AuGroup (SHENZHEN) Cross-Border Business Co., Ltd. (AUGROUP) reported a mixed set of interim results for the six months ended 30 June 2026.

Financial Highlights • Revenue rose 28.8 % year on year to RMB 7.22 billion, driven by a 22.4 % increase in sales of goods to RMB 4.80 billion and a 43.7 % jump in logistics solutions income to RMB 2.42 billion. • Gross profit grew 17.7 % to RMB 1.89 billion, but gross margin narrowed to 26.1 % from 28.6 % due to higher last-mile logistics costs and negative margin in the self-delivery segment. • Profit before tax fell 79.3 % to RMB 29.67 million; net profit attributable to shareholders declined 62.1 % to RMB 40.92 million. Group net profit dropped 75.7 % to RMB 28.33 million. • Net finance costs rose 10.6 % to RMB 140.84 million; other losses expanded to RMB 50.73 million, largely on foreign-exchange movements. • Operating cash inflow increased to RMB 387.50 million, but overall cash and cash equivalents decreased by RMB 277.89 million to RMB 1.29 billion after investment and financing outflows. • Gearing ratio eased to 1.5x from 1.6x at end-2025.

Segment Performance • Sales of goods accounted for 66.5 % of revenue, led by furniture, home furnishings and appliances (RMB 3.97 billion, +21.2 %). • Logistics solutions contributed 33.5 % of revenue, supported by overseas-warehouse expansion and stronger demand from e-commerce sellers. • Geographically, the United States remained the largest market at RMB 3.94 billion (+11.5 %), while Europe surged 65.2 % to RMB 0.76 billion; China delivered RMB 2.32 billion (+55.2 %).

Key Drivers of Profit Contraction 1. Continued losses in the nascent self-delivery logistics business. 2. Under-utilisation in newly established self-owned factories, leading to fixed-cost drag. 3. Net foreign-exchange loss of RMB 89.58 million versus RMB 16.13 million a year earlier.

Capital Management • No interim dividend declared. • Share repurchases for the H-share award and trust scheme totalled RMB 43.50 million (8.04 million shares) during the period. • All net proceeds from the November 2024 Hong Kong listing (HKD 387.5 million) have been fully allocated, with 80 % towards business expansion, 5 % to digitalisation and 15 % for working capital.

Strategic Priorities Management confirmed focus on: • Global supply-chain diversification and localised sourcing to mitigate policy and cost risks. • Brand upgrading across furniture, home appliance and electric-tool categories to strengthen pricing power. • Acceleration of AI deployment for product design, demand forecasting and operational optimisation. • Expansion of overseas-warehouse network via Western Post Group, supporting logistics-solutions growth.

No material contingent liabilities were reported, and capital commitments stood at RMB 153.86 million, mainly for property, plant and equipment investments.