Zhongmin Baihui Retail Group: A Resilient Retailer in Challenging Times

As the retail landscape in China becomes increasingly challenging, Zhongmin Baihui Retail Group Ltd. (ZMBH) has demonstrated remarkable resilience and adaptability. In the first half of 2025, the company reported an impressive earnings per share (EPS) of CN¥0.14, a significant increase from the CN¥0.008 recorded in the same period in 2024. This article explores the strategic initiatives and operational improvements that have contributed to ZMBH's strong performance.

ZMBH's strategic focus on outlet malls has been a driving force behind its success. The company operates two large outlet malls, the 200,000 sqm Changsha Sasseur (ZMBH) Outlets ("CSO") in Changsha City, Hunan Province, and the 400,000 sqm Wuxi Yueshang Outlets ("YSO") in Wuxi City, Jiangsu Province. These outlet malls have proven to be more resilient in the current economic climate, offering various non-shopping activities to complement customers' purchasing activities. The Group's outlet malls feature indoor basketball courts, diving and swimming pools, billiard/pool tables, health spas, children's amusement parks, go-kart rides, and a good selection of medium to high-end culinary choices. This diversification of offerings has attracted more customers and increased footfall, contributing to the outlet malls' strong performance.



One notable example of the Group's success in the outlet mall sector is the Changsha outlet mall, which delivered a record profit of RMB 28.9 million in FY2024, an increase of 33% compared to the previous financial year. This strong performance can be attributed to the Group's focus on providing a diversified shopping and entertainment experience, as well as its effective management of cash flow and strategic store closures and openings.

ZMBH's ability to adapt and innovate in the face of challenging market conditions is commendable. The company has demonstrated a clear understanding of the retail environment and has taken proactive measures to improve its profitability and cash flow management. By closing underperforming stores and opening new stores in high-potential areas, ZMBH has balanced cost-cutting measures with growth opportunities. Additionally, the Group's expansion into outlet malls and real estate leasing has created a more stable and diversified revenue stream, mitigating the risks associated with relying solely on direct sales at department stores and supermarkets.

In conclusion, Zhongmin Baihui Retail Group Ltd. has shown remarkable resilience and adaptability in the face of challenging market conditions. The company's strategic focus on outlet malls, diversification of revenue streams, and effective cash flow management have contributed to its strong performance in the first half of 2025. As the retail landscape continues to evolve, ZMBH's ability to innovate and adapt will be crucial to its long-term success. Investors should take note of the Group's strategic initiatives and operational improvements, as they provide valuable insights into the company's approach to navigating challenging market conditions.