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Quarterly Profitability: A Rare Milestone in Hong Kong’s AI Sector

In capital markets, ambitious visions must ultimately be backed by real financial performance—and Deepexi’s interim results provide clear proof of execution.

For the first half of 2026, the company generated RMB 284.0 million in total revenue, marking a 115.0% year-over-year increase. Its AI business served as the primary growth engine, contributing RMB 226.0 million—an impressive 209.2% year-over-year surge—bringing AI revenue to 79.6% of total corporate turnover.

Even more noteworthy is the marked improvement in profitability. First-half gross profit reached RMB 160.0 million, up 120.5% year-over-year, with gross profit margin expanding to 56.5%. Crucially, during the second quarter of 2026, Deepexi posted a standalone quarterly net profit of approximately RMB 30.1 million, officially crossing the breakeven threshold.

In Hong Kong’s technology sector, pure-play enterprise AI companies capable of achieving quarterly net profitability while sustaining high R&D investment remain exceptionally rare. This milestone underscores Deepexi’s operational efficiency, scalable software delivery, and self-sustaining monetization engine.

This scarcity value is equally evident in the company’s revenue composition and vertical reach. Industrial manufacturing accounted for more than 50% of total revenue, while retail and consumer goods contributed 30%, alongside expanding footholds in healthcare and smart transportation. In manufacturing, for example, equipment troubleshooting and predictive maintenance involve dense engineering schematics, real-time IoT sensor telemetry, and extensive historical maintenance logs—all of which Deepexi translates into structured logic that AI models can readily interpret. This deep vertical expertise and proprietary data accumulation create a formidable competitive barrier that general-purpose AI vendors cannot easily match.

Beyond the “SaaSpocalypse”: Deepexi’s AI-Native Platform Defies the Software Valuation Reset

The first quarter of 2026 witnessed what market observers have dubbed the “SaaSpocalypse”—a tectonic shift in which approximately $2 trillion in market capitalization was erased from B2B software equities, driven by a fundamental fear that agentic AI would cannibalize the traditional per-seat licensing model. The iShares Expanded Tech-Software ETF (IGV) plunged nearly 21% year-to-date, and enterprise software multiples (EV/Sales) cratered from a 5.6x average at the end of 2025 to 4.2x by mid-March.

Investors have pivoted decisively toward AI-native infrastructure—companies that manage the data and underlying plumbing of autonomous systems—while penalizing traditional application-layer SaaS vendors reliant on human-centric interfaces. As a recent Windsor Drake analysis notes, “AI-native agentic platforms clear 14x to 22x revenue, with private rounds at 20x to 30x,” while legacy standalone RPA trades at just 2.5x to 5x. The market is now rewarding AI-native architecture and measurable workflow ownership.

Deepexi sits squarely on the winning side of this divergence. Unlike traditional SaaS vendors whose revenues are tied to human seat counts—and thus vulnerable to agentic displacement—Deepexi’s token-based, consumption-driven model aligns directly with the agentic AI future. The company’s DeepWorks enterprise Agent platform does not sell per-seat licenses; it sells AI productivity, enabling enterprises to deploy autonomous agents that replace repetitive administrative work, not software seats. As the market shifts from “AI as a feature” to “AI as a replacement,” Deepexi’s business model is structurally insulated from the seat-compression forces that have punished legacy software vendors.

Focus on Enterprise AI Applications and Proprietary Domain Data

To ensure AI truly meets real-world enterprise demands, generic foundational models are insufficient on their own. Deepexi’s core competitive edge lies in its specialized “Data + AI” dual-engine architecture, anchored by the FastData enterprise data intelligence platform, the FastAGI agentic AI suite, and the Deepexi Enterprise Large Model Platform, supported by its proprietary Deepology ontology dataset containing over 2,000 vertical industry skills.

At the foundational layer, the FastData platform—powered by the FastData Foil fusion engine—acts as an intelligent lakehouse that tokenizes structured, semi-structured, and complex unstructured enterprise data into standardized formats ready for large model training and inference. Building upon this data foundation, the FastAGI platform and DeepWorks Enterprise Agent Platform provide organizations with a flexible, modular AI operating system.

Featuring a pluggable architecture, the platform connects seamlessly to leading open-source foundation models such as DeepSeek and Zhipu AI, giving enterprise clients complete autonomy while eliminating vendor lock-in. This “model-agnostic” approach is a key differentiator in an environment where enterprises increasingly demand flexibility to choose the best model for each use case, rather than being locked into a single provider.

Through native Model Context Protocol (MCP) frameworks and specialized agents—ranging from operational decision-making agents to productivity and autonomous workflow execution agents—Deepexi embeds intelligence directly into core business operations. DeepWorks is fully integrated with mainstream workplace collaboration suites such as DingTalk, Feishu, and Tencent Meeting, allowing employees to summon AI copilots directly for automated weekly reporting, data synthesis, and cross-departmental coordination—effectively turning AI into an indispensable daily productivity tool.

In an enterprise AI market where 42% of organizations already have AI agents in production and 72% are deploying across production and pilots combined, Deepexi’s proven, governed agentic workflows are no longer an experiment—they are core infrastructure.

Strategic Partnership with Huawei Cloud: Tackling Compute and Data Bottlenecks

In the commercialization of enterprise AI, computing costs and access to high-quality domain data represent two of the industry’s most critical bottlenecks. On August 12, Deepexi announced a strategic alliance with Huawei Cloud to jointly launch enterprise data intelligence solutions, providing strong operational backing for the company’s long-term expansion.

The partnership combines the complementary strengths of both technology leaders. Huawei Cloud provides underlying Ascend AI computing clusters and distributed cloud infrastructure, while Deepexi brings its deep expertise in enterprise data governance, data tokenization, and vertical AI agent deployments. By integrating with Huawei’s domestic Ascend compute clusters, Deepexi not only secures stable, long-term computing power but also significantly drives down token processing costs. This cost efficiency establishes ideal conditions for exploring usage-based, token-metered commercial billing models—precisely the kind of consumption-based pricing that aligns with the agentic AI future.

