RS Macalline Q1 2026: Mall Count Falls to 73, Revenue Slips 2.2%, Margin Climbs to 72.8%

Bulletin Express04-27

RS Macalline (Red Star Macalline Group) released first-quarter 2026 operating data showing a mixed picture of softer top-line growth but improved profitability.

Operational footprint • As at 31 March 2026, the group managed 73 portfolio shopping malls (63 owned, 8 leased, 2 JV/associate), 214 managed malls, 6 strategic-cooperation malls and 17 franchised home-improvement projects encompassing 336 stores. • During the quarter, one owned portfolio mall in Chengdu and four managed malls were closed, alongside one strategic-cooperation mall and two franchised projects. • Total owned portfolio gross floor area (GFA) fell 1.0 % to 6.54 million sq.m after the Chengdu closure; managed-mall GFA declined 2.4 % to 10.75 million sq.m. • The development pipeline comprises 16 portfolio malls (13 owned, 3 leased) with a planned 2.63 million sq.m of GFA, and land reserves cover 237 future managed projects.

Financial highlights (Q1 2026, unaudited) • Portfolio-mall revenue reached RMB 1.22 billion, down 2.2 % year on year. • Overall gross profit margin improved 3.7 ppts to 72.8 %, reflecting a more profitable mix and cost controls.

Revenue & margin by operating model – Owned malls generated RMB 1.11 billion (+0.7 %), with margin up 1.0 ppt to 75.6 %. – Leased malls posted RMB 77.93 million (-26.7 %); margin surged 13.5 ppts to 28.9 %. – JV/associate malls delivered RMB 29.80 million (-19.3 %); margin rose 20.4 ppts to 81.2 %.

Regional performance – East China remained the largest contributor at RMB 585.62 million, though revenue slipped 2.8 %; margin climbed 2.4 ppts to 75.0 %. – North China was the standout, with revenue up 9.2 % to RMB 268.32 million and margin improving to 66.2 %. – South China saw the steepest revenue contraction (-43.2 %) to RMB 10.19 million, yet margin jumped 33.5 ppts to 57.1 %. – Northeast, Central and West China regions recorded revenue declines ranging from 0.3 % to 10.8 % but all posted higher margins year on year.

Outlook indicators The closure of underperforming locations and a robust development pipeline suggest continued portfolio optimisation. Management’s focus on enhancing efficiency is reflected in the wider gross margins despite modest revenue pressure.

(All figures are based on the company’s unaudited disclosure dated 27 April 2026 and are expressed in renminbi.)

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