Core Viewpoint - Yonghui Supermarket is closing two stores in Shenzhen due to poor management and operational challenges, reflecting broader issues in the retail sector [2][4][6]. Financial Performance - In Q3 2025, Yonghui Supermarket reported a revenue of 42.434 billion yuan, a year-on-year decline of 22.21% [8]. - The company incurred a net loss of 710 million yuan, down over 80% compared to the same period last year [8]. Store Closures and Strategy - The stores in Luohu and Nanshan will cease operations on November 16, 2025, with ongoing promotions to clear inventory [2][4]. - The closures are part of a broader strategy to optimize store performance, as the company has faced declining customer traffic and average transaction values [9]. Management's Response - The new CEO, Wang Shoucheng, emphasized a commitment to revamping the business model, aiming to regain customer trust over the next 3 to 5 years [9]. - As of Q3 2025, Yonghui has 450 operational stores, with 222 undergoing transformation as part of its new retail strategy inspired by the "Pang Donglai" model [9]. Market Performance - As of November 4, 2025, Yonghui Supermarket's stock price was 4.64 yuan per share, with a market capitalization of 42.11 billion yuan [10].

Investment Rating - Investment Rating: Buy (Maintain) [1] Core Views - The company achieved operating revenue of 4.581 billion yuan in Q3 2025, a year-on-year decrease of 3.87%, but an increase of 14.52% compared to the same period in 2019. The net profit attributable to the parent company was 23 million yuan, up 24.34% year-on-year, but down 81.79% compared to 2019. The net profit after deducting non-recurring items was 16 million yuan, a significant increase of 469.57% year-on-year, but down 86.76% compared to 2019 [6][6][6] - The company has accelerated store renovations and upgrades since November 2024, enhancing product quality, service quality, and store environment, leading to increased customer traffic and improved overall gross margin [6][6] - The company has optimized its regional layout and multi-format strategy, with a total of 242 comprehensive supermarkets, 400 community fresh food supermarkets, 202 rural supermarkets, and other formats as of Q3 2025 [6][6] - The company has focused on reducing losses in provinces outside its core market, with revenue from these areas reaching 2.27 billion yuan in Q1-Q3 2025, a year-on-year increase of 1.67% [6][6] - The company has demonstrated excellent cost control capabilities, with a gross margin of 23.79% in Q3 2025, an increase of 1.14 percentage points year-on-year [6][6] - The company is transitioning towards quality retail, enhancing the relationship with suppliers, and increasing the proportion of self-owned and customized products from 13% to 15% [6][6] - The company is expected to achieve operating revenues of 17.904 billion, 18.249 billion, and 18.446 billion yuan for 2025-2027, with net profits of 219.51 million, 265.58 million, and 299.15 million yuan respectively [6][6]

Core Insights - The article highlights the launch of Yonghui Supermarket's first "Pang Donglai model" store in Weinan, marking a significant step in enhancing the retail market and consumer experience in the region [1] Group 1: Store Transformation - The Yonghui Supermarket in Weinan focuses on optimizing product structure, improving shopping environment, enhancing service details, and deepening employee care as part of its commitment to the Pang Donglai model [3] - The store redesign includes the removal of forced traffic flow, widening main aisles, and standardizing shelf heights to 1.6 meters, creating a more open shopping experience [3] - Special areas for Pang Donglai and Yonghui's private label products have been established, with significant upgrades to the bakery, deli, and fresh food sections to create an immersive shopping space [3] Group 2: Product Offering - The store maintains a comprehensive range of essential goods while introducing high-quality domestic and international brands, with new products making up 47% of the assortment [4] - The product structure has been systematically restructured, with a focus on increasing the proportion of imported goods and fresh products, including local specialties like organic vegetables and various ready-to-eat items [4] - The differentiation strategy is built on three pillars: premium products, Yonghui custom offerings, and quality Yonghui products [4] Group 3: Quality Control and Services - Quality control is emphasized throughout the supply chain, with strict standards for product entry and management to ensure safety and freshness [5] - The store offers over 40 customer convenience services, including rest areas, free beverages, and pet accommodation, along with thoughtful facilities like magnifying glasses and thermal bags [5] - Additional services include meat processing, seafood customization, and extensive sampling options to enhance consumer convenience [5] Group 4: Employee Welfare - The number of employees at the store increased from 99 to 145, with an average salary increase and benefits such as 10 days of paid annual leave after one year of service [7] - The store has implemented a structured cultural and skills training program to enhance employee professionalism and service quality [7] - The transformation aims to create a unique shopping experience under the theme "National Supermarket, Quality Yonghui" [7]

