feedback as a core input for product iteration and service optimization.
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9 The Company will establish an independent customer service management module and implement a regular user satisfaction survey mechanism, which enabled the optimization of the structure and service standards based on user experience data. In addition, all membership rules, benefit details, and fee standards will be fully disclosed transparently, eliminating hidden restrictions or unannounced rule changes. We are aware that membership fees represent a trust placed in us by users. Going forward, we will not simply pursue membership scale growth as a goal, but rather adopt renewal rates, user satisfaction, and reputation recognition as core service assessment indicators, fulfilling our commitment to all members through stable, long-term, and sincere services. Staying true to our original aspiration, treating each other with sincerity. East Buy will always place user trust as its top priority, accompanying our users and members in the long run with standardized product excellence, refined service capabilities, and a warm sense of companionship, in order to jointly build a long-term consumption relationship of mutual trust and shared commitment. Pursuing ultimate product quality with high-quality ingredient and clean formula At East Buy, products are our mission, and quality is our creed. Currently, the Company has generated over 26,000 quality inspection reports for its private label products and invested tens of millions of Renminbi each year in product testing to fully guarantee the outstanding quality of our full range of products. Expenditure on quality inspection is not a calculable cost item, but an immeasurable commitment to safety. Our investment in quality control is unconstrained by cost and unshakable. We adhere to the principle of “simplified ingredient lists ”. We continue to expand the supply of high-quality new products across all categories to respond to consumers ’ frequent demands. Four segmented product lines have been rolled out, namely low-GI healthy food, small-sized portable packaged products, organic fresh produce, and zero-additive, low-fat and low-sugar food. For existing mature products, we implement an in-depth supply chain co-construction strategy. The model is upgraded from traditional procurement to deep collaboration featuring designated production regions, joint development of exclusive formulas and production processes with manufacturers, enabling us to secure production capacity of core high-quality raw materials in advance. Looking ahead to FY2027, the development model for private label products will be comprehensively upgraded, shifting from sporadic new product launches in the past to systematic, matrix-based and cyclical long-term product operation. We will build a comprehensive private label product matrix and improve full-scenario product offerings catering to household needs. As a core medium-to-long-term strategy, forward-looking global deployment will be carried out in phases under a two-way product layout covering domestic and overseas markets. AI-enabled operational efficiency improvement To date, the global retail industry is undergoing a technology-driven systemic transformation. The Company has consistently kept a close watch on and attached great importance to the far-reaching impact of technological evolution.
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10 Although the application of Generative AI and its derivative technologies remains at an early stage, the Company will continue to explore and adopt new technologies. We will enhance efficiency of our customer service by deploying AI tools across all service scenarios. We plan to restructure existing processes by implementing large model-driven sales conversion and codify best-practice service strategies. By launching a pre-sales shopping guide agent on the APP, we expect to transform the existing basic “shop assistant ” to a 24/7 premium shopping consultant; and to further enhance the conversion capabilities of chatbots, so that they can evolve from a passive, scripted FAQ responder into a top-performing sales associate that understands customer preferences and product pairings to facilitate transaction conversion. The core position of membership system East Buy is building an integrated online-offline omni-channel membership ecosystem, implementing systematic operational initiatives across different areas, including benefits operations, cross-channel interoperability, value-added content and offline collaboration, continuously enhancing member stickiness, repeated purchases, and brand identification. The Company has established a standardized long-term membership operation mechanism, consistently delivering exclusive consumer benefits, such as (i) monthly dedicated member discount campaigns and targeted member coupon packages; (ii) continuous iteration of membership enrollment incentives, which the Company has completed three rounds of benefit upgrades; (iii) a limited-time “buy two years, get two years free ” renewal offer; and (iv) a membership task system which aims to drive daily user engagement, comprehensively improving membership renewal rates and purchase frequency. Membership benefits are universally accessible across channels and scenarios. Member prices, coupons, loyalty points, and other benefits are standardized across the East Buy APP, Mini Programs, and offline experience stores. Online and offline membership identities are unified, eliminating channel barriers and providing users with a consistent, seamless premium consumption experience.
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11 Through exclusive content, we aim to elevate the sense of exclusive membership value. We will establish original IP livestreaming matrix. Going forward, Mr. YU Minhong and all livestreamers will regularly host member-exclusive livestreaming sessions and knowledge-sharing events, delivering diverse and in-depth content to members. We will also provide knowledge-sharing benefits to members who enjoy access to free reading, podcast listening, family education video series, and other exclusive learning resources, balancing both consumption and intellectual value. In collaboration with New Oriental ’s nationwide offline learning centers, we have deployed member self-pickup and offline experience models, opening dedicated offline membership enrollment channels to fully leverage the existing potential of New Oriental ’s student base. Some New Oriental students have completed membership card enrollment and generated paid transactions. As offline stores continue to accumulate membership, together with the two-way customer channeling between online and offline members, the Company believes that this will enable the further expansion of overall consumer group. Developing professional talent pool To support the implementation of our strategic direction, East Buy will strengthen organizational capabilities across three pillars: human resources, talent development and organizational building. In terms of human resources, we will develop a comprehensive, systematic and competitive compensation and performance framework to attract top talent, notably content-focused livestreamers, product R&D managers and quality control specialists. Adhering to a customer-centric approach, East Buy regards all product and customer-related initiatives as the cornerstone and competitive moat of our growth. In terms of talent development, we identify strategically critical roles based on business requirements, establish talent profiles and competency models, and assess managers against both performance and potential to enable flexible talent advancement. We will nurture talent via job rotations, mentorship schemes and cross-departmental strategic project workshops to lift overall talent capacity. In terms of organizational building, aligned with the FY2027 business strategy, we aim to foster an organisational culture underpinned by candor, respect, collaboration and innovation. We will break down communication barriers and departmental silos, build mutual trust and encourage exploratory mindsets to drive sustained innovation. These efforts will underpin the development of an agile, efficient and resilient high-performance organisation to deliver our strategic goals.
