Proya Cosmetics Co., Ltd. Semi-Annual Report 2026

Stock Code: 603605 Stock Abbreviation: Proya Bond Code: 113634 Bond Abbreviation: Proya Convertible Bond

Proya Cosmetics Co., Ltd. Semi-Annual Report 2026

Important Notes

• I. The Board of Directors, directors, and senior management warrant the truthfulness, accuracy, and completeness of the contents in this Semi-Annual Report, confirm that there are no misrepresentations or misleading statements contained in or material omissions from this SemiAnnual Report, and agree to assume several and joint legal responsibilities in connection with this Semi-Annual Report.
• II. All directors of the Company attended the meeting of the Board of Directors.
• III. This Semi-Annual Report is unaudited.
• IV. Hou Juncheng, Chairman of the Company, Jin Chang, CFO, and Ma Nan, person in charge of the Accounting Department (and Head of the Accounting Department) of the Company, represent and warrant that the financial report in the Semi-annual Report is authentic, accurate, and complete.
• V. Profit distribution plan or capital reserve capitalization plan for the reporting period adopted by the Board through resolution

The Company proposes to distribute a cash dividend of RMB 11.80 (tax inclusive) for every 10 shares to all registered shareholders based on the total share capital (excluding the shares held in the Company's special securities account for repurchase) as of the record date for equity distribution. Based on the total share capital of 395,976,049 shares as of June 30, 2026, and after deducting 4,235,312 shares held in the Company's special securities account for repurchase, the estimated aggregate cash dividend to be distributed will be RMB 462,254,069.66 (tax inclusive). No capitalization of the capital reserve into share capital and no bonus shares will be implemented. Prior to the record date for equity distribution, if the Company's total share capital changes due to the conversion of convertible bonds or other reasons, the distribution ratio per share will remain unchanged, and the total distribution amount will be adjusted accordingly.

In accordance with the Index for the Guidelines No. 7 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Share Repurchase, if a listed company uses cash as consideration and repurchases shares through centralized bidding or tender offer, the amount of share repurchase implemented in that year shall be deemed as the amount of cash dividends and included in the relevant proportion of cash dividends in that year. The amount of shares repurchased by the Company through centralized bidding in the first half of 2026 was RMB128,795,293.90 (excluding transaction costs).

To sum up, the Company's cash dividends and share repurchases for the first half of 2026 (including the dividends to be distributed in the first half of 2026 and the amount of shares repurchased through centralized bidding in the first half of 2026) accounted for 50.61% of the net profit attributable to shareholders of the listed company in the consolidated financial statements for the first half of 2026.

• VI. Disclaimer of forward-looking statements

√Applicable □Not applicable

This Report contains forward-looking statements which involve the future plans, development strategies, etc. of the Company, yet do not constitute substantive undertakings of the Company to investors. Investors should exercise caution prior to making investment decisions.

• VII. Whether there is any non-operational use of funds by the controlling shareholder or any other related parties No
• VIII. Whether there is any guarantee provided to external parties in violation of the prescribed decision-making procedures No
• IX. Whether more than half of the directors cannot ensure the authenticity, accuracy, and completeness of the Company's disclosed semi-annual report No
• X. Significant risk warning

The Company has described the existing risks in detail in this report. Please refer to "(I) Potential risks" in "V. Other disclosures" of "Section III Management Discussion and Analysis."

• XI. Others

□ Applicable √ Not applicable

Table of Contents

• Section I Definitions.....................................................................................................................5
• Section II Company Profile and Key Financial Indicators........................................................5
• Section III Management Discussion and Analysis .......................................................................9
• Section IV Company Governance, Environment, and Society.................................................37
• Section V Important Matters.....................................................................................................39
• Section VI Shareholders and Changes In Shares ......................................................................89
• Section VII Information on Bonds................................................................................................95
• Section VIII Financial Report ......................................................................................................102

Section I Definitions

Unless the context otherwise requires, the following terms will have the following meanings in this Report:

Section II Company Profile and Key Financial Indicators

• I. Company Information

• II. Contact and Contact Information

• III. Changes in General Information

IV. Brief Introduction to Changes in Information Disclosure and Places for Inspection

V. Stock Overview

VI. Other Relevant Information

□ Applicable √ Not applicable

VII. Key Accounting Data and Financial Indicators of the Company

• (I) Key accounting data Unit: Yuan Currency: RMB

• (II) Key financial indicators

Description of the Company's key accounting data and financial indicators

□ Applicable √ Not applicable

VIII. Differences in Accounting Data under Chinese and International Accounting Standards

□ Applicable √ Not applicable

IX. Items and Amount of Non-recurring Profits and Losses

√Applicable □Not applicable

Unit: Yuan Currency: RMB

If the Company identifies items that are not specified in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Profits and Losses as non-recurring profit and loss items and their amounts are significant, or if the Company identifies items specified in the announcement as recurring gain and loss items, the reasons should be stated. √Applicable □ Not applicable

Unit: Yuan Currency: RMB

• X. Companies with Equity Incentives and Employee Stock Ownership Plans May Choose to Disclose Net Profit after Accounting for Share-based Payment Impact

√Applicable □Not applicable

Unit: Yuan Currency: RMB

XI. Others

□ Applicable √ Not applicable

Section III Management Discussion and Analysis

• I. Description of the Company's Industry and Main Business during the Reporting Period

(I) Main business

The Company seeks to build a new domestic cosmetics industry platform, and is primarily engaged in R&D, production and sales of cosmetic products. Main brands owned by the Company include PROYA, TIMAGE, Off&Relax, Hapsode, CORRECTORS, INSBAHA, Awaken Seeds, UZERO, Anya, and Flower Knows. The Company's own brands have covered fields such as mass-market premium skincare, makeup, body & hair, and high-efficiency skincare:

1. Mass-market premium skincare brands

• (1) PROYA, focusing on science-based skincare, designed for young white-collar female customers,

generally priced at RMB 200 to RMB 500, sold both online and offline.

• (2) HAPSODE, positioned as a "youth-focused skincare" brand, focusing on Generation Z consumers

aged 18-24, generally priced at RMB 50 to RMB 200, sold mainly online.

2. Makeup brands

• (1) TIMAGE, positioned as a professional makeup artist brand rooted in the concept of "Chinese

Makeup, Natural Beauty", generally priced at RMB 150 to RMB 300, sold mainly online.

• (2) INSBAHA, positioned as an emerging makeup brand built around the core concept of "self",

focusing on Generation Z consumers, generally priced at RMB 39 to RMB 200, sold mainly online.

• (3) Flower Knows, a makeup brand focusing on "Live Your Fairytales". Flower Knows mainly targets

young users aged 15-25, generally priced at RMB 69-159, sold on all channels online and offline.

3. Body & hair brands

• (1) Off&Relax, positioned as an "Asian holistic scalp wellness expert", generally priced at RMB 150

to RMB 350, sold mainly online.

• (2) Awaken Seeds, focusing on efficacious hair care by specializing in the scalp microbiome,

generally priced at RMB 79 to RMB 99, sold mainly online.

4. High-efficiency skincare brands

CORRECTORS, positioned as a laboratory-based functional skincare brand, generally priced at RMB 260-600, sold mainly online.

(II) Business models

1. Sales model The Company primarily focuses on online channels, while also maintaining offline channels. Online sales are mainly operated through direct sales and distribution. Direct sales are mainly carried

out through platforms such as Tmall, Douyin, JD.com, Kwai, and Pinduoduo, and distribution is based on platforms such as Taobao, JD.com, and Vipshop.

Offline sales are mainly operated through dealers. The sales channels include specialty cosmetics stores, department stores, and beauty multi-brand stores.

1. Production/R&D models Self-production is the Company's main production model, supplemented by OEM production. The

skincare products of the Company are primarily self-produced, while make-up products are both selfproduced and OEM-produced. The Company has self-built skincare factories.

Independent R&D is the main R&D model of the Company, supplemented by industry-universityresearch cooperation. The Company maintains R&D cooperation with front-end research institutions and high-quality raw material suppliers, including Zhejiang University, Shanghai Jiao Tong University, China Pharmaceutical University, Beijing Technology and Business University, Zhejiang Chinese Medical University, BASF (China) Co., Ltd., Ashland (China) Holdings Co., Ltd., DSM Vitamins (Shanghai) Ltd.,

Croda Chemicals (Shanghai) Co., Ltd., Evonik Specialty Chemicals (Shanghai) Co., Ltd., Spanish LIPOTRUE, S.L., Hangzhou Bota Bio Co., Ltd., Shenzhen Siyomicro Bio-tech Co., Ltd, Zhejiang Peptites Biotech Co., Ltd., and Jiangsu Trautec Medical Technology Co., Ltd.

Description of the Company's new important non-main businesses during the reporting period

□ Applicable √ Not applicable

II. Business Discussion and Analysis

1. Operating revenue Operating revenue: RMB 5.375 billion, up by 0.24% YOY Including: RMB 5.367 billion main operating revenue, up by 0.21% YOY RMB 8 million from other businesses

Main operating revenue:

• (1) By channel

Note: The proportion of revenue from each channel represents its share of total main operating revenue.

• (2) By brand

Note: The proportion of each brand's revenue represents its share of total main operating revenue. INSBAHA was aggregated under "other brands" through 2023 and has been presented separately since

1. Awaken Seeds was aggregated under "other brands" through 2024 and has been presented separately since 2025.

• (3) By category

1. Net profit Net profit attributable to shareholders of the listed company was RMB 1.168 billion, up by 46.26% YOY. Net profit attributable to shareholders of the listed company, net of non-recurring profit and loss, was RMB 664 million, down by 13.80% YOY.

Significant changes in the Company's operating conditions during the reporting period, as well as matters that occurred during the reporting period which had a material impact on the Company's operations or are expected to have a material impact in the future.

□ Applicable √ Not applicable

• III. Analysis of Core Competitiveness During the Reporting Period

√Applicable □Not applicable

The Company's core competitiveness is rooted in the establishment of a highly coordinated, modern enterprise system that integrates "top-level strategy", a "golden chain", and an "agile organization" into a unified and synergistic whole.