Crucially, falling AI costs are widely expected to accelerate enterprise adoption of autonomous agents. Deepexi’s partnership with Huawei Cloud positions the company to capture this demand wave with a cost structure that improves as token volumes scale—a powerful margin-expansion dynamic that stands in stark contrast to the fixed-cost burden of traditional SaaS.

Strong Institutional Backing Highlights Long-Term Investment Value

Reflecting strong capital market confidence, Deepexi announced on August 17 the successful placement of 14,286,000 new H-shares at HK$35.00 per share, raising net proceeds of approximately HK$488.0 million. Successfully closing a sizeable placement amid broader market volatility demonstrates strong institutional recognition of Deepexi’s proven business model, robust unit economics, and profitability trajectory.

The company’s strategic shareholder structure provides a solid foundation for long-term growth. It is supported by prominent independent investors, including Hillhouse, 5Y Capital, and BAI, as well as industry-focused investors such as Shanghai AI. These partnerships enhance Deepexi’s industry reputation, drive technological innovation, and strengthen its market competitiveness.

The newly raised funds are earmarked primarily for continuous R&D in next-generation enterprise agent systems and token productivity platforms—positioning the company to capture the $206.5 billion AI agent software market projected for 2026, which Gartner expects to grow to $376.3 billion in 2027.

Investment Thesis: Why Deepexi Stands Apart

1. AI-Native Architecture in an Agentic World. Unlike legacy SaaS vendors facing seat compression, Deepexi’s token-based model is structurally aligned with the agentic AI future. The company doesn’t sell software seats—it sells AI productivity.

2. Rare Profitability in Enterprise AI. Quarterly GAAP profitability at a 56.5% gross margin, with projected revenue CAGR of 95.5% through 2027, places Deepexi among the most financially disciplined enterprise AI companies globally.

3. Model-Agnostic, Vendor-Neutral Platform. In an environment where enterprises demand flexibility, Deepexi’s pluggable architecture—supporting DeepSeek, Zhipu, and other open-source models—eliminates lock-in and captures value regardless of which foundation model wins.

4. Proprietary Data Moat. With over 2,000 vertical industry skills and deep expertise in manufacturing, retail, healthcare, and transportation, Deepexi’s domain-specific data capabilities create barriers that general-purpose AI vendors cannot replicate.

5. Strategic Compute Partnership with Huawei Cloud. Long-term, cost-effective compute access, combined with token-metered pricing models, positions Deepexi for sustained margin expansion as token volumes scale.

6. Institutional Validation. Backing from top-tier investors and a successful HK$488 million placement amid market volatility signal strong institutional confidence in Deepexi’s business model and growth trajectory.

The enterprise AI market has decisively shifted from early conceptual exploration into a new era of commercial execution and tangible financial delivery. Backed by mature product suites across FastData and FastAGI, proprietary vertical ontologies, strategic cloud partnerships, and an official transition to net profitability, Deepexi Technology has proven that enterprise AI can deliver both transformative technology and sustainable profits.

Hashtag: #DeepexiTechnology

The issuer is solely responsible for the content of this announcement.

About Deepexi Technology

Deepexi Technology is China’s leading provider of enterprise large model AI application solutions. Through its FastData enterprise data intelligence solution and FastAGI enterprise AI solution, it empowers enterprises to integrate their data, decisions and operations efficiently at scale. Deepexi ranked fifth in China’s enterprise large model AI application solution market in terms of revenue in 2024. Its solutions have achieved large-scale commercialization across multiple verticals, including consumer goods, manufacturing, healthcare and transportation. As of June 30, 2025, Deepexi Technology served a cumulative total of 283 enterprise customers across various industries.

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those projected. The company undertakes no obligation to update any forward-looking statements.

Project integrates UNESCO-recognized Can Gio mangrove forest as core climate infrastructure, expanding ESG to include Regeneration and Climate Adaptation

HANOI, VIETNAM – Media OutReach Newswire – 26 August 2026 – Vinhomes Green Paradise, the 2,870-hectare coastal urban development in Can Gio, has become the first greenfield project worldwide to receive the Interim Custom ISO 37122 Smart City Certification from the World Council on City Data (WCCD), even before the arrival of its first residents.

The milestone reinforces Vinhomes’ pioneering “ESG++” model for the project, a framework that moves beyond traditional environmental, social and governance pillars to explicitly incorporate Regeneration and Climate Adaptation as core design principles.

By placing the adjacent UNESCO-recognized Cần Giờ Mangrove Biosphere Reserve at the center of its urban strategy, rather than treating it as peripheral landscape, Vinhomes is demonstrating that large-scale coastal development can simultaneously address biodiversity loss, carbon sequestration and long-term climate resilience.

A measured response to the global urban health crisis

The urgency of rethinking urban models is underscored by global health data. According to the Health Effects Institute’s State of Global Air 2025 report, air pollution was linked to 8.1 million deaths worldwide in 2021, overtaking tobacco to become the second-leading global risk factor for death and the leading cause of death for children under five after malnutrition. The World Health Organization estimates that approximately 89% of the 4.2 million annual premature deaths attributed to outdoor air pollution occur in low- and middle-income countries, precisely the regions experiencing the fastest urban growth.

This reality has redirected global capital flows. Grand View Research projects the global smart-city market to reach USD 3.76 trillion by 2030, compounding at nearly 30% annually, one of the fastest expansion rates across any industry sector. In this context, the question is no longer whether smart cities are worth building, but which developments can demonstrate independently verifiable performance.

Vinhomes Green Paradise has addressed this global benchmark through its Interim Custom ISO 37122 Smart City Certification, awarded by the World Council on City Data (WCCD), which validates its smart infrastructure and data-driven urban governance against international standards.

Moving beyond conventional standards, the project operates under an elevated philosophy known as ESG++, integrating two commitments that extend well past standard corporate reporting: Regeneration and Climate Adaptation. Under the pillar of Regeneration, the development goes beyond traditional conservation by actively restoring local coastal ecosystems through targeted mangrove reforestation, biodiversity preservation and community environmental education.

