Zhongmin Baihui Retail Group (5SR) H1 2026 earnings summary

Executive summary

• HY2026 revenue rose 2.0% YoY to RMB 461.6m, while profit after tax fell 51.5% to RMB 13.2m, reflecting lower gross profit and the absence of a prior-year one-off lease derecognition gain.

• Operating cash generation strengthened to RMB 78.3m, lifting cash and cash equivalents to RMB 131.0m at period end.

Financial highlights

• Revenue increased 2.0% YoY to RMB 461.6m; gross profit declined 5.1% to RMB 106.1m as overall gross margin contracted to 23.0% from 24.7%.

• Profit after tax was RMB 13.2m, down 51.5% YoY; total comprehensive income was RMB 13.5m, down 49.3%.

• Other income fell 42.8% to RMB 34.3m, mainly reflecting the absence of the prior-year RMB 19.8m net gain on lease derecognition.

• Selling and distribution expenses rose 3.7% to RMB 100.3m; administrative expenses fell 9.9% to RMB 43.7m, and finance costs fell 20.5% to RMB 8.2m.

Outlook and guidance

• Retail conditions remain challenging and are expected to persist in the near term; cost-control measures are in place to improve operating efficiency.

• Yueshang Intime, the third large mall, opened in Shanxi Province in January 2026, bringing managed GFA to over 700,000 sqm.

• No interim dividend was declared or recommended; the board cited conserving resources for business activities.