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12 Nov 2025 Pou Sheng International 2025 9M Results
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Disclaimer Yue Yuen and Pou Sheng have taken every reasonable care in preparing this presentation. However, please be reminded that the information, materials, opinions and statements contained or referred to in this presentation are all provided on an "as is" basis. None of the aforesaid information, materials, opinions and statements constitutes or will be viewed as investment advice or an offer, or a solicitation, recommendation or suggestion by Yue Yuen or Pou Sheng to deal in any investment products including securities, or other financial products and instruments. If there is any forward-looking statements contained or referred to in this presentation, these forward-looking statements are based on current expectations and assumptions, of which many are beyond our control. In addition, these statements are subject to a number of risks, uncertainties and factors and if any of these risks or uncertainties materialize, or if underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Yue Yuen and/or Pou Sheng may vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Neither Yue Yuen nor Pou Sheng intends or assumes any obligation, to update or revise these forward-looking statements in light of any difference from those anticipated. Yue Yuen and Pou Sheng including their respective subsidiaries, associated or affiliated companies, or any of their respective directors, employees, agents, representatives or associates accepts no liability for and shall not be responsible or liable for any loss or damage of whatever kind or nature, directly or indirectly, arising from action taken, or not taken, in reliance on, or resulting from access to or use of the aforesaid information, materials, opinions and statements (including forward-looking statements, if any) contained or referred to in the presentation. Pou Sheng 2025 9M Results 2
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Pou Sheng
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Pou Sheng Strategy & Operating Highlights Solid Financial Management Strengthening Strategic Cooperation with Brand Partners Digital Empowerment & Dynamic Mgt. to Enhance Efficiency PSP: Product Sharing Platform UPT: Units Per Transaction ATV: Average Transaction Value GFA: Gross Floor Area KOS: Key Opinion Staffs * Offline direct retail discounts Segmented and Vertical Market Exposure • Yoga → XEXYMIX (27 retail stores + 6 online platforms ) • Outdoor → Pony ↑ 39% YoY • Self-owned Channel → YYQUALITY (10 stores for inventory clearance+ incubating new brands + channel brands) 9M25 Discount* YoY enlarged LSD%, 3Q25 Discount* YoY stable Multi-faceted Operation Matrix Reasonable Discount Our Strategies ① Strategic Alliance with Business Partners Connected Inventory Programme → share products with brand partners, together with PSP ─ to enhance sales efficiency • aging inventory ~9% out of total Connected Membership Programme → to allow consumers to access exclusive products and services in both PS & brands’ direct stores ② Retail Refinement Strategy Optimise store format and enhance sales conversion, partially offset volatile foot traffic • Average GFA & overall GFA vs FY24 LSD% • 9M25 Same Store Sales Growth mid-teens% YoY ③ Resilient Omni-channel Online platform multi-storefront model, product selection enhancement WeChat stores, Douyin live-streaming via KOS & influencers + inventory fully integrated → digitally-enabled experience with a human touch • Online contribution reached a historical high, accounted for 33% of total sales, 13% YoY • Livestreaming >100% YoY ④ Solid Financial Management, focus on Cash Generation Capability • Solid cash position at RMB 2.2bn XEXYMIX: 微店，天貓、天貓旗艦店，抖 音、小紅書、視頻號 Pou Sheng 2025 9M Results 4