Core Insights - Yonghui Supermarket reported a revenue of 42.434 billion yuan for the first three quarters of 2025, a year-on-year decline of 22.21% [1][3] - The company experienced a net loss attributable to shareholders of 710 million yuan, which is a decrease of 632 million yuan compared to the same period last year [1][3] - The company has been facing challenges due to intense competition in the retail sector and changing consumer habits, leading to a decline in customer traffic and average transaction value [3][4] Financial Performance - For Q3 2025, the company reported a revenue of 12.486 billion yuan, down 25.55% year-on-year [2][3] - The total profit for the first three quarters was -772 million yuan, with a net profit attributable to shareholders of -710 million yuan [2][4] - The company’s gross margin declined in Q3 due to strategic changes in product structure and procurement during store renovations [4] Store Operations - As of the end of Q3, Yonghui Supermarket operated 450 stores, with 222 undergoing renovations since May 2024 [3] - The company has been closing underperforming stores as part of its optimization strategy, resulting in a loss of 612 million yuan from store closures in Q3 [4] Regulatory Issues - Yonghui Supermarket received a warning from the China Securities Regulatory Commission for failing to timely disclose changes in shareholding after reducing its stake in Hongqi Chain [4][5] - This marks the second regulatory concern for the company in 2023, following a previous notice regarding internal governance issues [5]

Core Insights - Yonghui Supermarket has reopened its Shuimu Tiandi store in Chongqing, enhancing its urban layout and providing a better shopping experience for local residents [1] Group 1: Store Upgrade and Product Offering - The store's product system has been completely restructured, with a total of 8,500 items, 70% of which are newly introduced products, and the proportion of imported goods has increased to 12% [3] - The overall product structure now exceeds 80% of the product system of the well-known brand Pang Donglai, significantly improving product variety and quality [3] - A notable highlight of the upgrade is the increased proportion of freshly prepared items, enhancing the food experience for customers, with the bakery section introducing 95 new products and the deli section increasing to 356 items [3] Group 2: Local Market Commitment - The upgraded store has made significant improvements in shopping environment, personalized services, and employee benefits, reflecting the company's commitment to the local market [5] - The company aims to deepen its understanding of local consumer needs and continue to strengthen its brand presence in the southwestern market of China [5]

Core Insights - Yonghui Supermarket reported a revenue of 12.486 billion yuan for Q3 2025, with a cumulative revenue of 42.434 billion yuan for the first three quarters [1] - The company has completed the transformation of 222 stores into the "Pang Donglai" model, showcasing a positive trend and scale effect [1] - Same-store sales have returned to positive growth, indicating a steady recovery in the core business [1] Company Strategy - Yonghui Supermarket's core strategy is centered around "product centralization," focusing on supply chain reforms to enhance quality retail [2] - The company aims to establish 200 core strategic partners and create 100 billion-yuan-level flagship products within three years [2] - Recent product launches include over 20 quality items across various categories, with 15 items generating over 100 million yuan in sales since their release in October [2] Industry Context - The retail supermarket industry in China is undergoing a collective transformation, with Yonghui Supermarket leading the way in quality retail [2] - The company is committed to continuous investment in "people" and "products" to meet market expectations [2]

Investment Rating - The report maintains an investment rating of "A" for the textile and apparel industry [1] Core Views - The textile and apparel industry has shown a marginal improvement in retail sales growth, with a year-to-date increase of 3.1% as of September 2025, driven by strong performance in sports and entertainment products [9] - The report highlights the performance of specific companies, such as 361 Degrees and Bosideng, which are recommended for investment due to their competitive positioning and growth potential [9] Summary by Sections Company Performance - Tabo announced its FY2026H1 results, reporting a revenue decline of 5.8% to 12.299 billion yuan, with a net profit decrease of 9.7% to 789 million yuan [16] - The main brand's revenue fell by 4.8% to 10.812 billion yuan, accounting for 88% of total revenue, while other brands saw a 12.2% decline [3][16] - Retail business revenue decreased by 3.0% to 10.601 billion yuan, making up 86% of total revenue, while wholesale revenue dropped by 20.3% to 1.623 billion yuan [3][16] Market Dynamics - The SW textile and apparel sector rose by 0.37% during the week, lagging behind the broader market, which increased by 3.24% [18] - The PE-TTM for SW textile manufacturing is 22.38 times, while for SW apparel and home textiles, it is 30.72 times, indicating high valuation levels [22] Industry Data Tracking - In the first nine months of 2025, China's textile and apparel exports amounted to 106.477 billion and 115.209 billion USD, reflecting a growth of 2.1% and a decline of 2.5%, respectively [42] - Domestic retail sales reached 4.20 trillion yuan in September 2025, with a year-on-year growth of 3.0% [48] - The report notes that online retail channels continue to outperform traditional retail, with a 6.5% increase in online sales of physical goods [48] Industry News - Douyin e-commerce reported that over 41,000 merchants achieved a 500% year-on-year increase in sales through live streaming during the "Double 11" promotion [56] - Bosideng appointed designer Kim Jones as the creative director for its new AREAL high-end urban line, aiming to elevate its brand in the business fashion sector [57] - Yonghui Supermarket opened seven new stores across major cities, reflecting its commitment to quality retail strategies and achieving over 100% sales growth during the recent holiday period [59][60]