• 1. The Company adopts the "Double Ten" Strategy as its top-level design and firmly advances the

"Two Drivers and Four Transformations" development path—namely, empowering industry through technological innovation and supporting operations and management through talent aggregation, and systematically promoting platform-based industrial development, collaborative ecosystem development, business globalization, and digital intelligent operations, outlining a clear blueprint for long-term growth.

• 2. At the market front end, the Company has built a vertically integrated value chain spanning "insight,

R&D, product development, and marketing". This efficient closed-loop system begins with deep insights into consumer trends, leverages a robust R&D framework to enable the precise innovation and rapid iteration of products, and ultimately drives market activation through omni-channel marketing capabilities, ensuring that R&D investment is efficiently translated into commercial outcomes and brand assets.

• 3. At the foundational level, the Company is supported by a self-driven organization integrating four

dimensions: culture, strategy, mechanisms, and talent. By fostering a corporate culture and flexible mechanisms that stimulate internal motivation, the Company not only ensures agile iteration and strong execution of its core businesses, but also continuously empowers its second growth curve, providing sustained momentum for the incubation of a multi-brand portfolio and ecosystem collaboration, and building a deep organizational moat.

• IV. Major Operations During the Reporting Period (I) Analysis of main business

I. Multi-brand and multi-category portfolio development PROYA

1. Products

During the reporting period, PROYA continued to deepen its "Scientific Skincare" positioning, leveraging forward-looking research as the engine, precise consumer needs as the blueprint, and professional validation as the foundation to systematically enhance product innovation efficiency and build professional barriers.

(1) Anti-aging core series: PROYA launched the Advanced Firming Rejuvenating Micro-

Serum in February. Inspired by salon ingredients, it targets people intolerant of retinol and integrates the market trend of nourishing skin with oil. It uses an innovative microbead encapsulation technology for essential oils to expand the coverage of the Advanced Firming Nourishing Series line. In May, PROYA launched the Double Effect Brightening Intensive Single Use Essence and the Double Effect Whitening Brightening Essence. This product has expanded the use scenarios of the Double Effect Brightening Series, consolidated the anti-oxidation and anti-glycation effects, and realized the category synergy and population expansion of PROYA's disposable essence products.

(2) Professional repair system: In January, PROYA MED launched its first cosmetic-registered

product, Proya Med Double Usage Lotion Mist. This product has realized a dual-form design of "longdistance spray for essence mist and short-distance spray for essence lotion", addressing diversified application scenarios such as post-aesthetic treatment care, sudden sensitivity relief, and daily skin maintenance. In May, PROYA MED launched the cosmetic-registered Proya Single Use Serum Skin Barrier Repair Quickly Hydrating Soothing Redness Relief Repair Serum, further addressing the demand for supporting products tailored to different skin types in aesthetic medicine. In Q2, the Recombinant Collagen Spray Dressing and the Sodium Hyaluronate Dressing were introduced across OTC and online channels, further enhancing a comprehensive professional repair portfolio that covers multiple application scenarios, including post-procedure recovery and daily skin maintenance.

• (3) Sunscreen category: In February, PROYA launched the Sun Around Gentle Safeguarding

Mineral Sunscreen, which was jointly validated by Shanghai Skin Disease Hospital as suitable for use after gold microneedling procedures. Positioned with the differentiated value proposition of "sun protection + advanced aesthetic repair", the product further strengthened PROYA's strategic presence in the professional sun care segment.

• (4) Whitening category: The Inaugurating Luminous Anti-spot Whitening Series sold well during

the 618 shopping festival and became an important growth force for PROYA in the whitening segment. Through phased deployment across the whitening category segment, PROYA continued to refine comprehensive whitening solutions tailored to diverse usage scenarios.

1. Marketing During the reporting period, PROYA made strengthening the brand's technological capabilities its

strategic priority and continued to focus on building differentiated technological perception and solidifying consumer mindshare.

• (1) In February, PROYA launched its Chinese New Year (Year of the Horse) campaign centered on

the theme "Life is Vast, Ride with Ease". By integrating multiple touchpoints, including Tmall Super Brand Day, Xiaohongshu, Douyin, and offline pop-up activations, the campaign achieved a total of 1.38 billion impressions and delivered significant new customer acquisition results.

• (2) In February, in collaboration with its brand Global Ambassador for its sunscreen series, Liu Yifei,

PROYA released the all-scenario sunscreen TVC themed "The sun shines just right when I am ready", conveying a composed and positive lifestyle attitude. Concurrently, new sun care products, such as the Sun Around Gentle Safeguarding Mineral Sunscreen, were launched to capture early opportunities in the spring and summer sun care market, generating total exposures of 1.18 billion.

• (3) In March, for International Women's Day, PROYA launched the campaign "I See You", focusing

on authentic and nuanced emotional connections among women, ensuring that women's genuine growth and inner emotions are truly seen. The campaign achieved over 1.14 billion total impressions across all platforms.

• (4) In May, together with brand Global Ambassador for Skincare, Song Jia, PROYA introduced the

Advanced Firming Rejuvenating Micro-Serum TVC, promoting the skincare philosophy that "Fullness is the Answer Given by Symbiosis", with total exposures reaching 120 million.

• (5) In May, for Mother's Day, PROYA launched the campaign "Special Flowers for Special Moms",

moving away from traditional Mother's Day set concepts centered on "anti-wrinkle" and "firming" ageanxiety narratives. Instead, it introduced personalized solutions based on mothers' real lifestyles and skin type needs.

• (6) In May, in collaboration with Bilibili's program Chen Luyu's Slow Conversation × Liu Xiaoqing,

PROYA executed an integrated communication campaign through opening title placements, brand gift box placements, official posters, static screen takeovers, and UGC content amplification, achieving a total reach of 29.065 million unique users across channels. Within seven days of launch, the associated podcast recorded over 2.83 million plays and generated more than 1.7 billion total impressions across the internet.

1. Channels

(1) Online

Tmall: Focusing on core products, PROYA amplified visibility through coordinated marketing IP collaborations. The strong breakout performance of the premium Inaugurating Luminous Antispot Whitening Series during the 618 shopping festival opened up new headroom for brand premiumization. PROYA also refined customer operations by expanding incremental growth through targeted traffic acquisition across specific consumption scenarios, while leveraging digital tools to drive repeat purchases among existing customers.

Douyin: For self-operated livestreaming, PROYA established a matrix of segmented livestreaming rooms, utilizing scenario-based short videos for product promotion and content-driven livestreams for conversion, thereby creating product differentiation and increasing the contribution of self-operated livestreaming to overall sales. For KOL livestreaming, PROYA continued to optimize its influencer mix, focusing on mid-tier vertical influencers and key opinion consumers (KOCs).

JD.com: Leveraging three strategic pillars, namely "expansion of the product matrix, accumulation of gifting-user assets, and enhancement of scenario efficiency", PROYA focused on the launch of new products such as the Proya Men Revitalizing Multi-Effect series to broaden its consumer base. It also strengthened strategic cooperation with the platform on gifting initiatives to enhance penetration in everyday gifting scenarios and build a base of gifting-oriented user assets.

During the 618 Shopping Festival in 2026, the GMV of PROYA's Tmall flagship store ranked No. 1 on Tmall Beauty; the GMV of PROYA ranked No. 1 among domestic brands on Douyin Beauty, and No. 1 among domestic brands in the Beauty category on JD.com. In the first half of 2026, the GMV of PROYA's Tmall flagship store ranked No. 1 among domestic beauty brands on Tmall; the GMV of PROYA ranked No. 2 on Douyin Beauty, and No.1 among domestic beauty brands on JD.com.

(2) Offline:

Beauty multi-brand store: Adhering to a dual-drive strategy driven by major products and new launches, PROYA implemented refined dual-line operations across offline new retail stores and instant retail channels. It also created customized product mixes to precisely match online instant consumption demands with the advantages of offline store scenes.

Department stores channel: Based on city tiers and counter grading, PROYA optimized its department store footprint and advanced structured counter expansion and upgrades. It precisely deployed counters in premium shopping districts in top-tier cities and key regional commercial hubs, steadily

promoting new counter openings and image renovations. Meanwhile, PROYA comprehensively enhanced differentiated brand service capabilities and continuously iterated its proprietary skincare service system.

Cosmetics store channel: PROYA continued to focus on tapping into new offline growth, concentrating resources on leading daily-chemical retail chains to achieve lightweight and high-quality channel upgrading. Tailored product assortments and sell-through strategies were implemented across different terminal formats, accelerating the transformation from a pure sales model to an integrated model that combines service, experience, and operational excellence.

HAPSODE 1. Products

During the reporting period, HAPSODE continued to build a matrix of core proprietary ingredients, including the Oroxylum indicum seed extract, Piper methysticum root extract, supramolecular honeycomb salicylic acid, and targeted anti-acne lysozyme. Centered on the "daily care line + efficacy-driven line" (Acne & Sensitive Line, Brightening Line, and Sensitive Repair Line), HAPSODE continuously optimized its product portfolio to further strengthen its professional barriers.

HAPSODE continued to optimize its category structure. The hero product, Ultra Soothing Serum,

maintained its leading position within its category, while the Purifying Watery Cleansing Foam consistently ranked among the top products in the cleansing segment, forming a dual-engine growth model driven by "cleansing + repair". The product matrix was further enriched: in February, an innovative Double Tubes Cleanser was launched, featuring a "dual-chamber separation" design that combines the benefits of an "Easy-to-Use Mud Mask" with an "All-in-One Cleansing & Makeup Removing" function, enhancing the competitiveness of the existing cleansing line. Also in February, building on HAPSODE's "instant mood-lifting" gene, the Peachy Glow Cleansing Balm was introduced to extend the cleansing balm range and elevate the user experience. In April, the Sensitive Repair Line was further optimized and upgraded, including an iteration of the Cleansing Mousse to enhance product performance.

1. Marketing

During the reporting period, HAPSODE closely focused on the strategic positioning of a "youthfocused skincare" brand and the annual theme of "YouthLab Discovery", continuing its dual-line drive of "efficacy + emotion".