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1 Agenda 1 1 1 1 01 02 03 04 Financial Summary p 6-14 Business Highlights p 16-18 Future Target & Strategy p 20-21 Appendix p 23-26
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Pou Sheng Financial Highlights (in RMB) 9M 2025 9M 2024 YoY RMB’mn % RMB’mn % % pp Revenue 12,903 100.0 13,984 100.0 -7.7 -- Cost of Sales (8,583) -66.5 (9,226) -66.0 -7.0 -0.5 Gross Profit 4,320 33.5 4,758 34.0 -9.2 -0.5 SG&A (4,173) -32.3 (4,420) -31.6 -5.6 -0.7 Other Income & Expenses, net 153 1.1 176 1.3 -13.1 -0.2 Operating Profit 300 2.3 514 3.7 -41.6 -1.4 Finance Cost*, net (13) -0.1 (11) -0.1 +18.2 0.0 Other Gains 0 0.0 -- -- N/A N/A Income Tax (102) -0.8 (155) -1.1 -34.2 +0.3 Profit for the Period 185 1.4 348 2.5 -46.8 -1.1 Profit Attrib. to Owners of PS 171 1.3 343 2.5 -50.1 -1.2 Other Income & Exp. 1.185 -> 1.1 (round-down) Finance cost yoy % excl. LL interest exp. (42,658-40,297)/(52,160-50,520)-1 =43.963% Net finance income excl. LL interest exp. 29,505-(42,658-40,297)=27,144 Source: Based on Pou Sheng’s announcement on the HKEX website * Including interest expenses on lease liabilities which amounted to RMB 40.3mn (9M24: RMB 50.5mn). Loan interest in 9M25 increased by 44.0% YoY to RMB 2.4mn while net finance income (finance income - loan interest) was RMB 27.1mn in 9M25 (9M24: RMB 39.9mn) Pou Sheng 2025 9M Results 6
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Pou Sheng GP Margin Trend 30.0 31.0 36.1 34.8 35.4 36.4 33.5 33.9 34.2 34.2 33.5 33.5 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 1H25 Gross Profit Margin (%) 9M25 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 30.6% 35.5% 35.9% 33.7% 34.2% +0.9pp vs 9M23 Pou Sheng 2025 9M Results 7
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Pou Sheng OP Margin Trend 1.7 3.3 7.1 0.0 2.1 2.4 4.3 2.9 4.8 2.7 3.1 2.3 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 1H25 Operating Profit Margin (%) 9M25 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 2.6% 4.0% 2.2% 3.7% 3.8% +0.4pp vs 9M23 Pou Sheng 2025 9M Results 8
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9M23 9M24 Pou Sheng SG&A Expenses Breakdown Others^ 32.3% Rental Expenses* 9.9% 9.1% 11.5% 9.9% 12.0% 9.9% 11.3% 31.1% 31.6% 9M25 Staff Costs 10.2% 11.2% 15.1% 3.7% Amount (YoY) 5.6% Active Management on People Efficiency • Lean Management: Pou Sheng’s no. of employees ↓ 8% YoY from 20,300 to 18,600 1.5% Strategically Manage Retail Network, Optimize Rental Expenses • Holistic approach in channel planning to avoid low-efficiency store opening & closing • Number of direct operated stores ↓ 3.5% YoY • Facilitate rental saving & reduction programme Rational Expenses Control to counter Operating Deleverage ^ Others include shopping mall expenses, logistic expenses, depreciation of PPE and amortization, etc. * Rental Expenses include expense of operating leases, concession expenses and depreciation of right-of-use assets SG&A Ratio % of Revenue Pou Sheng 2025 9M Results 9
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Pou Sheng – Net Profit Margin (%) 2.5 1.4 9M25 -0.8 9M24 Channel Mix Sub- Distributors ↓ Staff Costs Tax SG&A% -0.7 Operating Deleverage GPM -0.5 COS Analysis -0.5 Discount & Others +0.3 Rental Expenses +0.8 Others -1.0 Net Other Operating Income -0.2 +0.3 Pou Sheng 2025 9M Results 10