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12 Upholding Three High standards to fulfill corporate social responsibility The Company has always placed food safety as the utmost important foundation of its operations, strictly implementing the “Three Highs ” core product standards { “high safety, high-quality taste, and high value for money ” ( “Зe৷ሯᄆˢ ”), building a robust food safety defense through a stringent full-chain quality control system, and continuously fulfilling its corporate social responsibility. From raw material traceability, production and processing, factory inspection, to warehousing and fulfillment, standardized management and control mechanisms are established at every stage. Safety inspection requirements exceeding industry standards are applied to all private label products across all categories, adhering to the red line of food safety. Concurrently, we deepen high-quality industry supply chains, carefully select premium raw materials, refine product craftsmanship, and balance superior user experience with accessible pricing, bringing safe, high-quality, and cost-effective products to millions of households. Leveraging our omni-channel business deployment, deep partnerships with production regions, and online-offline channel network, the Company continues to facilitate the upward distribution of quality agricultural products and popularize scientific and safe consumption concepts. Through solid product capabilities, rigorous safety management, and inclusive product offerings, we comprehensively fulfill our long-term responsibilities to consumers, the industry, and society. “Better living all with East Buy ” ( “ݺ , ˙ေ፯ ”). This is our commitment and our motivation to move forward. Looking ahead, East Buy will continue to deepen food safety control and social responsibility initiatives. While upholding its core strength of high quality, the Company will create a more reassuring consumption experience for consumers and inject sustained momentum into social development. MANAGEMENT DISCUSSION AND ANALYSIS Revenue Our revenue increased by 29.8% from RMB4.4 billion for FY2025 to RMB5.7 billion for FY2026, among which our revenue from our APP increased from RMB1.1 billion for FY2025 to RMB1.3 billion for FY2026. If excluding the revenue amount generated by the livestreaming channel of Time with Yuhui, our total revenue increased by 36.3% from RMB4.2 billion for FY2025 to RMB5.7 billion for FY2026. Our revenues from private label products increased by 37.4% from RMB3.5 billion for FY2025 to RMB4.8 billion for FY2026. During the Reporting Period, we continuously enhanced supply chain management, expanded our product categories, and increased the number of product offerings and SPUs. Cost of revenue, gross profit and gross margin Our total cost of revenue increased by 22.6% from RMB3.0 billion in FY2025 to RMB3.7 billion for FY2026, primarily due to the increase in cost of inventories as a result of increase in the GMV for private label products. Our gross profit increased by 45.2% from RMB1.4 billion for FY2025 to RMB2.0 billion for FY2026. Our gross profit margin increased from 32.0% for FY2025 to 35.8% for FY2026, primarily due to the healthy development of our private label products and livestreaming e-commerce business, especially the increase in the contribution of health and nutrition products.
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13 Other income, gains and losses Our other income, gains and losses decreased by 80.0% from RMB176.9 million for FY2025 to RMB35.5 million for FY2026, primarily due to change from exchange gain amounted to RMB18.6 million in FY2025 to exchange loss amounted to RMB99.4 million in FY2026. Selling and marketing expenses Our selling and marketing expenses increased by 19.5% from RMB902.1 million for FY2025 to RMB1.1 billion for FY2026, primarily due to the increase in the headcount of product managers, the investment in the private label products development and advertising expenses on private label products business and livestreaming e-commerce business operations. In respect of advertising activities, we focus on Return-On-Investment (ROI) management. Research and development expenses Our research and development expenses decreased by 14.8% from RMB127 million for FY2025 to RMB108.3 million for FY2026, primarily due to the decrease in staff costs as we improved operational efficiency in the internet technology system and application for private label and livestreaming e-commerce business during the Reporting Period. Administrative expenses Our administrative expenses decreased by 61.0% from RMB484.8 million for FY2025 to RMB188.9 million for FY2026, primarily due to the distribution of all remaining undistributed profits from Time with Yuhui in FY2025 as disclosed in the announcement of the Company dated 25 July 2024. Share of results of associates Our share of profit of associates decreased from a loss of RMB0.7 million for FY2025 to a loss of RMB0.6 million for FY2026, primarily due to the disposal of Beijing Shidai Yuntu Book Co., Ltd. (பʮ̡ ). Income tax expenses Our income tax expenses were RMB140.5 million for FY2026, compared to RMB54.6 million for FY2025, primarily due to the increase in net profit during the Reporting Period. Net profit for the year As a result of the above, net profit increased from RMB6.2 million for FY2025 to a net profit of RMB543.9 million for FY2026.
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14 Non-IFRS measures To supplement our financial information presented in accordance with IFRS, we also use Adjusted Profit for the year and Adjusted EBITDA as non-IFRS measures, which are not required by, or presented in accordance with IFRS. We believe that these non-IFRS measures facilitate comparison of operating performance from period to period by eliminating potential impacts of items that our management does not consider to be indicative of our operating performance. We also believe these measures provide useful information to investors and others in understanding and evaluating our consolidated statements of profit or loss in the same manner as they have assisted our management. Please note, however, our presentation of Adjusted Profit and Adjusted EBITDA may not be comparable to similarly titled measures presented by other companies. The use of these non-IFRS measures has limitations as an analytical tool, and you should not consider it in isolation from, or as a substitute for analysis of, our consolidated statements of profit or loss or financial condition as reported under IFRS. We define Adjusted Profit for the year as profit for the year less loss on fair value changes of financial assets at FVTPL (non-current), gain on disposal of a financial asset at FVTPL (non-current) and loss on disposal of an associate, plus share-based compensation expenses for the financial year. We define Adjusted EBITDA for the year as profit for the year plus income tax expenses, share-based compensation expenses, finance costs, impairment losses recognised under expected credit loss model, net, depreciation of property and equipment, depreciation of right-of-use assets, less other income, gains and losses for the financial year. The following table reconciles our net profit for the year to Adjusted Profit for the year: FY2026 FY2025 RMB’000 RMB’000 (unaudited) (unaudited) Reconciliation of profit for the year to Adjusted Profit for the year: Net profit for the year 543,870 6,191 Add: Share-based compensation expenses 81,081 160,653 Less: Gain on disposal of a financial asset at FVTPL (non-current) 8,402 – Loss on disposal of an associate (11,991) – Loss on fair value changes of financial assets at FVTPL (non-current) (60) (6,702) Adjusted Profit for the year 628,600 173,546
