SUNART RETAIL (06808) has announced that it expects to record a net loss and a loss attributable to the company's owners of approximately RMB 300 million to RMB 350 million (unaudited) for the financial year ending March 31, 2026, calculated in accordance with Hong Kong Financial Reporting Standards. This compares to a net profit of RMB 386 million and a profit attributable to the company's owners of RMB 405 million for the same period last year, marking a shift from profit to loss. During the period, the gross profit margin remained stable and showed a slight recovery.

The expected net loss and loss attributable to owners are primarily attributed to two main factors: (1) a decrease in the number of items sold per transaction and a decline in the average selling price of goods, leading to a reduction in gross profit due to lower revenue; and (2) a decrease in income from the store street business. Despite the pressure on net profit, the group's overall operating cash flow and adjusted EBITDA demonstrated resilience.

The group remains committed to advancing its omnichannel strategic layout, strengthening localization efforts and enhancing the consumer experience to provide customers with high-quality shopping services. With merchandise as its core competitive advantage, the group will continue to expand the scale of its national joint procurement, deepen strategic cooperation with core suppliers, and accelerate the development of its private label brands. Concurrently, the group is actively preparing a management incentive scheme to further invigorate organizational momentum. Looking ahead, the group will focus on technology-driven operational efficiency improvements and deepen the integration of online and offline channels.