DMALL (02586) has announced that on June 5, 2026, its board of directors passed a resolution approving a share repurchase plan.

The company intends to use its own internal funds, excluding any proceeds from its initial public offering on the Main Board of The Stock Exchange of Hong Kong Limited, to buy back shares within the authorized limit.

The buyback period will commence from the date of board approval and last until the conclusion of the company's subsequent 2027 annual general meeting.

However, the authorization will expire upon the earliest of the following events: the conclusion of the 2027 AGM; the expiry of the statutory period for holding the next AGM; or the date shareholders pass an ordinary resolution to revoke or amend the buyback mandate.

The repurchased shares will be held as treasury shares and may subsequently be cancelled, sold, or transferred, including under the company's equity incentive plans.

Rationale for the Buyback

The board's decision is based on a comprehensive assessment of the company's stable operational performance, sustainable financial profitability, and strong confidence in its future prospects.

It believes the current market price of the company's shares is below their intrinsic value.

The buyback is proposed to safeguard the company's value and the interests of all shareholders, as well as to signal management's confidence in the long-term development of the business.

Business and Strategic Progress

The company reports a consistently positive business trajectory, maintaining its core AI strategy and international expansion focus.

It is deeply integrating AI technology across the entire R&D process, advancing the development and implementation of retail AI agents, and steadily transitioning from a traditional "retail digital solution provider" to a "retail AI agent provider."

In terms of client expansion, the company is making progress both domestically and internationally, deepening cooperation with industry leaders and actively acquiring new high-quality partners.

Overseas operations are expanding steadily, with successful deep collaborations established with several leading international retailers.

As of December 31, 2025, the company had partnered with 593 leading retail clients globally, enhancing both the scope and quality of its client network.

Leveraging advanced AI technology and an evolving product portfolio, the company continues to empower retail clients, creating core value in key areas such as improving operational efficiency and increasing revenue.

This has garnered widespread recognition and trust, with a net revenue retention rate of approximately 108% in 2025, further solidifying its industry leadership.

Additionally, by combining deep retail industry expertise with AI applications, the company has innovatively launched AI-powered new quality retail services, facilitating digital and intelligent upgrades for stores from a retail-first perspective, thereby strengthening its client empowerment capabilities.

Financial Strength and Capacity

The company's operating performance has shown robust growth, achieving profitability alongside steady revenue increases.

Net profit for 2025 was approximately RMB 127 million, while adjusted net profit from continuing operations reached about RMB 203 million, marking a significant leap in profitability.

The company currently holds ample cash reserves, with a strong and improving operating cash flow.

As of December 31, 2025, cash and cash equivalents stood at approximately RMB 860 million.

This solid financial position provides a firm foundation for the share repurchase without impacting normal business operations or long-term development plans.

The board believes the share buyback demonstrates a high recognition of the company's intrinsic value and ample confidence in its long-term business prospects.

It is expected to enhance value recognition, deliver long-term stable returns to shareholders, and align with the overall interests of the company and its shareholders.