Concurrently, its Climate Adaptation strategy re-engineers urban infrastructure to proactively withstand long-term environmental hazards such as sea-level rise, storm surges and coastal erosion, ensuring the city is built for future resilience rather than simply reacting to present conditions.

Community perspectives reflect the broader appeal of this approach. Ho Chi Minh City-based content creator FABO Nguyen, speaking to CNBC, described his affection for the city’s dynamism alongside growing concerns about air quality and congestion. For him, and for many urban residents weighing similar trade-offs, the Vinhomes Green Paradise model offers a forward-looking alternative that does not require leaving the region, but instead redefines what a sustainable, livable urban environment can look like.

Mangrove forests as climate infrastructure

What sets Vinhomes Green Paradise apart from most coastal megaprojects globally is not merely its size, but its ecological adjacency. The development borders the Can Gio Mangrove Biosphere Reserve, a UNESCO-recognized site spanning over 75,000 hectares, one of southern Vietnam’s most valuable natural assets.

Recent scientific research has revalued the role of mangroves in climate regulation. A study published in Nature Communications indicates that while mangroves account for just 0.36% of global forest area, they sequester carbon per hectare at nearly four times the rate of mature terrestrial forests, making them among the most efficient natural carbon sinks on Earth. According to the Blue Carbon Initiative, a single hectare of mangrove forest can store carbon equivalent to approximately 1,500 tons of CO₂, a figure no concrete structure can replicate.

Against a backdrop where global mangrove cover has declined by as much as 67% in some estimates, Vinhomes has adopted a preservation-first strategy. The Vinhomes Green Paradise master plan limits building density to just 16% of the total area and establishes a dedicated Forest Regeneration and Climate Adaptation Fund. These measures treat the adjacent mangrove ecosystem not as passive scenery but as active, natural defensive infrastructure against coastal erosion and storm surges, precisely the approach that climate scientists are urging coastal cities worldwide to adopt.

This ecological commitment aligns with measurable economic value. JLL’s research across Asia Pacific, based on an analysis of nearly 3,100 Grade A office buildings in 14 cities, shows that green-certified buildings can command rental premiums as high as 28% over non-certified equivalents in the region’s tightest markets, with supply continuing to lag behind occupier demand. Sustainability, in other words, has ceased to be simply a virtue and has become a measurable asset class.

Similarly, the global energy transition reinforces the viability of Vinhomes Green Paradise’s renewable-energy targets. The Global Wind Energy Council forecasts offshore wind capacity to nearly triple from 83 GW in 2024 to approximately 238 GW by 2030, while the International Energy Agency projects global renewable capacity to grow by 4,600 GW over the same period, equivalent to adding the combined current generation capacity of China, the European Union and Japan. Against this backdrop, Vinhomes Green Paradise’s ambition to run on offshore wind, solar and battery storage reflects a broader global trajectory rather than an isolated pledge.

A blueprint for 21st-century urbanization

Taken together, the ISO 37122 certification, the ESG++ framework, the strategic integration of the Can Gio mangrove ecosystem and the economic revaluation of green assets, Vinhomes Green Paradise presents a coherent response to a defining question in contemporary real estate: how to build cities that are both worth living in and built to endure.

The project’s recognition as the first Official Participant in New7Wonders’ global “7 Wonders of Future Cities” campaign further underscores its international relevance. Vinhomes Green Paradise serves as a notable reference point for coastal urban development, illustrating how economic growth and ecological preservation can be integrated in regional contexts.

Hashtag: #Vinhomes

The issuer is solely responsible for the content of this announcement.

About Vinhomes

Vinhomes is Vietnam’s largest residential real estate and integrated township developer. The company pioneers the development of synchronized, modern large-scale townships, delivering premium living standards and unlocking sustainable investment opportunities for domestic and international clients.

By Subrata Majumder In the post Japanese Yen appreciation era, Japanese overseas investment shifted to China and ASEAN for low-cost manufacturing, leaving India behind. The trajectory is now witnessing movement in the reverse gear, owing to US President Trump’s high reciprocal tariff. Japanese investment has surged in India, leaving China and ASEAN behind. While Japanese […]

The article Trump’s high-tariff regime revives Japanese investment in India appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Over 45% of online creators are diversifying revenue through direct product launches, but the creator apparel industry is still stuck in cheap screen-printed blanks that dilute premium IP. Top creators want to build fashion-grade consumer brands, but traditional fashion manufacturers requires high MOQs, long lead times, and technical literacy. High-end creators face a trade-off: basic promotional blanks or massive inventory risk on fashionable products. Knitup solves this by enabling creators with no technical know-how to go from idea to premium products with no minimum requirement. With the advantage of full creative freedom, zero inventory liability, and rapid replenishment cycles, creators can target the premium segment with offerings of BCI Cotton and sustainable merino wool sweaters and beanies, or even step into the luxury tier segment with cashmere cardigan, dresses and blankets.

“We created Knitup to empower the next generation of creators by making the capabilities of a fashion design house accessible,” said Dorothy Pun, Founder of Knitup. “Creators and designers are enabled to make better products with minimal capital outlay. Brands and the planet are saved the burden of inventories. The world sees more creativity and innovation.”

Knitup addresses bottlenecks around mass customization for any knitted products by automatically turning digital design into knitting data that goes straight to knitting machines. What usually takes hours can now take minutes.

Since launching its online design platform in 2022, Knitup has grown to serve over 1,000 brands, ranging from emerging labels to established global names. Key capabilities include:

• No Minimums: Produce exactly what the market demands, precisely when it wants it, helping eliminate excess inventory.
• Design Expression: Bring visuals to life, from detailed custom jacquards to classic solid stitches and crisp embroidery.
• Creation Process, Edited: Styles are visualized using high fidelity virtual samples. No waste even if users over-design and kill many styles. All costed instantly. Guilt-free and simple. Also a perfect tool to get consumers’ feedback on social media.
• Sustainable Yarns: Access to environmental friendly materials that deliver both quality and great hand-feel.
• Agile Manufacturing: A frictionless three-week production lead time that allows brands to restock rapidly, introduce new styles at speed, or launch limited capsule collections in weeks.