• (1) Efficacy marketing: HAPSODE further strengthened its professional endorsement system.

The proprietary ingredient Oroxylum indicum seed extract received the "InnoCosme Awards" for Annual Bioactive Ingredient, reinforcing the brand's efficacy-driven positioning in consumers' minds.

• (2) Word-of-mouth promotion: Focusing on major products, HAPSODE continued to

consolidate Ultra Soothing Serum's association with "acne mark repair". For the new Double Tubes Cleanser, marketing efforts highlighted its innovative dual-tube design and convenient cleansing scenarios, reinforcing the product proposition of "one product for daily cleansing + periodic deep cleansing". Following its launch, the product received the honor of the 2026 New Cosme AwardsAnnual New Product.

• (3) Emotional marketing: HAPSODE officially announced Zhuo Yuan as its "Vitality

Ambassador", carrying forward the theme "Full of Vitality, Joyful Exploration" throughout the "YouthLab Discovery" communication campaign. This initiative conveyed youthful energy and deepened emotional resonance with Generation Z consumers. At the same time, HAPSODE explored innovative youth-oriented communication formats, including AIGC-generated content, to expand engagement in emerging digital scenarios.

1. Channels Tmall: HAPSODE increased the sales contribution of the essence category and accelerated its expansion into the efficacy-driven skincare segment. Leveraging new cleanser launches, it maintained its category advantages. For its hero cleansing product, HAPSODE engaged in in-depth collaborations with Tmall livestream hosts to enhance penetration. With the support of celebrity endorsements and platform IPs, HAPSODE strengthened the reach of its marketing campaigns. Through refined consumer operations and an optimized sampling mechanism, it effectively promoted first-time purchase conversion.

Douyin: For self-operated livestreaming, HAPSODE advanced the transformation of livestream scenarios toward more innovative formats, driving conversion through high-quality content. In shortvideo operations, AI tools were leveraged to accelerate the production and iteration of product promotion content, effectively improving traffic acquisition efficiency. In media placement, a dynamic ROI management system was established to balance advertising efficiency and return on investment.

During the 618 Shopping Festival in 2026, the GMV of HAPSODE surged by 833% YoY on Xiaohongshu, rose by 83% on Douyin's self-operated channel, and grew by 82% on Tmall's KOL livestreaming channel.

TIMAGE

1. Products

During the reporting period, TIMAGE reinforced its concept of "Chinese Makeup, Natural Beauty", expanding new trendy products in layered segments to precisely cover diverse skin types.

• (1) The Small Round Tube Liquid Foundation was upgraded and iterated with "24-hour

Porcelain-Like Flawless Finish" as its core proposition. The formula incorporates multiple botanical extracts and features an innovative magnetic concealer attachment, expanding multi-functional usage scenarios.

• (2) The base makeup line—including cushion foundations, pressed powders, and concealers—

was further iterated and expanded. TIMAGE specially launched Cloud Radiant Cushion Foundation, designed for oily skin, to complete the full skin-type coverage strategy. TIMAGE also introduced new shades for concealers and pressed powders to precisely address concerns such as facial imperfections and dull skin tone.

• (3) Building on its leadership in the primer category, TIMAGE completed comprehensive

upgrades of its makeup setting spray and primer lines for oily skin, strengthening specialized benefits such as oil control and long-lasting makeup performance.

• (4) TIMAGE further expanded its color cosmetics portfolio under the upgraded "Infuse Cyan

Into Makeup" themed series. New shades were added to TIMAGE's signature contouring and blush products. In addition, TIMAGE launched the lip product "TIMAGE Glazed Veil Elxir Rouge Set", completing the lip makeup segment and achieving full-category coverage across base makeup, primer, facial color cosmetics, and lip products.

In the first half of 2026, TIMAGE's foundation ranked No. 1 among domestic brands in Tmall’s foundation category. Its contouring products ranked No. 1 in Tmall's contouring/highlighting category. TIMAGE's concealer ranked No. 1 in Tmall's concealer category, and its primer ranked No. 3 in Tmall's primer category and No. 2 among domestic brands.

1. Marketing

During the reporting period, TIMAGE experienced comprehensive upgrading, adhering to the core concept of "Chinese Makeup, Natural Beauty" and proposing the brand philosophy of "harmonizing squareness and roundness" to achieve deep expression and full renewal of brand aesthetics. The marketing campaigns it carried out are as follows:

• (1) In January, TIMAGE launched the Year of the Horse limited-edition New Year gift set

themed "Vitality Across Miles, Auspicious New Beginnings", in collaboration with brand Ambassador Chen Duling. Together, they released the festive campaign film "Endless Vitality", interpreting the enduring vitality and the balance of strength and softness embodied by Oriental women. The campaign generated over 30 million cumulative impressions across the internet.

• (2) In February, the new "Infuse Cyan Into Makeup" color theme series was launched,

incorporating its signature teal tone to translate the natural balance of Oriental primary colors into a clean, translucent native makeup look. The product lineup covers the full makeup routine, including skin-tone base, contouring, blush application, and lip finishing.

(3) In April, TIMAGE held the Small Round Tube Liquid Foundation 2.0 New Product and Brand

Upgrade Conference at the Zhejiang Modern Ceramic Art Museum, initiating a cross-disciplinary aesthetic dialogue between "porcelain and makeup". Tang Yi and brand Ambassador Chen Duling jointly appeared to interpret the product's core proposition of "Matte Porcelain Flawless, 24-hour Long-Lasting Native Finish". The full-cycle campaign achieved over 400 million total impressions.

(4) In May, the Cloud Radiant Cushion Foundation, specially designed for oily skin, debuted at

the Shanghai West Bund Wandering Festival through an offline themed activity. Multiple top beauty influencers were invited to attend, with leading KOL Chen Tudou (Bostick Chen) appearing on-site as "Store Manager for a Day", further strengthening market awareness of TIMAGE's comprehensive cushion foundation matrix covering all skin types.

1. Channels

Tmall: Through integrated multimedia advertising beyond Tmall and diversified scenario deployment on Tmall, TIMAGE further refined its operations and added Taobao Shangou as a new channel to enrich multi-scenario coverage. In terms of category mix, the proportion of base makeup continued to increase, with TIMAGE's consumer base gradually shifting toward higher-spending segments and demonstrating increased customer loyalty. For the color cosmetics line, multifunctional categories such as all-in-one face palettes and brow-and-lip palettes were promoted to attract and expand into younger consumer segments.

Douyin: For self-operated livestreaming, TIMAGE stabilized its daily sales baseline, focusing on major base makeup categories such as foundations and cushion foundations, while consolidating its advantages in color categories including contour and blush. For KOL livestreaming, collaboration between mid- and long-tail influencers and top-tier influencers was strengthened, adopting a model of "influencer short-video preheating + dedicated livestream sessions for conversion" to boost individual SKU rankings and search popularity.

In the first half of 2026, the GMV of TIMAGE's Tmall flagship store ranked No. 6 on Tmall Makeup and No. 3 among domestic brands.

INSBAHA

1. Products

During the reporting period, guided by the strategy of "adding new shades to existing products and upgrading core products", INSBAHA focused on lip, contour, and eye product lines to further strengthen the professional competitiveness of functional and color-based items, while continuously extending the lifecycle of core SKUs and enhancing consumer repurchase rates.

• (1) Color makeup line: Centered on the hero products Glow Lip Cream and Double-Effect Contouring

Stick Matte, INSBAHA continued to expand its color matrix. It launched three new shades for Glow Lip

Cream and three new shades for Double-Effect Contouring Stick Matte. These additions enhanced the products' versatility for daily makeup and multi-scenario applications.

• (2) Eye makeup functional line: INSBAHA launched three new shades of the gel eyeliner, further

enriching the eye product portfolio. In addition, the Wavy Eyebrow Mascara underwent a comprehensive formula upgrade, significantly improving color payoff, long-lasting performance, and overall user experience.

• (3) Facial makeup functional line: INSBAHA further expanded the contour product range by adding

one new shade for the Contouring Stick, better addressing the refined contouring needs of consumers with diverse skin tones.

In the first half of 2026, INSBAHA's Wavy Eyebrow Mascara ranked No. 1 in Tmall's brow mascara category and No. 2 in Douyin's brow tint category. The Skinny Melty Chameleon Gel Eyeliner Pen ranked No. 1 in both Tmall's and Douyin's gel eyeliner categories. The Face Concealer Palette ranked No. 2 in Tmall's concealer palette category.

2. Marketing

During the reporting period, focusing on its Brand Upgrade 3.0 initiative, INSBAHA systematically strengthened brand positioning, visual identity, and content asset development. With "breaking aesthetic norms" as its core proposition, INSBAHA aimed to establish itself as a rebellious, attitude-driven color cosmetics label, reinforcing differentiated recognition among young makeup consumers.

For brand expression, INSBAHA established the core tagline "INSIDE ME ", alongside four key brand spirit pillars—Bravery, Ambition, Hope, and Achieve. This marked a shift from purely functional value propositions toward deeper spiritual resonance and attitude expression. For visual system, INSBAHA completed a phased rollout of standardized visual guidelines, unifying brand expression across all channels. A more rebellious, bold, and stylized visual language was adopted to enhance brand texture and external recognition efficiency. For consumer strategies, INSBAHA focused on 18–35-year-old Gen Z consumers and emerging white-collar professionals seeking individuality, while extending its reach to broader audiences pursuing cultural identity and self-expression.

1. Channels

Tmall: Through multi-category synergy, major eye products achieved coordinated on- and offplatform exposure, with paid traffic and algorithm-driven recommendation traffic resonating to expand market share in segmented categories. For facial makeup hero products, INSBAHA continued to strengthen professional base makeup positioning. By precisely targeting high-value potential consumers and implementing multi-touchpoint engagement, INSBAHA drove rapid expansion in category scale.

