Dear Shareholders,

I am pleased to present the annual results of Pou Sheng International (Holdings) Limited (the “Company” and together with its subsidiaries, the “Group”) for the financial year ended December 31, 2025, to the shareholders of the Company (the “Shareholders”).

In 2025, retail sales in mainland China surpassed RMB50 trillion, underscoring the remarkable resilience of domestic demand. This momentum was primarily underpinned by government‑driven stimulus, most notably the “trade‑in” programme for consumer goods, which bolstered demand for durable goods such as cars, household appliances and consumer electronics. Despite this, the operating environment for sportswear, apparel and footwear retailers remained complex and dynamic. The slowdown in consumer sentiment led to elevated inventory levels, making discounting an increasingly structural and routine strategy and a necessary lever to drive store traffic. This mixed consumption landscape continued to challenge our business and impacted our top-line performance and profitability in 2025.

With short-term market demand expected to remain volatile, we have swiftly deployed forward-looking and flexible strategies to effectively mitigate the impact of external uncertainties and position ourselves optimally for the future. This includes further optimising our organisational structure and strengthening our business portfolio to align with new retail trends. We are adopting a holistic approach to resource allocation to navigate both market opportunities and challenges, while steadily enhancing our operational management capabilities. These initiatives will protect and expand our competitive advantages in a fast‑evolving market landscape, enabling us to advance toward a more efficient, integrated one-stop retail footprint.

We also focused on enhancing our online channels capabilities, deepening the operational competencies and the high‑quality revenue streams we have built in recent years. In addition to advancing our online multi-storefront model, we accelerated content-driven e-commerce initiatives. This included heightened the efficiency of its operations by YYsports Douyin live-streams conducted by designated Key Opinion Staff and influencers, and our authorised Douyin mono-brand stores for brand partners. Coupled with Xiaohongshu “grass-planting” marketing, these efforts further streamlined the connection between our offline presence and the online community, allowing us to build a multi-faceted online channels matrix. In 2025, our online channels again demonstrated its resilience, with digital sales rising to account for over 30% of total revenue.

In response to the ongoing decline in offline footfall, we are continuing to review our regional operational structures and advancing efficiency enhancement projects to optimise store entry and transaction rates across our store network, and to drive more repeat purchases and higher-margin in-season sales. With consumer demand for immediacy, scarcity and interactive experiences continuing to rise amid the rapid rise of hybrid retail models – including livestream e‑commerce and instant retail – seamless online‑offline integration has become a central priority for the retail industry. We are actively optimising our brick-and-mortar (“B&M”) stores and online channels footprint, evolving our store formats, and deploying intelligent product‑to‑store matching to transform our B&M locations into instant fulfilment hubs to capture the demand for instant retail.

At the same time, we were enhancing our penetration in lower‑tier cities across mainland China where commercially feasible, actively broadening and diversifying our presence across promising segmented markets and incubating new brands. This effort includes strengthening our position in the yoga segment with Korean brand XEXYMIX, as well as extending our professional outdoor and casual outdoor footprint with brands such as Dynafit and Pony 1972. Additionally, we have developed channels for high-quality and value-for-money merchandise through our self‑owned one-stop YYQUALITY multi-brand outlets, which has also boosted out high‑efficiency inventory‑clearance capabilities.

We maintained our solid financial strength through our holistic and disciplined approach to channel planning and inventory management. The Board has recommended a final dividend of HK$0.002 per share and a special dividend of HK$0.002 per share. Together with the interim ordinary and special dividends of HK$0.023 per share already paid during the year, our total full year dividend will amount to HK$0.027 per share, representing a payout ratio of 60%. In 2026, we undertook a share repurchase, demonstrating our commitment to rewarding shareholders and underscoring our steadfast confidence in the Company’s long-term prospects amid a volatile market environment.

As we strengthen our long‑term competitiveness, we remain confident in the sustained demand for sportswear products and services across Greater China. Mainland China’s General Office of the State Council issued ‘Opinions on Unleashing the Potential of the Sports Consumption and Further Promoting High-Quality Development of Sport Industry’. These guidelines set an ambitious target: to cultivate a robust ecosystem of sports enterprises and globally influential events, building a sports industry worth RMB7 trillion by 2030. By 2025, the total scale of the outdoor sports industry in mainland China is projected to exceed RMB3 trillion, making it one of the strongest growth sectors within the sports industry. Further underpinning the industry’s long-term growth potential, the 2025 National Fitness Activity Status Survey released by the General Administration of Sport of China, shows that per-capita sports consumption continues to grow. Among the key 19–59-year-old demographic, average annual spending has risen significantly to RMB2,428 per capita, marking a substantial increase from the 2020 survey.

Heading into 2026, we remain committed to proactively advancing our digital and multichannel strategies, enhancing our business and brand portfolio, and strengthening our strategic partnerships with brand partners. Staying closely attuned to evolving consumer needs and preferences, we will strive to craft shopping experiences with a human touch for consumers as we steadfastly progress towards our vision of “Make Sports Your Life”. On behalf of the Group, I would like to express our sincere appreciation to our customers, business partners, financial institutions, shareholders and our dedicated colleagues for their enduring support, trust and commitment. We look forward to the promising opportunities ahead and remain committed to delivering sustainable growth and quality returns to our shareholders.

Chairman

CHIU, Hui-Yao

Hong Kong

Mr. SONG Hua

SONG Hua, is currently a Vice President of the Group, in charge of the Merchandise & Retail Business Unit. He is also a director of various subsidiaries of the Company. He joined the Group in December 2008, and was promoted to be a Vice President in March 2018. Mr. Song graduated from North University of China (formerly known as North China Institute of Technology), specialised in Industrial Electrical Automation Technology. He has extensive experience and achievements in strategic planning, sales marketing, product branding and retail operation.

Mr. TANG Guoxing

TANG Guoxing, is currently a Vice President of the Group, in charge of the Brand and Channel Development Headquarters. He is also a director of several subsidiaries of the Company. He joined the Group in December 2010, and was promoted to be a Vice President in March 2019. Mr. Tang graduated from Jiangsu Open University (formerly known as Jiangsu Radio and Television University), specialised in Business Enterprise Management. He has extensive experience and achievements in strategic planning, sales marketing, product branding and retail operation.

Mr. TANG Yongdong

TANG Yongdong, is currently a Vice President of the Group, in charge of the Digital Public Traffic Domains Development Department. He is also a director of several subsidiaries of the Company. He joined the Group in October 2003, and was promoted to be a Vice President in March 2021. Mr. Tang graduated from Wuhan University of Technology, specialised in Business Administration. He has extensive experience and achievements in industries, products, or services related to the digital economy.

Mr. YIP Wing Ming

YIP Wing Ming, is currently the Company Secretary and the Financial Controller of the Company. He is also a director of various subsidiaries of the Company. Mr. Yip joined the Company in February 2017. He holds a first class honours degree of Bachelor of Business Administration in Finance and Economics from The Hong Kong University of Science and Technology. Mr. Yip is a member of the Hong Kong Institute of Certified Public Accountants. Prior to joining the Company, he worked for an international audit firm. Mr. Yip has over ten years of extensive experience in accounting, auditing and financial management.