From bold statement graphics to quiet luxury, Knitup makes conscious fashion accessible without sacrificing speed, quality, or creative expression.
Hashtag: #Knitup #CreatorCommerce #PremiumKnitwear

https://home.knitup.io/

The issuer is solely responsible for the content of this announcement.

About Knitup

Knitup is a new kind of design-to-manufacturing platform that caters to everyone, from visionary artists and makers to small businesses and even large global corporations.

We bridge the gap between creativity and commerciality by enabling easy access to a complex knitwear supply chain. Our deep heritage in manufacturing, combined with cutting-edge technology and extensive know-how, unlocks a world of possibility for a creator, brand, or business.

Ultimately, we believe in the power of self-expression. By providing the tools and resources for anyone to bring to life high-quality and sustainable products, we enable creativity to flourish everywhere. From fostering vibrant communities built on shared stories and collaboration, to established corporations venturing out into new avenues.

By T Neelakantan Aiyers Despite the tariff shocks unleashed by Donald Trump, Indian exports to the United States have proved remarkably resilient. New trade agreements with Britain, the EU, Oman and New Zealand are giving India more options—but not yet replacing America as its most important export market. There was a moment when Donald Trump’s […]

The article Why America still cannot shake India’s export machine appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Firmly Implementing the “Single Brand, Multi-categories, Diversified Channels” Strategy; Super BOOM Capsule Technology Achieves Full Commercialization; Deepens Global Professional Sports Resources Together with Curry

FINANCIAL HIGHLIGHTS

• In the first half of the year, the Group recorded the following operating results:
  • Revenue rose by 2.8% to RMB15,235 million; gross profit margin increased by 0.9 percentage points to 50.9%
  • Net operating cash inflow was RMB954 million
  • Net profit attributable to equity holders was RMB1,816 million with net profit margin of 11.9%, and EBITDA margin was 22.1%
• Working capital remained at a healthy level:
  • The percentage of gross average working capital to revenue was 7.8%
  • The cash conversion cycle was 35 days, an increase of 4 days compared with the same period last year
• The Board resolved to declare an interim dividend of RMB35.12 cents per ordinary share of the Company issued or to be issued upon conversion of convertible securities for the six months ended 30 June 2026.

OPERATIONAL HIGHLIGHTS

• The retail sell-through for the overall platform increased by low-single-digit from last year, including online and offline channels.
• Offline channel new products sell-through accounted for 83% of overall offline channel sell-through, maintaining a healthy and reasonable level.
• Channel inventory-to-sales ratio of 4 months; and inventory level and ageing structure remained at a healthy level.

HONG KONG SAR – Media OutReach Newswire – 20 August 2026 – Li Ning Company Limited (“Li Ning” or the “Company”, together with its subsidiaries, collectively the “Group”; Hong Kong Stock Exchange stock codes: 2331 (HKD counter) and 82331 (RMB counter)) today announced the unaudited interim results of the Group for the six months ended 30 June 2026 (the “Reporting Period”).

FINANCIAL RESULTS

In the first half of 2026, the Group continued to enhance product technology performance, optimise channel efficiency and deepen its professional brand mindset, maintaining steady operations. During the period, the Group’s revenue reached RMB15,235 million, up 2.8% year-on-year (2025: RMB14,817 million). Gross profit was RMB7,751 million, up 4.5% year-on-year (2025: RMB7,415 million), and the Group’s overall gross profit margin was 50.9%, up 0.9 percentage points year-on-year (2025: 50.0%).

During the period, profit attributable to equity holders of the Group was RMB1,816 million (2025: RMB1,737 million); the margin of profit attributable to equity holders was 11.9% (2025: 11.7%); and return on equity attributable to equity holders was 6.5% (2025: 6.5%). Basic earnings per share were RMB70.40 cents (2025: RMB67.43 cents). The Board resolved to declare an interim dividend of RMB35.12 cents per ordinary share of the Company issued or to be issued upon conversion of convertible securities for the six months ended 30 June 2026 (2025: RMB33.59 cents).

In terms of cash flow management, net cash generated from operating activities during the period amounted to RMB954 million (2025: RMB2,411 million). As at 30 June 2026, cash and cash equivalents (including cash at banks and in hand, and fixed term deposits with original maturity of not more than three months) amounted to RMB13,003 million, a decrease of RMB3,713 million compared with 31 December 2025. Adding back amounts recorded in bank time deposits, the cash balance was RMB19,389 million, a net decrease of RMB585 million compared with 31 December 2025. During the period, revenue increased year-on-year while cash expenses such as marketing expenses and taxes increased, resulting in a year-on-year decrease in net cash generated from operating activities; an increase in time deposits led to a significant increase in net cash used in investing activities. The Group will continue to prioritise cash flow management to ensure the stable development of the Company in the long term.

BUSINESS OVERVIEW

In the first half of 2026, the Group firmly implemented its core development strategy of “Single Brand, Multi-categories, Diversified Channels”. On one hand, it continuously strengthened the core of professional sports technology and product performance, consolidating the brand’s professional mindset in niche segments; on the other hand, it continuously deepened its highly efficient operating model, maintaining solid operating fundamentals and a healthy inventory level.

In terms of product upgrades, the Group drove iterative upgrades in the performance of its core category products through technological innovation, and coordinated the synergistic development of the core categories of running, basketball, training, badminton, table tennis and sports casual. The Group launched its “Super BOOM Capsule” technology, applied to racing running shoe series such as Feidian and Red Hare, covering the full-scenario needs of competitive training, elite and mass runners; the LI-NING Aerospace Dynamic Thermal Technology was applied to the award equipment of the Chinese Sports Delegation at the 2026 Milan Winter Olympics. The Group also expanded its outdoor product matrix and accelerated its layout in the outdoor market.

In terms of brand communication, the Group focused on building an all-round sports resource system represented by its cooperation with the Chinese Olympic Committee (the “COC”) and top international athlete IPs. During the period, the Group continued to strengthen its strategic partnership with the Chinese Olympic Committee, developing podium wear for the Chinese sports delegation competing at the 2026 Milan Winter Olympics, and establishing a presence at the “China House” in Milan, working alongside the Chinese Olympic Committee to showcase the strength of Chinese sports. In addition, the Group entered into a long-term strategic partnership with NBA superstar Stephen Curry and his brand “Curry Brand”, cooperating on the research and development of professional basketball equipment, the promotion of event culture, and the expansion of new-generation consumer groups, enhancing LI-NING’s professional sports brand perception and international exposure.