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15 The following table reconciles our profit for the year to Adjusted EBITDA for the year: FY2026 FY2025 RMB’000 RMB’000 (unaudited) (unaudited) Reconciliation of net profit for the year to Adjusted EBITDA for the year Net profit for the year 543,870 6,191 Add: Income tax expense 140,490 54,554 Share-based compensation expenses 81,081 160,653 Finance costs 1,536 2,932 Impairment losses recognised under expected credit loss model, net of reversal 12,399 2,708 Depreciation of property and equipment 15,882 15,840 Depreciation of right-of-use assets 32,823 32,959 Less: Other income, gains and losses 35,462 176,944 Adjusted EBITDA for the year 792,619 98,893 OTHER INFORMATION ABOUT OUR FINANCIAL PERFORMANCE Liquidity and capital resources During the Reporting Period, we met our cash requirements primarily from cash and cash equivalents and proceeds from the 2020 Subscription. We had cash and cash equivalents of RMB1.7 billion as at 31 May 2026 compared to RMB2.5 billion as at 31 May 2025. We had term deposits of RMB1.5 billion as at 31 May 2026, compared to RMB0.6 billion as at 31 May 2025. We also had financial assets (current) at FVTPL of RMB2.3 billion and financial assets (non- current) at FVTPL of RMB0.3 billion as at 31 May 2026, compared to RMB2.0 billion as at 31 May 2025. Thus, total monetary capital was RMB5.8 billion as at 31 May 2026. Cash and cash equivalents were represented by bank balances and cash; and bank balances and cash comprised cash and short-term deposits with an original maturity of three months or less. Financial assets (current) at FVTPL and financial assets (non-current) at FVTPL comprised wealth management products. During the Reporting Period, we primarily used cash to fund required working capital and other recurring expenses to support the expansion of our operations. Going forward, we believe that our liquidity requirements will be satisfied by using funds from a combination of internally generated cash and net proceeds from our 2020 Subscription. As at the end of FY2026, our gearing ratio was 19.1%, compared with 16.0% at the end of FY2025, calculated as total liabilities divided by total assets.
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16 Cash flow The following table sets forth our cash flows for the two comparable years: FY2026 FY2025 RMB’000 RMB’000 Net cash from operating activities 802,193 89,292 Net cash (used in) from investing activities (1,418,161) 195,495 Net cash used in financing activities (160,661) (53,121) Net (decrease) increase in cash and cash equivalents (776,629) 231,666 Cash and cash equivalents at the beginning of the financial year 2,499,539 2,262,464 Effect of exchange rate changes (21,465) 5,409 Cash and cash equivalents at the end of the financial year 1,701,445 2,499,539 Net cash from operating activities Our net cash from operating activities primarily consists of our profit before tax for the financial year adjusted by non-cash items, non-operating items and changes in working capital. Our net cash generated from operating activities in FY2026 was RMB802.2 million. The difference between cash generated from operating activities before tax and interest of RMB937.2 million and the profit before tax of RMB684.4 million was mainly due to: (i) a RMB265.1 million increase in trade payables and a RMB58.9 million increase in accrued expenses and other payables due to the fast development of private label products; (ii) a net foreign exchange loss of RMB99.4 million; and (iii) excluding the effect of share-based compensation expenses of RMB81.1 million. Net cash (used in) from investing activities Our net cash used in investing activities in FY2026 was approximately RMB1.4 billion, primarily attributable to purchases of financial assets at FVTPL of RMB2.5 billion and placement of term deposits of RMB1.9 billion. Net cash used in financing activities Our net cash used in financing activities in FY2026 was approximately RMB160.7 million, primarily attributable to payments on repurchase of ordinary shares of RMB167.4 million and repayments of lease liabilities of RMB35.1 million. Capital expenditure The following table sets forth our capital expenditure for the years indicated: FY2026 FY2025 RMB’000 RMB’000 Purchase of property and equipment 6,841 25,830 Our capital expenditures were primarily for purchases of property and equipment in FY2025 and FY2026, respectively. Our purchases of property and equipment were RMB25.8 million for FY2025 and RMB6.8 million for FY2026, respectively.
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17 Off-balance sheet commitments and arrangements As at 31 May 2026, we had not entered into any off-balance sheet transactions. Future plans for material investments and capital assets As at 31 May 2026, we did not have any other foreseeable plans for material investments and capital assets. Material acquisitions and/or disposals of subsidiaries and associated corporations During the Reporting Period, we did not have any other material acquisitions and/or disposals of subsidiaries and associated corporations. Significant Investments Held Save as disclosed above, the Group did not make or hold any significant investments (including any investment in an investee company with a value of 5% or more of the Group ’s total assets as of 31 May 2026) during FY2026. Employees and remuneration policy As at 31 May 2026, we had 1,233 full-time employees and 579 part-time employees (31 May 2025: 1,070 full-time employees and 331 part-time employees). The number of employees employed by the Group varies from time to time depending on needs and employees are remunerated based on industry practice. Our success depends on our ability to attract, retain and motivate qualified personnel. The remuneration policy and package of the Group ’s employees are periodically reviewed. Apart from pension funds and in-house training programs, discretionary bonuses, share awards and share options may be awarded to employees according to assessment of individual performance. The total remuneration expenses, including share-based compensation expense incurred by the Group for FY2026 was RMB0.8 billion, representing a year-on-year decrease of 31.2% from RMB1.2 billion for FY2025. Foreign exchange risk Foreign exchange risk arises when commercial transactions or recognised assets and liabilities are denominated in a currency that is not the functional currency of our operating entities. We operate in the PRC with most of the transactions settled in RMB. During the Reporting Period, we had assets and liabilities denominated in United States dollars, Hong Kong dollars and Australia dollars. We continuously monitor changes in currency exchange rates and will take necessary measures to mitigate exchange rate impact.
