Zhitong Finance App News, Shangjin International Holdings (02528) announced that the existing retail store management agreement arrangement between the Group and Popmart to operate Popmart stores in Macau, China will be terminated from December 21, 2026.
According to the company's preliminary assessment, for the nine months ended September 30, 2026, revenue from Popmart stores accounted for about 22% of the Group's total revenue. As a result, the Board anticipates that the termination will have a significant impact on the Group's short-term earnings. The actual financial impact of the termination will depend on (including) the performance of the Group's other businesses and the progress and effectiveness of mitigation measures implemented by the Group.
To mitigate the impact of the termination and expand the revenue base, the Group has begun implementing a series of measures, including opening further retail stores and introducing new brands in Macau, China.
Although the termination is expected to adversely affect the Group's financial performance in the short term, the Group will continue to utilize its experience in brand operations and retail management, and seek opportunities to expand its brand portfolio and retail network. Based on the information currently available to the Board of Directors, the Group maintains sufficient financial resources to support its current business operations and implementation of current business plans.
Furthermore, the Group will continue to closely monitor the implementation and effectiveness of the above measures and take appropriate measures to mitigate the impact, while seeking business opportunities that meet the overall interests of the company and shareholders.