value chain, underpinned by its scale advantages and widening competitive moat. It is China's broader F&B retailers. The company reported GMV of more than Rmb55.5bn as of 2024, and we estimate its store network of around 21,000 outlets as of 2025. Despite its relatively short operating history, Busy Ming has emerged as the clear leader in engine for many domestic snack brands. Over the past three to five years, leading local channel, with many developing exclusive, tailor-made SKUs (eg, differentiated pack sizes and packaging formats) specifically for its stores. strengthening its competitive positioning over the next few years. As a result, it is likely partners for snack brands in China. This entrenched channel relevance underpins Busy Ming's strong bargaining power along the snack value chain, providing it with consolidation, dominated by Busy Ming and Wanchen sustained improvement in profitability and cost efficiency over the medium term. as procurement terms improve and fixed costs are further diluted. We model GM to expand by +2.2ppts/+0.3ppt/+0.3ppt YoY to 9.8%/10.1%/10.4% in 2025/26/27, driven primarily by enhanced pricing power, favourable product mix and improving supplier terms. At the same time, we expect the SG&A ratio to trend modestly lower, changing by +0.3ppt-0.2ppt/-0.1ppt YoY to 5.1%/4.9%/4.8% over the same period, reflecting operating leverage and disciplined cost control amid network expansion. Taken together, these dynamics are expected to support recurring NPM expansion of