Founder: Leading companies work together to build a healthy industry ecosystem, optimistic about the healthy development of the snack retail industry.

Founder released a research report stating that the top snack bulk retailers have all issued statements opposing unfair competition and unnecessary internal competition, insisting on compliant operations and rational development. They will promote the industry's return to a path of healthy development, with a very limited impact on companies' profitability. The snack bulk retail format is more efficient than traditional formats, with great development potential and a good competitive landscape in the industry. The top two companies in the industry occupy a large market share, and with the Matthew effect, industry concentration is expected to further increase, with a positive outlook for the strong to get stronger. Founder's main points are as follows: Event: Top snack bulk retailers BUSYMING and Fujian Wanchen Food Group have both issued statements supporting the building of a healthy industry ecosystem. Previously, the market was concerned about intensifying competition, leading to a decline in stock prices. Some companies in the industry had engaged in competitive activities such as opening subsidies in certain regional markets, causing concern that competition would intensify, resulting in a decline in the industry's overall profitability. As a result, BUSYMING and Fujian Wanchen Food Group saw significant declines in their stock prices. The top companies speaking out to promote the industry's healthy development indicates great future potential for the industry. Economies of scale are expected to increase net profit margins for companies. The top companies have all issued statements opposing unfair competition and unnecessary internal competition, insisting on compliant operations and rational development, which will help drive the industry back towards a path of healthy development with minimal impact on companies' profitability. According to a Frost & Sullivan report, China's leisure food and beverage specialty store channel is expected to grow from 419 billion yuan in 2024 to 710.5 billion yuan in 2029, with a CAGR of 11.1%, indicating great potential for industry development. As scale continues to increase, the net profit margins of top companies have also been rising. BUSYMING's adjusted net profit margin in 2025 was 4.07%, an increase of 1.75 percentage points year-on-year, and it rose to 4.46% in Q4 2025, an increase of 0.21 percentage points from Q3. Fujian Wanchen Food Group's Q1 snack bulk retail net profit margin after share restoration was 5.84%, an increase of 0.12 percentage points from 2025 Q4, and is expected to continue to rise. The fundamentals of the top companies are currently positive, and their valuation levels are relatively low. The industry expects BUSYMING's adjusted net profit in 2026 to be 3.759 billion yuan, with a PE ratio of 18.06X, and Fujian Wanchen Food Group's net profit attributable to shareholders in 2026 to be 2.55 billion yuan, with a PE ratio of 14.8X, both at relatively low levels. Risks: Risks related to food safety, intensifying industry competition, and slower-than-expected expansion of store operations.