About Sun Art Retail Group Limited
Sun Art is a leading retailer with hypermarket and omni-channel e-commerce businesses in China. Sun Art operates its business with hypermarkets, superstores and membership stores under RT-Mart, RT-Super and M-Club. As of 31 March 2025, Sun Art had a total of 465 hypermarkets, 33 superstores and seven membership stores in China with a total gross floor area (“GFA”) of approximately 13.49 million square meters, covering 207 cities across 29 provinces, autonomous regions and municipalities. The Group has always been committed to high quality-to-price ratio and the customer value of health and pleasure by providing high-quality shopping experience for customers with fresh and inexpensive commodities, comfortable and convenient environment, as well as lump-sum buying. The Group aims to become life service centers, a good neighbor of communities and a trustworthy shopping representative of customers.
As of 31 March 2025, DCP Capital Partners II, L.P. indirectly holds 79.16% of the issued share capital of Sun Art Retail Group Limited (the “Group”) and therefore has become the ultimate controlling shareholder of the Group.
Sun Art Retail Group will leverage its integrated online and offline expertise to explore growth opportunities in China’s retail sector, positioning itself as an innovation driver as well as industry leader and benchmark for retail excellence.
Business Performance and Strategies
Products and Pricing: Gaining Market Leadership through Quality and Value
Low price and high quality strategy stands as one of the Group's key competitive advantages derived from the scale. In this fiscal year, the Group reshaped pricing perception by leveraging both characteristics of business districts and the flexible and timely market-based pricing mechanism, so as to deliver more competitive prices and ensure tangible cost benefits for customers. With the further implementation of the end-to-end quality control management, quality and pricing strategies, these would serve as the cornerstones for stabilizing the Group's revenue from the hypermarkets in this fiscal year.
While reinforcing pricing perception, the Group has positioned fresh produce as its spearhead and focused on developing the “standardization” of fresh produce, achieving notable success in advancing trending categories and hero products (大單品). The Group proactively expanded and optimized category mix by eliminating homogeneous and underperforming products, accelerating the development of private label products, especially the "Super Saver" series, and highlighting quality-to-price ratio as well as quality, to lay the foundation for future growth driven by commodity power. Coupled with optimizing product displays and scenario-based shopping experiences, the Group is progressively building a customer-centric product evaluation framework to improve merchandise efficiency. All of these initiatives enabled a better integration of price competitiveness, quality and the Group's cultural values.
Efficiency and Operations: Comprehensive Enhancements to Optimize Shopping Experience
The Group achieved synergistic efficiency improvements in three key domains: operations, promotions and supply chain management. The Group proactively advanced standardization of fresh produce, particularly evidenced by a substantial increase in the standardization rate for fruits and vegetables. Digitalization initiatives have further enhanced supply chain optimization and improved store labor efficiency and manpower structure, resulting in a full-chain efficiency upgrading in operations, marketing and sales. During the operation, the Group adhered to quality control management and quality metrics to enhance both product quality consistency and customer satisfaction.
The Group endeavored to achieve organic growth in omni-channel customer footfall through comprehensive improvement of products, quality, pricing and services. With a focus on store profitability improvement and sustainable multi-format development, the Group rolled out in-depth renovations of its community living center stores and optimized tenant mix in galleries to create and improve an overall one-stop experience for customers.
Store Strategy and Talent Cultivation: Future-Focused to Forge Competitive Advantage Building
Talent serves as the foundation of the Group’s development. The Group highly values talent cultivation and motivation by creating an efficient talent system through various approaches such as core talent evaluations, management trainee development and employee training programs. By enhancing employee satisfaction and corporate cultural construction, the Group has strengthened employees' loyalty and fostered a profound sense of belonging.
