STOCKS | Baibang Technology Shares Fall 9.43% as Company Discusses Store Closures and Marketing Cuts

Baibang Technology shares fell 9.43% on June 29, closing at 29.97 yuan per share, giving the company a market capitalization of 3.8 billion yuan. According to Jin10, the market attributed the decline to the company’s continued losses, weaker revenue per customer after shifting toward smaller repair-shop clients, and higher selling expenses tied to heavy Douyin online marketing. The market also cited one-off disposal costs from closing loss-making stores as an additional factor pressuring profits. In response, Baibang Technology said it had adjusted its customer mix based on performance and shifted its business focus toward small and mid-sized customers. The company said it operates directly owned stores that serve consumers and also has franchised stores, adding that it has been placing more emphasis on franchising. Regarding Douyin marketing, the company said it has reduced spending. Baibang Technology confirmed it has closed some loss-making stores, including both partner-operated locations and directly owned stores. It said that when performance is weak, it will consider shutting loss-making stores because some closures can involve costs such as rent contract breaches and labor expenses. The company said store-closure figures are compiled from business-side statistics at the end of each reporting period, and that subsequent performance should be based on its semiannual report.