Sun Art Retail profit drops 16.6% in 2021

The retail group linked this to the impact of the pandemic.

Hong Kong-listed Sun Art Retail Group Limited reported a profit drop of 16.6% to $4.55b (RMB3.77b) during the 15 months ended 31 March 2021, compared to $5.09b (RMB4.22b) over the same period last year.

The group’s revenue declined 2% to $150.23b (RMB124.33b), whilst its gross profit and profit from operations also decreased 5.7% to $37.55m (RMB31.08m) and 18.3% to $6.94m (RMB5.75m), respectively.

“During the pandemic period of the first quarter of 2020, customers were affected by the home quarantine policy. Other businesses were suffered, however, retail stores recorded high-digit revenue growth,” the group reported.

It added it expects its revenue growth to be driven by the implementation of multi-format and omni-channel development strategy.

At present, Sun Art has 490 hypermarket complexes, 6 superstores and 32 mini stores. It has also remodelled 38 of its hypermarkets to become customers’ offline experience centers and logistics fulfillment centers of online businesses.

The number of stores being remodelled is expected to reach between 40-50 annually.

Basic earnings per share amounted to $0.44 (RMB0.37). The Board has recommended the payment of a final dividend of $0.13 per ordinary share, subject to the approval by the shareholders at the annual general assembly.

Meanwhile, the Group has appointed Lin Xiaohai as its CEO, who has 25 years of experience in retail and internet industry.

“Mr. Lin Xiaohai formed a new generation of management team and set the strategy of multi-formats and omni-channel development,” Peter Huang, chairman of the Group, said.