19 Nov 2024
SunArt’s 1HFY25 (Sep-end) revenue was down by 3% YoY to Rmb34.7bn, mainly due to i) the contraction of supply chain business, which includes Taocaicai and Tmall Shared Inventory biz, contributed 2.5% impact; and ii) closure of long-term loss-making stores which had around 1.1% impact on revenue, while partially offset by a 0.3% YoY increase in SSSG amid increase in ticket size, on the back of successful implementation of the low-price strategy during the period, which increase average purchase pieces per order and enhance customer stickiness. Meanwhile, gross profit reduced by 4.1% YoY to Rmb8.5bn and GPM slightly declined by 0.3ppt YoY to 24.9% due to its low-price strategy. Going forward, mgmt. will continue to focus on driving both revenue and GP growth.