Lianhua Supermarket Holdings Co., Ltd. released its interim results for the six months ended 30 June 2026.

Macroeconomic Backdrop • China’s GDP grew 4.7% year-on-year; national CPI rose 1.0%. • Retail competition intensified, with hard-discount formats and instant retail pressuring traditional supermarkets.

Group Financial Highlights • Revenue: RMB8.57 billion, down 10.6% or RMB1.02 billion. • Gross profit: RMB0.85 billion, down 25.2%; gross margin fell to 9.95% from 11.89%. • Other revenue: RMB0.58 billion, down 8.8%, mainly due to smaller rental income after hypermarket downsizing. • Other income and gains: RMB0.19 billion, down 54.3%, reflecting a lower gain on subsidiary disposals. • Distribution & selling expenses declined 13.5% to RMB1.47 billion; administrative expenses fell 19.0% to RMB0.25 billion. • Operating result swung to a pre-tax loss of RMB171 million (H1 2025: RMB84 million profit). • Net loss attributable to shareholders: RMB202 million versus a RMB42 million profit last year; basic loss per share: RMB0.14. • Cash and bank balances: RMB6.03 billion. • Gearing ratio remained at 0.0%. • Trade payable turnover: 60 days; inventory turnover: 39 days.

Segment Performance Hypermarkets – Revenue: RMB3.41 billion, down 11.2%; gross margin slipped to 12.16%. – Operating profit: RMB11 million (H1 2025: RMB2 million).

Supermarkets – Revenue: RMB4.56 billion, down 9.1%; gross margin fell to 8.41%. – Operating loss: RMB110 million versus a RMB10 million profit last year.

Convenience Stores – Revenue: RMB0.58 billion, down 15.2%; gross margin compressed to 7.55%. – Operating loss widened to RMB18 million.

Store Network • 118 new stores opened and 144 closed; total network stood at 3,036 outlets, 84.2% located in East China. • Composition: 91 hypermarkets, 2,340 supermarkets, 605 convenience stores.

Capital Structure & Liquidity • No interest-bearing bank borrowings; cash largely held in RMB. • Issued share capital: 1.48 billion shares (72.68% domestic, 2.14% unlisted foreign, 25.18% H-shares). • Interim dividend: none declared.

Strategic Priorities for H2 2026 • Focus on single-store profitability, product mix optimisation and supply-chain efficiency. • Accelerate franchise expansion and digital initiatives to bolster omnichannel capability. • Continue cost-reduction programmes targeting rent, operations and labour.

Subsequent Event • On 28 August 2026 Bailian Group terminated its equity entrustment arrangement with Shanghai Bailian; Bailian Group now exercises direct rights over 614.16 million shares.

Auditor Review • Deloitte Touche Tohmatsu reviewed the condensed statements and noted no material modifications.