Yonghui Supermarket has disclosed its annual performance forecast, expecting to remain in a loss-making state by 2025. The company attributes the performance pressure to concentrated investments and structural adjustments during its transformation, including large-scale store renovation and closures, short-term pains in supply chain reform, fluctuations in overseas equity investments, and asset impairments.
Performance Forecast: Both Loss Attributable to Shareholders and Adjusted Loss Widen
The announcement states that Yonghui Supermarket expects a net profit attributable to shareholders of the listed company of 21.4 billion yuan loss in 2025; the net profit after deducting non-recurring gains and losses is estimated to be a 29.4 billion yuan loss. Both measures being negative indicate that the main business operations are still bearing significant adjustment costs.
Cost of Transformation: Deep Renovation of 315 Stores, Closure of 381 Stores
In 2025, the company will shift its operational focus from pursuing scale to enhancing quality, making "subtractions + upgrades" in the store network. During the reporting period, the company conducted a deep renovation of 315 stores and closed 381 stores not aligned with future positioning.
The impact of store renovations on profits mainly comes from one-time and phased losses, including asset write-offs, income gaps due to temporary closures for renovations, and start-up costs. The company estimates total asset write-offs and one-time investments at approximately 9.1 billion yuan; gross profit loss from temporary closures is about 3 billion yuan. Moreover, store closures will incur expenses such as personnel optimization compensation and lease default compensation, further amplifying current period cost pressures.
Supply Chain Reform: Short-Term Stockouts and Gross Margin Decline, Impact Easing
On the product and supply chain side, the company is promoting more transparent and efficient procurement and coordination mechanisms, aiming to systematically improve traditional supply chain pain points. However, the initial stages of transformation have also brought "side effects": the company mentioned short-term stockouts and gross margin decline, affecting operating revenue to some extent. Meanwhile, as the reform deepens, these impacts are gradually subsiding.
Investment and Impairment: Overseas Equity Decline and Store Asset Impairment Combine
Besides operational adjustments, investments and asset impairments are also eroding profits. The company's overseas equity investment in Advantage Solutions experienced continued stock price declines, confirming fair value change losses of about **-2.36 billion yuan**. In addition, the company conducted impairment tests on long-term assets (primarily related to continuously loss-making stores), with preliminary estimations showing expected long-term asset impairments of approximately 1.62 billion yuan, with final amounts subject to audit results.
What the Market Will Focus on Next: Cost Reduction Efficiency and Same-Store Recovery Pace
Following the loss forecast, the market's key question will shift to whether the transformation efforts are starting to take effect. Short-term observation points mainly include: customer flow and same-store recovery post-store renovation, the speed of supply chain reform in improving stockouts and gross margins, and whether store closures and impairments are nearing completion. These variables determine whether profit recovery will be "stabilize first, then rise" or still require a longer digestion period.
