Parkson Retail (Stock Code: 03368) reported unaudited results for the three months ended 31 March 2026, highlighting a sharp earnings recovery despite softer top-line performance.

Gross Sales & Revenue • Gross sales proceeds (GSP) fell 12.9% year on year to RMB1.96 billion, reflecting restrained consumer spending and the ongoing conversion of some department stores into shopping malls. • Same-store sales declined 14.5%. • Total operating revenue slipped 6.8% to RMB928.23 million, with revenue from contracts with customers—62.7% of the total—down 12.8%.

Profitability • Operating expenses were cut by 11.7% to RMB770.74 million, supported by a 10.6% reduction in costs other than merchandise purchases. • Operating profit rose 28.2% to RMB157.49 million, lifting the operating margin to 17.0% (Q1 2025: 12.3%). • Finance costs eased 6.0% to RMB103.43 million, while finance income slipped 19.0% to RMB5.35 million. • Profit attributable to owners surged to RMB39.81 million, compared with RMB3.38 million a year earlier. Net margin improved to 4.3% from 0.3%.

Balance Sheet & Liquidity • Total assets less current liabilities stood at RMB8.95 billion at 31 March 2026, up slightly from RMB8.87 billion at end-2025. • Net assets increased to RMB2.92 billion (31 December 2025: RMB2.89 billion). • Cash and cash equivalents closed the quarter at RMB1.49 billion, down from RMB1.52 billion three months earlier, after net operating cash inflow of RMB135.36 million was offset by RMB152.17 million of net financing outflows. • Interest-bearing bank loans totalled RMB2.67 billion long term and RMB0.33 billion short term.

Operational Mix • Concessionaire sales accounted for 69.5% of merchandise revenue, declining 17.3% to RMB993.88 million. • Direct sales contributed 30.5%, down 12.7% to RMB437.06 million.

Network Footprint As of 31 March 2026, the Group and its associates operated 40 Parkson-branded outlets and two Parkson Newcore City Malls across 23 cities in China and Laos.

Outlook Management attributes the revenue contraction to cautious consumer sentiment and store format transitions but cites ongoing cost optimisation for the rebound in profitability. The company continues to focus on operating efficiency while advancing its shift towards shopping-mall formats.