Shenzhen Pagoda Industrial (Group) (2411) H1 2025 earnings summary

Executive summary

• Strategy shifted from store-count expansion to efficiency, with weaker locations closed, product mix repositioned toward quality and value, and supply-chain capabilities strengthened.

• H1 revenue fell 21.8% YoY to RMB4,375.9m; gross profit declined 65.1% to RMB215.6m, and net loss was RMB353.3m, including RMB342.1m attributable to owners.

• Network optimization reduced stores by 27.0% YoY to 4,386 at June 30, 2025; management said the transition was complete and store traffic increased.

Financial highlights

• Revenue was RMB4,375.9m, down 21.8% YoY; fruit and other food sales were RMB4,308.3m, or 98.5% of revenue.

• Gross profit was RMB215.6m, down 65.1%; operating loss was RMB319.9m versus operating profit of RMB127.9m, while net loss was RMB353.3m versus net profit of RMB84.0m.

• Owners’ attributable loss was RMB342.1m versus profit of RMB88.5m; basic and diluted loss per share was RMB0.2343 versus earnings of RMB0.0583.

• Adjusted net loss was RMB295.2m, excluding share-based payments, redundancy compensation and investment dilution loss; adjusted net loss margin was 6.7% versus adjusted profit margin of 1.6%.

• Net operating cash used was RMB123.3m; investing activities generated RMB191.4m and financing activities used RMB8.3m.

Outlook and guidance

• Priorities include differentiated, cost-effective products, tighter freshness and quality controls, localized data-led pricing, and product-mix optimization.

• 2B plans target broader domestic and overseas channels, customized fruit gift boxes, stronger procurement and a “Buy Globally, Sell Globally” model.

• Category-brand strategy includes supplier collaboration on agricultural technology, seeds and seedlings, differentiated products, and end-to-end food safety controls.

• Management expects completed network optimization and strategy execution to support long-term value growth; no numerical financial guidance was stated.