Zhongmin Baihui Retail Group Limited: FY2025 Financial Analysis
Zhongmin Baihui Retail Group Limited has released its condensed consolidated interim financial statements and dividend announcement for the twelve-month period ended 30 June 2025. The group operates a chain of department stores and retail stores in China and is listed on the Singapore Exchange.
Key Financial Metrics and Performance Table
| Metric |
6M Ended Jun 2025 |
6M Ended Dec 2024 |
6M Ended Jun 2024 |
YoY Change (12M) |
QoQ Change (6M) |
| Revenue (RMB ‘000) |
498,815 |
452,446 |
494,610 |
-3.3% |
+0.9% |
| Gross Profit (RMB ‘000) |
108,911 |
111,878 |
118,700 |
-4.8% |
-8.2% |
| Profit After Tax (RMB ‘000) |
15,585 |
27,169 |
22,175 |
+79.6% |
-29.7% |
| EPS (basic, RMB cents) |
8.13 |
14.18 |
11.57 |
+79.7% |
-29.6% |
| Net Asset Value/Share (RMB cents) |
116.77 |
— |
100.42 |
+16.3% |
— |
| Total Dividend/Share (SGD cents) |
1.0 (Final) |
— |
1.0 (Final) |
No Change |
No Change |
Historical Performance Trends
The group’s total revenue for FY2025 decreased by 3.3% to RMB 951.3 million, primarily due to fewer stores in operation. The decline in direct sales and concessionaire sales was offset by a modest increase in sales of Maotai liquor. Gross profit margin fell slightly from 23.6% in FY2024 to 23.2% in FY2025. Despite lower revenue, profit after tax surged 79.6% year-on-year, driven by lower administrative and selling expenses, higher profit contributions from associates and joint ventures, and the absence of large one-off compensation expenses seen in the prior year.
Dividends
The Board recommends a final dividend of 1.0 Singapore cent per share for FY2025, unchanged from the previous year. This dividend is one-tier tax exempt and payable to shareholders at a date to be announced. The total annual dividend remains at S\$1,917,000.
Cash Flow and Financial Position
- Net cash and cash equivalents stand at RMB 83.5 million as of 30 June 2025, excluding fixed deposits.
- Net cash generated from operating activities: RMB 46.0 million (FY2024: RMB 38.0 million).
- Net cash generated from investing activities: RMB 27.9 million, mainly due to dividend income from associates and repayment of loans from joint ventures.
- Net cash used in financing activities: RMB 82.9 million, including dividend payments and repayments of loans and lease liabilities.
- Total loans and borrowings increased slightly to RMB 221.2 million, while lease liabilities decreased due to repayments and early termination of several store leases.
Share Buybacks and Capital Structure
- The company bought back 2,700 shares in July 2025, resulting in treasury shares representing 2.4% of outstanding shares.
- No changes in share capital, no dilution, and no outstanding convertibles or subsidiary holdings as at 30 June 2025.
Related Party Transactions and Exceptional Items
- Significant related party transactions mainly involved management fees, concessionaire income, and rental income from companies in which directors have an interest.
- Dividend income from associates and profit contributions from joint ventures were notable positive items for the year.
- No material legal disputes, asset revaluations, IPOs, or fundraising events reported.
Macroeconomic and Industry Commentary
The Chairman’s statement included the following:
“According to the National Bureau of Statistics of China, real GDP in China grew 5.3% year-on-year in the first half of 2025, as compared to 5.0% in the first half of 2024. Retail sales of consumer goods increased 5.0% in the first half of 2025, matching the rate of growth seen in the first half of 2024. Despite the uncertainties arising from tariffs on goods exported to the United States, the Chinese economy remains moderately resilient.”
“Our planned opening of the 52,000 sqm Shanxi retail mall is on schedule to begin operations in the first half of 2026, further expanding our footprint in the large retail mall segment. Barring unforeseen circumstances, we expect our operating performance for the coming financial year to be satisfactory.”
The Chairman’s tone is cautiously optimistic, citing overall resilience in the Chinese economy and the company’s expansion plans, while acknowledging external uncertainties.
Forecasted Events and Outlook
- The new Shanxi retail mall is expected to begin operations in H1 2026 and may contribute positively to future earnings.
- No negative audit issues or adverse opinions have been reported.
- Barring unforeseen circumstances, the outlook for FY2026 is satisfactory according to management.
Conclusion & Investment Recommendations
Summary: Zhongmin Baihui Retail Group delivered a resilient performance in FY2025, managing cost controls and benefitting from associate and joint venture profits. While revenue and margins softened slightly due to fewer stores, net profit and EPS improved markedly, and the balance sheet remains healthy with stable cash flows and manageable debt levels. The dividend remains unchanged, and the group’s expansion into large retail malls is on track.
- If you currently hold the stock: Consider maintaining your position. The group shows strong profit recovery, prudent cost management, and a stable dividend. However, monitor retail sector trends and the upcoming performance of the new mall.
- If you do not currently hold the stock: Consider a cautious entry if you seek exposure to China’s retail sector and appreciate consistent dividends. The company’s risk profile is moderate, but future growth hinges on successful execution of expansion and macroeconomic stability.
Disclaimer: This analysis is based strictly on disclosed financial statements and does not constitute investment advice. Investors should consider their own risk tolerance and seek independent advice before making investment decisions.
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