The pressure to sell assets at a discount reflects the financial strain currently facing Yonghui Superstores.
On January 26, Yonghui Superstores (601933) saw its share price decline throughout the trading session after opening, eventually closing at 4.53 yuan, hitting a near one-month low and marking a 3.82% drop from the previous trading day.
This movement follows the company receiving a regulatory inquiry letter from the Shanghai Stock Exchange last Friday evening regarding its asset disposal plans.
The inquiry stems from a specific equity sale.
Yonghui Superstores' board of directors resolved late last year to publicly sell its equity stake in Yun Jin Technology to revitalize assets and refocus on its core business.
Corporate information indicates that Yun Jin Technology is the operating entity for the online lending platform "Xiao Hui Fu," with Yonghui holding a 28.095% stake. According to the transaction announcement, Yun Jin Technology's revenue for 2023 to 2025 was 1.46 billion yuan, 0.24 billion yuan, and 2.26 billion yuan, respectively, with net profits of 0.92 billion yuan, 0.39 billion yuan, and 0.17 billion yuan for the same periods.
The company struggled to find a buyer for this project.
On January 12, after receiving no expressions of interest following the initial listing, Yonghui lowered the target price for the equity stake to 1.53 billion yuan, yet still found no interested parties. A week later, the company again reduced the target price to 1.2 billion yuan, but again failed to secure a qualified potential acquirer.
Ultimately, Yonghui Superstores transferred its equity stake to Pai Hui Technology Co., Ltd. (the largest shareholder of Yun Jin Technology) for a low price of 80 million yuan. It is important to note that this transaction value represents a 53.18% shrinkage compared to the book cost of 170 million yuan, equivalent to selling at half price.
The decision to sell assets at a discount is a microcosm of Yonghui Superstores' financial pressures. According to a performance forecast disclosed on January 21, the company expects a net loss of 2.14 billion yuan for 2025, a 45.6% widening of losses compared to the previous year (1.47 billion yuan).
This operational performance falls significantly short of market expectations.
It was noted that several securities firms had previously projected Yonghui's full-year loss to be between 700 million and 1 billion yuan. With Yonghui Superstores reporting a net loss of 710 million yuan for the first three quarters of 2025, this implies a staggering loss of 1.43 billion yuan for the fourth quarter alone—nearly matching the entire loss for the full year of 2024.
This performance forecast also signifies that Yonghui Superstores has been mired in losses for five consecutive years, having accumulated nearly 10 billion yuan in losses over the preceding four years.
Store adjustments modeled after "learning from Pang Donglai" are cited as a primary reason for the intensified losses, with the quality retail path now confirmed as a key operational strategy. In 2025, the company undertook deep adjustments to 315 stores and closed 381 stores that did not align with its future strategic positioning.
However, current evidence suggests that the more "Pang-style reforms" implemented, the greater Yonghui's losses become.
The company pointed out that the adjustment process generated losses from asset scrapping, lost operating revenue due to suspended business for renovations, and one-time startup fees, among others. The combined impact of asset scrapping and one-time investments affected profits by approximately 910 million yuan; the estimated loss in gross profit from store closures for renovations is around 300 million yuan.
Beyond store closures, Yonghui Superstores also implemented significant adjustments to its supply chain, promoting direct procurement at net prices and adjusting product SKUs. The resulting pressure from short-term stockouts and declining gross margins has impacted the company's revenue performance. Regarding external investments, 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 its continuous price decline.
By the end of the third quarter of last year, Yonghui Superstores' asset-liability ratio had soared to 88.96%. To support its transformation, the company planned a fundraising round of 3.114 billion yuan last September, with 2.405 billion yuan intended for the upgrade of 216 stores, expecting an investment payback period of approximately 4.84 years. As of now, this private placement has not yet been formally launched.
The market is watching closely to see when Yonghui Superstores' "cutting off the arm to survive" style transformation will emerge from the deep waters of reform.
Previously, securities firms projected that 2026 would be a critical year for loss reduction, with the earliest possibility for entering a profit contribution phase being 2027. However, given intensified market competition and consumer experiences with the "Pang-style reforms" potentially falling short of expectations, this timeline could possibly be pushed back further.
According to market news, Hema's community discount format "Chao He Suan NB" is accelerating its expansion and penetration into lower-tier markets, planning to increase its total store count to over 600 by the end of this year. If this target is successfully achieved, it could alter the competitive landscape of China's chain retail sector and pose a significant impact on Yonghui Superstores' business.
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