Parkson Retail Group Limited reported interim results for the six months ended 30 June 2026, showing a mixed performance as it advances its store-transformation strategy.

Revenue and sales performance • Total operating revenue fell 11.4% year on year to RMB 1.74 billion, pressured by a 13.5% contraction in same-store sales and the ongoing conversion of certain department stores into shopping-mall formats. • Gross sales proceeds (inclusive of VAT) declined 15.0% to RMB 3.53 billion, while merchandise sales slipped 16.0% to RMB 2.50 billion. Concessionaire sales—which still account for 68.5% of merchandise turnover—dropped 18.2%, and direct sales were down 10.9%. • The blended merchandise gross margin edged up to 13.9% from 13.6% a year earlier.

Profitability • Operating profit decreased 8.6% to RMB 235.40 million, yet cost controls trimmed total operating expenses by 11.9%. • Net finance costs narrowed 6.0% to RMB 194.46 million, mainly due to lower interest on lease liabilities after the closure of under-performing stores in 2025. • Profit attributable to owners of the company rose 2.2% to RMB 23.0 million, keeping earnings per share at RMB 0.009. No interim dividend was declared, versus RMB 0.02 last year.

Balance-sheet highlights • Cash and bank balances stood at RMB 1.31 billion, supplemented by RMB 71.33 million in time deposits and RMB 65.00 million in wealth-management products. • Net current liabilities totalled RMB 1.74 billion. Management is negotiating approximately RMB 2.30 billion of new bank facilities to refinance RMB 2.27 billion of secured syndicated loans maturing within 12 months. • Total debt-to-asset ratio was 26.0%, broadly unchanged from year-end 2025. The group has pledged properties, investment properties and receivables with a combined carrying value of about RMB 2.73 billion to secure borrowings.

Operational footprint As at 30 June 2026, Parkson operated or managed 38 stores across 23 mainland Chinese cities and Laos, plus two Parkson Newcore City Malls. The review period saw the renewal of leases for the Mianyang Parkson Fulin Store and Shanghai Parkson Newcore City Mall, alongside the closure of Chengdu Fashion Parkson Store and Shanghai Xinzhuang Parkson Store under a portfolio optimisation programme.

Management outlook Parkson’s “Year of Transformation Breakthrough” targets deeper renovation of key outlets and enhanced support for growth-stage stores to boost traffic and profitability amid what the company describes as a “deep adjustment period” in China’s retail sector.