Douyin: For self-operated livestreaming, INSBAHA upgraded its visual presentation and shifted key promoted products toward higher average selling price tiers, while forming precise product differentiation

with influencer livestreaming. For KOL livestreaming, strict daily price controls were maintained, and during major promotional campaigns, INSBAHA leveraged platform subsidies to efficiently capture incremental traffic while safeguarding the integrity of the pricing system. In short-video operations, both old and new products operated as dual growth engines, establishing a structure of "old products stabilizing the base, new products driving incremental growth".

During the 618 Shopping Festival in 2026, the GMV of INSBAHA increased by more than 170% YoY across all channels, including increases of 150% on Tmall and 169% on Douyin.

Off&Relax 1. Products During the reporting period, Off&Relax continued to deepen its positioning as an "Asian holistic

scalp wellness expert". Through systematic product matrix expansion, including the advanced Luminous Repair Series, Oil-Control series, hero product scale extensions, Seasonal Limited Series, and cross-border lines such as the Anti-Hair Loss Ultra Series and cross-border limited collections, Off&Relax delivered a professional and therapeutic hair care experience for consumers.

• (1) In January, Off&Relax launched the Luminous Repair Series (shampoo + hair mask + hair milk

oil). The series introduced the innovative concept of "differentiated repair tailored to Asian hair types", and debuted a new haircare category—Milky Oil, specifically targeting common concerns among Asian consumers with permed or dyed hair, such as roughness, dullness, split ends, and tangling.

• (2) In March, toward the overseas market, Off&Relax introduced the Ocean Breeze Limited Fluffy

Hair Care Set. It tailored differentiated SKUs for the Japanese market while enriching its cross-border product portfolio to better meet local consumer needs.

• (3) In April, Off&Relax launched the Spring Awakening Green Limited Edition Haircare + Shower

Gel + Hair Oil Set. This edition was co-launched by Off&Relax and Givaudan, featuring a springexclusive orange blossom fragrance. The classic fluffy wash experience gently and effectively cleanses the scalp, revitalizing hair with a fresh spring vitality.

• (4) In April, Off&Relax launched innovative SKUs, SPA Creamy Foaming Powder and Airy Fluffy

Water Treatment, under the Fluffy series, further strengthening the brand image of SPA-level scalp care within the Fluffy range.

• (5) In April, Off&Relax upgraded its oil control series (oil-control shampoo + oil-control liquid

conditioner), expanding into the segment targeting the "four major oil-related scalp conditions common among Asians". The Airy Clarifying Water Treatment specifically addresses the deep-rooted pain points of oily scalp consumers, such as greasy roots with dry lengths and flat, sweat-prone hair.

• (6) In April, Off&Relax launched the Anti-Hair Loss Ultra Series (Intensive Revival Scalp Serum +

Medicated Hair Tonic) through cross-border channels. The series targets stress-induced hair loss among Asian consumers, featuring patented, clinic-grade PDRN combined with the recombinant humanized collagen type XVII to directly nourish hair follicle stem cells, enhancing follicle repair capacity, and restoring a youthful state to hair follicles.

• (7) In June, Off&Relax launched the Green Apple Limited Collection (haircare set + bubble bath

lotion + body scrub) for summer. The refreshing apple fragrance paired with Off&Relax's classic fluffy cleansing experience gently purifies the scalp while delivering an enriched summer bathing ritual.

1. Marketing During the reporting period, Off&Relax continued to promote the integrated marketing strategy of

"brand asset development + a high-quality content model + a multi-channel resonance model" and carried out the following marketing work:

• (1) In January, Off&Relax officially announced that the acclaimed actress Janice Man Wing Shan

serves as its Luminous Ambassador, focusing on promoting the Luminous Repair Series and interpreting the rejuvenation journey of hair from the inside out. At the same time, Off&Relax released the Asian Hair Health White Paper—Damaged Hair Repair, systematically proposing a "structural state-oriented" threedimension-repair strategy. This release has strengthened Off&Relax's professional image.

• (2) In March-June, Off&Relax launched its first offline immersive slow pop-up space, "Aqua Healing

Space", on Yuyuan Road in Shanghai. Centered on "water" as the narrative thread, the space integrated brand presentation, product experience, scalp SPA treatments, and professional salons, interpreting Off&Relax's core philosophy through an immersive five-senses experience. During the campaign period, Off&Relax invited well-known actresses including Selena Lee Sze Wa, Janice Man Wing Shan, Zhu Wangwang, and Wang Zhen'er to visit and experience the slow pop-up space in person.

• (3) In April, Off&Relax launched new products under the SPA Fluffy Series, including OR SPA

Creamy Foaming Powder and Airy Fluffy Water Treatment, further completing the fluffy product matrix together with the hero product Fluffy Shampoo. Off&Relax also announced nationally renowned actress Cecilia Cheung Pak-Chi as its Fluffy Ambassador.

• (4) In April, upon the upgrade and launch of the Oil-control Series, Off&Relax announced Jiang

Heng (Ocean Jiang) as its Purifying Balance Ambassador. In collaboration with JD.com's platform IP, Off&Relax carried out fan marketing campaigns to drive concentrated exposure and conversion.

• (5) In April, Off&Relax co-created content with Altay cultural tourism authorities and renowned

content creator Zhan Qingyun. Inspired by Altay, Off&Relax launched the new Spring Awakening Green Collection and partnered with multiple high-end B&Bs in Altay by offering them product samples, creating a healing haircare experience infused with the atmosphere of spring.

• (6) In May, Off&Relax appeared at the 14th World Congress for Hair Research (WCHR 2026) and

showcased its full product portfolio. At the event, Dr. Yang Jianzhong, a global expert in holistic scalp healing and care, shared Off&Relax's four-dimensional scalp healing and care system as well as frontier research on collagen type XVII.

• (7) In May, Off&Relax partnered with Southern Weekly and beauty influencer Zhu Wangwang to

jointly launch the "28-Day Shaved-Hair Challenge", demonstrating the anti-hair-loss and hair-revitalizing efficacy of its Anti-hair Loss Strengthening Ampoule Essence.

1. Channels

(1) Online:

Tmall: Tmall is Off&Relax's core operating channel, on which it mainly promoted key categories, such as the Fluffy series, the Anti-hair loss series, and the Luminous Radiance Luxury Repair Hair series. Off&Relax continued to strengthen hero SKU penetration and multi-category coordinated development on Tmall. Its channel growth gradually shifted from being driven by a single hero product to being jointly driven by multiple categories, including shampoo, scalp care, and haircare sets.

Douyin: Off&Relax continued to deepen the coordinated operation of the "content field + shelf field", enhancing both brand content penetration and transaction conversion capacity through multi-scenario linkage. For self-operated livestreaming, Off&Relax continuously optimized livestream content expression, product combinations, and placement structure. For KOL livestreaming, Off&Relax established in-depth collaborations with top-tier KOLs as well as a matrix of mid-tier ones, expanding brand content touchpoints.

During the 618 Shopping Festival in 2026, the GMV of Off&Relax ranked No. 3 in Douyin's Hair Care category and No. 2 among domestic brands. In the first half of 2026, the GMV of Off&Relax's two Tmall stores ranked No. 4 in Tmall's haircare and hair beauty category, excluding hair dyeing, perming, and styling, and No. 1 among domestic brands.

(2) Offline:

During the reporting period, Off&Relax further improved its offline retail channel layout by entering channels such as Sam's Club, Freshippo, Xiaoxiang Supermarket, strengthening penetration into more household consumer touchpoints. At the same time, Off&Relax entered beauty multi-brand stores including Watsons, KKV, HARMAY, and AFIONA, creating a differentiated product assortment strategy through channel-customized sets and limited-edition fragrances. Off&Relax also further expanded into imported supermarket channels such as Ole, city'super, and Jiuguang.

Awaken Seeds

1. Products During the reporting period, Awaken Seeds continued to reinforce its positioning as an efficacy-

driven hair cleansing and care brand specializing in scalp microbiome, and thereby strengthened consumer perception of its professionalism and scientific credibility.

• (1) In February, Awaken Seeds upgraded its hero product Oil-Control Shampoo into the 2.0 version.

It introduced the core philosophy of "scalp-specific, cause-specific, precision care" and "rejecting a onesolution-for-all approach" for the first time. Based on different levels of scalp oiliness, Awaken Seeds launched two targeted oil-control shampoos: Oil-Control Purifying Shampoo for severely oily scalps and Oil-Control Balancing Shampoo for mildly oily scalps.

• (2) In April, Awaken Seeds expanded its anti-dandruff series with the launch of Effective Anti-

dandruff Shampoo. Under its core philosophy of segmentation by scalp concern and scalp type, and building on its existing anti-dandruff products—Anti-dandruff Purifying Shampoo—Awaken Seeds introduced Effective Anti-dandruff Shampoo, containing 0.9% refined selenium disulfide, to address severe oily dandruff and seborrheic dermatitis. This further covered targeted needs within dandruff-related pain points and completed the anti-dandruff product matrix.

2. Marketing

During the reporting period, focusing on its core positioning and with "major brand event" as the engine, Awaken Seeds adopted a dual-drive model of "building professional trust through scientific communication and stimulating consumer demand through scenario-based marketing", and successfully made the concept of "type-specific oil control" tangible, credible, and accessible. The marketing initiatives undertaken are as follows:

• (1) In January and February, Awaken Seeds launched a series of brand-owned social media

campaigns, including the New Year's Day campaign "New Year's Eve Project | Sparkling Life" and the Spring Festival campaign "Pengpeng's New Year". Leveraging the festive New Year atmosphere, Awaken Seeds introduced limited-edition engagement formats to enhance consumer affinity, brand exposure, and interaction.

• (2) From March to May, Awaken Seeds developed "Brand Talk" content during the launch period of

Oil-Control 2.0 and built a three-dimensional scientific communication matrix. Through a series of content initiatives including "authoritative expert commentary," academic conference endorsements, and ingredient-and-efficacy visualization, Awaken Seeds deepened consumer understanding of the new products and drove conversion.

• (3) From May to June, Awaken Seeds launched the "Hair Research Institute" content series. Through

expert interpretation of multi-center sampling data and real testing conducted across universities in northern and southern China, Awaken Seeds made the concept of "segmentation by type" more tangible in consumers' everyday lives, while also creating strong talking points for off-platform product promotion.