In terms of channels, the Group continued to deepen strategic synergy with leading commercial complexes and orderly carried out the planning and roll-out of innovative store formats. During the period, the standalone outdoor store “COUNTERFLOW” officially opened in Chongqing, laying the foundation for the Group’s outdoor category to deepen its presence in the Southwest regional market; the Group’s cooperation with quality commercial resources also entered a new stage, creating favourable conditions for the concentrated opening of multiple “Loong Stores” in the second half of the year. At the same time, the Group continued to optimise its rental structures and commercial cooperation models, enhancing the overall operating health of its channels.

In terms of retail operations, the Group promoted dual-driven growth in products and brand by establishing a high-tier market operating model and a distribution business operating model. In high-tier markets, the Group strengthened its brand image around three dimensions, namely channel structure optimisation, refinement of store product mix and upgrading the shopping experience, driving incremental capture of brand elevation and category depth. In terms of distribution business, the Group concurrently established a distribution management model to enhance distribution efficiency and the sustainable operating capability of the channel. In terms of terminal operating capability, the Group continued to drive the implementation of retail standards on a project basis, strengthened coordination efficiency between headquarters and terminals, and enhanced sports advisors’ customer reception capability and professional service standards, comprehensively improving consumers’ shopping experience in LI-NING stores and laying the foundation for enhanced single-store operating efficiency.

In terms of e-commerce operations, the Group leveraged key promotional opportunities including Tmall Celebration Day, Goddess Festival and 618 to precisely target new-customer acquisition and deeply reach female consumer groups, effectively driving simultaneous growth in sales scale and brand influence. The Group also converted cutting-edge technology into quality product experiences, coordinated Olympic champions and celebrity spokesperson resources, and worked with fashion magazines, trend events and social media platforms to continuously consolidate its professional sports mindset. Flagship products including basketball shoes Gamma 2, LI REN 6V2 and DLO 2, as well as the running shoe matrix of Wushi, Youzhi and Zhui Feng, all achieved notable results in expanding awareness and increasing sales, while the Feeling family remained ranked first in searches in the thin-soled shoe segment.

In terms of new retail business, the Group established a new retail department to focus on mapping out its omni-channel growth business model. Through the O2O model, it connected online and offline merchandise pools, providing consumers with a more consistent and efficient shopping experience. The Group also accelerated its layout on mainstream instant-retail platforms, making concerted efforts across three areas: channel store expansion, merchandise matching and refined single-store operations. On the one hand, it fully leveraged the Group’s multi-category advantages, expanding product coverage on the basis of core categories such as running shoes, basketball shoes and lifestyle apparel in combination with sports and lifestyle scenario needs; on the other hand, it strengthened the supply of seasonal categories such as outdoor and sun protection around consumption nodes such as holiday travel, driving stable growth in sales scale for the instant-retail channel.

In terms of product management, to respond to market competition, the Group increased its technology investment in high-end professional running shoes, leveraging the “Feidian” family driven by “Super BOOM Capsule” technology and the brand-new “Red Hare ULTRA” series to consolidate the brand’s product mindset and market position among professional runners. While the basketball shoe market faced challenges, the Group relied on core signature models combined with an e-commerce-channel-led promotion strategy to keep basketball shoe sales stable across directly-operated and e-commerce channels. The Group also actively applied flexible supply models such as segmented production and rolling replenishment orders, dynamically adjusting order scale according to actual sales and, in particular, carrying out refined control of the inventory structure for the running shoe category, maintaining healthy inventory levels amid a challenging market environment.

In terms of supply chain and logistics, the Group continued to advance the building of a large supply-chain system across five directions: planning management, quality control, cost management, development management and digital-intelligence transformation. The Group actively advanced the development of its Glory Gold Label series to safeguard the supply of top-tier event equipment, while also promoting the implementation of AI and 3DVR design and development processes for footwear, substantially shortening the R&D cycle. On the logistics front, the Group advanced omni-channel logistics integration, connecting online and offline inventory, and continued to drive warehouse automation and the application of RFID technology, improving the efficiency of goods flow and the precision of inventory management.

OUTLOOK

Looking ahead to the second half of 2026, the Group will continue to seize the development opportunities arising from the ongoing release of domestic demand potential, uphold its core value of ” Serve With Sportsmanship “, continuously refine the “LI-NING’s experience value”, and strive to become the preferred professional sports brand trusted by consumers in the sports consumption sector.

1. Technology-driven product upgrades: The Group will continue to adhere to technological innovation as its core driving force, strengthening the core competitiveness of its products through the three major levers of its technology innovation platform, a full-scenario category matrix and Eastern aesthetics, while reinforcing its layout in high-potential tracks such as professional sports and urban outdoor.
2. Top-tier resources empowering the brand: The Group will coordinate its domestic and overseas marketing resources. By leveraging core resource deployments such as its partnership with the Chinese Olympic Committee and collaborations with superstar IPs, the Group will build a multi-dimensional, long-term and high-conversion communication system. The Group will continue to deepen its long-term cooperation with the Chinese Olympic Committee, supporting the Chinese sports delegation as it competes in international events such as the 2026 Asian Games, and will deepen its strategic cooperation with Stephen Curry and “Curry Brand”.
3. Elevating both the quality and efficiency of business operations: The Group will focus on the three core pillars of channel layout, merchandise systems and supply chain integration, accelerating online-offline integration, prioritising the scalable replication of innovative store formats such as “Loong Store”, and building a flexible supply chain system that is high-efficiency, low-cost and fast-response.
4. Strengthening the foundation to safeguard development: The Group will reinforce its operating foundation across talent, finance and digital intelligence, building out its talent pipeline, maintaining ample cash flow and a rigorous risk control mechanism, and advancing the deep penetration of artificial intelligence and digital technologies across the full scenarios of R&D, production and channels.

