Zhongmin Baihui Retail Group Limited: FY2025 Financial Results Review
Zhongmin Baihui Retail Group Limited, a Singapore-incorporated retail operator with a primary focus in China, has released its financial results for the twelve months ended 30 June 2025 (FY2025). This review analyzes the company’s key financial metrics, trends, and corporate actions, providing investors with a clear understanding of performance and outlook.
Key Financial Metrics and Comparisons
| Metric |
6M Ended 30 Jun 2025 |
6M Ended 30 Dec 2024 |
6M Ended 30 Jun 2024 |
YoY Change (FY) |
QoQ Change (6M) |
| Revenue (RMB ‘000) |
498,815 |
452,446 |
494,610 |
-3.3% (FY: 951,261 vs 983,737) |
+0.9% |
| Gross Profit (RMB ‘000) |
108,911 |
111,878 |
118,700 |
-4.8% (FY: 220,789 vs 231,831) |
-8.2% |
| Profit After Tax (RMB ‘000) |
22,690 |
20,110 |
23,923 |
+79.8% (FY: 42,804 vs 23,804) |
-5.2% |
| Earnings Per Share (EPS, RMB cents) |
11.57 |
N/A |
12.42 |
+79.8% |
-6.8% |
| Final Dividend (SGD cents per share) |
1.0 (proposed) |
N/A |
1.0 |
No change |
No change |
Historical Performance Trends
- Revenue: Annual revenue declined by 3.3% to RMB 951.3 million in FY2025, mainly due to fewer stores in operation and a 17.7% drop in concessionaire sales. Direct sales also fell, attributed to lower sales in gold and other products, though Maotai liquor sales increased.
- Gross Profit: Gross profit was down 4.8% YoY, with gross margin decreasing from 23.6% to 23.2%.
- Profit After Tax: Notably, profit after tax increased by 79.8% to RMB 42.8 million, largely due to higher contributions from associates and joint ventures, and improved cost management despite lower revenue.
- EPS: Earnings per share followed profit growth, rising sharply YoY.
- Dividend: The company maintained its final dividend at 1.0 Singapore cent per share, matching the previous year.
Balance Sheet and Cash Flow Highlights
- Net Asset Value per Share: Rose to RMB 116.77 (FY2025) from RMB 100.42 (FY2024), reflecting stronger retained earnings and asset values.
- Net Current Liabilities: Improved slightly, standing at RMB 4.2 million as at 30 June 2025 (vs RMB 7.4 million as at 30 June 2024).
- Borrowings: Total loans and borrowings increased marginally to RMB 221.2 million, with notable repayments offset by new loans and FX losses.
- Cash Position: Net cash and cash equivalents (excluding fixed deposits) stood at RMB 83.5 million, indicating healthy liquidity.
- Operating Cash Flow: Net cash from operations improved to RMB 46.0 million from RMB 38.0 million in the previous year, despite working capital requirements.
Exceptional Items and Corporate Actions
- Asset Revaluations & Write-offs: The group recorded disposals and write-offs of property, plant, and equipment totaling RMB 7.9 million, alongside a depreciation charge of RMB 12.7 million.
- Share Buybacks: The company repurchased 31,600 shares during FY2025, with treasury shares representing 2.4% of issued shares at year-end. No share dilution or new placements occurred.
- Investments and Divestments: There were no major asset sales, but the group received RMB 42.0 million in dividends from associates and made advances to related parties and associates.
- Subsidiary Incorporation: Parkway Utalk Pte Ltd (Singapore) and Fujian Baihui Utalk Co., Ltd (China) were incorporated as wholly-owned subsidiaries, reflecting potential expansion efforts.
- Related Party Transactions: Material transactions with companies linked to directors were disclosed but not flagged as problematic.
Macroeconomic and Sector Commentary
- Economic Environment: China’s GDP grew 5.3% YoY in 1H 2025, with retail sales of consumer goods up 5.0%. The company notes continued resilience despite uncertainties from US tariffs.
- Industry Trends: The group remains cautious on expansion but is on track to open a new 52,000 sqm mall in Shanxi in H1 2026.
Chairman’s Statement
“Barring unforeseen circumstances, we expect our operating performance for the coming financial year to be satisfactory.”
Tone: Neutral to cautiously optimistic. The Chairman signals stability and confidence in the group’s ongoing performance, while remaining prudent about economic and sector risks.
Dividend Summary
- Final Dividend Proposed: 1.0 Singapore cent per share (one-tier tax exempt), unchanged from prior year.
- Dividend Value: S\$1.92 million for FY2025 (same as FY2024).
Conclusion & Recommendations
Overall Assessment: Zhongmin Baihui Retail Group delivered a mixed set of results. While revenue and gross profit declined due to operational contraction and weak concessionaire sales, net profit and EPS rebounded sharply, thanks to increased contributions from associates, disciplined cost control, and improved cash generation. The balance sheet remains stable, with manageable net current liabilities and healthy liquidity.
Investor Recommendations:
-
If you currently hold the stock:
Consider maintaining your position. The company’s profitability has improved, cash flows are stable, and the dividend yield is maintained. Management’s cautious expansion and prudent cost management suggest a conservative but resilient outlook. However, monitor for execution of new projects and any signs of further revenue decline.
-
If you do not currently hold the stock:
A wait-and-see approach is reasonable. While the sharp rebound in net profit and EPS is encouraging, the underlying revenue trend is negative, and sector headwinds remain. Prospective investors may wish to wait for clearer signs of sustainable topline recovery or more aggressive growth before entering.
Disclaimer: This analysis is based solely on the information disclosed in Zhongmin Baihui Retail Group Limited’s FY2025 results announcement. It is not investment advice. Investors should consider their own investment objectives and consult with a professional advisor before making investment decisions.
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