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5,499 5,172 Operation Efficiency – 9M25 (Based on RMB) Working Capital Days 153 FY24: 130 9M24: 131 161 FY24: 145 9M24: 152 18 FY24: 19 9M24: 18 26 FY24: 34 9M24: 39 4,693 5,107 9M24 9M25 Trade Receivable Days Trade Payable Days Inventory Days Inventory days [(5,172,402+4,946,314)/2]/8,582,721*273 =160.9285 Trade receivable days [(767,908+973,701)/2]/12,902,786*273 =18.4246 Trade Payable days [(675,218+971,990)/2]/8,582,721*273 =26.1973 Working capital: [(5,172,402+4,946,314)/2]+ [(767,908+973,701)/2]- [(675,218+971,990)/2] =5,106,558.5 5.9% 8.8% Used an average of Inventory, TR and TP for the calculations of turnover days: (starting balance + ending balance)/2 Inventory Level Working Capital In RMB’mn In RMB’mn Pou Sheng 2025 9M Results 11
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Healthy Aging & Well-managed Inventory >12 months inventory % among which HSD% from 3Q23-3Q25 4,724 5,499 4,909 ↑ 5.4% 4,705 4,650 (RMB’mn) 1Q24 4Q23 3Q23 3Q24 2Q25 1Q25 4Q24 3Q25 2Q24 4,946 Dynamic inventory management +6.3% 5,172 5,558 4,865 Pou Sheng 2025 9M Results 12
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Pou Sheng Financial Ratios (in RMB) (RMB’mn) 9M 2025 9M 2024 YoY Depreciation of PPE & Amortization 241.5 252.2 -4.2% Depreciation of ROUA 509.4 579.8 -12.1% EBITDA 1,080.8 1,387.1 -22.1% EBITDA minus Depreciation of ROUA 571.4 807.3 -29.2% Capital Expenditure 180.3 275.1 -34.5% Total Borrowings* 192.0 60.8 +215.8% Net Cash* 1,990.8 2,729.3 -27.1% Total Borrowings to Equity# 2.2% 0.7% +1.5pp Net Borrowings to Equity# Net Cash Net Cash -- Return on Owner’s Equity LTM 3.7% 6.1% -- Return on Asset LTM 2.7% 3.9% -- As of 30 Sep Depre. of PPE & Amort. 231,144+10,365=241,509 Depre. Of ROUA 509,441 EBITDA 1,080,762 Capex 180,306 Total Borrowings 191,976 Net Borrowings (Cash) 191,976-2,182,749=-1,990,773 Total Borrowings to Equity 191,976/8,852,657=2.1686% Net Borrowings to Equity [Net Cash] -1,990,773/8,852,657=-22.4878% ROE LTM (170,997+148,505)/8,742,412 =3.6546% ROA LTM (184,931+149,863)/12,590,012 =2.6592% Total Debt to Equity (191,976+1,269,782)/8,852,657=16.5120% Net Debt to Equity [Net Cash] (-1,990,773+1,269,782)/8,852,657=-8.1443% Source: Internal analysis report (figures rounded) * Total Borrowings and Net Cash exclude lease liabilities. Lease liabilities was RMB 1,269.8mn and 1,569.4mn as at 30 Sep 2025 and 2024 respectively # Total Debt to Equity and Net Debt to Equity (including lease liabilities) would be 16.5% (9M24: 18.7%) and Net Cash (9M24: Net Cash) as at 30 Sep 2025 respectively Pou Sheng 2025 9M Results 13
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(RMB’mn) Net CFO: Net cash from/(used in) Operating Activities Net CFI: Net cash from/(used in) Investing Activities Net CFF: Net cash from/(used in) Financing Activities 2,703.4 2,182.7 +311.3 -91.9 -546.4 -180.3 Free Cash Flow: + RMB 39.1 mn +32.2 Net CFO: +219.4 Net CFI: -248.1 Net CFF: -493.2 +1.2 -94.7 - RMB 520.7 mn Ending Cash 30 Sep 2025 Tax CAPEX Cash from operations Lease Liabilities Repayment and interest Others Interest received & others Beginning Cash 1 Jan 2025 Others FX & others Dividend +147.9 Net Bor. Raised minus Interest Paid Pou Sheng Sources and Uses of Fund – 9M25 Financial Assets at FVTPL -100.0 Pou Sheng 2025 9M Results 14
