ZYSC(SH:600280) Mei Ri Jing Ji Xin Wen·2025-09-06 08:36Core Viewpoint - Central Department Store is facing significant operational challenges, including a rental arbitration dispute and continuous financial losses over the past three years, which have led to a decline in revenue and net profit [2][7][12]. Financial Performance - In the first half of 2025, the company reported a revenue of 1.168 billion yuan, a year-on-year decrease of 11.96% [7][9]. - The net profit attributable to shareholders turned from a profit of 9.53 million yuan in the previous year to a loss of 8.77 million yuan, representing a decline of 191.95% [7][9]. - The total assets decreased by 2.35% compared to the previous year, while the net assets attributable to shareholders fell by 4.42% [9]. Rental Dispute - The arbitration notice received by the company involves a rental dispute with Xuzhou Heruihua Property Management Co., claiming unpaid rent totaling 51.995 million yuan [2][4]. - The rental agreement, signed in September 2018, stipulated a 20-year lease with quarterly payments, which the company failed to meet [4][5]. - The applicant has requested immediate payment of the outstanding amount and has retained the right to claim a 15% annual late fee [4]. Operational Challenges - The company has experienced a continuous decline in revenue, with significant drops in sales across various regions, including Jiangsu, Henan, and Shandong, with year-on-year decreases of 14.04%, 13.80%, and 11.39%, respectively [10]. - The decline in performance is attributed to reduced consumer spending in traditional retail channels and decreased revenue from the real estate sector [7][9]. Market Position - Central Department Store has a long history, established in 1936, and has expanded its operations significantly across multiple provinces [5]. - Despite its historical significance and market presence, the company is struggling to maintain profitability and market stability [12].