Star Shine Holdings Group Limited reported a net loss attributable to shareholders of RMB98.29 million for the year ended 31 December 2025, a 6.7-fold increase from the RMB12.75 million loss in FY2024. The deterioration stemmed from softer topline growth and sizeable non-cash charges.

Revenue slid 12.1% year on year to RMB513.79 million (FY2024: RMB584.54 million). The footwear segment—still the Group’s core business at 83.4% of sales—fell 15.2% to RMB428.62 million, reflecting the impact of U.S. tariff pressures in the second half. Lace & Dyeing revenue inched up 2.5% to RMB81.37 million, while newly launched IP merchandise contributed RMB3.80 million.

Gross profit declined 7.8% to RMB53.00 million, with margin edging up 0.5 percentage point to 10.3%. Selling and distribution costs were cut 27.1% to RMB24.90 million, but administrative expenses rose 28.1% to RMB50.62 million, partly due to higher senior staff costs and advisory fees for new projects.

Two major impairments amplified the bottom-line loss: • Property, plant and equipment: RMB29.98 million, triggered by sub-par performance and higher compliance costs in the Lace & Dyeing unit after mandatory conversion to third-party steam supply. • Loan to joint venture (CR7® LIFE Museum Hong Kong operator): RMB44.38 million, following operational underperformance and ongoing legal disputes.

Net finance costs totalled RMB2.84 million versus net income of RMB0.16 million a year earlier, driven by increased interest on loans from the ultimate holding company.

Balance-sheet metrics weakened but remained liquid: • Cash and cash equivalents: RMB243.35 million (31 Dec 2024: RMB231.94 million). • Net current assets: RMB147.60 million (31 Dec 2024: RMB158.30 million). • Gearing ratio (debt/equity): 0.4 (31 Dec 2024: 0.2) after loans from the ultimate holding company rose to RMB77.68 million. • Capital expenditure: RMB6.00 million (FY2024: RMB1.70 million).

No dividend was declared.

Management cited continued environmental compliance costs for the lace and dyeing segment, U.S. tariff headwinds for footwear, and expansion initiatives in IP-driven merchandise as key factors shaping future strategy. The Company intends to reallocate resources toward higher-margin footwear and IP businesses, pursue Southeast Asian manufacturing partnerships, and invest in artificial-intelligence-enabled design and supply-chain optimisation.