Mr. Li Ning, Executive Chairman and Joint Chief Executive Officer of the Group, commented,“The year 2026 marks the opening year of the ’15th Five-Year Plan’. Although the external trade landscape was complex and volatile in the first half of the year and structural divergence in the domestic consumer market persisted, consumption in functional niche segments such as professional sports and urban outdoor remained resilient, supported by a series of national policies to expand domestic demand and promote consumption. Facing a challenging external environment, the Group firmly implemented its core development strategy of ‘Single Brand, Multi-categories, Diversified Channels’, achieving steady growth in both revenue and profit while maintaining healthy inventory and working capital levels, a clear demonstration of the resilience of the Group’s operating fundamentals.

Looking ahead to the second half of the year, we will stay rooted locally while looking to the future, seizing the structural opportunities brought by the ’15th Five-Year Plan’ policies to expand domestic demand and build a leading sports nation, advancing the scalable replication of innovative store formats such as ‘Loong Store’, deepening the dual drivers of technological innovation and top-tier sports resources, so as to deliver higher-quality and more sustainable steady operations in return for the long-term trust of our consumers and shareholders.”

Hashtag: #LiNing

The issuer is solely responsible for the content of this announcement.

About Li Ning Company Limited

Li Ning Company Limited is one of the leading sports brand companies in China, mainly operating professional and leisure footwear, apparel, equipment and accessories under the LI-NING brand. The Group has comprehensive research and development, design, manufacturing, marketing, distribution and retail management capabilities. It has established an extensive retail distribution network and supply chain management system in China. We are committed to be the most prominent, stylish, world-leading sports brand from China.

In addition to its core LI-NING brand, the Group also manufactures, develops, markets, distributes, sells various sports products which are self-owned by or licensed to the Group, including Double Happiness (table tennis), AIGLE (outdoor sports) and Kason (badminton), which are operated through joint venture/associate with third parties of the Group.

The exchange spread quickly on Chinese social media. For visitors, the character has become more than a photo opportunity: people stop to trade lines, ask questions and play along. Some have traveled specifically to meet the performer.

The small scene reflects a larger change underway in Tonglu, a county in Zhejiang province in eastern China. Long known for its scenery along the Fuchun River, Tonglu is adding performers, interactive storylines, water activities and even unexpected roadside attractions to encourage visitors to take part rather than simply look on.

A cave tour with characters

The “Turtle Immortal” is played by Zhang Yunbin, a 26-year-old opera performer who studied in Russia and speaks English and Russian. His setting is not a conventional theater but a river route winding through limestone caves.

At Chuiyun Tongtian River, Zhang is one of a rotating cast inspired by Journey to the West, the classic Chinese novel. Visitors may encounter Zhu Bajie, also known as Pigsy, as well as the Bull Demon King and Taishang Laojun, a Taoist deity.

More than 120 performers take part in the program. Rather than delivering a fixed show from a stage, they improvise with visitors, pose for photos and pull travelers into short scenes along the route.

The approach is part of what tourism marketers call immersive travel, though the experience is fairly straightforward: visitors are invited to respond, joke back and become part of the moment.

Similar experiments are appearing elsewhere in the county. At Yaolin Wonderland and Yan Ziling Fishing Platform in Tonglu, performers appear among caves, riverbanks and mountain paths as characters drawn from folklore, history and local life. A visit might include a brief role-playing exchange, a story about the site or an encounter that changes the pace of an otherwise standard tour.

The goal is to give visitors a reason to linger.

An aquarium at a highway rest stop

Tonglu’s most unusual tourism experiment may not be in a scenic area at all.

During China’s May Day holiday this year, travelers stopping at the Tonglu service area on the G25 Changchun–Shenzhen Expressway found more than fuel, snacks and restrooms. The rest area featured a large aquarium, mermaid performances and crowds pausing to take photos.

The attraction turned a routine highway break into a destination in its own right. According to figures released by local authorities, the service area received more than 80,000 visitors a day during the holiday.

The idea is to capture some of the spending that would otherwise pass through the county without stopping. A traveler who pulls over for coffee may stay for a show, buy a meal or decide to explore nearby attractions.

County data show that Tonglu received 1.61 million visits during the May Day holiday, up 13.2% from a year earlier.

Tourism revenue reached 958 million yuan, or roughly $132 million, a 12.4% increase, according to authorities.

Those numbers do not prove that a single aquarium or character program drove the growth. But they point to the value Tonglu sees in making travel stops more memorable — and in turning short visits into longer ones.

More ways to spend a summer day

In late July, Tonglu launched a summer tourism campaign “Water Play Kingdom: Tonglu Is Wild.” The branding is aimed at visitors looking for a mix of rafting, family activities, village stays and outdoor recreation.

The county’s tourism offerings now range from river rafting and mountain-stream activities to the family resort, rural walks and evening events. The strategy is less about promoting a single landmark than about creating enough options for visitors to spend a full weekend — or return in another season.

That broader approach matters in a destination with no shortage of natural scenery. Tonglu’s rivers, caves and hills remain the foundation of its appeal. But local planners are increasingly treating those landscapes as settings for activities, stories and encounters rather than as backdrops for a quick stop and a photo.

Making travel easier for overseas visitors

Tonglu is also preparing for more international travelers.

The multilingual “Turtle Immortal” has become a lighthearted symbol of that effort. When the performer chats with overseas visitors in English, Chinese social-media users joke that “the Heavenly Palace has opened an international branch.”

Behind the joke is a more practical effort to improve the visitor experience. Yaolin township in Tonglu has been selected as a provincial pilot area for inbound-tourism innovation, with work underway on multilingual signs, international payment options and other services for overseas guests.

For international visitors, those details can matter as much as the attractions themselves. A cave performance or rafting trip may be memorable, but clear directions, workable payment systems and accessible information determine whether a trip feels easy or frustrating.

The county’s tourism push is still rooted in the things that first drew people there: water, mountains and caves. What is changing is the role of the visitor.

In Tonglu, tourists may still come for the view. But they may also find themselves joking with a cave character, watching mermaids at a highway rest stop or joining an activity that asks them to do more than pose for a photo.