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18 Indebtedness During the Reporting Period, we did not incur any bank loan or other borrowings. Our Directors consider that we have adequate cash and capital resources considering our bank balances and cash, term deposits and our financial assets at FVTPL, wealth management products generated from our operating activities and the net proceeds from the share subscriptions to fund our operations and expansion, therefore, we do not plan to incur any borrowing in the 12 months from the date of this announcement. Pledge of assets As at 31 May 2026, none of our Group ’s assets were pledged. Contingent liabilities As at 31 May 2026, we did not have any material contingent liabilities. CORPORATE GOVERNANCE AND OTHER INFORMATION Compliance with Corporate Governance Code Our Company was incorporated in the Cayman Islands on 7 February 2018 as an exempted company with limited liability, and our Shares were listed on the Main Board of the Stock Exchange on 28 March 2019. We are committed to maintaining and promoting stringent corporate governance. The principle of our Company ’s corporate governance is to promote effective internal control measures and to enhance the transparency and accountability of the Board to all shareholders of our Company. During the Reporting Period, the Company has complied with all the applicable code provisions as set out in Part 2 of the Corporate Governance Code except for the following deviations: Pursuant to code provision C.2.1 of the Corporate Governance Code, the roles of the chairman of the Board and the chief executive should be segregated and should not be performed by the same individual. The division of responsibilities between the chairman and chief executive should be clearly established and set out in writing. The Company does not have separate chairman of the Board and chief executive officer, and Mr. Yu Minhong, our executive Director, currently performs these two roles (since his redesignation as an executive Director and appointment as chief executive officer on 16 December 2023). The Board believes that vesting the roles of both chairman of the Board and chief executive officer in the same person has the benefit of ensuring consistent leadership within the Group and enables more effective and efficient overall strategic planning for the Group. The Board considers that the balance of power and authority for the present arrangement will not be impaired and this structure will enable the Company to make and implement decisions promptly and effectively. The Board will continue to review and consider splitting the roles of chairman of the Board and the chief executive officer of the Company at a time when it is appropriate by taking into account the circumstances of the Group as a whole.
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19 We will continue to regularly review and monitor our corporate governance practices to ensure compliance with the Corporate Governance Code, and maintain a high standard of corporate governance practices of the Company. Compliance with the Model Code for Securities Transactions by Directors We have adopted the Model Code as the code of conduct regulating our Directors ’ dealings in our Company ’s securities. To the best of our Directors ’ knowledge and belief, all our Directors confirm that they have complied with the required standards set out in the Model Code during the Reporting Period. Audit Committee Our Board has established an Audit Committee in compliance with Rule 3.21 of the Listing Rules and the Corporate Governance Code (as amended from time to time). The primary duties of the Audit Committee are to review and supervise the financial reporting process and internal controls system (including risk management) of our Group, to review and approve connected transactions (as defined in the Listing Rules) and to provide advice and comments to the Board. The Audit Committee consists of three members: Mr. YAN Andrew Y (as the Audit Committee ’s chairperson), Mr. KWONG Wai Sun Wilson and Mr. LIN Zheying. The Audit Committee, together with our external Auditor, Deloitte Touche Tohmatsu, have reviewed our Group ’s audited consolidated financial statements for FY2026. The Audit Committee has also discussed matters with respect to the accounting policies and practices adopted by our Company and internal control measures with senior management members. Other Board Committees In addition to our Audit Committee, the Company has also established a nomination committee and a remuneration committee. Purchase, Sale or Redemption of our Listed Securities During the Reporting Period, the Company repurchased approximately 7,418,000 Shares (the “Repurchased Shares ”) on the Stock Exchange at an aggregate consideration of HK$186,752,530. Particulars of the Repurchased Shares are as follows: Month of repurchase Number of Repurchased Shares Highest price paid (HK$) Lowest price paid (HK$) Total consideration paid (HK$) May 2026 7,418,000 27.08 22.86 186,752,530
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20 As at the date of this announcement, all the Repurchased Shares have been cancelled. The Company considered that the above repurchases demonstrated the Company ’s confidence in its own business outlook and prospects and would, ultimately, benefit the Company and create value for Shareholders. Save as disclosed above, neither our Company nor any of its subsidiaries purchased, sold or redeemed any of our Company ’s securities listed on the Stock Exchange (including sale of treasury shares (as defined in the Listing Rules)) during the Reporting Period. As of 31 May 2026, the Company did not hold any treasury shares (as defined in the Listing Rules). Scope of work of Messrs. Deloitte Touche Tohmatsu The figures in respect of the Group ’s consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income and the related notes thereto for the year ended 31 May 2026 as set out in the preliminary announcement have been agreed by the Group ’s auditor, Messrs. Deloitte Touche Tohmatsu, to the amounts set out in the audited consolidated financial statements of the Group for the year as approved by the Board of Directors on 21 August 2026. The work performed by Messrs. Deloitte Touche Tohmatsu in this respect did not constitute an assurance engagement and consequently no opinion or assurance conclusion has been expressed by Messrs. Deloitte Touche Tohmatsu on the preliminary announcement. Material Litigation During the Reporting Period, our Company was not involved in any material litigation or arbitration; nor were our Directors aware of any material litigation or claims that were pending or threatened against our Company as at 31 May 2026. FINAL DIVIDEND Our Board does not recommend the distribution of a final dividend for FY2026 (FY2025: Nil). CLOSURE OF REGISTER OF MEMBERS The AGM will be held on or around Tuesday, 3 November 2026. The register of members of our Company will be closed from Thursday, 29 October 2026 to Tuesday, 3 November 2026 (both days inclusive) in order to determine the identity of our Shareholders who are entitled to attend the AGM, during which period no share transfers will be registered. To be eligible to attend the AGM, all properly completed transfer forms accompanied by the relevant share certificates must be lodged for registration with our Company ’s branch share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong not later than 4:30 p.m. on Wednesday, 28 October 2026.
