MAOYE INT'L (00848.HK): Issues Profit Warning, Expects Interim Net Loss of RMB 120 Million to RMB 180 Million versus Net Profit of RMB 11.92 Million in Prior Year
NewTimeSpace News: Maoye International Holdings Limited (stock code: 00848) issued a profit warning on August 10. Based on a preliminary assessment of the Group's unaudited consolidated management accounts for the six months ended June 30, 2026 and information currently available to the Board, the Group expects to record a net loss of approximately RMB 120 million to RMB 180 million for the period, compared with a net profit of RMB 11.92 million for the six months ended June 30, 2025 (the "2025 Interim Period").
According to the announcement, excluding the effects of the impairment loss on changes in fair value of investment properties of approximately RMB 125 million and the goodwill impairment loss of approximately RMB 45 million, the operating net loss for the first half of 2026 is expected to be approximately RMB 8 million to RMB 38 million.
The main reasons for the decrease in net profit for the first half of 2026 compared with the same period in 2025 include: first, a decline in revenue from the department store retail principal business, as the department store retail industry remained in a bottoming and adjustment phase amid macro environmental impacts, coupled with insufficient consumer spending momentum and declining average transaction value, which affected the Company's revenue decline and pressured net profit; second, the closure of certain stores during the reporting period due to failure to reach consensus with the relevant counterparties on the terms of lease cooperation, including the Inner Mongolia Victoria Times City and the Qinhuangdao Modern Shopping Plaza stores, which reduced operating revenue by approximately RMB 94.28 million and net profit by approximately RMB 31.35 million compared with the same period last year; and third, the provision of impairment losses on investment properties and goodwill, under which, based on the principle of prudence and in accordance with relevant accounting policies, management intends to provide for an impairment loss on changes in fair value of investment properties of approximately RMB 125 million and a goodwill impairment loss of approximately RMB 45 million for the period.
The Company reminded that the information contained in this announcement is only a preliminary assessment made by the Board based on information currently available and the unaudited consolidated management accounts, which has not been reviewed or confirmed by the Company's independent auditors or reviewed by the audit committee; the Group expects to publish its interim results announcement for the six months ended June 30, 2026 by the end of August 2026, and shareholders and potential investors are advised to exercise caution when dealing in the Company's shares.
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