On July 8, 2026, Wushang Group Co.,Ltd. (SHE: 000501) held a meeting with a group of institutional investors and analysts.

The session included representatives from Guotai Haitong Securities Co., Ltd. (Cai Xinyu), Shenzhen Shangcheng Asset Management (Huang Xiangqian), Shanghai Minghe Investment Management (Wang Meng), Shanghai Xinchuanqi Private Fund Management (Wang Zhaojie), E Fund Management (Chen Da), China Everbright Bank's Financial Interbank Department (Xu Chuanming), Xunyuan Asset Management (Shanghai) (Tian Chaoping), Hangzhou Deya Investment Management (Lyu Dan), Shanghai Mingyu Asset Management (Liu Baojun), Shanghai Tulin Asset Management (Zhao Zifeng), China Galaxy Securities's Market Making Business Headquarters (Yang Xiaoyan), Tianzhi Fund Management (Wang Juan), Shenzhen Hongchou Investment (Shao Congyuan), Galaxy Fund Management (Yu Jiaxin), Wufeng Private Fund Management (Shanghai) (Chen Jialing), Yiheng Capital, LLC (Zheng Daxin), Qingyin Wealth Management (Yu Tao), GF Securities (Yao Tairui), China International Capital Corporation (Wang Kai), Huaan Fund Management (Yang Ming), and Everbright Securities's Multi-Asset Investment Department (Liu Yong).

Key Discussion Points from the Meeting

Major Shareholder's Share Purchase Rationale

The company received a notification on June 26, 2026, from its largest shareholder, Wuhan Commercial United (Group) Co., Ltd., regarding a plan to increase its shareholding. The decision is based on three primary considerations. Firstly, it stems from confidence in the company's future prospects and recognition of its long-term investment value. The shareholder believes the current share price does not fully reflect the company's intrinsic value and long-term potential, making the purchase a direct action to convey confidence amid low market valuations.

Secondly, it is a proactive response to policies encouraging market value management. This move is a key part of implementing the company's "Valuation Enhancement Plan," aimed at sending positive signals to the market, stabilizing expectations, and aiding in valuation recovery and improving the price-to-book ratio.

Thirdly, it demonstrates the major shareholder's sense of responsibility and commitment to safeguarding the interests of all shareholders.

High-End Retail Market Trends and Competitive Landscape in Wuhan and Nanchang

In Wuhan, the high-end consumer market has evolved into a competitive landscape where major luxury complexes like Wushang MLL, SKP, and Hang Lung share the existing market. In 2026, Wushang MLL maintained stable and positive operations, leveraging its leading position. The Rolex boutique has maintained strong sales momentum since opening. The benchmark outdoor brand Arc'teryx, driven by both the outdoor trend and brand strength, continues to attract high-net-worth customers, with its monthly sales consistently ranking at the top of its floor. The entry of the high-end skincare brand Aesop has further enriched the differentiated portfolio in the high-end cosmetics category, effectively expanding the reach among premium skincare consumers.

Concurrently, the trend of localizing high-end consumption in Jiangxi Province is becoming increasingly pronounced. Luxury and high-end experiential consumption are gradually becoming the norm, with consumers showing growing interest in exclusive brand resources, unique in-store experiences, and personalized service benefits. In Nanchang, Wushang MLL holds a dominant position in the province's luxury market due to its first-mover advantage, establishing a solid competitive barrier. Its brand portfolio includes all major luxury labels such as LV, GUCCI, Cartier, and Burberry. In 2026, it introduced popular outdoor and sportswear brands including Arc'teryx, Descente, and lululemon, adding one national flagship store and nine stores making their debut in Jiangxi.

Performance of Key Commercial Properties in 2026

This year, the company's core commercial projects have demonstrated stable overall operations. Wushang MLL continues to deepen its strategy of "luxury leadership with contemporary luxury," consolidating and expanding its brand portfolio advantage, achieving year-on-year growth in both customer traffic and sales. Regarding brand expansion, international luxury brands are accelerating their presence. The first Juniper store in Central China is scheduled to open in September. Building C has already secured brands like GID, Colombo, and Vuori, with openings planned for the second half of the year. The first GOLDWIN store in Hubei is expected to open in mid-September. The cosmetics category is undergoing rapid brand renewal, with the French luxury skincare brand EviDenS de Beauté set to open in mid-July, continuously enhancing the category's competitiveness.

Wushang MLL Shimao focuses on the gold and jewelry category, consistently strengthening its competitive edge in this segment. Despite a macroeconomic environment of volatile high gold prices and more cautious consumer spending, the project has shown strong resilience and commercial vitality. Among key brands, Laopu Gold and Jingjiang have performed exceptionally well, adding robust support to the high-end gold cluster. In terms of format upgrades, Wushang MLL Shimao is transitioning from a traditional shopping venue to an urban public space, actively aligning with the people-centric core concept of urban renewal.

As the world's largest pure commercial complex, Wushang Dream Times, centered on the integrated development theme of "commerce, culture, tourism, sports, exhibitions, performances, and shows," maintained good growth momentum in customer traffic, vehicle flow, and sales in the first half of the year. The project leverages "first-release economy" as a core driver, introducing 22 first-store brands, 24 first exhibitions, and 29 product launches in H1, continuously injecting vigorous momentum into the regional commercial scene. It uses the "self-operated track" as a strategic move, creating Wuhan's largest and most concentrated "New Energy Vehicle Exhibition and Sales Center." It utilizes top-tier IPs as a tool, broadening access to younger customer groups through cross-category deep operations and hosting large-scale comic conventions. Embracing "new economy" formats as a breakthrough, the world's first dual-format robot-themed cultural tourism project, "Genesis Journey" and "Mengji Workshop," has opened, while wellness formats like Meinian Onehealth are accelerating their布局.

Company Profile and Recent Financials

Wushang Group Co.,Ltd. (SHE: 000501) is primarily engaged in the merchandise sales business through its shopping center and supermarket formats. According to its Q1 2026 report, the company reported operating revenue of 1.768 billion yuan, a decrease of 1.06% year-on-year. Net profit attributable to shareholders was 123 million yuan, down 13.47%. Non-GAAP net profit was 103 million yuan, a decrease of 22.23%. The debt-to-asset ratio stood at 63.95%, with investment income of 735,700 yuan, financial expenses of 57.0454 million yuan, and a gross margin of 47.3%. Margin trading data shows a net outflow of 66.4605 million yuan from financing activities over the past three months, reducing the financing balance, and a net outflow of 231,100 yuan from securities lending, reducing the securities lending balance.