• (4) In June, against the backdrop of channel expansion and based on channel characteristics, Awaken

Seeds launched travel-size products exclusively for new retail channels and quickly made them available through instant retail channels. Through off-platform content and on-platform product strategies aligned with scenarios such as business trips, travel, and trial purchases, Awaken Seeds lowered the trial cost for new customers with a relatively low average transaction value, rapidly obtained user profiles within these channels, and explored paths for the subsequent rollout of its full product line.

In the first half of 2026, Awaken Seeds continued to accumulate brand assets through scientific communication. In collaboration with the Company's Shanghai R&D Center, Awaken Seeds communicated more than 10 core R&D outputs, including patents, conference findings, and articles, across a series of touchpoints, generating over one million impressions. These efforts built a professional trust moat and continuously contributed "passive persuasiveness" to long-term conversion.

1. Channels

Tmall: Awaken Seeds advanced refined operations around the two priorities of "new customer acquisition" and "conversion efficiency". In terms of acquiring new customers, Awaken Seeds optimized the cost-ratio structure of promotional channels and leveraged a combination of "audience promotion + super short videos" to generate exposure traffic at a lower cost. Awaken Seeds also

linked the platform's "Tmall U First" and 10-billion-yuan subsidy programs to send samples, repeatedly retargeting trial users and building an efficient new-customer acquisition loop of "exposure–trial–repurchase". Regarding conversion, Awaken Seeds restructured product combinations, strengthened cross-selling logic, and improved its self-operated livestreaming rooms. Through streamer scripts and interactive mechanisms, Awaken Seeds systematically enhanced overall operating efficiency.

Douyin: Awaken Seeds focused on an integrated operational approach combining short videos, livestreaming, and paid media, supported by refined operations. Content served as the foundation for promotion. Hence, for self-operated livestreaming, Awaken Seeds used major livestreaming sessions to drive smaller themed sessions and create campaign momentum. On the product side, Awaken Seeds used innovative peripheral product bundles to enhance cross-selling. On the account side, Awaken Seeds built a matrix of self-operated livestreaming accounts and short-video accounts, while using mall product bundles (product cards), to drive organic traffic.

During the 618 Shopping Festival in 2026, the GMV of Awaken Seeds grew by 77% YoY across all channels, including increases of 187% on Douyin and 53% on Tmall.

II. New R&D strategy

During the reporting period, the Company continued to prioritize scientific and technological innovation as its core driver and maintained a three-pronged R&D system: independent R&D + industryuniversity-research-medicine cooperation + international collaboration. It has made systematic progress in skin mechanism research, raw material innovation, cutting-edge technology breakthroughs, efficacy evaluation standardization, and cross-border collaborative innovation. The specific summary is as follows:

1. Patents During the reporting period, the Company filed 36 new national invention patent applications, 1

utility model patent application, and 27 design patent applications, totaling 64 new patent applications. The Company was also granted 11 national invention patents, 2 utility model patents, and 16 design patents, for a total of 29 newly granted patents. As of the end of the reporting period, the Company had 154 nationally licensed invention patents, 26 utility model patents, and 152 design patents, totaling 332 patents obtained.

1. Standards During the reporting period, the Company released 1 national standard, 3 light industry standards,

and 8 group standards as a drafter. As of the end of the reporting period, the Company had led or participated in the development of 22 national standards, 9 light industry standards, and 48 group standards.

3. Ingredient R&D and technological innovation

• (1) During the reporting period, the Company continued to increase its investment in ingredient R&D,

reached in-depth cooperation with advanced ingredient suppliers at home and abroad, covering a variety of cross-research fields such as synthetic biology and AI technology fusion application, and completed the filing of three new ingredients: Myristyl Malate Phosphonic Acid, Bicyclic Hexadecapeptide-1, and Itaconic Acid, creating differentiated ingredient advantages.

• (2) During the reporting period, the Company completed efficacy validation and product matching

for a number of self-developed botanical extracts, botanical ferment specialty ingredients, and innovative ingredients. These ingredients covered multiple brand pipelines of the Company and achieved the commercialization of the Company's proprietary self-developed ingredient technologies.

• (3) During the reporting period, the Company continued to strengthen its foundational self-developed

technology system and built multi-dimensional independent R&D platforms, providing core technical support for proprietary ingredient development, efficacy upgrades, and formula compounding.

4. Awards and achievements

(1) During the reporting period, the Company attended the Conference of Chinese Dermatovenerology Society of Integrative Medicine (CDSI), sharing interim progress in basic skin research and post-operative repair. At the Annual Meeting of Chinese Society of Dermatology (CSD), the Company released the PROYA Basement Membrane White Paper together with its partners, established an evidence chain for the basement membrane in the Chinese population, and highlighted the clinical value of basement membrane research. At the World Congress for Hair Research (WCHR) and the CSD, the Company released 4 and 2 academic posters, respectively, covering research areas including scalp microbiome and scalp health, anti-dandruff technology, mild cleansing, and hair fiber repair.

During the reporting period, the Company's R&D team attended multiple industry conferences and forums, including Cosmetotest 2026 in Lyon, CosmoProf in Italy, the EADV Symposium 2026, and the 2026 Cosmetics Europe Annual Conference. The team also delivered thematic presentations on the Company's scientific research achievements.

(2) During the reporting period, the Company published multiple high-quality papers in domestic and foreign journals and industry conferences:

In the skincare field, the Company published the paper Asperuloside protects against age-related muscle dysfunction by enhancing FOXO3-mediated mitophagy in Phytotherapy Research, focusing on mitochondrial anti-aging research. The Company also focused on the precise regulation of sunscreen film structure and introduced a new research perspective on sunscreen performance. The related technical research was selected for an oral presentation at IFSCC 2026. Two mechanism and clinical studies related to the Advanced Firming Nourishing Series were accepted by the 2026 China Cosmetics Science and Technology Conference and received the Excellent Paper Award. In addition, the Company developed an age model for the skin condition of Chinese women and quantified the comprehensive performance of the Double Effect Brightening Series in anti-glycation and reducing skin sallowness; the related findings were published in the Journal of China Cosmetic Science.

In the field of hair and scalp care, the Company continued to advance joint research on the scalp microbiome with Shanghai Jiao Tong University and achieved new progress in multi-omics research, including lipidomics and metagenomics of oily scalps. The related findings were published in the Journal of Cosmetic Dermatology. In anti-dandruff mechanism research, the Company analyzed the regulatory effects of a compound anti-dandruff system on Malassezia, and the findings were published in the Journal of Applied Microbiology. The Company published research on the mild exfoliation mechanism of succinic acid in Cosmetics. In research on the irritation potential of surfactant compound systems, the Company combined cutting-edge characterization technologies such as synchrotron radiation micro-infrared spectroscopy to visually reveal the correlation mechanism between surfactant micelle aggregation behavior and skin mildness; the findings were published in the Journal of Colloid and Interface Science.

5. Strategic cooperation

During the reporting period, the Company continued to deepen industry-university-researchmedicine collaboration in innovation, further expanded its diversified cooperation network, and built an innovation framework that integrated internal and external efforts, and focused on core areas such as raw material innovation, technology R&D, and joint platform development.

The Company continued to deepen ingredient-side strategic partnerships. Specifically, it sustained long-term collaboration with Ashland (China) Investment Co., Ltd., DSM Vitamin (Shanghai) Co., Ltd., BASF (China) Co., Ltd., and Hangzhou Bota Bio Co., Ltd., and carried out collaborative innovation in efficacy-ingredient R&D, biotechnology implementation, and green manufacturing.

The Company continued to work closely with medical institutions to deepen foundational research and accelerate clinical translation. In cooperation with Shanghai Skin Disease Hospital, the Company jointly established the Dermatological Clinical Research Laboratory. Moreover, it conducted advanced comprehensive cooperation across efficacy skincare R&D, basic skin science research, professional talent

cultivation, and the commercialization of R&D outcomes. Building on its in-depth collaboration with West China Hospital, the Company currently works to form a research ecosystem for mitochondrial anti-aging that integrates "industry-academia-research-medicine", covering mechanism breakthroughs, ingredient innovation, and application implementation, thereby enabling frontier medical research to empower innovation in the cosmetics industry.

Besides, the Company co-established a joint laboratory with Zhejiang University–Veminsyn Bio-AI Center to build an AI-driven life science and consumer health innovation platform. The Company also further deepened cooperation with Zhejiang University, Shanghai Jiao Tong University, Dalian University of Technology, China Pharmaceutical University, East China University of Science and Technology, University of Shanghai for Science and Technology, etc. in skin care, makeup, scalp care, and hair care technology.

III. New supply chain guarantee

• 1. Green and low-carbon: During the reporting period, the Company continued to promote green

and low-carbon initiatives and automation upgrades. It used returnable transit containers, biodegradable packaging film, and reused outer shipping cartons to reduce one-time packaging consumption and carbon emissions effectively. The Company also introduced automated kitting/packaging equipment to upgrade packaging automation, improve packaging efficiency, and enhance standardization, effectively balancing between cost reduction and efficiency improvement and sustainable development.

• 2. Energy security: During the reporting period, the Company had the low-voltage switchgear in the

main distribution substation replaced to ensure safe and stable power supply. The new equipment integrated digital monitoring modules to enable real-time visualization of power data. In the logistics warehouse, the Company had the entire roof lighting panels replaced, enabling "no-light operation" during the daytime in the warehousing area and effectively reducing lighting energy consumption. The Company also optimized water usage classification to save water costs, and advanced safety upgrades together with cost reduction and efficiency improvement.

• 3. Safety and control upgrades: During the reporting period, the Company introduced multiple

intelligent technologies for factory safety and risk control. These included an AI fire-detection system deployed for the charging areas, automatic fire-extinguishing devices installed in the charging zones and the hazardous chemical goods warehouse, and current-limiting protection devices installed in the dormitory buildings. These measures strengthened the Company's fire safety defense line.

