CHINA DONGXIANG (HKEX: 03818) has announced its annual results for the period ended March 31, 2026. The company reported revenue of RMB 1.715 billion, representing a year-on-year increase of 2.08%. However, the attributable loss to owners of the company was RMB 158 million, a significant reversal from the profit of RMB 207 million recorded in the same period last year. The basic loss per share was 2.69 cents.

During the reporting period, the total sales for the group's primary business, the Kappa brand, amounted to RMB 1.592 billion. This figure represents an increase of RMB 26 million compared to the RMB 1.566 billion in sales from the comparative period.

Strategic Business Development

Throughout the year, the group continued to deepen its dual business models focused on "brand + product" and "brand + self-operation." On one front, efforts were made to further enhance brand value by integrating the cultural ethos advocated by the brand into meticulously refined and continuously upgraded products, aiming to build a solid brand influence. On another front, the group persistently optimized and refined its new operational control model. This included continuing to optimize the distribution of its self-operated retail network, improving store efficiency, and enhancing e-commerce operations to better adapt to and meet consumer purchasing demands.

Retail Network Optimization

Concurrently, the group proceeded with adjustments and optimizations to its directly operated end stores. As a result of these efforts, the total number of Kappa brand end stores reached 965.