Xin Jing Bao·2025-10-17 13:44Core Insights - Yonghui Supermarket has completed its second share reduction plan for Hongqi Chain this year, reducing its stake to 8.99%, highlighting ongoing financial struggles after four and a half years of losses [1][2][5] - Hongqi Chain, the first convenience store listed in A-shares, is facing its first revenue decline since its listing in 2012, with a shift in ownership to Sichuan state-owned assets in November 2024 [1][7] Group 1: Yonghui Supermarket's Share Reduction - Yonghui Supermarket reduced its holdings in Hongqi Chain by 13.6 million shares, representing 1% of the total share capital, at an average price of 5.96 CNY per share, cashing out approximately 81.05 million CNY [2][4] - This is not the first reduction in 2025; Yonghui previously sold 10.77 million shares at an average price of 6.59 CNY and 3 million shares at 5.25 CNY, totaling around 168 million CNY in cash from share reductions this year [4][5] - Since acquiring a stake in Hongqi Chain in 2017, Yonghui has seen its shareholding decrease from 11% to 8.99%, with total cashing out amounting to approximately 967 million CNY, indicating a significant unrealized loss [7][8] Group 2: Financial Performance of Yonghui Supermarket - Yonghui Supermarket reported a revenue of approximately 29.95 billion CNY in the first half of the year, a year-on-year decline of 20.73%, with a net loss of about 241 million CNY, worsening by 516 million CNY compared to the previous year [6] - The company has been closing underperforming stores, with 227 stores shut down, leading to increased costs related to lease and personnel compensation, contributing to the overall revenue decline [6][5] Group 3: Hongqi Chain's Financial Performance - Hongqi Chain's revenue for 2024 was approximately 10.12 billion CNY, a slight decline of 0.09%, with a net profit of about 521 million CNY, down 7.12% year-on-year [8] - The company is facing new challenges in the convenience store sector due to changing consumer habits and increased competition from startups, despite a generally improving consumption market [8][9] - In the first half of 2025, Hongqi Chain's revenue fell by 7.30%, but net profit increased by 5.33%, indicating a mixed performance amid market recovery [9]