Yonghui Superstores Co.,Ltd. (SHSE: 601933) has issued a positive earnings forecast for the first half of 2026, projecting a return to profitability.
The company expects to report a net profit attributable to shareholders of approximately 250 million yuan, representing a significant year-on-year increase of 490 million yuan and marking a turnaround from a loss-making position.
After adjusting for non-recurring items, the core net profit is estimated to be around 30 million yuan, a substantial improvement of 830 million yuan compared to the same period last year.
Key Drivers of Performance Improvement
Management attributes the positive results to the effective implementation of several strategic initiatives.
These include the refurbishment of stores, optimization of product offerings, supply chain reforms, and stringent cost control measures.
The company stated that these achievements signify substantial progress in its strategy of delivering quality retail, successfully putting the business back on a profitable path.
Strategic Transformation Underway
Since becoming the largest shareholder, the leadership has reinforced the strategic focus that product strength is equivalent to competitive strength.
This is driving a transformation towards a "manufacturing and development-oriented retail" model.
By focusing on core suppliers, developing its private label brands, and establishing long-term cooperative mechanisms, the company is continuously refining its product mix.
This approach enhances product development capabilities and fosters more efficient and stable relationships between the retailer and its suppliers.
Operational Metrics Show Progress
Operational data reveals that as of June 30th, the company had completed refurbishments at 331 stores, which has significantly improved the overall profitability of its store network.
During the reporting period, the ongoing supply chain reforms and a steady increase in the sales contribution from private label products led to a 1.6 percentage point year-on-year improvement in the company's overall gross profit margin.
Furthermore, as operational efficiency continues to rise, the company's expense ratio decreased by 1.8 percentage points compared to the same period last year.
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