Lifestyle China Group swings to interim loss amid revenue decline

Lifestyle China Group Ltd. reported a net loss attributable to owners of the company of RMB3.7 million for the first half of 2025, a significant reversal from the RMB41.7 million profit in 2024. Revenue for the period decreased by 4.2% to RMB617.8 million, while whole store sales proceeds saw a slight 0.4% decline to RMB2,745.2 million. Losses per share amounted to RMB0.003, compared to earnings per share of RMB0.028 in the previous year, and no interim dividend was declared.

The decline was largely driven by a 9.5% fall in gross profit to RMB327.8 million, and a 15.7% decrease in the share of profit from its associate, the Beiren Group. Selling and distribution costs decreased by 7.2% to RMB268.6 million, while administrative expenses rose by 8.4% to RMB128.9 million, partly due to a one-off compensation payment.

Despite these challenges, the group's adjusted EBITDA decreased by 11.0% to RMB175.4 million. Cash and bank balances, bank deposits, and structured bank deposits totaled RMB2,945.4 million, with the gearing ratio easing slightly to 34.2% from 34.5% at the end of 2024.