Le Saunda Holdings Limited (00738) reported interim results for the six months ended 31 August 2025. Revenue reached RMB95.8 million, representing a 36.0% year-on-year decrease from RMB149.6 million. Gross profit dropped by 30.0% to RMB55.6 million, while the overall gross profit margin rose by 4.9 percentage points to 58.0%. The loss attributable to owners of the Company was RMB31.4 million, compared to the loss of RMB38.0 million in the same period last year. Basic loss per share was RMB4.44 cents. No interim dividend was declared.

The company attributed the revenue decline partly to sluggish retail demand and rationalized offline channels. Selling and distribution expenses fell by 39.5% to RMB50.5 million, and general and administrative expenses decreased by 17.6% to RMB34.5 million. Same store sales in Mainland China declined by 13.2%. Inventory management measures reduced finished goods inventories to RMB78.1 million from RMB119.0 million a year earlier.

As at 31 August 2025, the Group operated 91 physical stores in Mainland China, a net reduction of 133 outlets compared to the same period last year. Management highlighted continued measures aimed at optimizing store networks, focusing on flagship stores in higher-traffic locations, and strengthening the Group’s brand image. The e-commerce business recorded a 5.4% decline in revenue, with efforts focused on customer relationship programs and influencer collaborations to maintain brand awareness. The Group remains prudent in its business outlook, seeking to enhance internal efficiency while pursuing select branding initiatives under challenging industry conditions.