Sanjiang Shopping Club Co Ltd

Sanjiang Shopping released its 2026 half-year report. First-half operating revenue was 1.82 billion yuan, down 8.3% year on year. Net profit attributable to the parent was 65.76 million yuan, down 28.0% year on year. Net operating cash flow fell 66.4% year on year. Second-quarter revenue was 759 million yuan, down 17.1% year on year. Net profit attributable to the parent was 5.62 million yuan, down 72.7% year on year. Net profit attributable to the parent excluding non-recurring items was a loss of 630,000 yuan. The revenue decline was mainly due to the termination of the Hema business cooperation. Profit at the subsidiary Zhejiang Zhehai Huadi Network Technology Company fell sharply. At the same time, competition in the Ningbo local retail market intensified, and revenue in the Ningbo region fell 9.36% year on year. Among product categories, only textiles grew 9.47%. Revenue from food, fresh produce, and daily necessities fell 12.37%, 3.24%, and 7.43% respectively. Retail gross margin fell 1.61 percentage points year on year. The sharp decline in net operating cash flow was also due to a significant year-on-year reduction in government subsidies received.

Sanjiang Shopping announced that shareholder Hangzhou Alibaba ZeTai Information Technology, holding over 5% of shares, reduced its stake by a total of 10.9536 million shares through centralized bidding and block trades between April 29 and July 15, representing 2% of the company's total share capital. The total cash-out amount was nearly 120 million yuan, and this reduction plan has been fully executed. Alizeitai currently holds 137 million shares, with its stake dropping from 27% before the reduction to 25%. Since 2025, Sanjiang Shopping has been repeatedly reduced by Alizeitai, and last year the company did not renew its cooperation agreement with Alibaba's Freshhema upon expiry. In the secondary market, as of the midday break on July 17, Sanjiang Shopping fell 3.71% to 9.85 yuan per share, with a year-to-date decline of nearly 26%.