Chairman Statement

During the first half of 2025, the global economy presented a complicated situation amidst the combined impact of trade frictions and structural adjustments, coupled with the high interest rate environment, continuing to put industry operation under pressure. In the face of multiple challenges, Symphony Group upheld its down-to-earth and innovative business motto, and demonstrated remarkable cyclical adaptation and operational resilience through strategic business layout.

Our core retail brand “Park Outlets” gave full play to the operational synergies between outlets model and community business. “Park Outlets” in Xiamen maintained its strong growth momentum. All major brands in the mall hit a record high of single-day sales in January to successfully reach the milestone of achieving total sales of over RMB100 million for the first month of the year for four consecutive years. Upon re-opening after completion of store upgrading, the flagship stores of international sportswear brands in our outlets recoded a new regional high in single-day sales. By introducing first-tier international brands to optimize its business portfolio, “Park Outlets” in Shenyang achieved breakthrough in sales performance during the May Day Golden Week and Dragon Boat Festival holiday. We achieved remarkable progress in our digital transformation: AI-based market analysis system effectively improved operational decision-making accuracy; live streaming on WeChat channel drove two-way increase in member engagement rate and sales conversion rate, with the online and offline integrated business model becoming increasingly matured. Focusing on necessary household consumption, the community malls located in Chongqing and Tianjin continued to attract high-value customer group by providing catering, education and other life services. During the Period, “Park Outlets” in Xiamen was granted “Periodic Incentives for Retail Enterprises Included in Statistical Reporting System” (零售業納統企業階段性獎勵) by the Commerce Bureau, while “Park Outlets” in Shenyang won industry recognitions such as “Store for the Year of the Northern Region of Douyin Life Service” (抖音生活服務北部大區年度優質好店), highlighting their outstanding operation capability.

The brand business achieved cross-sector synergistic development. The compression sportswear brand “SKINS” optimized its global strategic layout, consolidated resources to explore the core markets, restructured its supply chain system, and deepened cooperation with international athletes and top-notch sports events. The brand proactively participated in industry events such as Xiamen China Marathon Expo and ISPO Shanghai, strengthening its position as professional sportswear technology brand.

As to health care business, leveraging on the sophisticated product system built up with over 100 self-owned and cooperated brands, Supremium Bio-Technology Limited (“SBT”) won high recognition from the local consumers. During the Period, it successfully expanded crossborder e-commerce channels, expedited the penetration into the Southeast Asia market, and facilitated the regional development of the Hong Kong brands.

With the gradual release of production capacity, Japanese wine brand “Hakuryu” made concerted efforts to enhance the construction of high-end catering channels and increase exposure in industry exhibitions, so as to continuously improve its brand recognition and explore major overseas markets.

The financial business stuck to the prudent operation principal, and strived to explore quality customer group while perfecting its risk management system. Benefiting from the recovery in the capital market in the first half of the year, the performance of the business was in line with the Company’s expectations, providing steady revenue stream for the Group.

Looking forward to the second half of the year, although the global economy will continue to face challenges arising from reshaping of trade landscape and supply chain restructuring, the Chinese economy will maintain the stable growth momentum. The government will continue to introduce targeted policies to stimulate domestic demand, optimize consumption environment, and promote service-based and green consumption, creating new growth drivers for the market. The Group will seize the opportunities brought by such policies and advance its strategic layout to drive high-quality development.

The retail segment will focus on the consumption upgrading trend, and strengthen the younger and diversified brand layout by introducing international luxury brands and local avantgarde designer brands. To innovate the marketing model, the segment plans to organize themed shopping festival and cross-sector collaborative activities by leveraging on holiday economy, and push forward the omni-channel digital transformation, realizing efficient traffic conversion with short video marketing and targeted membership outreach mechanism. The upgrading of hardware facilities will focus on the improvement of scenario experience and enhancement of synergetic effect among the stores, creating an immersive consumption environment.

The brand business will take the path of differentiated development: SKINS will promote the development of mass-market product pipeline and innovation of regional cooperation model; SBT will focus on the exploration of middle-aged and elderly health management and youth health nitch markets in the Greater Bay Area and Southeast Asia; Japanese wine brand “Hakuryu” will accelerate the promotion campaign in the major and North American markets, so as to advance the penetration of the Japanese-style catering channels.

While facilitating steady development, the Group will adapt to market changes by making dynamic adjustments to its business strategy and continuously optimize its operation efficiency.