Taobo (06110) Interim Report: From deep channel cultivation to full-link value creation, continuing to expand the boundaries of sports retail

The Zhitong Finance App learned that on the evening of October 28, Taobo (06110), the leading domestic sports retail operator, announced its interim results for the 2026/27 fiscal year. For the six months ended August 31, 2026, Taobo achieved operating income of 10.91 billion yuan and net profit of 660 million yuan; inventory volume decreased 15.7% year-on-year, and inventory levels remained in a healthy range; net cash generated from operating operations of $1.84 billion, bank balances and cash of $3.09 billion, and steady cash flow; an interim dividend payout rate of 102.9%, with cumulative dividends of 16.25 billion yuan since listing, continuing to focus on shareholder returns.

Consolidate the basic structure of global operations and continue to forge endogenous motivation

At the level of retail operations, Taobo continues to keep up with changes in market trends, reposition and dynamically adjust the roles of various channels from a global level, use physical store networks as the business foundation, open up multi-dimensional online channel capabilities around consumers' diverse consumption scenarios, and promote overall operation quality and efficiency. At the same time, Taobo continues to maintain close long-term partnerships with various partner brands. Relying on the global channel network, consumer awareness and operational collaboration foundation accumulated through years of cooperation, Taobo continues to play the important role of retail terminals in brand display, consumer experience and product sales, providing support for the long-term development of cooperative brands in the Chinese market.

Offline, Taobo uses ping efficiency and human efficiency as the core grippers, continuously iterates on store role positioning, drives channel structure optimization, and builds stores into complex nodes integrating brand experience, global compliance, and user operations, and continuously unleash the store's global hub value. Online, Taobo further optimizes and improves consumer touchpoints. Relying on multiple channels such as local life, instant retail, and private areas, it responds to consumer needs in multiple dimensions and forms deep collaboration with offline stores. At the same time, Taobo dynamically optimizes global resource allocation around the differentiated positioning and development stages of different cooperative brands to better support the development needs of brands at different stages.

At the same time, Taobo focuses on the three dimensions of “demand matching - scene penetration - experience value”, and is deeply involved in refined user operations. Relying on rich sports scenarios and diverse user activities, Taobo continues to deepen consumer connections and continuously explore and activate user value. By the end of August 2026, the cumulative number of Taobo users had reached 95 million, and the total retail sales of offline stores and WeChat applets contributed by members; the contribution of repeat members to member spending remained at around 60%, of which high-value members contributed about 35%.

In addition, Taobo continues to deepen the application of digital intelligence, integrating AI and other technologies into core aspects such as product and supply chain management, global retail operation, user marketing, business management, and organizational management to drive high-quality business development with technological empowerment.

Continue to increase sports segmentation tracks and accelerate the establishment of full-link operation capabilities

Facing the trend of increasingly diversified and specialized sports consumer demand, Taobo continues to increase segments such as running and outdoor racing, and continuously expand the brand cooperation matrix to better meet consumer needs.

In the exclusive operation cooperation, Taobo relies on full-link operation capabilities covering brand communication, marketing, omni-channel sales and consumer operations to continue to promote the operation and implementation of top outdoor brands Norrøna and professional running brands Norda®, Soar, and Ciele in the domestic market, and the brand operation capabilities continue to be realized. During this period, Norrøna entered Chengdu SKP to further improve its high-quality business district channel layout and continue to connect high-net-worth outdoor customers; the Norda® limited-time experience space opened at SKP in Beijing to create a place for runners to exchange; Ciele's official Tmall flagship store was officially launched, and a mobile experience space was launched, and appeared in the Mogan Mountain Trail Race, deeply reaching the core runners. In August of this year, Taobo added a new puzzle to the outdoor layout and obtained exclusive operating rights from professional outdoor brand Sierra Designs in the Chinese market. Founded in 1965, Sierra Designs combines professional outdoor genes with pioneering aesthetic design. With the addition of Sierra Designs, Taobo's outdoor footprint was further expanded to cover a wider range of scenes and people.

While continuing to introduce professional sports brands, Taobo actively explores innovative business formats and relies on the running eco-brand ektos to deepen connections with young consumers. With the concept of “co-creation by runners”, ektos brings together more than 20 top professional running brands, covering diverse scenarios such as urban road running, trail running, and marathons. During this period, ektos opened its second store in Anaya, Qinhuangdao, and continued to gather runners and accompany runners through diverse forms such as store experience, participation in professional events, and organization of community events.

Furthermore, Taobo has always adhered to the concept of long-term development, integrated sustainable development into all aspects of enterprise management and value creation, and continued to improve the level of ESG governance. With its outstanding performance in the field of comprehensive ESG management, Taobo continues to be recognized by authoritative international rating agencies. The MSCI ESG rating maintains an AA rating and leads the industry.

In the future, Taobo will anchor the basic global retail market and segmented track layout, continue to refine brand trading capabilities, expand the value boundaries of sports retail, and achieve steady and sustainable long-term development.