Maoye Commercial Co Ltd

Maoye Commercial released its 2026 interim report, with net profit swinging from profit to loss. The company's total operating revenue was 929 million yuan, down 26.43 percent year on year. Net profit attributable to the parent company was a loss of 188 million yuan, down 644.96 percent year on year. Net cash inflow from operating activities was 113 million yuan, down 57.46 percent year on year. The asset-liability ratio was 58.65 percent, gross margin was 57.15 percent, return on equity was negative 2.88 percent, and diluted earnings per share was negative 0.11 yuan. The number of shareholders was 34,300, and the top ten shareholders held 85.91 percent of total share capital.

Maoye Commercial released its 2026 interim report, showing a net loss attributable to the parent of 188 million yuan in the first half, down 645.0% year on year. Operating revenue was 929 million yuan, down 26.4% year on year. Net loss attributable to the parent excluding non-recurring items was 122 million yuan, down 415.8% year on year. Net operating cash flow was 113 million yuan, down 57.5% year on year. In the second quarter, net profit attributable to the parent was a loss of 170 million yuan, down 939.9% year on year. The company said the loss was mainly due to a sharp decline in operating revenue, while it is advancing strategies such as transforming traditional department stores into shopping centres and shifting from joint operation to leasing.

Maoye Commercial disclosed its earnings forecast, expecting a net loss attributable to shareholders of 144 million to 196 million yuan for the first half of 2026, compared with a profit of 34.5898 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 76.259 million to 114 million yuan, versus a profit of 38.6901 million yuan a year earlier. The company said the change in performance is mainly due to the retail department store industry still being in a bottoming-out phase, with consumer momentum and willingness not yet fully recovered, putting pressure on net profit. At the same time, the termination of the lease cooperation at its Inner Mongolia Maoye Times City store reduced operating revenue by about 78.52 million yuan and net profit by about 25.33 million yuan, and the adjustment of some stores toward a pan-shopping-center model also brought phased performance pressure. In addition, based on the principle of prudence, the company plans to make a goodwill impairment provision of about 36.33 million to 54.49 million yuan, and an impairment provision for investment properties of about 69.35 million to 104.03 million yuan.