HK Stock Market Move | After issuing a profit warning, SUNART RETAIL (06808) falls by more than 10%, with an expected annual loss of 300 to 350 million yuan from profit.

After issuing a profit warning, SUNART RETAIL (06808) fell by more than 10%, plummeting by 8.44% as of the time of writing to HK$1.41, with a trading volume of HK$13.9723 million. In terms of news, SUNART RETAIL issued a profit warning, expecting a loss of between RMB 300 million and RMB 350 million for the fiscal year ending in March, compared to a net profit of RMB 405 million in the previous year. During the period, the gross profit margin remained stable and slightly increased. The expected net loss and loss attributable to owners are mainly attributed to a decrease in the number of transactions and average selling price of goods, resulting in a decrease in revenue and a decrease in gross profit. Street store income also declined. Despite the pressure on net profit, the Group's overall operating cash flow and adjusted EBITDA still demonstrate resilience.