Xin Lang Cai Jing·2025-11-24 02:55Core Viewpoint - Yonghui Supermarket is facing significant financial challenges, including substantial losses and a declining number of stores, while key stakeholders are reducing their holdings in the company [2][8][10]. Group 1: Financial Performance - Yonghui Supermarket reported a revenue of 424.34 billion yuan for the first three quarters of 2025, a year-on-year decrease of 22.21% [8]. - The net loss attributable to shareholders reached approximately 7.1 billion yuan, expanding over eight times compared to the previous year [8]. - Cumulatively, from 2021 to 2024, Yonghui Supermarket has incurred losses exceeding 95 billion yuan, with total losses surpassing 102 billion yuan over the past five years [10][22]. Group 2: Store Closures - As of the end of the third quarter of 2025, Yonghui Supermarket has closed a total of 325 stores, with 102 closures occurring in the third quarter alone [10]. - The number of operational stores has decreased from around 1,000 at the end of 2023 to only 450 by September 30, 2025, indicating a rapid contraction of its retail network [10]. Group 3: Shareholder Actions - On November 11, 2025, Yonghui Supermarket announced that Chairman Zhang Xuansong and his associates plan to reduce their holdings by up to 90.75 million shares, representing 1% of the total share capital, potentially raising about 4.3 billion yuan [3][6]. - This is not the first instance of share reduction by the Zhang family, as Zhang Xuanning previously sold over 90 million shares for more than 3 billion yuan in March 2023 [6][7]. Group 4: Debt and Cash Flow - As of the end of the third quarter of 2025, Yonghui Supermarket's total assets were 316.2 billion yuan, with total liabilities reaching 281.29 billion yuan, resulting in a high debt-to-asset ratio of 88.96% [22]. - The company's cash reserves were reported at only 33.58 billion yuan, the lowest in nearly a decade, indicating that at the current average loss rate of nearly 20 billion yuan per year, the cash flow may not sustain operations for more than two years [23]. Group 5: Future Outlook - Yonghui Supermarket aims to complete the renovation of all stores by 2026, which is seen as a critical point for reversing its financial decline [25]. - However, the high debt levels and insufficient cash flow raise concerns about the feasibility of this turnaround plan [25].