Hashtag: #Tonglu

The issuer is solely responsible for the content of this announcement.

Navigating Market Cycles with Operational Resilience, Core Business Stabilizes and Rebounds, Marking a Strategic Turnaround and New Growth Phase

HONG KONG SAR – Media OutReach Newswire – 20 August 2026 – ZJLD Group Inc. (“ZJLD” or the “Company”, together with the Company’s subsidiaries, collectively the “Group”) (SEHK stock code: 06979.HK), a flagship enterprise in China’s baijiu industry and the first baijiu company listed on the Hong Kong Stock Exchange, is pleased to announce its interim financial results for the six months ended 30 June 2026 (“FY 2026 1H” or the “Period”)

In the first half of 2026, the broader baijiu industry operated within a demanding macroeconomic environment characterized by structural adjustments and sluggish consumer demand. In response to cyclical headwinds during the Period, the Group proactively optimized its operational strategies, strengthened healthy channel management, and accelerated digital innovation, resulting in comprehensive stabilization and an operational rebound. The year 2026 marks a pivotal strategic inflection point for ZJLD, signaling the completion of a two-year industry-driven consolidation and the onset of a new high-quality growth cycle.

The key financial and business highlights are as follows:

Optimized Product Mix Drives Profitability; Multi-Brand Synergy Amplifies Resilience

• During the Period, the Group recorded revenue of RMB 2,546.1 million, representing a 2.0% year-on-year increase. Gross profit increased by 3.2% to RMB 1,520.9 million, while Adjusted Net Profit reached RMB 626.1 million, up 2.1% year-on-year. Benefiting from an expanded revenue contribution of Sub-premium products and the Li Du brand, alongside streamlined production efficiencies, the Group’s gross margin expanded by 0.7 percentage points to 59.7%. Net cash operation cash outflow narrowed significantly by 27.4%, underscoring rigorous cash flow management and prudent risk control.
• Zhenjiu (Flagship Brand): Generated RMB 1,342.4 million in revenue during the Period, accounting for 52.7% of total revenue. The Group exercised disciplined control over channel fulfilment ahead of the launch of the next-generation Zhen 15 to safeguard channel pricing integrity. Meanwhile, the strategic flagship product “Da Zhen” achieved strong growth and explosive nationwide expansion across 31 provinces and 280 cities, driving Zhenjiu’s gross margin up to 59.8%.
• Li Du (Second Growth Engine): Accelerated its growth momentum, recording revenue of RMB 788.0 million, sharply up 28.9% year-on-year. Driven by the national expansion of its Sub-premium and Mid-tier product portfolio, such as Li Du Sorghum 1975 (李渡高粱 1975), Li Du Sorghum * Changyin Collection Series (李渡高粱酒 · 暢飲珍藏版), and the Li Du King Series (李渡王系列), Li Du demonstrated formidable, explosive market penetration and volume growth.
• Xiangjiao & Kaikouxiao (Regional Powerhouse): Maintained solid market share within Hunan Province, generating RMB 282.8 million, up 2.0% year-on-year, and RMB 81.8 million, up 1.0% year-on-year, respectively in revenue, both delivering sustained market stabilization and modest growth.
• Sub-Premium Baijiu Segment: Delivered exceptional performance, achieving revenue of RMB 1,366.1 million, up 39.1% year-on-year. The segment’s contribution to overall revenue surged from 39.3% to 53.7%, reflecting the Group’s agile realignment with evolving consumer shifts toward rational spending and banquet occasions (e.g., weddings and celebrations), successfully capturing growth opportunities in the sub-premium segment.
• The Board of Directors does not recommend the declaration of an interim dividend for the six months ended 30 June 2026 (FY 2025 1H: nil).

Strategic Agility: Pioneering Channel Innovation & Digital Synergy as Dual-Engine
The Group’s proprietary “Premier Retailers Alliance” model and the Monthly Profit-sharing Model (“月月分利模式”) designed for the 5th Generation Zhen 15 have effectively resolved long-standing industry pain points, such as price inversion and distributor margin compression. By establishing competitive monthly margins, automating online ordering, and offering a share-linked sales incentive plan with certain distributors, the Group successfully attracted and retained high-calibre distributors with strong group-selling capabilities and direct access to end consumers. As of 30 June 2026, the Group’s distributor network expanded to 8,993 partners, an increase of 710 from the end of 2025.

Complementing this channel evolution, the Group adopted an omnichannel marketing framework combining “Community Penetration + Digital Empowerment”. Chairman Wu Xiangdong’s executive video channel (“Wu Jindong – ZJLD, 吳金東－珍酒李渡“) and regional cultural livestreams topped the “Entrepreneur Video IP 100 List” (企業家視頻IP100榜單) for seven consecutive months, averaging over one million views per broadcast. This sparked widespread co-created content with members of the Premier Retailers Alliance (萬商聯盟), creating a powerful online-to-offline traffic funnel. Simultaneously, Zhenjiu’s brand value rose to RMB 34.685 billion, a 103% gain over five years, solidifying among China’s top three sauce-aroma baijiu brands.

Forward-Looking AI Integration and Enterprise Digitization
The Group anchors its digital transformation strategy on operational capability and sustainable value creation. During the Period, in partnership with China Unicom, the Group developed an “AI + Expert Blending” framework powered by Large Language Models (LLMs). This synthesis of traditional heritage and advanced AI enables intelligent blending, elevating consistency, efficiency and craft precision. Furthermore, the Group upgraded Da Zhen‘s digital coding system to a “Six-Code” integration architecture, incorporating NFC anti-counterfeiting and ceramic jar storage metrics, as well as an RFID smart case labelling system to track and ensure precise volumetric measurement and end-to-end lifecycle traceability for every Da Zhen product. Zhenjiu was also awarded the national Data Management Capability Maturity Model (DCMM) Level 3 (Robust) accreditation, further validating its AI deployment and digital leadership.

