Yonghui Superstores Co.,Ltd. (601933.SH) has issued an annual profit warning for 2025, projecting a net loss attributable to the company's shareholders of 2.14 billion yuan. The forecasted net loss, after deducting non-recurring gains and losses, is expected to be 2.94 billion yuan.
During 2025, the company implemented a significant operational strategy shift, moving away from a "scale expansion" model towards a focus on "quality growth," thereby repositioning its strategic development under the banner of "New Yonghui, New Quality." In terms of store network, the company deeply renovated 315 stores and closed 381 outlets that were misaligned with its future strategic direction within the reporting period.
The impact of these store renovations on the company's profit primarily includes losses from the scrapping of related assets, revenue loss during suspension for refurbishment, and one-time start-up costs, with the combined total for asset scrapping and one-time investments amounting to approximately 910 million yuan. Furthermore, the estimated gross profit loss due to store closures for renovation is around 300 million yuan.
Concurrently, the closure of the 381 stores also resulted in substantial losses, mainly comprising asset disposal losses, employee severance compensation, and lease-related breach of contract penalties. Regarding product strategy, the company first reformed its supply chain, adhering to the principles of "transparency, quality-driven, and efficiency enhancement," focusing on five key areas: a transparent supply chain, direct sourcing at net price, core category focus, cold chain upgrades, and store synergy.
Through systematic measures, the company aimed to address the pain points of the traditional supply chain. As a result of this initiative, the company faced short-term pressures including product shortages and a decline in gross margin, which adversely affected its operating revenue; however, these effects have gradually diminished as the supply chain reforms deepened.
In the area of external investments and asset impairment, the company recognized a fair value change loss of -236 million yuan this year for its overseas equity investment in Advantage Solutions stock, due to a sustained decline in its share price. Additionally, the company conducted impairment tests on its long-term assets, primarily consisting of assets related to persistently loss-making stores, and made corresponding impairment provisions.
Based on preliminary calculations, the company expects to record an impairment provision for long-term assets of 162 million yuan for the current year, with the final amount subject to the audit results.
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