Key Highlights from the Positive Profit Alert

• Substantial Increase in Profits Expected: Sichuan Baicha Baidao Industrial Co., Ltd. (the “Company”) has announced a significant year-on-year increase in both adjusted net profit and net profit for the fiscal year ended 31 December 2025.
• Adjusted Net Profit Guidance: The Group anticipates adjusted net profit to be in the range of approximately RMB792 million to RMB852 million for FY2025. This represents a rise of 22.79% to 32.09% compared with the adjusted net profit of RMB645 million for FY2024.
• Net Profit Guidance: The Group expects net profit to be between RMB780 million and RMB840 million for FY2025, marking an increase of 62.50% to 75.00% over the FY2024 net profit of RMB480 million.
• Operational Improvements: The Company attributes the strong profit growth to continued enhancements in core operating performance, including:
  • Optimization of the quality of its store network
  • Steady advancements in product research, development, and innovation
  • Expansion of product offerings across multiple categories
  • Improvement in single-store operating performance and ongoing store network expansion
  • Optimized product mix, improved supply chain efficiency, and refined expense management
• Definition of Adjusted Net Profit: The Company clarifies that “adjusted net profit” is a non-IFRS measure, defined as net profit adjusted for (i) listing expenses, (ii) equity-settled share-based payment expenses, and (iii) losses on fair value change of redeemable shares with preferential rights. The Company believes this measure better reflects the underlying operating performance.

Important Information for Shareholders and Potential Investors

• Preliminary Nature of Results: The financial results presented are based on preliminary assessments of unaudited consolidated management accounts for FY2025. They have not been audited or reviewed by the Company’s auditors, nor reviewed by the audit committee. Final results may differ from those disclosed in this announcement.
• Official Results Announcement: The Company will publish its audited FY2025 results by the end of March 2026. Shareholders and investors should refer to the official announcement for finalized figures.
• Potential Share Price Impact: The substantial increases in both adjusted and reported net profits, as well as the clear operational improvements, are highly likely to be price sensitive. Investors should expect the market to react to this positive profit alert.
• Cautionary Note: Given the preliminary nature of the figures, shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

Board Composition

As of the date of this announcement, the Board of Sichuan Baicha Baidao Industrial Co., Ltd. comprises:

• Mr. Wang Xiaokun (Executive Director and Chairman of the Board)
• Mr. Wang Hongxue (Executive Director)
• Ms. Dai Li (Executive Director)
• Mr. Chen Keyuan (Executive Director)
• Dr. Chen Da (Non-executive Director)
• Mr. Yeung Chi Tat (Independent Non-executive Director)
• Dr. Tang Yong (Independent Non-executive Director)
• Ms. Cheng Li (Independent Non-executive Director)

Conclusion

The positive profit alert issued by Sichuan Baicha Baidao Industrial Co., Ltd. signals a robust financial performance for FY2025, underpinned by strong core operational improvements and strategic initiatives. The expected significant growth in both adjusted and reported net profits is likely to be closely watched by investors and could have a material impact on the Company’s share price.

Disclaimer: This article is based on preliminary and unaudited information disclosed by Sichuan Baicha Baidao Industrial Co., Ltd. Investors are advised to exercise caution and await the official audited financial results to be published by the end of March 2026 before making investment decisions. The information herein does not constitute investment advice.

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