Sun Art Retail Group Limited provided consolidated earnings guidance for the six months ended 30 September 2023. For the period, the company it is expected to record a net loss of approximately RMB 0.37 billion to RMB 0.38 billion for the six months ended 30 September 2023, as compared to the Group's net loss of RMB 0.087 billion for the six months ended 30 September 2022. The expected loss is primarily attributable to a decline in profit due to a combination of a number of factors, namely the scaling down of supply chain business and a shrinking of guaranteed supply business during the six months ended 30 September 2023, a below-expectation performance, and a decrease in profit from sales due to increased promotional discounts as compared to the same period last year.

The gap in performance mainly originates from, among others, the high base of ticket size achieved in the first quarter of the fiscal year 2022. And the gap in performance for core businesses in the second quarter of the fiscal year 2023 had narrowed significantly.