CHINA DONGXIANG (03818) announces annual performance, with a net loss of 158 million yuan attributable to shareholders, turning from profit to loss year-on-year.

China Dongxiang (03818) announced its annual performance for the year ending March 31, 2026, with revenue of 1.715 billion yuan, an increase of 2.08% compared to the previous year. The company's owners incurred a loss of 158 million yuan, compared to a profit of 207 million yuan in the same period last year, resulting in a basic loss per share of 2.69 cents. The group's main business, the Kappa brand business, reported total sales of 1.592 billion yuan during the reporting period, an increase of 26 million yuan compared to the same period last year, which had sales of 1.566 billion yuan. During the reporting period, the group continued to deepen its "brand + product" and "brand + self-operated" business models. On one hand, it further enhanced the brand value by integrating the culture advocated by the brand into constantly improving products, building a solid brand influence. On the other hand, it continuously optimized and improved new operating control models, optimized the distribution of self-operated networks, improved store efficiency, optimized e-commerce business, better adapting to and satisfying consumer purchasing needs. At the same time, the group continued to adjust and optimize self-operated stores at the end, bringing the total number of Kappa brand terminal stores to 965.