Deepening Operational Foundations to Drive the New High-Quality Growth Cycle
Looking ahead to the second half of 2026 and beyond, ZJLD will maintain strategic poise by extending proven operational frameworks, such as the “Premier Retailers Alliance” and “Monthly Profit-sharing Model” to Zhen 30 and other core product lines. This initiative will precisely activate high-end and mid-tier markets while strengthening portfolio synergies across all price ranges. Concurrently, the Group will deepen its operation-sales decoupling (營銷分離) mechanism, rigorously monitor channel pricing, protect distributor profitability, and prioritize storage facility construction across its five major production facilities, namely Zhen Jiu Mao Tai Shuang Long (茅台鎮雙龍), Zhen Jiu Bai Yan Gou (白岩溝), Zhen Jiu Zhao Jia Gou (趙家溝), Li Du Zheng Jia Shan (鄭家山) and Xiang Jiao Jiang Bei (江北) to reinforce its long-term competitive moat.

Mr. Wu Xiangdong, Founder and Chairman of ZJLD Group, remarked, “Baijiu is a business that demands patience and reverence—time speaks through quality, and authentic fragrance endures. Over two years of industry rebalancing, our distributor partners and we have navigated genuine challenges and hardships; yet this period offered an invaluable window for reflection, consolidation, and self-reinvention. The deeper the valley, the more vital it is to stay grounded and focus on disciplined execution. Our stabilization in the first half of 2026 is the natural reward of diligent work and marks the dawn of a new growth phase. There are no shortcuts in business—only an uncompromising pursuit of quality, continuous market exploration, and adaptability in the face of change. In times of adversity, we chose to brew finer liquor, preserve channel profitability, and deliver utmost sincerity to our consumers. The launch of the ‘Premier Retailers Alliance’ and ‘Monthly Profit-sharing Model’ models ensures that every partner who trusts ZJLD enjoys security, clarity, and equitable rewards amid challenging conditions.

Engaging directly with consumers and merchants through digital broadcasts has reinvigorated my entrepreneurial passion and joy, which I felt when I first entered the baijiu industry. The consumers’ appreciation for fine baijiu remains undiminished, and their yearning for a better life remains passionate. 2026 serves as ZJLD’s springboard for a renewed journey. We remain a dedicated team of idealistic distillers, honoring nature’s harvest, grateful for the passage of time, and optimistic about the industry’s future. ZJLD will move forward with resilience, innovation, and an open heart alongside all our companions—cheers to bright moments and the journey ahead.”

Hashtag: #ZJLDGroup

The issuer is solely responsible for the content of this announcement.

About ZJLD Group Inc.

Zhen Jiu was established in 1975 in Zunyi, Kweichow, China’s primary production area of sauce-aroma baijiu. In 1988, it was honored with the National Quality Award at the 5th National Wine Appreciation Conference. In the same year, it was announced by the Protocol Department of the Ministry of Foreign Affairs, the Communication Department of the Ministry of Economy and Trade, and the Great Hall of the People Management Bureau to become one of the two sauce-aroma baijiu served at state banquets. It is also known as one of the “Three Representative Baijiu Brands in Kweichow”.

ZJLD Group Inc. is a leading baijiu group in China devoted to offering premium baijiu products, including sauce-aroma, mixed-aroma, and strong-aroma varieties. According to Frost & Sullivan statistics, the flagship brand Zhenjiu has maintained its position for two consecutive years (2023 and 2024) as the fourth-largest sauce-aroma baijiu brand in China and the third-largest in Guizhou Province, by revenue. The Company operates four baijiu brands in China, including two national baijiu brands, Zhen Jiu and Li Du, and two regional brands, Xiangjiao and Kaikouxiao. ZJLD prides itself on inheriting the time-honored baijiu-brewing techniques and reinvigorating them to develop iconic products. It strives to create a wide variety of aromatic and mellow baijiu products to meet consumers’ diverse preferences, seize broader market opportunities, and promote traditional Chinese baijiu culture.

Mr Munafò joined Allianz Trade in 2015 as part of the Multinationals team and has spent over a decade shaping the company’s commercial strategy across four regions. Rising through key account management roles spanning MMEA, APAC, and Northern Europe – including his appointment as Regional Account Director for Northern Europe in 2021 – he was named Group Head of Broker Management and Partnerships in 2025, where he was responsible for defining and executing Allianz Trade’s global commercial and distribution strategy and strengthening broker partnerships across multiple regions. Mr Munafò holds an MBA from POLIMI Graduate School of Management (Politecnico di Milano) and a degree in Law from Università Bocconi with a major in Public Sector and Law.

On this appointment, Rodrigo Jimenez, Regional CEO at Allianz Trade in Asia Pacific, says: “Over the past decade, Scott has built extensive experience across various regions, demonstrating a strong track record in growing commercial portfolios, building strategic partnerships, and maintaining exceptional customer retention. His international experience, commercial leadership, and deep understanding of our business make him exceptionally well positioned to lead our China operations. I am confident that, together with the local management team, Scott will successfully drive our growth ambitions and deliver continued success in this important and fast-growing market.”

Mr Munafò remarks: “Allianz Trade has been part of China’s trade story for nearly two decades – built on the strength of our team, our partners, and our customers who have trusted us through every cycle. I am honoured to be entrusted with what so many have built together. My commitment is simple: to keep listening, to keep creating lasting value and to ensure the next chapter sets a new standard.”
Hashtag: #allianztrade #tradecreditinsurance

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The issuer is solely responsible for the content of this announcement.

About Allianz Trade

Allianz Trade is the global leader in trade credit insurance and a recognized specialist in the areas of surety, collections, structured trade credit and political risk. Our proprietary intelligence network is based on instant access to data of 289 million corporates. We give companies the confidence to trade by securing their payments. We compensate your company in the event of a bad debt, but more importantly, we help you avoid bad debt in the first place. Whenever we provide trade credit insurance or other finance solutions, our priority is predictive protection. But, when the unexpected arrives, our AA credit rating means we have the resources, backed by Allianz to provide compensation to maintain your business. Headquartered in Paris, Allianz Trade is present in over 40 countries with 5,900 employees. In 2025, our consolidated turnover was EUR4 billion and insured global business transactions represented EUR1,400 billion in exposure. For more information, please visit allianz-trade.com.