Bestore Co Ltd

Bestore released its 2026 interim report on August 25, 2026. Total operating revenue was 3.145 billion yuan, and net profit attributable to the parent company was 16.1944 million yuan, ranking 12th among disclosed peers. Net cash inflow from operating activities was 41.9716 million yuan, a decrease of 211 million yuan from the same period last year, down 83.40 percent year on year. The company's latest asset-liability ratio was 38.66 percent, gross margin was 26.77 percent, return on equity was 0.85 percent, and diluted earnings per share was 0.04 yuan.

The Shanghai Stock Exchange recently issued an information disclosure regulatory inquiry letter regarding Bestore's 2025 annual report, focusing on the company's monetary funds and trading financial assets. At the end of 2025, the company held 313 million yuan in monetary funds, with interest income of 4.8 million yuan, down 80.37 percent year on year. Over the same period, trading financial assets surged from zero to 934 million yuan, yet disposal gains from wealth management products remained zero for two consecutive years, with only a slight increase in fair value changes, creating a clear mismatch between scale and returns. Bestore replied that the sharp drop in interest income was due to two overlapping factors. On one hand, declining revenue and dividend payouts shrank total funds, with the average daily balance of monetary funds in 2025 at 374 million yuan, down 61.78 percent from 978 million yuan in 2024. On the other hand, the main agreement deposit bank, Hankou Bank, was affected by regulatory rectification of manual interest subsidies, causing the agreement deposit rate to fall from 2.99 percent all the way to 0.55 percent, and the composite deposit rate to drop from 2.49 percent to 1.26 percent. The surge in trading financial assets was because the company shifted idle funds from deposits with persistently declining returns into bank wealth management products. In 2025, cumulative rolling purchases of wealth management products totaled 7.045 billion yuan, with a composite yield of 1.59 percent. The unredeemed balance at year-end was 934 million yuan, corresponding to a fair value change gain of 11.01 million yuan, which matches the scale of the wealth management products and is logically consistent.

Bestore’s second-largest shareholder, Davy Limited, reduced its stake by 11.9393 million shares between May 11 and July 16, 2026, cashing out 103 million yuan. The selling price ranged from 8.23 yuan to 11.13 yuan per share. Previously, Davy Limited had also sold 4.01 million shares between March 5 and June 4, 2025, cashing out 47.7439 million yuan. After the reduction, Davy Limited still holds 60.8868 million shares, remaining Bestore’s second-largest shareholder. Bestore recently released an earnings forecast, expecting net profit attributable to shareholders of 16 million to 24 million yuan for the first half of 2026, with non-recurring net profit of 9.5 million to 17.5 million yuan, turning losses into profits year-on-year, mainly driven by higher revenue and gross margins, product mix optimization, and improved management efficiency. As of the close on July 20, Bestore’s stock price stood at 8.79 yuan, with a total market capitalization of 3.498 billion yuan, down 23.30 percent year-to-date.

Bestore announced that shareholder Dayong Limited, which holds more than 5% of the company, reduced its stake by 8.73 million shares between July 6 and 14, 2026, lowering its holding from 17.97% to 15.91%. In the first quarter of 2026, Bestore achieved revenue of 2.04 billion yuan and net profit attributable to the parent of 47.7 million yuan.