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1 Agenda 1 1 1 1 01 02 03 04 Financial Summary p 6-14 Business Highlights p 16-18 Future Target & Strategy p 20-21 Appendix p 23-26
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Pou Sheng Retail Strategy Pou Sheng is one of the largest retailers and sports services providers for world renowned sportswear brands in the Greater China region 9M25 Revenue by Channel Mix 67% 33% * Contribution analysis dimensions: including Pan-WeChat Ecosphere, without Other Sales. 9M25 Sales decreased by 17% YoY if excludes Pan-WeChat ^ Reclassification has been made 9M24 14% 16% 84% 86% 8% 13% 29% B2B: Online Wholesale arrangement B2C (Public): Authorized mono or multi brand stores on Tmall, JD and other platforms B2C (Private): Pan-WeChat^ 9M25 Brick & Mortar Retail Omni-channel Top 5 brands account for ~94% of our revenue 9M24* 74% 76% 26% 24% 9M25* Sub-Distributors Directly Operated Stores & Pan-WeChat Directly Operated Stores: • Mono-Brands Stores: 3,319 stores • Multi-Brands Stores: 19 stores (Incl. 10 YYQuality stores) Pou Sheng 2025 9M Results 16
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Right-Sizing B&M Network Number of Stores Net Stores +/- -110 3,448 3,338 31 Dec 2024 30 Sep 2025 31 Dec 2022 31 Dec 2021 4,093 4,631 Number of Stores vs. FY21 ↓ 28% YoY: -3.5% 31 Dec 2023 3,523 30 Sep 2024 3,459 Directly Operated Stores Pou Sheng 2025 9M Results 17
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Customized Pan-WeChat Ecosphere Establishing solid relationship with consumer through comprehensive platforms, enhancing Sales conversion rate, Full-price in-season sales and Repeat purchases YYsports & membership program* Pan-WeChat Ecosphere Seamless digital interface by designated KOS Localized operations by upgrading regional and store level accounts with inventory fully integrated Authorized YYsports Douyin accounts with selected brand partners Regional operation with multi-faceted approach and multi-brands by designated KOS Shopping Mall Membership Platforms Douyin Livestreaming WeChat Stores * ～64.7m YYsports members (as of 30 Sep 2025) Pou Sheng 2025 9M Results 18
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1 Agenda 1 1 1 1 01 02 03 04 Financial Summary p 6-14 Business Highlights p 16-18 Future Target & Strategy p 20-21 Appendix p 23-26
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Critical Missions in 3 Years “Creating Value-added Services & Quality Experiences to Customers” Strategic Alliance • Best of Choice Strive to be the best choice to business partners & further deepen strategic partnership with brands customers for quality growth with creative omni- models that keep with the pace of future trends Scaling up new brands contribution Strengthen multi-faceted operation matrix – private + public domains – maintain digital sales contribution ~30% Probing new channels Enhance Membership Operations Close cooperation with business partners & in-depth membership integration, to achieve high member loyalty, higher CR% & quality incremental sales Leveraging on PSP & online-offline integration to enhance store digitalization & productivity, and people efficiency Continue to integrate and upgrade modules following the official implementation of SAP ERP systems to integrate business with finance and to enhance operational excellence Operating Margin Streamline operations, refine store network & categories structure to enhance cost competitiveness Continuous improvement on profitability & shareholder’s return in following years Omni-Channel • Offline & Online Integration Digital Transformation CR%: Sales conversion rates ERP: Enterprise Resource Planning Pou Sheng 2025 9M Results 20
