Zhongbai Holdings Group Co Ltd

Zhongbai Group released its 2026 interim report. Total operating revenue was 3.586 billion yuan, down 22.35% year-on-year. Net profit attributable to the parent company was negative 296 million yuan, a decrease of 41.2414 million yuan compared with the same period last year, with the loss widening. Net cash inflow from operating activities was 119 million yuan, down 8.19% year-on-year. The company's asset-liability ratio rose to 93.20%, gross margin was 22.74%, return on equity was negative 56.39%, and diluted earnings per share was negative 0.45 yuan. The number of shareholders was 80,100, and the top ten shareholders held 41.40% of the total share capital.

Zhongbai Group released its 2026 half-year report on August 26. First-half operating revenue was 3.586 billion yuan, down 22.4 percent year on year. Net loss attributable to the parent was 296 million yuan, widening from a loss of 255 million yuan in the same period last year. Net loss attributable to the parent after deducting non-recurring items was 296 million yuan, compared with a loss of 229 million yuan a year earlier. Net operating cash flow was 119 million yuan, down 8.2 percent year on year. Earnings per share were negative 0.45 yuan. In the second quarter, operating revenue was 1.55 billion yuan, down 24.3 percent year on year. Net loss attributable to the parent was 199 million yuan, compared with a loss of 156 million yuan a year earlier. Net loss attributable to the parent after deducting non-recurring items was 198 million yuan, compared with a loss of 147 million yuan a year earlier. Earnings per share were negative 0.3029 yuan. As of the end of the second quarter, total assets were 8.041 billion yuan, down 4.8 percent from the end of the previous year. Net assets attributable to the parent were 525 million yuan, down 36.1 percent from the end of the previous year. In the first half, the company pushed ahead with loss control, completed adjustments to food-focused supermarkets and fine-tuned store operations, added several discount stores, and achieved a 9.11 percent year-on-year increase in comparable-store sales at community supermarket hard-discount stores, with customer traffic up 14.12 percent year on year. At the same time, the company advanced supply chain reform, implemented an integrated purchasing and sales mechanism, and worked with Hubei University of Chinese Medicine to develop medicine-food homology fresh food products, entering the broader health sector. Sales on its local lifestyle service platform Baobao Life grew 573 percent year on year, and users grew 737 percent year on year. The company also accelerated the disposal of non-core assets to revitalize assets and recover funds.

Traditional retail companies posted clearly divergent results in the first half of 2026. Yonghui Superstores and Grandbuy turned profitable, while Zhongbai Holdings Group and Liqun Commercial Group remained in the red. Yonghui Superstores expects first-half net profit attributable to shareholders of 250 million yuan and non-GAAP net profit of 30 million yuan, mainly helped by completing renovations at 331 stores, lifting gross margin by 1.6 percentage points year on year and cutting period expense ratio by 1.8 percentage points. However, based on first-quarter figures, its second-quarter non-GAAP net profit was negative 217 million yuan. Grandbuy expects first-half non-GAAP net profit of 20 million to 25 million yuan, returning to profit through cost reduction and efficiency gains. Zhongbai Holdings Group expects a non-GAAP net loss of 269 million to 352 million yuan, while Liqun Commercial Group expects a non-GAAP net loss of 48 million to 65 million yuan, with both weighed down by declining foot traffic, online diversion and persistently high fixed costs. At the same time, community store formats are expanding rapidly. Walmart China opened its 20th community store in Shenzhen, Meituan's community hard-discount supermarket Happy Monkey opened three new stores in Beijing and Tianjin, and Freshippo has made its community discount format Freshippo NB one of its main store types. Among A-share companies, Hongqi Chain expects first-half net profit attributable to shareholders of 266 million to 275 million yuan and non-GAAP net profit of 275 million to 284 million yuan. Its high-density community network is seen by the industry as a key advantage that sets it apart from the hypermarket model.

Yonghui Superstores expects net profit attributable to shareholders of 250 million yuan for the first half of this year, with recurring net profit of 30 million yuan, swinging to a profit year-on-year. As of June 30, the company had completed restructuring at 331 stores, with overall gross margin up 1.6 percentage points year-on-year and period expense ratio down 1.8 percentage points. The company has entered the core push phase of its second-stage restructuring, focusing on healthy consumption scenarios. Taking the Wanda store in Chengzhong district, Liuzhou, Guangxi as an example, cumulative sales exceeded 17 million yuan in 13 days since opening. In addition, shares held in Advantage Solutions Inc. generated a fair value gain of 89 million yuan. Performance divergence among traditional supermarkets is intensifying. Hefei Department Store Group expects first-half net profit attributable to shareholders to fall 59.62 to 68.98 percent year-on-year, while Zhongbai Holdings Group expects a loss of 248 million to 331 million yuan.