Ginza Co., Ltd.'s 2025 performance is "inflated": net profit attributable to shareholders drops over 12%, leaving only 7 million yuan after deducting non-recurring gains and losses

The reporter from 每经｜Peng Fei    The editor from 每经｜Chen Junjie

Late on March 27, 银座股份 (SH600858, share price 5.89 yuan, market cap 3.063 billion yuan) released its 2025 annual report.

According to the data, in 2025, 银座股份 achieved operating revenue of 5.282 billion yuan, down 2.52% year over year. Attributable net profit was 59.2511 million yuan, down 12.42% year over year. Meanwhile, net profit after deducting non-recurring gains and losses fell sharply to about 7 million yuan, down more than 45% year over year.

《每日经济新闻》 (The Daily Economic News) noticed that non-recurring gains and losses provided the main support for the company’s profit, while the growth momentum of its retail core business was clearly insufficient, with revenue from the department store business format falling by more than 14%. At the same time, short-term borrowings of over 2.3 billion yuan reflect the company facing substantial debt pressure, and this is compounded by goodwill impairment of more than 14 million yuan for Shijiazhuang Dongfang City Plaza, further eroding profit space.

Against this backdrop, 银座股份 attempted to unlock existing stock assets by filing for public infrastructure REITs (real estate investment trusts), but given the fierce industry competition, this path to break through remains full of uncertainties.

Data show that in 2025, 银座股份 achieved operating revenue of 5.282 billion yuan, down 2.52% year over year. In the same period, total profit was 144 million yuan, down 4.05% from the previous year; attributable net profit was 59.2511 million yuan, down 12.42% year over year.

《每日经济新闻》 noticed that after stripping out non-recurring gains and losses, the non-recurring profit attributable to shareholders of listed companies (net profit after deducting non-recurring gains and losses) experienced a cliff-like drop, to only 6.9974 million yuan, with a year-over-year decline of 45.60%.

For the double decline in both revenue and net profit, in its annual report, 银座股份 frankly stated, “Due to the intense competition in the current retail industry and the shift in consumption toward rationality affecting the company’s operating performance, the company’s operating results have declined.”

It is worth noting that the financial statements show that in 2025, the company’s total non-recurring gains and losses were 52.2537 million yuan. Among them, income from entrusted operations’ management fees reached 33.4074 million yuan; profit and loss from disposal of non-current assets (including the offset portion of asset impairment provisions that had been accrued) was 14.252 million yuan; and government subsidies recognized in profit or loss for the period were 6.0059 million yuan.

From the above data, it is not difficult to see that compared with the non-recurring net profit of less than 7 million yuan, non-core business gains such as entrusted management income and asset disposals are the key support for 银座股份 to maintain its book net profit scale in 2025.

Meanwhile, the company’s retail main business is facing a test. In 2025, its commercial主营业务 (main business) revenue was 4.168 billion yuan, down 3.31% year over year. The gross margin was 27.39%, down 0.77 percentage points from the previous year. Broken down by business segments, among which department stores, an important pillar of the company, its main business revenue was 1.623 billion yuan, down 14.14% year over year. Although the main business revenue of large-scale comprehensive supermarkets reached 2.116 billion yuan, up 5.70%, its gross margin was only 18.51%, down 0.59 percentage points year over year.

“Revenue increases but profit does not” in the supermarket format, together with the department store business that is shrinking, highlights the strain in the company’s main business operations. From regional performance, the company’s base is also loosening. The province (Shandong)’s主营业务营业收入 (main business operating revenue) was 4.114 billion yuan, down 2.46% year over year. Expansion outside the province was also hit, with operating revenue in Hebei Province, among others, at 56.0433 million yuan, down 39.63% year over year.

In addition to troubles brought by declining profitability of the main business, liabilities and goodwill impairment also cast a heavy shadow over 银座股份’s financial position.

The financial report shows that by the end of 2025, the company’s short-term borrowings reached 2.373 billion yuan, placing higher demands on the company’s cash flow and working capital turnover. Among these short-term borrowings, secured borrowings were 1.137 billion yuan, guaranteed borrowings were 0.932 billion yuan, and letter of credit financing was 0.3 billion yuan.

Goodwill impairment is also one of the important reasons leading to asset impairment losses and profit damage during the company’s reporting period. In 2025, because the recoverable amount of the overall asset group of Shijiazhuang Dongfang City Plaza Co., Ltd. was less than the sum of the fair value of the tangible assets of the overall asset group and goodwill, 银座股份 accrued goodwill impairment provisions of 14.3292 million yuan for Shijiazhuang Dongfang City Plaza Co., Ltd.

Facing a macro environment of intensifying competition in the retail industry and changing consumption structures, as well as the reality of the company’s high leverage and debt pressure, 银座股份 is trying to find a way out through asset securitization.

During the reporting period, the 11th meeting of the 13th session of the board of directors of 银座股份 and the 2024 annual general meeting of shareholders considered and approved the “Proposal on Carrying Out the Filing and Issuance of Public Infrastructure REITs.” The company plans to conduct the filing and issuance of a publicly offered infrastructure securities investment fund by using the Harmoney Plaza Shopping Center held by its wholly owned subsidiary, Shandong 银座 Real Estate Co., Ltd.

《每日经济新闻》 noticed that the core purpose of this initiative is to innovate the operating model and unlock existing stock assets. Currently, the related proposals have already been approved by the shareholders’ meeting, and the company is continuously pushing forward communication with relevant regulatory authorities.

However, in its annual report risk disclosure, 银座股份 is also clearly aware and stated that competition in the retail industry has gone beyond traditional boundaries, showing characteristics of being all-around, multi-layered, and high-frequency iterative. “Online platforms, leveraging their advantages in traffic, data, and technology, continue to deepen and shape consumers’ shopping habits. Live-streaming e-commerce, social e-commerce, instant retail, and other models are constantly diverting offline customer traffic and intensifying price competition.”

Under such a harsh environment for commercial real estate and retail, whether the filing and issuance of REITs can be carried out smoothly, and whether the raised funds can truly and effectively ease debt pressure and give back to the main business, helping 银座股份 completely shed the “artificial bulking” in performance, remains full of uncertainties for now.

Cover image source: 每经 media resource database

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