Mulsanne Group reported interim 2026 revenue of RMB 948.69 million, down 2.1% year-on-year, as softer online sales outweighed stable offline performance.
Gross profit rose 3.7% to RMB 536.99 million, lifting the gross margin 3.2 ppt to 56.6% on tighter discounting and an improved product and channel mix. GXG, the core label, delivered RMB 884.75 million in sales (-1.4%), while MODE COMMUTER grew 22.5% to RMB 23.45 million; gxg jeans declined 18.9% to RMB 39.60 million.
Revenue share by channel showed offline sales virtually flat at RMB 608.19 million (+0.2%), with self-owned stores up 6.9% to RMB 479.53 million and distributor sales falling 24.2% to RMB 96.66 million. Online turnover contracted 5.6% to RMB 337.85 million after the company curtailed promotional discounts to boost profitability.
Selling and distribution expenses were broadly unchanged at RMB 416.69 million, representing 43.9% of revenue (2025: 42.9%). Administrative costs rose 9.2% to RMB 90.97 million, mainly reflecting depreciation of the new headquarters fit-out. Finance costs fell 60.2% to RMB 6.38 million following lower borrowings and expense controls.
These efficiency gains lifted profit before tax to RMB 26.71 million (+102.4%), while net profit attributable to shareholders improved to RMB 21.81 million from RMB 8.87 million a year earlier.
Operating cash inflow reached RMB 85.65 million versus an outflow of RMB 61.61 million in the prior-year period, aided by stronger receivables collection and working-capital optimisation. Cash and cash equivalents plus pledged deposits increased 17.9% to RMB 240.19 million. Capital expenditure declined 43.7% to RMB 30.70 million.
Total interest-bearing borrowings were broadly steady at RMB 411.53 million, putting the gearing ratio at 21.8% (31 Dec 2025: 21.1%).
The store network was rationalised to 854 outlets from 926 at year-end 2025, reflecting ongoing closure of underperforming sites.
The board proposed no interim dividend. No material acquisitions, disposals or post-period events were reported.
Management reiterated its focus on deepening brand positioning, launching new labels, enhancing omni-channel gross margins, and utilising AI to further improve operational efficiency.