DMALL Announces 2025 Interim Results

A leading provider of AI-driven retail digitalization solutions, Dmall Inc. (“DMALL” or the “Company”, together with its subsidiary, the “Group”, stock code: 2586.HK), announced its interim results for the six months ended June 30, 2025 (the “Reporting Period”). In the first half of 2025, the Group achieved a breakthrough in high-quality growth by continuously optimizing its business architecture and deepening technology 

driven innovation. During the Reporting Period, the Group’s total revenue reached approximately RMB1,078 million, representing a year-on-year increase of 14.8%, gross profit reached RMB414 million, representing a year-on-year increase of 15.2%, profit for the period amounted to approximately RMB62.17 million, overall turnaround from loss to profit, the adjusted profit from continuing operations for the period reached approximately RMB77.01 million, representing a year-on-year increase of 152.5%. While maintaining sustainable revenue growth, the Group simultaneously improved operational efficiency and significantly enhanced its financial fundamentals, laying a solid foundation for long-term future development.

AI-Driven Core Business Growthing, Comprehensively Upgrading Technical Services

In the first half of 2025, the Group comprehensively advanced product upgrades 

and innovation with AI technology as its core driving force. The Group’s revenue from AI retail core solution increased to RMB487.9 million by 16.2% for the Reporting Period. The Group’s revenue from AI retail value added service increased to RMB590.6 million by 13.7%.

The AI retail core solution, deeply empowered by cutting-edge AI technology, provides a comprehensive intelligent operational solution for the retail industry. The system features a core architecture that digitalizes the entire process from supply chain management to store operations, helping retailers achieve a transformational leap from traditional models to intelligent operations, thereby enhancing both operational efficiency and customer experience. During the Reporting Period, the Group closely integrated with the forefront of retail industry practices, continuously advancing product iteration and technological upgrades to ensure the system consistently maintains an industry-leading standard of intelligent service.

In the Reporting Period, the Group successfully launched its first overseas AI-powered Transportation Management System (“TMS”) to deeply empower overseas customers’ supply chain management. Meanwhile, the Group innovatively launched fresh produce procurement system, providing a mature and reliable one-stop solution for the digital transformation of retail enterprises’ fresh produce businesses. Building upon the integration of all local life service platforms, the Group utilized AI to optimize public domain operational strategies. Through in-depth research on industry-leading retailers, the Group formed a mature methodology for transformation and improvement, combined with the Group’s advanced AI digital intelligence system, successfully building an AI-powered next-gen retail benchmark case.

AI retail value added service encompasses multiple value added offerings developed using AI technology, covering products such as intelligent cashier systems, intelligent cleaning, intelligent replenishment, and intelligent loss prevention. These value added services fully leverage the powerful advantages of AI to provide retailers with more flexible and innovative solutions, meeting diverse needs across different scenarios. Through these value added services, retailers are further empowered to enhance customer satisfaction and market competitiveness.

During the Reporting Period, the Group continuously upgraded its existing product lines to align with the latest retail developments, iterating on products such as intelligent loss prevention and remote monitoring, achieving excellent results. Meanwhile, the Group conducted multi-dimensional innovative explorations of its existing AI Agent product system, with solutions like intelligent inspection and intelligent clearance, expanding application scenarios and comprehensively enhancing client competitiveness and market service levels.

Beyond empowering clients with advanced AI technology, the Group deeply integrated AI coding into its internal research and development (“R&D”) processes, applying new generative AI coding tools like Cursor across the entire R&D team for scenarios such as code generation, BUG localization and analysis, code optimization, and intelligent code completion. This effectively drove continuous improvement in R&D efficiency and code quality, accelerated product iteration cycles, and injected strong momentum into the Group’s technological innovation and business development.

Expanding the Market With Dual Dimensions, Deepening Vertical Retail Client Engagement

At the market expansion level, the Group deeply implemented a dual-driven strategy of “China + International” and “Existing Clients + New Clients”, achieving breakthrough progress in key market areas through establishment of deep cooperation with leading domestic retail enterprises and large international retail groups, further solidifying its industry-leading position. During the Reporting Period, the Group has served 438 customers. In the twelve months ended by June 30, 2025, the client net revenue retention rate was 107%, maintaining a healthy level of above 100% for multiple consecutive periods. 

In the first half of 2025, the Group continued to acquire benchmark clients in the retail industry. Specifically, the AI retail core solution business newly signed several clients, including Shanghai Tangjiu (Group) Co., Ltd. (上海市糖業煙酒(集團)有限公司) (“Shanghai Tangjiu Group”), Xinjiang Wuika Times (新疆匯嘉時代) (Stock Code: 603101) (“Xinjiang Wuika Times”), and Ningxia Xiaoren Fruit Industry (寧夏小任果業), etc. The AI retail value added service business achieved comprehensive cooperation with Xinjiang Aijia Supermarket Group (新疆愛家超市集團) (“Xinjiang Aijia”).

Meanwhile, the Group continued to deepen its engagement with existing clients, successfully signing new contracts and expanding cooperation with long-standing clients such as Xuchang Pangdonglai Commerce & Trade Co., Ltd. (許昌市胖東來商貿集團有限公司) (“Pangdonglai”), Lawson (China) Investment Co., Ltd. (“Lawson”), Shandong Shenghao Commercial Co., Ltd. (山東聖豪商業有限公司) (“Shandong Shenghao”), and Sichuan Hongyuan Shangcheng Supermarket Co., Ltd. (四川宏遠上鋮超市有限公司) (“Sichuan Hongyuan”). Internationally, the Group continued to expand its cooperation with DFI Retail Group Holdings Limited and its subsidiaries (“DFI Retail Group”) and SM Investments Corporation and its subsidiaries (“SM Group”), continuously deepening the scope of cooperation.

Strategically Planing the Cooperation Layout, Actively Investing in Web3

On February 5, 2025, the Group signed a strategic cooperation agreement with HashKey Group, committing to deep collaboration in key areas such as digital asset trading, Web3 technology development and application, and blockchain ecosystem construction, fully leveraging their respective professional capabilities and resource advantages. In accordance with the relevant agreement, the Group has now completed opening a trading account on HashKey Exchange and made investments in Bitcoin. Simultaneously, the Group has initiated preparations to apply for a stablecoin license to provide comprehensive services to retail clients.

Looking ahead, we will embrace AI with unwavering commitment, driven by technological innovation as our core engine, to create smarter and more efficient solutions. Concurrently, the Group remains confident in the future development of the Web3 industry, believing that virtual assets will bring immense opportunities. The Group will continuously actively explore a potential new business in stablecoin and blockchain payments. This new business use case is expected to serve the Company’s potential retail clients.

The Group will remain client-centric, establishing a full-channel, full-lifecycle service system to lead the digital and intelligent transformation of the retail industry in China and globally, creating broader and more profound social value.