Li Ning Company Limited has released an operational update for the second quarter of 2025. The retail sell-through of LI-NING Points of Sale $(POS.AU)$, excluding LI-NING YOUNG, showed a low-single-digit increase year-on-year. Despite this, the offline channel, including both retail and wholesale, experienced a low-single-digit decline. Specifically, direct retail operations declined by a mid-single-digit, while wholesale, through franchised distributors, saw a low-single-digit increase. In contrast, the e-commerce virtual stores business registered a mid-single-digit growth. As of June 30, 2025, the total number of LI-NING POS, excluding LI-NING YOUNG, in China was 6,099. This reflects a net increase of 11 POS since the end of the previous quarter but a net decrease of 18 POS since the beginning of the year. This net decrease consists of a reduction of 19 POS in direct retail and an increase of 1 POS in wholesale. For LI-NING YOUNG, the total number of POS in China was 1,435, marking a net decrease of 18 POS since the previous quarter and a total decrease of 33 POS since the start of the year. The announced figures are based on unaudited operational data and do not represent the full financial performance of the Group. Shareholders and investors are advised to exercise caution in dealing with the company's shares.