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Growth by Multi-faceted Brand Strategy Matrix Mass Athletics Strategic Segmentation Mass Athleisure Market Segmentation Weather YY Lifestyle YYQUALITY Core Revenue Consumer Demand EXPLORER Supplementary Income Rigid Demand Image Building Region Channel Category Pou Sheng 2025 9M Results 21 PONY
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1 Agenda 1 1 1 1 01 02 03 04 Financial Summary p 6-14 Business Highlights p 16-18 Future Target & Strategy p 20-21 Appendix p 23-26
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Company Milestones Sole distribution rights for XEXYMIX brand (Mainland China) SAP ERP system went live Omni-channel contributed over 20% of total sales Recorded over RMB 22bn revenue Recorded over RMB 15bn revenue Became sole licensee for Pony in Taiwan & Mainland China Recorded over RMB 10bn revenue Pou Sheng International listed on HKEX (3813.HK) Expanded into retail business in Mainland China 2024 2021 2018 2016 2014 2013 2008 2001 Pou Sheng 2025 9M Results 23
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Pou Sheng Financial Highlights (in USD) – 9M25 9M 2025 9M 2024 YoY US$’000 % US$’000 % % Revenue 1,785,754 100.0 1,939,774 100.0 -7.9 Cost of Sales (1,187,854) -66.5 (1,279,760) -66.0 -7.2 Gross Profit 597,900 33.5 660,014 34.0 -9.4 SG&A (571,151) -32.0 (608,362) -31.3 -6.1 Other Income & Expenses, net 14,814 0.8 19,584 1.0 -24.4 Operating Profit 41,563 2.3 71,236 3.7 -41.7 Finance Cost, net (1,831) -0.1 (1,468) -0.1 +24.7 Other Gains 10 0.0 -- -- N/A Income Tax (14,148) -0.8 (21,502) -1.1 -34.2 Profit for the Period 25,594 1.4 48,266 2.5 -47.0 Profit Attrib. to Owners of PS 23,666 1.3 47,576 2.5 -50.3 Source: Internal analysis report (figures rounded); various accounting reclassification and adjustments are made to some of the figures when consolidating Pou Sheng numbers into the Yue Yuen Group in order to comply with the requirements of accounting standards Pou Sheng 2025 9M Results 24
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Pou Sheng Financial Highlights (in USD) – FY24 FY 2024 FY 2023 YoY US$’000 % US$’000 % % Revenue 2,561,408 100.0 2,830,730 100.0 -9.5 Cost of Sales (1,685,725) -65.8 (1,877,586) -66.3 -10.2 Gross Profit 875,683 34.2 953,144 33.7 -8.1 SG&A (809,193) -31.6 (887,443) -31.4 -8.8 Other Income & Expenses, net 31,951 1.2 38,115 1.4 -16.2 Operating Profit 98,441 3.8 103,816 3.7 -5.2 Finance Cost, net (2,473) -0.1 (7,720) -0.3 -68.0 Other Losses (444) -0.0 (3,447) -0.1 -87.1 Income Tax (26,426) -1.0 (21,656) -0.8 +22.0 Profit for the Period 69,098 2.7 70,993 2.5 -2.7 Profit Attrib. to Owners of PS 68,219 2.7 69,190 2.4 -1.4 Source: Internal analysis report (figures rounded); various accounting reclassification and adjustments are made to some of the figures when consolidating Pou Sheng numbers into the Yue Yuen Group in order to comply with the requirements of accounting standards Pou Sheng 2025 9M Results 25
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- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q -25.0 0.3 -0.4 1.1 47.7 -15.1 -25.1 -26.7 -25.0 -24.0 -8.4 -20.4 6.5 16.8 -1.0 8.9 -7.5 -10.5 -10.8 -3.3 -5.4 -11.6 -6.4 YoY (%) Pou Sheng Revenue Trend FY 2020 FY 2021 FY 2022 FY 2023 25,611 23,350 18,638 FY 2024 20,064 9M 2025 18,454 Revenue (RMB’mn) 12,903 Pou Sheng 2025 9M Results 26
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Pou Sheng Thank you Q&A