The year 2025 has been one of deep restructuring and heavy costs for Yonghui Superstores Co., Ltd. The company reported total operating revenue of approximately 53.508 billion yuan, a year-on-year decrease of 20.8%. Net profit attributable to shareholders of the listed company showed a loss of 2.55 billion yuan, widening by about 74% compared to the previous year and exceeding the upper limit of the forecast guidance by 400 million yuan.
Behind these figures lies the real cost paid by this supermarket giant to clear out inefficient assets accumulated during its historical expansion phase. By the end of 2025, Yonghui's total assets had dropped to 30.482 billion yuan, a reduction of 28.7% from the beginning of the period.
The asset shrinkage was mainly due to three factors. First, store adjustments and closures led to asset write-offs and one-time expenditures totaling approximately 880 million yuan, along with costs related to lease violation compensations and staff optimization payouts. Second, the company recorded a cumulative impairment of long-term assets of 308 million yuan during the reporting period. Third, the continued decline in the share price of Advantage Solutions, an overseas equity investment held by the company, resulted in a fair value change loss of 448 million yuan. Combined, these three non-operating losses exceeded 1.6 billion yuan, forming the major part of Yonghui's book loss in 2025.
A greater challenge came from cash flow. Yonghui Superstores' CEO Wang Shoucheng previously stated that the cost of renovating a single store ranges from 5 to 8 million yuan. During the renovation period, stores typically close for 30 to 40 days, generating no revenue while continuing to incur rent and labor costs. At the same time, the year-on-year decline in operating revenue directly reduced the inflow of operating cash.
Additionally, Yonghui is adopting Pang Donglai's "naked price direct procurement" model. While this model theoretically helps reduce procurement costs in the long run, it places extremely high demands on organizational capabilities and supply chain control in the early stages of reform. In the short term, it further squeezes Yonghui's already narrow profit margins.
However, the pace of store adjustments has exceeded expectations. According to a plan disclosed a year ago, Yonghui intended to renovate about 200 stores and close 250 to 350 stores in 2025. In reality, the company completed 315 in-depth renovations and closed 381 stores that did not align with its future strategy. By the end of 2025, the total number of Yonghui stores had decreased to 403, with only over 80 remaining stores yet to undergo renovation.
This suggests that, if progress continues smoothly, the company may complete the final phase of store renovations in 2026. Whether Yonghui can truly emerge from its downturn after full completion of store adjustments depends on two variables: whether renovated stores can achieve sustainable same-store growth, and whether supply chain reforms can maintain product quality while controlling costs. The market is awaiting answers to these two questions.
Comments