Ye Guofu's acquisition of Yonghui Superstores last year initially yielded a paper profit of ¥9.6 billion within four months. However, as Yonghui's losses persist and its cash reserves dwindle to under two years' coverage, doubts emerge about the sustainability of this high-stakes bet.
Seventeen months into its operational overhaul modeled after successful retailer Fat Donglai, Yonghui faces mounting pressure. Immediately after this year's Singles' Day shopping festival, Chairman Zhang Xuansong announced plans to sell shares worth ¥430 million.
The exodus isn't limited to founders. Earlier this month, Vice President Luo Wenxia sold ¥498,900 worth of shares, reducing her stake to 0.0036%. In July, JD.com offloaded 114 million shares (¥600 million), exiting as a major shareholder after sustaining approximately ¥2 billion in losses from its ¥6.2 billion investment since 2015.
Yonghui's financial hemorrhage continues unabated. Q3 2025 results show revenue plunging 22.21% year-over-year to ¥42.43 billion, with net losses ballooning eightfold to ¥710 million. Cumulatively, losses since 2021 exceed ¥10.2 billion, triggering a store closure spree—325 outlets shuttered by Q3 2025, including two flagship locations in Shenzhen this November.
The costly transformation—averaging ¥18 million per store versus initial estimates of ¥3-8 million—has drawn criticism from Fat Donglai founder Yu Donglai. During a March 2025 industry event, Yu publicly challenged Yonghui's management for not raising employee wages despite reported profits, stating: "If you're going to learn our model, implement it fully or don't bother."
Ye Guofu's ¥6.27 billion investment for a 29.4% stake in September 2024 initially appeared prescient, with shares peaking at ¥7.87 in December (153% gain). However, the stock has since halved to ¥4.01, erasing most paper profits.
With liabilities at 88.96% of assets and only ¥3.36 billion cash remaining, Yonghui's survival hinges on completing its store revamps by 2026. Meanwhile, the strain is affecting Ye's core business—Miniso reported ¥119 million in Q2 2025 losses attributable to Yonghui.
As the 2026 deadline looms, questions remain whether this ambitious turnaround can salvage what began as a celebrated investment coup.
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