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21 NET PROCEEDS FROM THE 2020 SUBSCRIPTION The 2020 Subscription was completed on 24 December 2020 and raised approximately HK$1.783 billion in net proceeds. Subsequent to the 2020 Subscription, our Group had used the net proceeds from the 2020 Subscription in the manner and according to the intended uses set out in the circular of the Company dated 14 October 2020. On 21 January 2022, the Board has resolved to change the use of the remaining net proceeds as at the same date and the Group had used the net proceeds in accordance with the intended use as set out in the announcement of the Company dated 21 January 2022 (the “January 2022 Announcement ”). On 21 January 2025, the Board has further resolved to extend the initial expected timeline for the unutilised net proceeds as at the same date to three years from 21 January 2025 as set out in the announcement of the Company dated 21 January 2025 (the “January 2025 Announcement ”). The expected timeline for utilisation above is based on the Group ’s best estimation and is subject to change based on the future development of market conditions. The utilisation of the net proceeds for FY2026 and the updated expected timeline of full utilization as disclosed in the January 2025 Announcement are summarised as follows: HK$ million (1) Unutilised amount as at 1 June 2025 Utilised during FY2026 Unutilised amount as at 31 May 2026 Updated expected timeline of full utilisation Sales and marketing 242.8 5.8 237.0 Three years from 21 January 2025 Technology infrastructure 3.9 – 3.9 Three years from 21 January 2025 Business related staff 94.0 14.5 79.5 Three years from 21 January 2025 Working capital 167.9 1.5 166.4 Three years from 21 January 2025 Total 508.6 21.8 486.8 Notes: (1) The amounts “utilised during FY2026 ” are based on the exchange rate of HK$1.1490:RMB1. (2) The figures presented in this table are approximations and subject to currency exchange rate fluctuation and rounding. (3) The updated expected timeline for utilisation of the unutilised net proceeds above is based on the Group ’s best estimation as of the date of this announcement and is subject to change based on the future development of market conditions.
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22 EVENTS AFTER THE REPORTING PERIOD On 29 June 2026, the Company (for itself and on behalf of the Group) entered into the framework agreement ( “EDU Framework Agreement ”) with New Oriental to renew the existing continuing connected transactions for a term of three years. New Oriental is a controlling shareholder (as defined in the Listing Rules) of the Company and controlled by Mr. Yu Minhong, a Director. Accordingly, New Oriental and its associates are connected persons of the Company and each of the transactions under the EDU Framework Agreement will be a connected transaction (as defined in the Listing Rules). For each of the transactions under the EDU Framework Agreement, the highest applicable percentage ratio calculated with reference to the highest of the annual caps (if applicable) is more than 0.1% but less than 5%. Accordingly, each of the transactions under the EDU Framework Agreement is subject to the reporting, announcement and annual review requirements but is exempted from the circular and independent Shareholders ’ approval requirements under Chapter 14A of the Listing Rules. For details, please refer to the announcement of the Company dated 29 June 2026. Save as disclosed in this announcement, no significant events affecting our Company have occurred since the end of the Reporting Period to the date of this announcement. PUBLICATION OF THE ANNUAL RESULTS ANNOUNCEMENT AND ANNUAL REPORT This annual results announcement is published on the website of the Stock Exchange at www.hkexnews.hk and our Company website at ir.eastbuy.com. Our Group ’s annual report for FY2026 will be published on the same websites of the Stock Exchange and our Company and will be made available to our Shareholders in due course.
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23 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MAY 2026 NOTES 2026 2025 RMB’000 RMB’000 Revenue 3 5,701,007 4,392,071 Cost of revenue (3,662,176) (2,988,030) Gross profit 2,038,831 1,404,041 Other income, gains and losses 4 35,462 176,944 Impairment losses recognised under expected credit loss model, net of reversal (12,399) (2,708) Selling and marketing expenses (1,078,282) (902,110) Research and development expenses (108,259) (126,998) Administrative expenses (188,899) (484,817) Share of results of associates (558) (675) Finance costs (1,536) (2,932) Profit before tax 684,360 60,745 Income tax expense 5 (140,490) (54,554) Profit for the year 6 543,870 6,191 Profit and total comprehensive income for the year 543,870 6,191 Profit and total comprehensive income for the year attributable to: Owners of the Company 543,549 5,735 Non-controlling interests 321 456 543,870 6,191 Earnings per share – Basic (RMB) 7 0.52 0.01 – Diluted (RMB) 7 0.51 0.01
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24 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 MAY 2026 At 31 May NOTES 2026 2025 RMB’000 RMB’000 Non-current Assets Property and equipment 27,825 31,639 Right-of-use assets 35,697 53,298 Interests in associates 50,001 72,550 Financial assets at fair value through profit or loss 9 312,640 88,187 Deferred tax assets 21,807 16,416 Deposits for acquisition of property and equipment 1,275 2,094 Refundable rental deposits 1,024 9,115 Term deposits 182,812 60,269 633,081 333,568 Current Assets Inventories 10 483,699 308,565 Trade and other receivables 11 264,469 189,691 Prepayments 102,640 121,339 Financial assets at fair value through profit or loss 9 2,273,782 1,957,486 Term deposits 1,354,508 560,763 Restricted bank deposits 126,604 121,562 Cash and cash equivalents 1,701,445 2,499,539 6,307,147 5,758,945 Current Liabilities Lease liabilities 22,032 32,764 Contract liabilities 12 87,663 52,315 Refund liabilities 9,665 3,902 Trade payables 13 697,843 432,695 Accrued expenses and other payables 437,553 374,546 Income tax payables 55,701 58,329 1,310,457 954,551 Net current assets 4,996,690 4,804,394 Total assets less current liabilities 5,629,771 5,137,962
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25 At 31 May 2026 2025 RMB’000 RMB’000 Capital and Reserves Share capital 137 135 Treasury shares (1) – Reserves 5,615,918 5,116,962 Equity attributable to owners of the Company 5,616,054 5,117,097 Non-controlling interests 1,182 861 Total equity 5,617,236 5,117,958 Non-current Liabilities Deferred tax liabilities 2,114 1,990 Lease liabilities 10,421 18,014 12,535 20,004 Net assets 5,617,236 5,117,958