• 4. Digital construction:During the reporting period, the Company leveraged AI technology, the

Feishu (Lark) collaboration platform, and low-code development tools to complete multiple digital applications. These applications covered key business scenarios, including supply chain operations, production coordination, warehousing and logistics, quality management, workflow approvals, and project management, thereby breaking down data silos across the supply chain. In addition, through an asset management system, the Company established standardized electronic ledgers covering the full lifecycle of asset procurement, receiving, issuing, and disposal. Through an accounting electronic archive system, the Company collected, stored, and accessed accounting materials online throughout its full workflow, significantly reducing paper usage and warehouse space.

• 5. AI vision inspection empowered intelligent manufacturing: During the reporting period, the

Company used AI vision inspection technology to optimize production and product quality inspection processes and completed upgrade and renovation projects for multiple production manufacturing workshops. By introducing vision inspection solutions such as Cognex, the Company gradually realized information-based management across the full production process and enabled more intelligent equipment operation.

IV. New organizational strategy

• 1. Mechanism development: With the "Double Ten" Strategy at its core, the Company continued to

shape a more agile, efficient, and flat organizational structure. The Company strengthened horizontal collaboration at the organizational level and, at key business milestones or for major projects, formed joint task forces to promote the organic integration of division of labor and collaboration. Besides, the Company fostered a culture that encouraged innovation and tolerated trial and error. It also strengthened domestic employment risk prevention and control, built a compliance knowledge system for overseas employment, and reinforced the global compliance baseline. In addition, the Company upgraded its employee wellbeing program and built an employee interaction and incentive system, turning "employee well-being" into "organizational resilience" and "core competitiveness".

• 2. Incentive performance: During the reporting period, the Company systematically upgraded its

performance management system. It completed strategy decoding, formed a strategic map, built a Company-level key performance indicator library, and cascaded indicators down to each individual. The Company connected the full closed loop of "strategy–indicators–dashboard", using a high-performance orientation to drive business focus and efficient strategy implementation. In terms of compensation and incentives, the Company continued to upgrade its system around "improving efficiency, optimizing mechanisms, and promoting innovation". It launched the 2026 Employee Stock Ownership Scheme, established an interest-sharing mechanism, and enhanced the team’s long-term competitiveness and cohesion.

• 3. Talent development: Building on its existing promotion mechanism, the Company launched a

special "Promotion Fast Track" program to provide momentum for both organizational and individual development. The Company refreshed its leadership model to improve the efficiency and accuracy of talent identification. Using the three-capability model—leadership, professional expertise, and general competencies—as the anchor, the Company made strategic-level talent investments, built a capability development ecosystem, and empowered employee growth.

• 4. Intelligent human resources development: The Company empowered human resources

management with AI and adopted multiple measures to improve management quality and efficiency. It actively advanced a portfolio of projects, achieving a capability leap from online processes and data visualization to intelligent driving. The HRAI project portfolio was fully implemented, integrating and intelligently upgrading modules including performance management, promotion, talent review, succession planning, new employee management, and the internal talent mobility platform. This significantly improved the agility and precision of management decision-making.

V. Digital and Intelligent Strategy

During the reporting period, the Company further embedded its digital-intelligence initiatives into business scenarios. Focusing on areas including the data foundation, business analysis, AI applications, online processes, data security, and organizational capabilities, the Company worked to improve business response efficiency, management transparency, and data-driven decision-making capabilities.

1. Data foundation and business analysis capability building: The Company advanced the

construction of its data middle platform into the business-scenario validation stage. It focused on establishing a unified data entry point, data standards, quality criteria, and data asset accumulation. The Company also prioritized projects such as integrated business-finance management reporting and data asset inventory, laying a solid foundation for the subsequent iteration of the business cockpit, marketing cockpit, and cross-brand business analysis.

2. Implementation of applications in marketing, e-commerce, and business scenarios: Around

high-frequency scenarios such as major campaign operations, placement monitoring, and business review, the Company launched tools including the 618 Mega Campaign Dashboard, the Company Mega Campaign Daily Report, and the Qianchuan Media Placement Monitoring Agent. These tools helped business teams more quickly understand the progress of major campaigns and improved the efficiency of cross-department data collaboration and business review.

3. AI applications moved from training pilots to business practice: The Company gradually

embedded AI-related work into concrete processes such as content production, data governance, system development, and operations monitoring. For example, the AI video project accumulated workflows covering material tagging, script generation, batch video production, and media placement review. The Data Quality Monitoring Agent and Media Placement Alert Bot moved anomaly identification to the stage before data entered the process. The Company also used AI Coding to rapidly deliver applications such as the distribution collaboration platform and the sensory analysis platform.

4. Deploying workflows for finance, supply chain, and business collaboration online: The

electronic accounting archive project connected systems including SAP, expense management, and OA, enabling automatic collection and archiving of documents such as vouchers and contracts. The media procurement process covered stages including demand application, order placement, acceptance inspection, and payment, enhancing expense traceability and compliance control. The advancement of the electronic labeling system, outsourced packaging material management, and the overseas intelligent reconciliation platform also strongly improved business efficiency.

5. Data security, data quality, and organizational capability building: The Company completed

its first certification for the ISO 27001 Information Security Management System, further standardizing its information security management capabilities. In terms of data quality, the Company established

monitoring and notification mechanisms around data sources to reduce the entry of erroneous data into downstream processes. In terms of organizational capabilities, through AI night school, AI video training, and OpenClaw Agent practice, the Company enabled management and business teams to understand and use AI in real scenarios, while accumulating reusable methods and templates.

Notes:

(1) Data sources for the rankings of the above brands, products, and categories: Data for TIMAGE on Tmall for the first half of 2026 is sourced from Nint Intelligence Cloud. Data

for INSBAHA on Tmall is sourced from Nint Intelligence Cloud, data on Douyin is sourced from Feigua. The time periods are from January 1, 2026, to June 30, 2026.

(2) Rankings and data sources for each channel of the above brands:

• ① Data of each brand during the 618 Shopping Festival in 2026 is sourced from the Company's 2026

618 sales report.

• ② Data for PROYA on Douyin for the first half of 2026 is sourced from Feigua Pince; data for

PROYA on JD.com is sourced from Nint Intelligence Cloud. Data for TIMAGE on Tmall is sourced from Nint Intelligence Cloud. Data for Off&Relax on Tmall is sourced from Nint Intelligence Cloud. The time periods are from January 1, 2026, to June 30, 2026.

1. Analysis of changes in relevant items in the financial statements Unit: Yuan Currency: RMB

Change in operating revenue: Operating income was basically flat compared with the same period last year. Change in operating cost: Mainly attributable to sustained cost optimization initiatives and enhanced operational efficiency. Change in selling expenses: Selling expenses for the first half of 2026 amounted to RMB 2.856 billion, representing 53.13% of operating revenue (compared to 49.59% in the same period of 2025). Selling expenses grew year on year by RMB 197 million, or 7.40%, driven predominantly by a RMB 175 million (+7.40%) increase in brand promotion and advertising expenditures. Reasons for changes in administrative expenses: Administrative expenses for the first half of 2026 amounted to RMB 237 million, representing 4.40% of operating revenue (compared to 3.31% in the same period of 2025). Administrative expenses increased by RMB 59 million or 33.34% year-on-year, mainly due to a year-on-year increase of RMB 33 million or 30.37% in employee compensation and service fees during this period. Reasons for changes in financial expenses: This was primarily due to a decrease of RMB 9.7202 million in interest income, and a shift in exchange gains and losses from a gain of RMB 7.7665 million in the same period of the previous year to a loss of RMB 2.619 million in the current year. Reasons for changes in R&D expenses: R&D expenses for the first half of 2026 totaled RMB 99 million, representing a year-on-year increase of RMB 4.4037 million, and accounting for 1.85% of operating revenue (compared to 1.77% in the same period of 2025). The parent company's R&D expense ratio reached 4.32% for the first half of 2026 (compared to 4.04% in the same period of 2025). Reasons for changes in net cash flow from operating activities: 1. A decrease in cash received from sales

of goods; 2. An increase in brand promotion and advertising expenditures. Reasons for changes in net cash flows from investing activities: 1. An increase in cash paid to purchase wealth management products; 2. An increase in net cash paid to obtain subsidiaries. Reasons for changes in net cash flows from financing activities: 1. The dividend for the year 2024 was paid during the same period last year, while no such payment has been made for the current period (the dividend for the year 2025 was paid in full in July 2026); 2. An increase in cash paid for share repurchases.

2. Detailed Description of major changes in the Company's business type, profit composition, or profit source in the current period

□ Applicable √ Not applicable

• (II) Significant changes in the profit from non-main business

√Applicable □Not applicable

Through multiple transactions, the Company achieved a business combination not under common control of Shenzhen FlowerKnows E-commerce Co., Ltd. in stages. In June 2026, the Company obtained a 51.00% equity interest in Shenzhen FlowerKnows E-commerce Co., Ltd. and included it in the scope of consolidation. The equity interests held prior to the acquisition date were remeasured at their fair value as of the acquisition date, generating investment income of RMB 445,360,152.15 and consequently a significant increase in net profit attributable to the owners of the parent company.

• (III) Analysis of assets and liabilities √Applicable □Not applicable

3. Assets and liabilities Unit: Yuan Currency: RMB

Other descriptions None

• 4. Overseas assets √Applicable □Not applicable

• (1) Asset size Including: Overseas assets of RMB 372,268,231.94, accounting for 3.43% of the total assets.
• (2) Description of the high proportion of overseas assets

□ Applicable √ Not applicable Other descriptions None

• 5. Restrictions on major assets as of the end of the reporting period

√Applicable □Not applicable

Unit: Yuan Currency: RMB

• 6. Other descriptions

□ Applicable √ Not applicable

• (IV) Analysis of investments

1. Overall analysis of external equity investments √Applicable □Not applicable

Unit: Yuan Currency: RMB

For details, please refer to the description in "17. Long-term equity investments" and "18. Investments in other equity instruments" in "VII. Notes to Items in Consolidated Financial Statements", "Section VIII Financial Report" of this Report.

