Shenzhen Pagoda Industrial (Group) (2411) investor relations material

Executive summary

• Returned to profit after two years of store-network adjustments; revenue rose 14.5% YoY to RMB5,008.5m, and gross margin improved to 12.2% from 4.9%.

• The network reached 6,709 outlets: 4,758 fruit stores and 1,951 Seven Star Alliance partner stores; product-mix improvement and alliance contributions supported the turnaround.

Financial highlights

• Gross profit rose 182.5% to RMB608.9m; operating profit was RMB61.4m versus a loss of RMB319.9m, and net profit was RMB32.5m versus a loss of RMB353.3m.

• Profit attributable to owners was RMB33.6m versus a loss of RMB342.1m; basic and diluted EPS was RMB1.94 cents.

• Adjusted net profit was RMB60.6m, with a 1.2% margin, versus an adjusted loss of RMB295.2m and a 6.7% loss margin; adjustments include share-based pay, redundancy and investment-dilution effects.

• Fruit, snacks and other food products contributed RMB4,912.5m, or 98.1% of revenue.

Outlook and guidance

• H2 priorities include prime-location and lower-tier store expansion, improving store-level profitability, testing Fruit + Snacks formats and developing community fresh-food retail.

• Plans include expanding domestic and overseas 2B channels, omnichannel supply-chain services, unified warehousing and co-distribution pilots, automation, unmanned delivery and AI deployment; no numerical guidance was stated.

• Mid-Autumn Festival is the H2 gifting focus; plans include broader price points, everyday gifting and member engagement through private-domain livestreams and mini-programs.

• Category plans emphasize upstream supplier support, branded domestic fruit, food-safety standards and health-oriented fruit and vegetable products.