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26 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS East Buy Holding Limited (the “Company ”) was incorporated as an exempted company with limited liability in the Cayman Islands on 7 February 2018 under the Companies law, Cap 22 (law 3 of 1961, as consolidated and revised) of the Cayman Islands and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange ”). The addresses of the registered office and the principal place of business of the Company and its subsidiaries (collectively referred to as the “Group”) are disclosed in the section headed “Corporate Information ” in the annual report. New Oriental Education & Technology Group Inc ( “New Oriental ”), incorporated in the Cayman Islands, is the ultimate controlling shareholder of the Company. The Company is an investment holding company. The principal activities of the Group are operating e-commerce business for sales of private label products to individual customers and provision of commission services. The shares of the Company have been listed on the Stock Exchange with effect from 28 March 2019 (the “Listing ” and “Listing Date ”). The consolidated financial statements are presented in Renminbi ( “RMB”), which is also the functional currency of the Company. Basis of preparation of consolidated financial statements Contractual Arrangements Due to the restrictions imposed by the relevant laws and regulatory regime of the PRC on foreign ownership of companies engaged in the value-added telecommunications services carried out by the Group, the Group conducts a substantial portion of the business through Beijing New Oriental Xuncheng Network Technology Inc. ( “Beijing Xuncheng ”) (the “Consolidated Affiliated Entities ”) in the PRC. On 10 May 2018, the wholly-owned subsidiary of the Company, Beijing Dexin Dongfang Network Technology Co., Inc. (“Dexin Dongfang ”) has entered into the contractual arrangements (the “Contractual Arrangements ”) with the Consolidated Affiliated Entities and their respective equity holders, which enable Dexin Dongfang and the Company to: • expose, or has rights, to variable returns from its involvement with the Consolidated Affiliated Entities and has ability to affect those returns through its power over the Consolidated Affiliated Entities; • exercise equity holders ’ controlling voting rights of the Consolidated Affiliated Entities; • receive substantially all of the economic interest returns generated by the Consolidated Affiliated Entities in consideration for the business support, technical and consulting services provided by Dexin Dongfang;
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27 • obtain an irrevocable and exclusive right to purchase all or part of equity interests in the Consolidated Affiliated Entities from the respective equity holders at nil consideration or a minimum purchase price permitted under the PRC laws. Dexin Dongfang may exercise such options at any time until it has acquired all equity interests and/or all assets of the Consolidated Affiliated Entities. In addition, the Consolidated Affiliated Entities are not allowed to sell, transfer, or dispose any assets, or make any distributions to their equity holders without prior consent of Dexin Dongfang; and • obtain a pledge over the entire equity interest of the Beijing Xuncheng from their equity holders as collateral security for all of Beijing Xuncheng ’s payments due to Dexin Dongfang and to secure performance of Beijing Xuncheng ’s and obligations under the Contractual Arrangements. The Group does not have any equity interest in the Consolidated Affiliated Entities. However, as a result of the Contractual Arrangements, the Group has power over the Consolidated Affiliated Entities, has rights to variable returns from its involvement with the Consolidated Affiliated Entities and has the ability to affect those returns through its power over the Consolidated Affiliated Entities and is considered to have control over the Consolidated Affiliated Entities. Consequently, the Company regards the Consolidated Affiliated Entities as indirect subsidiaries for accounting purpose. The Company consolidated the assets, liabilities, revenue, income and expenses of the Consolidated Affiliated Entities upon the completion of the reorganisation on 10 May 2018. Total assets of the Consolidated Affiliated Entities were RMB3,445,136,000 as of 31 May 2026 (31 May 2025: RMB2,734,655,000) and these balances have been reflected in the Group ’s consolidated financial statements after intragroup eliminations. Total revenue of the Consolidated Affiliated Entities was RMB5,700,044,000 for the year ended 31 May 2026 (2025: RMB4,392,071,000) and these amounts have been reflected in the Group ’s consolidated financial statements after intragroup eliminations. 2. APPLICATION OF NEW AND AMENDMENTS TO IFRS ACCOUNTING STANDARDS Amendments to an IFRS Accounting Standard that are mandatorily effective for the current year In the current year, the Group has applied the following amendments to IFRS Accounting Standard as issued by the International Accounting Standards Board ( “IASB”) for the first time, which are mandatorily effective for the Group ’s annual period beginning on 1 June 2025 for the preparation of the consolidated financial statements: Amendments to IAS 21 Lack of Exchangeability The application of the amendments to an IFRS Accounting Standard in the current year has had no material impact on the Group ’s financial positions and performance for the current and prior years and/or on the disclosures set out in these consolidated financial statements.
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28 New and amendments to IFRS Accounting Standards in issue but not yet effective The Group has not early applied the following new and amendments to IFRS Accounting Standards that have been issued but are not yet effective: Amendments to IAS 21 Translation to a Hyperinflationary Presentation Currency 3 Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 1 Amendments to IFRS Accounting Standards Annual Improvements to IFRS Accounting Standards { Volume 11 2 Amendments to IAS 28 Amendments to the Fair Value Option for Investments in Associates and Joint Ventures 3 Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments 2 Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity 2 IFRS 18 Presentation and Disclosure in Financial Statements 3 IFRS 20 Regulatory Assets and Regulatory Liabilities 4 1 Effective for annual periods beginning on or after a date to be determined 2 Effective for annual periods beginning on or after 1 January 2026 3. Effective for annual periods beginning on or after 1 January 2027 4. Effective for annual periods beginning on or after 1 January 2029 Except for the new IFRS Accounting Standard mentioned below, the directors of the Company (the “Directors ”) anticipate that the application of all other new and amendments to IFRS Accounting Standard will have no material impact on the consolidated financial statements in the foreseeable future. IFRS 18 Presentation and Disclosure in Financial Statements IFRS 18 Presentation and Disclosure in Financial Statements, which sets out requirements on presentation and disclosures in financial statements, will replace IAS 1 Presentation of Financial Statements . This new IFRS Accounting Standard, while carrying forward many of the requirements in IAS 1, introduces new requirements to present specified categories and defined subtotals in the statement of profit or loss; provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements and improve aggregation and disaggregation of information to be disclosed in the financial statements. In addition, some IAS 1 paragraphs have been moved to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors and IFRS 7. Minor amendments to IAS 7 Statement of Cash Flows and IAS 33 Earnings per Share are also made.