(1) Major equity investments

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Remarks: During the current period, the Company paid RMB 351,142,798.00 to additionally acquire approximately 12.5479% equity interest in Shenzhen FlowerKnows E-commerce Co., Ltd., which, together with the 38.4521% equity interest already held before the acquisition date, totaled 51.00% and obtained control. The impact of profit and loss in the current period of RMB 445,360,152.15 in the table mainly represents the investment income formed from remeasuring the equity interest held before the acquisition date at fair value on the acquisition date.

(2) Major non-equity investments

□ Applicable √ Not applicable

(3) Financial assets measured at fair value

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Securities investment

• □ Applicable √ Not applicable Description of securities investment
• □ Applicable √ Not applicable Private fund investments
• □ Applicable √ Not applicable Derivative investments
• □ Applicable √ Not applicable

• (V) Disposal of major assets and equity

□ Applicable √ Not applicable

• (VI) Analysis of major controlled or invested companies √Applicable □Not applicable Main subsidiaries and joint-stock companies that have an impact on the Company's net profit of 10% or more

• □ Applicable √ Not applicable

Acquisition and disposal of subsidiaries during the reporting period √Applicable □Not applicable

Other descriptions

• □ Applicable √ Not applicable

(VII) Structured entities controlled by the Company

□ Applicable √ Not applicable

V. Other disclosures

• (I) Potential risks

√Applicable □Not applicable

• 1. Industry competition risks

• (1) The Company's brand strategy and channel strategy fail to come up to expectations due to intensified competition from various brands in the industry;
• (2) The control of digital and precise delivery costs fails to come up to expectations due to intensified competition in marketing and ads delivery.

• 2. Project incubation risks

• (1) New brand incubation risk: Performance fails to come up to expectations despite significant investment in marketing;
• (2) New category cultivation risk: Performance fails to come up to expectations due to different operation modes for different categories and the incompetent

team.

1. Risks of investment, mergers and acquisitions, and goodwill impairment The Company may form goodwill through business expansion by means such as investment and mergers and acquisitions, and there may be risks of goodwill

impairment in the future.

• (II) Other disclosures

□ Applicable √ Not applicable

Section IV Company Governance, Environment, and Society

• I. Changes in the Company's directors and senior management

• □ Applicable √ Not applicable Description of changes in the Company's directors and senior management
• □ Applicable √ Not applicable

• II. Profit distribution plan or capital reserve capitalization plan Profit distribution plan or capital reserve capitalization plan for the semi-annual period

• III. The Company's stock option incentive plan, employee stock ownership scheme, or other employee incentive measures and their impact

• (I) Incentives disclosed in temporary announcements and without progress or changes in subsequent implementation

√Applicable □Not applicable

• (II) Incentives undisclosed in temporary announcements or with progress in subsequent implementation

Stock option incentives

• □ Applicable √ Not applicable Other descriptions
• □ Applicable √ Not applicable Employee stock ownership scheme
• □ Applicable √ Not applicable Other incentives
• □ Applicable √ Not applicable IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises that Disclose Environmental Information according to Law
• □ Applicable √ Not applicable Other descriptions
• □ Applicable √ Not applicable

V. Consolidating and expanding the achievements of poverty alleviation and rural revitalization

□ Applicable √ Not applicable

Section V Important Matters

• I. Performance of Commitments

• (I) Commitments of the Company's actual controllers, shareholders, related parties, purchasers, the Company and other related parties in the reporting period or lasting to the reporting period

√Applicable □Not applicable

II. Non-operational Use of Funds by the Controlling Shareholder or Other Related Parties in the Reporting Period

□ Applicable √ Not applicable

III. Illegal Guarantee

□ Applicable √ Not applicable

IV. Audit of Semi-annual Report

□ Applicable √ Not applicable

V. Changes and Handling of Matters Involved in Non-standard Audit Opinions in the Annual Report of Last Year

□ Applicable √ Not applicable

VI. Matters Related to Bankruptcy Reorganization

□ Applicable √ Not applicable

VII. Major Litigation and Arbitration Matters

□ The company had major litigation and arbitration matters during the reporting period √ The company had no major litigation or arbitration matters during the reporting period

VIII. Penalties Imposed on the Listed Company and Its Directors, Senior Management, Controlling Shareholders, and Actual Controllers due to the Suspected Violation of Laws and Regulations and Relevant Rectification

□ Applicable √ Not applicable

XI. Description of the Integrity of the Company and Its Controlling Shareholders and Actual

Controllers during the Reporting Period √Applicable □Not applicable

During the reporting period, the Company and its controlling shareholders and actual controllers were in good faith.

• X. Major Related Party Transactions

• (I) Related party transactions in connection with day-to-day operations

• 1. Matters disclosed in temporary announcements and without progress or changes in subsequent implementation

□ Applicable √ Not applicable

• 2. Matters disclosed in temporary announcements but with progress or changes in subsequent implementation

□ Applicable √ Not applicable

• 3. Matters undisclosed in temporary announcements

□ Applicable √ Not applicable

• (II) Related party transactions arising from asset or equity acquisitions or sales

• 1. Matters disclosed in temporary announcements and without progress or changes in subsequent implementation

□ Applicable √ Not applicable

• 2. Matters disclosed in temporary announcements but with progress or changes in subsequent implementation

□ Applicable √ Not applicable

• 3. Matters undisclosed in temporary announcements

□ Applicable √ Not applicable

4. If the performance is agreed upon, the results achieved during the reporting period should be disclosed

• □ Applicable √ Not applicable

• (III) Significant related party transactions involved in joint external investments

• 1. Matters disclosed in temporary announcements and without progress or changes in subsequent implementation

□ Applicable √ Not applicable

• 2. Matters disclosed in temporary announcements but with progress or changes in subsequent implementation

□ Applicable √ Not applicable

• 3. Matters undisclosed in temporary announcements

□ Applicable √ Not applicable

• (IV) Debt transactions between related parties

• 1. Matters disclosed in temporary announcements and without progress or changes in subsequent implementation

□ Applicable √ Not applicable

• 2. Matters disclosed in temporary announcements but with progress or changes in subsequent implementation

□ Applicable √ Not applicable

• 3. Matters undisclosed in temporary announcements

□ Applicable √ Not applicable

• (V) Financial business between the Company and related financial companies and between the Company's financial subsidiaries and related parties

□ Applicable √ Not applicable

• (VI) Other major related party transactions

□ Applicable √ Not applicable

• (VII) Others

• □ Applicable √ Not applicable

• XI. Significant Contracts and Their Fulfillment (I) Trusteeship, contracting and leasing

• □ Applicable √ Not applicable

(II) Major guarantees performed and not yet completed during the reporting period

□ Applicable √ Not applicable

(III) Other significant contracts

□ Applicable √ Not applicable

XII. Progress Report on the Utilization of Raised Funds √Applicable □Not applicable

• (I) General usage of raised funds

√Applicable □Not applicable

Unit: RMB '0,000

Other descriptions

□ Applicable √ Not applicable

• (II) Details of investment projects financed by raised funds √Applicable □Not applicable

1. Detailed utilization of raised funds √Applicable □Not applicable

Unit: RMB '0,000

• [Note 1] The adjusted total investment is RMB 744.5087 million, while the total committed investment by raised funds is RMB 751.713 million, resulting in a

difference of RMB 7.2043 million. This difference represents underwriting and sponsorship fees, legal and accounting fees, credit rating fees, and issuance service fees in the offering. The actual net amount of raised funds was RMB 744.5087 million. To address the difference, the Company adjusted the total investment of raised funds for the information system upgrade project and the replenishment of working capital.

• [Note 2] The investment for the Huzhou Expansion Production Base Construction Project (Phase I), the Longwu R&D Center Construction Project, the

Information System Upgrading Construction Project, and the replenishment of working capital as of the end of the period exceeded the adjusted total investment, with the progress exceeding 100.00%. This was due to the use of interest income generated by idle funds in the raised funds account for corresponding projects.

• [Note 3] The raised funds had been fully used in accordance with the plan, and the special account for proceeds had no further use. The Company had closed the

special account for raised funds. For details, please refer to the Announcement of Proya Cosmetics Co., Ltd. on the Closure of the Special Account for Proceeds from the Public Issuance of Convertible Corporate Bonds disclosed by the Company on SSE’s website on May 13, 2026 (Announcement No.: 2026-027).

2. Detailed utilization of extra raised funds

□ Applicable √ Not applicable

3. Specific situation of re-verification of fundraising projects during the reporting period

• □ Applicable √ Not applicable

• (III) Changes or termination of investment projects financed by raised funds during the reporting period

• □ Applicable √ Not applicable

(IV) Other considerations regarding the utilization of raised funds during the reporting period

• 1. Advance investment and replacement in the project invested by the raised fund

□ Applicable √ Not applicable

• 2. Use of idle raised fund to temporarily refill working capital

□ Applicable √ Not applicable

• 3. Use of idle raised funds for cash management and investment in related products

□ Applicable √ Not applicable

• 4. Others

□ Applicable √ Not applicable

(V) Explanation on abnormalities in the verification of storage and use of raised funds by intermediaries

□ Applicable √ Not applicable

(VI) Subsequent rectification in response to unauthorized changes in the use of raised funds or improper use of such funds

• □ Applicable √ Not applicable

XIII. Description of Other Major Events

• □ Applicable √ Not applicable Section VI Shareholders and Changes in Shares

• I. Changes in Share Capital

• (I) Table of changes in shares

• 1. Table of changes in shares Unit: 10,000 shares

2. Description of changes in shares

√Applicable □Not applicable

With the approval of the CSRC, namely, the Reply on Approving Proya Cosmetics Co., Ltd. to Publicly Issue Convertible Corporate Bonds (ZJXK [2021] No. 3408), the Company publicly issued 7,517,130 convertible corporate bonds on December 8, 2021, with a face value of RMB 100 each and a total issuance amount of RMB 751,713,000. The maturity period is 6 years. As approved by the SSE under the Self-Discipline Regulation Decision ([2021] No. 503), the convertible corporate bonds with the principal amount of RMB 751,713,000 issued by the Company were listed on SSE on January 4, 2022. These bonds are officially referred to as "Proya Convertible Bonds", with the bond code of "113634". The conversion of Proya Convertible Bonds was commenced on June 14, 2022. During the reporting period, Proya Convertible Bonds with RMB principal amount of 5,000 were converted into 51 A-shares of the Company, increasing the Company's unrestricted tradable shares by 51.

