Sun Art Retail Group swings to net loss amid revenue decline

Sun Art Retail Group Ltd. reported a net loss of RMB127 million for the six months ended September 30, 2025, a substantial decrease from the RMB186 million profit in the corresponding period of 2024. Revenue for the period declined by 12.1% to RMB30,502 million from RMB34,708 million, primarily due to intensified market competition, weak consumption, and a lower average ticket size. Profit from operations also fell significantly by 56.4% to RMB271 million from RMB621 million.

Despite the revenue decline, the gross profit margin increased by 0.7 percentage points to 25.3%, driven by product mix optimization, new product launches, private label penetration, and enhanced supply-chain collaboration. Selling and marketing expenses decreased by 4.7% to RMB7,303 million, while administrative expenses decreased by 17.2% to RMB711 million, attributed to personnel structure optimization and cost control efforts.

The Group’s net cash position as of September 30, 2025, was RMB11,958 million, down from RMB12,529 million at March 31, 2025. The board declared an interim dividend of HK$0.085 per ordinary share for the period. The Group also acquired non-controlling interests in its subsidiaries CIC and ACI, making them wholly-owned subsidiaries.