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29 IFRS 18, and amendments to other standards, will be effective for annual periods beginning on or after January 1, 2027, with early application permitted. IFRS 18 requires retrospective application with specific transition provisions. The application of the new standard is not expected to have significant impact on the financial performance and positions of the Group in terms of recognition and measurement. However, it is expected to affect the structure and presentation of the consolidated statement of profit or loss. Additional disclosures required for the Group ’s MPMs will be disclosed in a separate note to the consolidated financial statements. The Group currently presents interest received in operating activities, they will be classified in the investing activities on the consolidated statement of cash flows. 3. REVENUE AND SEGMENT INFORMATION Disaggregation of revenue from contracts with customers Year ended 31 May 2026 2025 RMB’000 RMB’000 Timing of revenue recognition Over time 48,000 42,265 At a point in time 5,653,007 4,349,806 Total 5,701,007 4,392,071 Type of revenue Sales of products 4,839,400 3,522,831 Service revenue and others 861,607 869,240 Total 5,701,007 4,392,071 All revenues of the Group were generated from private label products, livestreaming e-commerce and other related services. There were no adjustments or eliminations between the revenue from contracts with customers and the amount disclosed in the segment information. Information reported to the executive directors, being the chief operating decision maker (the “CODM”), for the purposes of resources allocation and assessment of segment performance focuses on types of goods or services provided. The Group mainly operates e-commerce business for sales of private label products and provision of commission services for the two years ended 31 May 2026, the CODM assesses the operating performance and allocates resources of operations of the Group as a whole, as all of the Group ’s activities are considered to be online commerce business. Accordingly, the Directors consider there is only one operating segment under the requirements of IFRS 8.
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30 The Group ’s operations are located in the PRC and all of the Group ’s revenues were generated from external customers in the PRC. The Group ’s non-current assets are all located in the PRC. Therefore, no geographical information is presented. No service or product provided to a single customer exceeds 10% or more of the total revenue of the Group for the year ended 31 May 2026 (2025: Nil). 4. OTHER INCOME, GAINS AND LOSSES Year ended 31 May 2026 2025 RMB’000 RMB’000 Interest income from term deposits 63,466 58,347 Gain on fair value changes of financial assets at FVTPL 55,604 37,625 Interest income from bank balances 13,411 32,043 Gain on disposal of financial assets at FVTPL 8,402 – Government grants (i) 4,312 4,529 Interest income from rental deposits 394 402 Net foreign exchange (loss) gain (99,394) 18,634 Loss on disposal of an associate (11,991) – Loss on disposal of a subsidiary – (7,566) VAT exemption – 29,868 Others 1,258 3,062 35,462 176,944 Note: (i) Government grants amounted to RMB4,312,000 (2025: RMB4,529,000) have been recognised for the subsidies relating to its local municipal business development. The amounts have been recognised as other income, and there was no unfulfilled condition attached to these government grants in the year in which they were recognised. 5. INCOME TAX EXPENSE Year ended 31 May 2026 2025 RMB’000 RMB’000 Current tax: PRC enterprise income tax 145,757 54,921 Deferred tax (5,267) (367) 140,490 54,554
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31 6. PROFIT FOR THE YEAR Profit for the year has been arrived at after charging the following items: Year ended 31 May 2026 2025 RMB’000 RMB’000 Staff cost, including directors ’ and chief executive ’s remuneration – Salaries, allowances and benefits in kind 680,390 966,465 – Retirement benefit scheme contributions 47,489 49,114 – Equity-settled share-based payments 81,081 160,653 Total staff cost 808,960 1,176,232 Depreciation of property and equipment 15,882 15,840 Depreciation of right-of-use assets 32,823 32,959 Expense of short-term leases 10,034 6,689 Auditor ’s remuneration (i) 5,150 5,150 Note: (i) During the year ended 31 May 2026, auditor ’s remuneration includes RMB3,950,000 (2025: RMB3,950,000) in relation to annual audit and RMB1,200,000 (2025: RMB1,200,000) in relation to interim review. 7. EARNINGS PER SHARE The calculation of the basic and diluted earnings per share from operation attributable to owners of the Company is based on the following data: 2026 2025 RMB’000 RMB’000 Earnings: Earnings for the purpose of calculating basic and diluted earnings per share 543,549 5,735 2026 2025 Number of shares: Weighted average number of ordinary shares for the purpose of calculating basic and diluted earnings per share 1,051,257,114 1,035,797,903 Effect of dilutive potential ordinary shares: Share options and share awards 20,501,932 25,999,727 Weighted average number of ordinary shares for the purpose of diluted earnings per share 1,071,759,046 1,061,797,630
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32 8. DIVIDENDS No dividend was paid, declared or proposed for ordinary shareholders of the Company during the year ended 31 May 2026 (2025: Nil), nor has any dividend been proposed since the end of the reporting period. 9. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 2026 2025 RMB’000 RMB’000 Non-current assets Financial assets at FVTPL – Unlisted equity investments (i)(ii) 11,640 88,187 – Wealth management products (iii) 301,000 – 312,640 88,187 Current assets Financial assets at FVTPL – Wealth management products (iii) 2,273,782 1,957,486 Notes: (i) The Group held two unlisted equity investments as at 31 May 2025, ordinary shares with preferential rights in East Buy (Henan) Food Technology Co., Limited ( “Henan Oriental ”) incorporated in the PRC and preferred shares in EEO Education Technology Co., Limited ( “EEO Group ”) incorporated in the Cayman Islands. As at 31 May 2026, the Group held the investment in Henan Oriental. During the year ended 31 May 2026, the Group disposed of its investment in preferred shares of EEO Group incorporated in the Cayman Islands. Pursuant to a share agreement between the Group and EEO Group, EEO Group repurchased all of the preferred shares held by the Group at a total consideration of USD11,951,000 (equivalent to approximately RMB84,958,000). (ii) On 18 January 2023, Dongfang You Xuan (Beijing) Technology Co., Ltd., one of the Company ’s subsidiaries, invested 30% ordinary shares with preferential rights in Henan Oriental, a grilled sausages producer, for a total cash consideration of RMB17,527,000. With the preferential rights, the Group has the right to require and demand the investee to redeem all of the shares held by the Group at a guaranteed predetermined fixed amount upon certain redemption events which are out of control of the investee. Hence, the investment is accounted for under IFRS 9 and measured at financial assets at FVTPL. (iii) Wealth management products are purchased from various banks with expected rate of return ranging from 1.68% to 3.24% (2025: 1.30 % to 4.30 %) per annum, and maturity period ranging from 1 day to 727 days (2025: 1 day to 370 days). The principals and returns of these wealth management products are not guaranteed. During the year ended 31 May 2026, the Group did not make any sales to EEO Group (2025: Nil) and made sales to Henan Oriental amounting to RMB21,263,000 (2025: RMB30,751,000). During the year ended 31 May 2026, the Group did not make any purchases from EEO Group (2025: Nil) and made purchases from Henan Oriental amounting to RMB82,928,000 (2025: RMB73,460,000).