3. The impact of share changes on financial indicators such as earnings per share and net assets per share from the reporting period to the disclosure date of the semi-annual report (if any)

□ Applicable √ Not applicable

4. Other information disclosed as the Company deems necessary or required by securities regulatory authorities

• □ Applicable √ Not applicable

• (II) Changes in restricted shares

• □ Applicable √ Not applicable

• II. Shareholders

• (I) Total number of shareholders

• (II) Table of the shareholding status of the top 10 shareholders and the top 10 public shareholders (or unrestricted shareholders) as of the end of the reporting period

Unit: share

Involvement of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares in lending of share through margin financing and securities lending

• □ Applicable √ Not applicable

Changes in the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares due to lending/returning of share through margin financing and securities lending compared with the previous period

• □ Applicable √ Not applicable Shareholdings of the top 10 restricted shareholders and the corresponding restrictions
• □ Applicable √ Not applicable

• (III) Strategic investors or general legal persons became the top 10 shareholders due to the allotment of new shares

• □ Applicable √ Not applicable

• III. Directors and Senior Management

• (I) Changes in shareholding of directors and senior management in office and resigned during the reporting period

• □ Applicable √ Not applicable Other information
• □ Applicable √ Not applicable

• (II) Stock option incentives granted to directors and senior management during the reporting period

□ Applicable √ Not applicable

• (III) Other descriptions

□ Applicable √ Not applicable

• IV. Change of controlling shareholder or actual controller

• □ Applicable √ Not applicable

V. Preferred Shares

□ Applicable √ Not applicable

Section VII Information on Bonds

• I. Corporate Bonds (Including Enterprise Bonds) and Debt Financing Instruments of Non-Financial Enterprises

□ Applicable √ Not applicable

• II. Convertible Corporate Bonds √Applicable □Not applicable

• (I) Issuance of convertible bonds

With the approval of the CSRC, namely, the Reply on Approving Proya Cosmetics Co., Ltd. to Publicly Issue Convertible Corporate Bonds (ZJXK [2021] No. 3408), the Company publicly issued 7,517,130 convertible corporate bonds on December 8, 2021, with a face value of RMB 100 each and a total issuance amount of RMB 751,713,000. The bonds were issued at face value, with a maturity period of 6 years.

As approved by the SSE under the Self-Discipline Regulation Decision ([2021] No. 503), the convertible corporate bonds with the principal amount of RMB 751,713,000 issued by the Company were listed on SSE on January 4, 2022. These bonds are officially referred to as "Proya Convertible Bonds", with the bond code of "113634". The coupon rate of the convertible corporate bonds issued this time is as follows: 0.30% in the first year, 0.50% in the second year, 1.00% in the third year, 1.50% in the fourth year, 1.80% in the fifth year and 2.00% in the sixth year. The term of the convertible corporate bonds is from December 8, 2021 to December 7, 2027.

According to relevant regulations and the Prospectus of Proya Cosmetics Co., Ltd. for the Public Offering of A-Share Convertible Corporate Bonds, the Proya Convertible Bonds issued by the Company can be converted into the Company's shares from June 14, 2022. The conversion period is from June 14, 2022 to December 7, 2027. The initial conversion price was RMB 195.98/share, and the latest conversion price has been adjusted to RMB 94.27/share. The previous adjustments to the conversion price are as follows:

• 1. Since the 2021 Equity Distribution Plan was implemented by the Company, the conversion price

of the Proya Convertible Bonds was adjusted to RMB 139.37/share on May 30, 2022. For details, please

• refer to the Announcement of Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price due to 2021

• Equity Distribution Plan (Announcement No. 2022-029) released by the Company on the SSE website (www.sse.com.cn) on May 24, 2022.

• 2. Since the registration of restricted shares involved in the grant under the 2022 Restricted Stock Incentive Plan was completed, the conversion price of the Proya Convertible Bonds was adjusted to RMB 138.92/share on September 9, 2022. For details, please refer to the Announcement of Proya Cosmetics Co., Ltd. on the Adjustment of Conversion Price of "Proya Convertible Bonds" due to Additional Issuance from Granting of Restricted Shares (Announcement No. 2022-052) released by the Company on the SSE website (www.sse.com.cn) on September 8, 2022.
• 3. Since the 2022 Equity Distribution Plan was implemented by the Company, the conversion price of the Proya Convertible Bonds was adjusted to RMB 98.61/share on May 29, 2023. For details, please refer to the Announcement of Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price due to 2022

• Equity Distribution Plan (Announcement No. 2023-030) released by the Company on the SSE website (www.sse.com.cn) on May 23, 2023.

• 4. Since the Company completed the repurchase and cancellation of 105,350 equity incentive

restricted shares under the 2022 Restricted Stock Incentive Plan, the conversion price of the Proya Convertible Bonds was adjusted to RMB 98.62/share on August 29, 2023. For details, please refer to the Announcement of Proya Cosmetics Co., Ltd. on the Completion of Repurchase and Cancellation of Some Equity Incentive Restricted Shares and Adjustment of Conversion Price of "Proya Convertible Bonds" (Announcement No. 2023-045) released by the Company on the SSE website (www.sse.com.cn) on August 28, 2023.

• 5. Since the 2023 Semi-Annual Equity Distribution Plan was implemented by the Company, the

conversion price of the Proya Convertible Bonds was adjusted to RMB 98.24/share on October 23, 2023. For details, please refer to the Announcement of Proya Cosmetics Co., Ltd. on Adjustment of Conversion

Price due to 2023 Semi-Annual Equity Distribution Plan (Announcement No. 2023-065) released by the Company on the SSE website (www.sse.com.cn) on October 17, 2023.

• 6. Since the Company completed the repurchase and cancellation of 66,192 equity incentive restricted

shares under the 2022 Restricted Stock Incentive Plan, the conversion price of the Proya Convertible Bonds was adjusted to RMB 98.25/share on December 18, 2023. For details, please refer to the Announcement of Proya Cosmetics Co., Ltd. on the Adjustment of Conversion Price of "Proya Convertible

• Bonds" and Conversion Suspension (Announcement No. 2023-086) released by the Company on the SSE website (www.sse.com.cn) on December 15, 2023.

• 7. Since the 2023 Equity Distribution Plan was implemented by the Company, the conversion price of the Proya Convertible Bonds was adjusted to RMB 97.35/share on June 25, 2024. For details, please refer to the Announcement of Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price due to 2023 Equity Distribution Plan (Announcement No. 2024-028) released by the Company on the SSE website (www.sse.com.cn) on June 19, 2024.
• 8. Since the Company completed the repurchase and cancellation of 509,992 equity incentive restricted shares under the 2022 Restricted Stock Incentive Plan, the conversion price of the Proya Convertible Bonds was adjusted to RMB 97.41/share on October 28, 2024. For details, please refer to the Announcement of Proya Cosmetics Co., Ltd. on the Adjustment of Conversion Price of "Proya Convertible

• Bonds" and Conversion Suspension (Announcement No. 2024-055) released by the Company on the SSE website (www.sse.com.cn) on October 25, 2024.

• 9. Since the 2024 Equity Distribution Plan was implemented by the Company, the conversion price of the Proya Convertible Bonds was adjusted to RMB 96.23/share on June 17, 2025. For details, please refer to the Announcement of Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price due to 2024 Equity Distribution Plan (Announcement No. 2025-026) released by the Company on the SSE website (www.sse.com.cn) on June 11, 2025.
• 10. Since the Company completed the repurchase and cancellation of 242,424 equity incentive restricted shares under the 2022 Restricted Stock Incentive Plan, the conversion price of the Proya Convertible Bonds was adjusted to RMB 96.26/share on August 26, 2025. For details, please refer to the Announcement of Proya Cosmetics Co., Ltd. on the Adjustment of Conversion Price of "Proya Convertible

• Bonds" and Conversion Suspension (Announcement No. 2025-038) released by the Company on the SSE website (www.sse.com.cn) on August 25, 2025.

• 11. Since the 2025 Semi-Annual Equity Distribution Plan was implemented by the Company, the

conversion price of the Proya Convertible Bonds was adjusted to RMB 95.46/share on October 17, 2025. For details, please refer to the Announcement of Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price due to 2025 Semi-Annual Equity Distribution Plan (Announcement No. 2025-065) released by the Company on the SSE website (www.sse.com.cn) on October 13, 2025.

• 12. On November 18, 2025, the Company completed the repurchase and cancellation of 29,344 equity

incentive restricted shares under the 2022 Restricted Stock Incentive Plan. Since this amount represented a negligible proportion of the Company’s total share capital, following calculation and rounding, the conversion price of Proya Convertible Bonds remained unchanged at RMB 95.46/share. Accordingly, the Company did not adjust the conversion price of Proya Convertible Bonds after completion of the repurchase and cancellation. For details, please refer to the Announcement of Proya Cosmetics Co., Ltd. on Completion of Repurchase and Cancellation of Some Restricted Shares and No Adjustment to the Conversion Price of "Proya Convertible Bonds" (Announcement No. 2025-078) released by the Company on the SSE website (www.sse.com.cn) on November 20, 2025.

• 13. Since the 2025 Equity Distribution Plan was implemented by the Company, the conversion price

of the Proya Convertible Bonds was adjusted to RMB 94.27/share on July 22, 2026. For details, please

• refer to the Announcement of Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price due to 2025

• Equity Distribution Plan (Announcement No. 2026-040) released by the Company on the SSE website (www.sse.com.cn) on July 16, 2026.

(II) Convertible bond holder and guarantor in the reporting period

(III) Change in convertible bonds during the reporting period Unit: Yuan Currency: RMB

(IV) Information on total conversion of convertible bonds in the reporting period

(V) Information on each adjustment of conversion price Unit: Yuan Currency: RMB