YONGHUI SUPERSTORES(SH:601933) Nan Fang Du Shi Bao·2025-10-31 08:01Core Viewpoint - Yonghui Supermarket reported a significant decline in revenue and an increase in net losses for the first three quarters of the year, indicating ongoing challenges in the retail sector and the company's restructuring efforts [1][2][3]. Financial Performance - For the first three quarters, Yonghui Supermarket's revenue was 42.43 billion yuan, a year-on-year decrease of 22.21% [2]. - In the latest third quarter, revenue was 12.49 billion yuan, down 25.55% year-on-year [2]. - The net loss for the first three quarters was 772 million yuan, an increase of 811.60% compared to the previous year [1][2]. - The gross profit margin for the first three quarters was 20.52%, a decline of 1.55% year-on-year [3]. Store Operations and Strategy - The decline in revenue is attributed to intense competition in the retail industry, changing consumer habits, and higher expectations for shopping experiences and product quality, leading to a drop in customer traffic and average transaction value [2]. - The company is actively optimizing its store operations, closing underperforming stores while renovating potential ones, resulting in a net decrease of 325 stores since the beginning of the year, with a total of 450 stores currently open [3]. - Yonghui plans to implement a transformation strategy starting May 6, 2024, aiming to regain customer trust over the next 3 to 5 years and become a beloved national supermarket within 5 to 10 years [5]. Future Outlook - The new CEO indicated that the company is currently at a level comparable to that of a decade ago and emphasized the importance of ongoing store renovations [5]. - The average customer traffic in renovated stores has increased by 80%, with over 60% of these stores reaching profitability levels exceeding their highest values in the past five years [5]. - Yonghui aims to focus on product offerings, dedicating 80% of its efforts to enhancing its product range and plans to establish 200 core strategic partnerships to develop 100 billion-level products within three years [5].