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33 10. INVENTORIES 2026 2025 RMB’000 RMB’000 Products 429,456 280,824 Products in transit 54,243 27,741 483,699 308,565 11. TRADE AND OTHER RECEIVABLES 2026 2025 RMB’000 RMB’000 Trade receivables 32,103 36,168 Less: allowance for credit losses 21,137 8,738 10,966 27,430 Other receivables: Amounts due from related parties 17,713 28,352 Amounts due from third-parties 20,830 – Receivables from third-party payment platforms 170,718 94,957 Deductible input on VAT 9,045 9,648 Advances to employees 382 1,174 Rental deposits (i) 8,936 677 Others 25,879 27,453 253,503 162,261 Trade and other receivables 264,469 189,691 Note: (i) The rental deposits represent refundable rental deposits that are due within one year. Settlement related to private label products and livestreaming e-commerce Customers of private label products and livestreaming e-commerce usually pay in advance through the third-party platform. For payment through third-party payment platforms, the third-party payment platforms normally settle the amounts received, net of handling charges, within one month after the trade date. The receivables from third-party payment platforms include payments that are not yet settled by third-party payment platforms. The Directors are of the opinion that the credit risks of these receivables are minimal as these are from creditworthy third-party payment platforms with no history of defaults. No impairment is made for receivables from third-party payment platforms.
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34 The following is an analysis of trade receivables by age, net of allowance for credit losses, presented based on the invoice date: 2026 2025 RMB’000 RMB’000 1-90 days 8,247 7,040 91-180 days 2,419 2,196 181 days -1 year 135 251 1-2 years 165 125 >2 years – 17,818 10,966 27,430 12. CONTRACT LIABILITIES 2026 2025 RMB’000 RMB’000 Contract liabilities in relation to: Membership fees 45,458 23,623 Customers for advertising service 5,335 13,134 Membership points 14,006 9,212 Advance from livestreaming e-commerce customers 8,365 4,535 Others 14,499 1,811 87,663 52,315 13. TRADE PAYABLES The following is an analysis of trade payables by age, presented based on the invoice date. 2026 2025 RMB’000 RMB’000 1-90 days 648,117 364,924 91-180 days 37,641 36,348 181 days-1 year 4,637 12,082 1 year-2 years 6,876 18,598 >2 years 572 743 697,843 432,695
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35 DEFINITIONS Unless otherwise stated or set out below, capitalised terms have the same meaning as defined below. “2020 Subscription ” the subscription of an aggregate of 59,432,000 Shares by the Subscribers for a subscription price of HK$30.00 per subscription share, which was completed on 24 December 2020, the further details of which are contained in the Company ’s circular dated 14 October 2020 “AGM” annual general meeting of our Company “APP” software that causes a computer, smartphone, or electronic mobile device to perform tasks, specifically in our Company ’s context, it refers to private label products and livestreaming e-commerce application “Audit Committee ” the audit committee of the Board “Auditor ” Deloitte Touche Tohmatsu “Board ” the board of Directors “China ” or “the PRC ” the People ’s Republic of China “Company ”, “we”, “us”, “our” or “East Buy ” East Buy Holding Limited ʮ̡ , an exempted company with limited liability incorporated under the laws of the Cayman Islands on 7 February 2018 “Corporate Governance Code ” the Corporate Governance Code as set out in Appendix C1 to the Listing Rules, as amended from time to time “Director(s) ” the director(s) of our Company “FVTPL ” fair value through profit or loss “FY2025 ” the financial year ended 31 May 2025 “FY2027 ” the financial year ending 31 May 2027 “GMV” gross merchandise volume
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36 “Group” the Company and its subsidiaries from time to time or, where the context requires, in respect of the period prior to our Company becoming the holding company of its present subsidiaries, such subsidiaries as if they were subsidiaries of our Company at the relevant time “HK$” Hong Kong dollars, the lawful currency of Hong Kong “Hong Kong ” The Hong Kong Special Administrative Region of the PRC “IFRS(s) ” the International Financial Reporting Standards, as issued from time to time by the International Accounting Standards Board “Listing Rules ” the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, as amended, supplemented or otherwise modified from time to time “Model Code ” the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules “New Oriental ” New Oriental Education & Technology Group Inc., a company incorporated under the Laws of the Cayman Islands on 16 March 2006, the American depository shares of which are listed on the New York Stock Exchange under the symbol “EDU” “Reporting Period ” or “FY2026 ” the financial year ended 31 May 2026 “RMB” or “Renminbi ” Renminbi, the lawful currency of China “Share(s) ” ordinary share(s) in the share capital of the Company, currently with a par value of US$0.00002 each “Shareholder(s) ” holder(s) of our Share(s) “SPU” standard product units “Stock Exchange ” the Stock Exchange of Hong Kong Limited “Subscribers ” New Oriental and Tigerstep “Tigerstep ” Tigerstep Developments Limited, a company incorporated under the Laws of the British Virgin Islands, and a connected person of the Company
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37 “United States ” or “U.S.” United States of America, its territories, its possessions and all areas subject to its jurisdiction “US$” United States dollars, the lawful currency of the United States “%” per cent By order of the Board of East Buy Holding Limited Mr. YU Minhong Chairman of the Board Hong Kong, 21 August 2026 As of the date of this announcement, the Board comprises Mr. YU Minhong and Mr. YIN Qiang as executive Directors; Ms. SUN Chang as non-executive Director; and Mr. LIN Zheying, Mr. KWONG Wai Sun Wilson, Mr. YAN Andrew Y and Ms. WAN Zhe as independent non-executive Directors.