Parkson Retail Group Limited reported a 2.20% year-on-year rise in profit attributable to owners to RMB23.00 million for the six months ended 30 June 2026, despite softer consumer spending and ongoing store transitions.

Total operating revenues fell 11.40% to RMB1.74 billion, while gross sales proceeds (GSP) declined 15.00% to RMB3.53 billion after value-added tax. Same-store sales contracted 13.50%.

Operating profit slipped 8.60% to RMB235.40 million, but tight cost controls limited the impact of lower sales. Staff costs dropped 15.50% to RMB213.70 million and depreciation and amortisation declined 10.80% to RMB215.00 million following the closure of underperforming outlets in 2025. Net finance costs eased 6.00% to RMB194.50 million, reflecting reduced interest on lease liabilities.

Total assets stood at RMB11.38 billion, with cash and bank balances of RMB1.31 billion and a debt-to-asset ratio of 26.0%. Net assets were broadly unchanged at RMB2.89 billion.

Operationally, the group managed 38 Parkson stores and two Parkson Newcore City Malls across 23 mainland cities and Laos. During the period it renewed leases for the Mianyang Parkson Fulin Store and Shanghai Parkson Newcore City Mall, and exited Chengdu Fashion Parkson and Shanghai Xinzhuang Parkson amid an ongoing shift from traditional department stores to lifestyle-oriented shopping malls.

In March 2024 Parkson Retail signed a RMB2.50 billion syndicated term loan with a 36-month tenor. The facility includes a covenant requiring Chairman Tan Sri Cheng Heng Jem to remain the company’s single largest ultimate beneficial owner; a change in control would trigger immediate repayment.

The board confirmed full compliance with the Hong Kong Stock Exchange’s Corporate Governance Code during the review period and stated that no shares were repurchased, sold or redeemed by the company or its subsidiaries in the first half.