Hong Kong – 27 August 2026 – Jiahua Stores Holdings Limited (Jiahua Stores H) released its unaudited interim results for the six months ended 30 June 2026, detailing solid top-line expansion but a sharp deterioration in profitability.
Key Financials (Six months ended 30 June) • Revenue: RMB 205.18 million, up 15.5% year on year (1H 2025: RMB 177.58 million). • Cost of inventories sold: RMB 89.16 million, +57.62%. • Gross profit (revenue minus cost of inventories sold): RMB 116.03 million, down 4.13%. • Loss before tax: RMB 39.99 million (1H 2025: RMB 3.53 million loss). • Net loss attributable to shareholders: RMB 39.99 million, expanding more than ten-fold from a RMB 3.58 million loss a year earlier. • Basic and diluted loss per share: RMB 3.86 cents (1H 2025: RMB 0.35 cents). • No interim dividend declared (unchanged from 1H 2025).
Operating Drivers • Sales of goods jumped 47.50% to RMB 99.35 million, benefiting from the launch of Jiahua Lingyue Plaza in Pingshan, Shenzhen and higher fresh-food and cooked-food sales after store refurbishments. • Commission income from concessionaire sales more than doubled to RMB 12.05 million. • Rental income from sub-leasing shopping malls fell 12.12% to RMB 69.87 million amid tenant concessions and vacancies at three existing malls, partially offsetting growth in merchandise sales. • Other operating income declined 23.98% to RMB 27.95 million, reflecting the absence of a prior-year gain from early lease terminations.
Cost and Expense Dynamics • Selling and distribution costs rose 6.48% to RMB 132.29 million, while administrative expenses increased 12.44% to RMB 19.51 million. • Finance costs climbed 8.30% to RMB 20.25 million, driven mainly by higher interest on lease liabilities from the new Pingshan mall. • Other operating expenses surged to RMB 11.92 million (1H 2025: RMB 1.03 million), predominantly due to the write-off of store equipment installation costs. • Staff costs expanded 30.06% to RMB 43.69 million, reflecting additional headcount for the new mall and expanded fresh-food operations.
Balance Sheet Highlights (30 June 2026) • Total assets: RMB 972.47 million (+28.6% versus 31 Dec 2025). • Cash and cash equivalents: RMB 15.74 million (31 Dec 2025: RMB 26.52 million). • Net current liabilities widened to RMB 333.53 million (31 Dec 2025: RMB 267.26 million). • Total borrowings: RMB 157.41 million, up from RMB 144.43 million at year-end 2025. • Net liabilities increased to RMB 178.91 million (31 Dec 2025: RMB 138.91 million), reflecting accumulated losses and lease obligations.
Operational Developments • Opened Jiahua Lingyue Plaza in Pingshan District, Shenzhen, adding 44,000 sq m of retail space and expanding the network to seven stores and four shopping malls. • Disposed of Bantian and Gongming supermarkets via sub-lease transfers, generating RMB 12.86 million in proceeds and eliminating loss-making operations; future earnings from these sites will be rental income. • Rolled out extensive promotional activities—such as “food-stealing” contests, cultural performances and themed markets—to revitalise footfall across malls. • Implemented cost-control measures, including AI-driven energy management, shared marketing resources between supermarkets and malls, and increased utilisation of idle space for events and pop-up rentals.
Outlook Management plans to pursue network expansion, potential M&A opportunities and continued digital transformation to diversify revenue streams and enhance competitiveness amid a challenging retail environment marked by cautious consumer sentiment and rising operational costs.