YONGHUI SUPERSTORES(SH:601933) Xin Lang Cai Jing·2026-01-27 11:11Core Viewpoint - Yonghui Supermarket's "Fat Transformation" has resulted in significant losses, with a reported loss of 2.14 billion yuan and the closure of 381 stores, raising concerns about its financial stability as its debt ratio approaches 90% [3][5][36]. Financial Performance - Yonghui Supermarket expects a net profit loss of 2.14 billion yuan for 2025, marking a 45.6% increase in losses year-on-year [11][42]. - Since 2021, Yonghui has recorded five consecutive years of losses, totaling 11.641 billion yuan [43]. - The company's cash flow from operating activities has dropped from 4.569 billion yuan in 2023 to 1.14 billion yuan in the first three quarters of 2025 [57]. - As of September 2025, Yonghui's total debt ratio reached 88.96%, with short-term loans of 3.884 billion yuan and long-term loans of 500 million yuan [28][57]. Strategic Transformation - Yonghui has restructured 315 stores while closing 381 that do not align with its strategic goals, marking the highest number of closures in recent years [12][44]. - The transformation has incurred over 1.2 billion yuan in losses due to asset write-offs and renovation costs [45][47]. - Despite the challenges, some restructured stores have shown positive results, with a 71% increase in sales and a 112% increase in profits for 31 stores completed in 2024 [51][52]. Market Position and Competition - The retail landscape is polarized, with smaller competitors like Pang Donglai achieving significant success, while Yonghui faces increasing pressure from competitors like Hema and discount stores [36][55]. - Traditional competitors are also struggling, with companies like Zhongbai Group and Gao Xin Retail reporting significant revenue declines [56]. Investor Sentiment - Following the transformation announcement, Yonghui's stock price initially doubled, but has since declined due to ongoing financial struggles [25][56]. - Key investors, including the chairman and vice president, have begun to reduce their stakes in the company, indicating a lack of confidence in the turnaround strategy [60][62].