Shares of Sun Art Retail are currently down nearly 6%. At the time of writing, the stock has fallen 5.96% to HK$1.34, with a turnover of HK$9.8717 million.

The decline follows the company's recent release of its full-year results for the period ending March. Annual revenue reached RMB 63.442 billion, representing an 11.3% year-on-year decrease.

Impacted by the revenue decline, gross margin contraction, asset impairments, and increased tax burdens, Sun Art Retail reported an attributable net loss of RMB 319 million for this fiscal year. This compares to a profit of RMB 405 million in the same period last fiscal year.

It is noteworthy that Sun Art Retail has changed its CEO four times within two years.

Macquarie released a research note stating that offline retail remains the primary drag on the company's same-store sales growth and overall revenue. The company recorded a net loss of RMB 196 million for the second half of the fiscal year ending March 2026, a performance in line with its earlier profit warning.

The brokerage believes Sun Art Retail lacks strong drivers for revenue growth, and any profit recovery will primarily depend on cost savings. Macquarie holds a conservative view on the company's outlook, forecasting a low single-digit revenue decline for the 2027 fiscal year, while the company itself aims for a break-even to slightly profitable result.