Maoye International Holdings Limited (Maoye International, 00848) released its 2026 interim results, indicating a sharp reversal into the red amid a subdued mainland retail environment.
Key Financials (six months to 30 Jun 2026): • Total sales proceeds and rental income declined 28.30 % to RMB2.14 billion (1H 2025: RMB2.98 billion). – Concessionaire sales: RMB1.15 billion, down 36.30 % – Direct sales: RMB0.49 billion, down 16.40 % – Rental income: RMB0.49 billion, down 15.70 %
• Revenue from contracts with customers fell to RMB1.32 billion (1H 2025: RMB1.59 billion). • Total operating income, including other income, slipped 16.00 % to RMB1.71 billion. • Operating profit dropped 78.05 % to RMB75.84 million. • Finance costs decreased 11.70 % to RMB259.07 million. • Loss before tax reached RMB183.23 million versus a RMB52.39 million profit a year earlier. • Net loss attributable to shareholders was RMB109.88 million, versus a RMB25.82 million profit in 1H 2025. • Basic and diluted loss per share: RMB2.14 cents (1H 2025 EPS: RMB0.50 cents gain). • No interim dividend declared.
Segment Performance: • Department stores: revenue RMB1.06 billion, operating profit RMB104.09 million. • Property development: revenue RMB100.38 million, operating loss RMB39.81 million. • Other businesses (hotel & ancillary services): revenue RMB159.13 million, operating profit RMB11.57 million.
Balance Sheet & Liquidity: • Cash and cash equivalents fell to RMB210.03 million (31 Dec 2025: RMB409.99 million). • Interest-bearing bank and other borrowings stood at RMB10.25 billion; current portion RMB4.81 billion. • Net current liabilities amounted to RMB3.23 billion. • Gearing ratios: interest-bearing liabilities/total assets 23.4 %; net interest-bearing debt/total equity 47.4 %.
Operational Footprint: • As of 30 Jun 2026 Maoye operated 46 stores across 21 mainland cities with total GFA of approximately 2.8 million sq m, 83.7 % self-owned. • Three underperforming stores (Inner Mongolia Maoye Times City, Qinhuangdao Modern Shopping Plaza, Baotou Donghe Mall) closed during the period; no new openings.
Other Developments: • Auditor changes: Ernst & Young resigned (Apr 2024), PricewaterhouseCoopers appointed and subsequently resigned (Oct 2025); Baker Tilly Hong Kong appointed as new auditor. • Executive Director and CFO Ms Lu Xiaojuan resigned on 14 Sep 2026. • Major transaction: disposal of 32.93 million Maoye Commercial Co. shares for RMB206.03 million (Nov–Dec 2025), classified as a major transaction in 1H 2026 accounts. • Financial guarantees on purchasers’ mortgage loans totalled RMB103.64 million at period-end.
Outlook: Management cites continued weak consumer sentiment and intensifying competition as headwinds but will accelerate the transformation of its store network towards shopping-centre formats, strengthen online–offline integration and pursue cost controls to restore profitability.