Zhongmin Baihui Retail Group Surges with Strong Mall Performance, Profit Growth, and Expansion Plans

Key Highlights from ZMBH’s Large Mall Operational Update

• Changsha (ZMBH) Sasseur Outlets delivers robust growth and record occupancy.
• Wuxi Yueshang Outlets turns profitable after overcoming pandemic-induced losses.
• New Shanxi Yueshang Intime Mall project signals continued expansion and future earnings potential.
• Shareholder-sensitive details: Profit growth, loss reversal, and significant expansion could impact share value.

Detailed Analysis for Retail Investors

Changsha (ZMBH) Sasseur Outlets – Performance Drives Group Earnings

The Changsha Sasseur Outlets, a cornerstone asset for Zhongmin Baihui Retail Group (ZMBH), continues its upward trajectory. As at 30 June 2025, the outlet boasts 1,419,703 VIP members, 353 tenants, and a stellar 100% occupancy rate. The outlet’s gross floor area stands at an impressive 282,272 sqm, with leasable area at 69,510 sqm.

Sales momentum remains strong: For the six months to 30 June 2025, outlet sales reached RMB 851 million, up from RMB 789 million in the prior year. In the previous six months (ending 31 Dec 2024), sales were even higher at RMB 923 million.

ZMBH holds a 24.225% effective stake in the operating entity, which collects rental income from tenants without paying rent for the mall itself. The mall contributed RMB 31.5 million to Group earnings in FY2025, a 9.0% year-on-year increase. For context, the Group’s total net profit for FY2025 was RMB 48.2 million.

Top brands driving sales: Nike, Adidas, Bosideng, Anta, Coach, Italian Space (luxury Italian brands), FILA, BBK Supermarket, UME Cinemas, and Chow Tai Fook continue to attract footfall and boost revenues. The mall’s diverse F&B offerings further enhance its attractiveness.

Shareholder Impact

• Consistent profit contribution from Changsha mall is a stabilizing factor for ZMBH’s earnings profile.
• Strong tenancy and brand mix may sustain future rental and management income.

Wuxi Yueshang Outlets – From Losses to Profitability

The Wuxi Yueshang Outlets, officially opened in September 2022, navigated significant challenges due to the COVID-19 pandemic. As at 30 June 2025, the mall has 1,075,272 VIP members, 319 tenants, and 96.2% occupancy. Its gross floor area is 435,116 sqm with a massive leasable area of 130,397 sqm.

Sales performance: For the six months to 30 June 2025, outlet sales registered RMB 690 million. Sales for the previous half-year were RMB 733 million, and RMB 699 million for the same period in the prior year.

ZMBH’s 51% joint-venture stake in the operating entity allows for direct exposure to rental and ancillary income streams. Notably, the company overcame accumulated unrecognised losses from the pandemic era, reporting a net profit of RMB 4.0 million for FY2025. Without these losses, earnings could have been RMB 8.5 million.

Top Performing Sectors and Brands

• Apparel: Near half of sales, led by Nike, NIO, JD.com, Adidas, Denza, Huawei Aito, and Xiaomi.
• Food & Beverage: 16% of sales, underscoring strong customer engagement.
• Electric Vehicles: 10% of sales, indicating a pivot toward new retail categories.
• Recreational/Lifestyle: Indoor sports, skating, gyms, go-karting, KTV, spas, cinemas, rock climbing, children’s park, and kindergarten add to the mall’s draw.
• Key New Tenant: Alibaba’s Freshippo NB discount supermarket, with high sales potential for the next year.

The mall’s asset enhancement strategy includes hosting high-profile community events (beer festival, children’s shows, youth competitions) to increase footfall and customer loyalty.

Shareholder Impact

• Turning the corner to profitability after pandemic-induced losses is a major positive for ZMBH and could be price-sensitive.
• Strategic tenant mix and asset upgrades position Wuxi for sustained growth and competitive advantage.

Shanxi Yueshang Intime Mall Project – Growth Pipeline for FY2026 and Beyond

ZMBH’s expansion continues with the Shanxi Yueshang Intime Mall project in Lishi District, Lvliang City. The Group holds a 51% stake in the operating entity. The new development will feature 52,000 sqm of gross floor area across six above-ground floors and two basements, supporting a comprehensive retail, dining, and leisure ecosystem. Construction is underway, with operations scheduled to commence in the first half of 2026.

Shareholder Impact

• Shanxi Intime Mall represents a significant growth opportunity and future earnings stream for ZMBH.
• The expansion strengthens ZMBH’s footprint beyond Fujian, Hunan, and Jiangsu provinces, reinforcing its long-term growth strategy.

What Should Shareholders Watch?

• Continued strong profit growth and recovery at Wuxi Outlet could drive share price appreciation.
• Changsha’s robust performance and 100% occupancy support stable dividends and earnings.
• Future earnings boost from Shanxi mall expansion could be a catalyst for further upside.
• Asset enhancement, strategic tenant acquisitions, and community engagement at Wuxi strengthen competitive position.

Conclusion: ZMBH Positioned for Growth and Shareholder Value Creation

Zhongmin Baihui Retail Group’s latest operational update highlights resilient growth, successful turnaround at Wuxi, and ambitious expansion plans. With strong performance at its core assets, reversal of pandemic losses, and new development on the horizon, ZMBH is well-positioned for future value creation. These developments are likely to be price-sensitive and could influence share valuations in the coming quarters.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult a licensed financial advisor before making any investment decisions. The author does not hold any position in Zhongmin Baihui Retail Group Ltd. at the time of writing.

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