YONGHUI SUPERSTORES(SH:601933) Xin Lang Cai Jing·2025-09-02 23:46Core Insights - Yonghui Supermarket is set to open its 11th store in Shanghai, implementing the "Fat Donglai model" adjustments, with imported goods now accounting for 20% of the product mix [1] - The company has achieved initial profitability in its adjusted stores after three months of operation in Shanghai, with similar success reported in nearby Suzhou [1] - Despite ongoing adjustments, Yonghui Supermarket faces significant financial challenges, with revenue, profit, and cash flow experiencing substantial declines [2] Financial Performance - In the first half of the year, Yonghui Supermarket reported revenue of 29.948 billion yuan, a year-on-year decrease of 20.73%, and a net loss of 241 million yuan, down 516 million yuan from profit [2] - The company's gross margin fell by 0.78 percentage points to 20.8%, and operating cash flow decreased by 58.92% to 1.208 billion yuan [2] - The closure of 227 unprofitable stores contributed to increased costs, impacting overall sales [2] Strategic Initiatives - Yonghui Supermarket announced a major fundraising plan to raise 3.992 billion yuan for store upgrades, with a total investment of 5.597 billion yuan planned for 298 stores [3] - Following a lack of market confidence, the company revised its fundraising target down to 3.114 billion yuan and reduced the number of stores to be upgraded to 216 [4] - The company has completed adjustments in 162 stores nationwide, with a total of 552 stores currently operational [4] Future Outlook - The company anticipates that overall revenue in 2025 will be lower than in 2024 due to the high number of store closures, but expects sales growth in the second half of the year as adjustments continue [2] - The successful revenue increase in adjusted stores indicates the potential effectiveness of the new operational strategy, although the timeline for recovering lost income from store closures remains uncertain [4]