HUITONGDA NET (09878) Mid-term Performance Interpretation for 2026: Smart Supply Chain Lays the Foundation as Fast-Moving Consumer Goods Retail Chain New Curve Accelerates Formation

Recently, HUITONGDA NET (09878) announced its mid-year results for 2026: during the reporting period, it achieved revenue of 23.58 billion yuan, operating profit of 399 million yuan, a year-on-year increase of 11.9%; net profit attributable to shareholders of 153 million yuan, a year-on-year increase of 10.5%; gross profit margin improved to 5.1%, up 0.5 percentage points year-on-year; net operating cash flow was 367 million yuan, maintaining positive inflow for eight consecutive years. The continuous growth in profits is attributed to the systematic improvement in operational quality. During the reporting period, HUITONGDA's business structure continued to optimize, and the smart supply chain foundation was continuously strengthened, accelerating the formation of a new curve in fast-moving consumer goods retail chains driven by both "industry + capital." Structural differentiation in the consumer market highlights the foresight and certainty of fast-moving consumer goods retail chain layout. The structural changes in the consumer market are rewriting the growth logic of the retail industry. By 2025, the national convenience store industry is expected to have sales exceeding 500 billion yuan, with a year-on-year growth of 8.7%, significantly outpacing traditional retail formats; new categories such as bulk snacks are rapidly rising, deeply reconstructing the urban-rural consumption pattern. At the same time, new trends such as "experiential consumption" and "self-gratifying consumption" are rapidly penetrating lower-tier markets. Quality-price ratio, immediacy, and multi-format integration have become the most certain growth directions in the retail industry. HUITONGDA's layout of fast-moving consumer goods retail chains is being developed under this trend. Since 2026, the company has strategically invested in well-known brands in the bulk snack and convenience store industries, such as "Snack Selection," "Orange Blossoms," and "Kehai Convenience," combined with self-operated hard discount supermarkets, initially establishing a retail chain network covering multiple formats including bulk snacks, convenience stores, and community hard discount supermarkets. As of now, HUITONGDA has expanded to nearly 5,000 stores nationwide and is accelerating its coverage in lower-tier markets such as counties and towns, rapidly launching "snack + integrated convenience stores" covering snacks, fresh food, and frequently used daily necessities. Foresight arises from trend judgment, while certainty stems from capability support. On the supply chain front, HUITONGDA has implemented a combination of "brand cooperation + short-chain direct procurement + private labels," reconstructing product efficiency. In terms of brand cooperation, during the reporting period, HUITONGDA has strategically signed contracts with leading beverage and snack brands such as Yili, Wahaha, Dongpeng, Snow Beer, Red Bull, Wanglaoji, Jiaduobao, Nestl, Suntory, Daliyuan, Dayao, and Nayuki; on the private label front, HUITONGDA continues to deepen its layout in beverages and other industries, integrating closely with brands like Guangyao Wanglaoji and Taohuatan, to custom develop new products such as "light drinks" and "punk health," which align with trendy consumer preferences. Coupled with the directly controlled fast-moving consumer goods retail chain network, HUITONGDA's revenue from self-operated beverages surged by 142.7% in the first half of 2026. With 16 years of retail gene accumulation, HUITONGDA is not only capable of "execution" but also excelling in it. The competition in the fast-moving consumer goods retail chain market may appear to be a contest of stores and scale, but it is fundamentally a competition of supply chain, digitalization, and organizational capability. HUITONGDA's ability to quickly enter and scale up stems from its unique retail genetics honed over 16 years in the lower-tier market. "Execution" stems from profound capability accumulation. Since its establishment in 2010, HUITONGDA has built a retail service network covering 21 provinces and over 25,000 towns across the country, serving more than 250,000 member stores. Over 16 years, the company has developed an intelligent supply chain model characterized by "reverse + short-chain + digitalization" and has implemented three major projects: "Brand Express," "Private Label Eco-Group," and "Open Supply Chain Platform," enabling demand-based procurement and production to help stores reduce costs and improve efficiency; it has created a complete AI-driven digital toolbox to promote intelligent store operations; in addition, HUITONGDA has also established an offline operational service team covering counties to provide on-site training and operational empowerment. The long-term accumulation of supply chain, technology, operations, and channel infrastructure constitutes the foundational capability of fast-moving consumer goods retail chains to "open successfully, manage effectively, and sustain longevity." "Excelling," however, is rooted in three unique advantages. First, mature capital operation capabilities and experience. Relying on the dual-drive model of "industry + capital," the company has rapidly integrated well-known brands in the industry such as Snack Selection, Orange Blossoms, and Kehai Convenience through strategic investments, forming a mature strategy of "industry integration + capability output." Second, the synergy between chain and membership stores. Both membership stores and chain stores serve the lower-tier market and rely on supply chain and digital empowerment. The selection, operation, and data capabilities accumulated by HUITONGDA in servicing 250,000 member stores can be efficiently reused in chain stores, with both sharing product pools and AI tools, creating a synergistic effect of "reuse of existing capabilities and expansion of incremental scenarios." Third, a culture of co-creation and sharing. Growing together with member stores for 16 years, HUITONGDA has formed a cultural gene of "creating value together and sharing growth"; for chain brands, the company also opts for strategic cooperation, retaining brands and teams while sharing resources and building channels with brand partners, making each store both a terminal of HUITONGDA and a co-creation partner. Looking ahead, HUITONGDA will continue to strengthen its smart supply chain foundation and accelerate the advancement of AI technology and fast-moving consumer goods retail chain strategies, transforming the industrial capabilities accumulated from servicing over 250,000 member stores into a growth curve that covers multiple formats and full links, fulfilling the long-term value driven by "industry + capital" amidst the structural transformation of the consumer market.