Zhi Tong Cai Jing·2025-10-27 08:09Core Viewpoint - The report from Guosen Securities expresses optimism about the operational resilience and long-term cash returns of Tmall (06110), highlighting a narrowing decline in retail and stable gross margins despite a challenging retail environment [1] Financial Performance - Revenue for the first half of the 2026 fiscal year decreased by 5.8% year-on-year to 12.3 billion, with retail channel revenue at 10.6 billion (down 3.0%) and wholesale channel revenue at 1.62 billion (down 20.3%) [1] - Main brand revenues (Nike, Adidas) fell by 4.8% to 10.81 billion, while other brands saw a 12.2% decline to 1.41 billion [1] - Net profit attributable to shareholders dropped by 9.8% to 790 million, with a slight decrease in gross margin by 0.1 percentage points to 41.0% [1] - Operating cash flow net amount decreased by 48.2% to 1.35 billion, with a net cash ratio of 1.7 [1] Store and Membership Strategy - As of August 2025, the number of direct-operated stores decreased by 1,125 to 4,688 (down 19.4%), while total sales area declined by 14.1% [2] - The cumulative user base reached 89.1 million, with membership contributing 92.9% of sales; high-value members accounted for nearly 35% of sales [2] - Online retail business experienced double-digit growth, with significant contributions from content e-commerce and private domain operations [2] Sales Trends - In the second quarter (June to August 2025), total sales for retail and wholesale businesses saw a high single-digit decline, with direct-operated store area decreasing by 3.3% quarter-on-quarter and 14.1% year-on-year [3] - Management indicated expectations for net profit to remain flat for the 2026 fiscal year, with guidance for improved net margins [3]