MAOYE INT'L (00848) announced that the group expects to achieve net profit of approximately RMB 10 million to RMB 13 million for the six months ended June 30, 2025. This compares to net profit of RMB 95.03 million (restated) for the six months ended June 30, 2024.

According to the announcement, the main reasons for the group's decline in net profit for H1 2025 compared to the same period in 2024 are as follows: During H1 2025, revenue from the core department store retail business declined, primarily due to the overall department store retail industry being in a period of inventory competition and gradual transformation, with the group's core business revenue and profits directly affected. Additionally, during the reporting period, insufficient consumer spending momentum and generally declining average transaction values also put pressure on performance.

To better adapt to new trends in the retail industry, the group is actively updating its business formats and adjusting brands, merchandise, and services. Some new business formats still require a cultivation period, during which returns are relatively low.