Core Viewpoint - The dialogue between Luo Yonghao and Ye Guofu emphasizes the importance of product quality over the online and offline retail debate, highlighting that good products will sell well regardless of the sales channel [3][6][7]. Group 1: Views on E-commerce and Retail - Ye Guofu believes that the concept of online versus offline retail should be abandoned, focusing instead on the essence of the product. He cites that Miniso's in-store conversion rate is 30%, which is significantly higher than typical e-commerce conversion rates [3][7]. - He recalls that Miniso achieved a revenue of 10 billion in just five years, faster than Alibaba's growth to the same figure, and emphasizes the importance of product quality in driving sales [6][7]. - Ye Guofu acknowledges the rapid growth of e-commerce but insists that retailers must find their own development model, with Miniso successfully balancing both online and offline sales [7]. Group 2: Franchise and Marketing Strategy - Miniso opened its first franchise just three months after its establishment, with Ye Guofu stating that the stores serve as the best advertisement, attracting potential franchisees due to their success [9][10]. - He mentions that franchisees enjoy a gross profit margin of 38%, and the flagship store in Shanghai generated 100 million in nine months, demonstrating the effectiveness of the franchise model without spending on advertising [9][10]. Group 3: IP and Cultural Transformation - Ye Guofu reveals that Miniso has collaborated with over 150 IPs since 2016 and is undergoing a transformation from a retail company to a cultural and creative company, aiming to meet the growing spiritual needs of consumers [10][11]. - He emphasizes the importance of exporting both technology and culture for China's future, aiming to take 100 Chinese IPs global in the next decade [10][11]. Group 4: Views on Industry Collaborations - Ye Guofu expresses strong support for Luo Yonghao's approach to improving the dining experience, advocating for freshly prepared food over pre-packaged options, which he believes consumers are increasingly rejecting [12][14]. - He discusses the collaboration with Yu Donglai, stating that it is a selfless effort to help Yonghui Supermarket improve without any financial gain, highlighting the importance of product quality in retail [15][16]. Group 5: Admiration for Contemporary Entrepreneurs - Ye Guofu identifies three contemporary Chinese entrepreneurs he admires: Ren Zhengfei, Ning Gaoning, and Yu Donglai, praising their contributions to the industry and their unique business philosophies [18].

Core Viewpoint - The dialogue with Ye Guofu emphasizes the importance of product quality over the online-offline retail debate, highlighting that good products will sell well regardless of the sales channel [2][4]. Group 1: Ye Guofu's Views on Retail - Ye Guofu believes that the concept of online versus offline retail should be abandoned, advocating for a focus on product quality [4]. - He cites that Miniso's in-store conversion rate is 30%, significantly higher than typical e-commerce rates, demonstrating the effectiveness of physical retail [5]. - Ye Guofu expresses a strong preference for offline retail, stating that 90% of Miniso's sales come from physical stores, with only 10% from online [3]. Group 2: Miniso's Business Model and Growth - Miniso achieved a revenue milestone of 10 billion in just five years, faster than Alibaba's growth to the same figure [5]. - The company opened over 1,000 stores in peak years, showcasing rapid expansion [5]. - Ye Guofu emphasizes that successful franchises do not require advertising, as the stores themselves serve as effective marketing tools [6]. Group 3: Collaboration and Industry Insights - Ye Guofu discusses the collaboration with Yu Donglai, highlighting that it is a selfless effort to help Yonghui Supermarket improve without any financial gain [9]. - He notes that the transformation of Yonghui's stores, referred to as "Fat Transformation Stores," is a trend among various supermarket brands aiming for quality retail [10]. - Ye Guofu admires Yu Donglai for his altruistic approach and considers him a unique figure in the business world [11]. Group 4: Future Directions and Cultural Aspirations - Miniso is transitioning from a retail company to a cultural and creative enterprise, aiming to meet the growing spiritual needs of consumers as material needs become saturated [7]. - Ye Guofu plans to help 100 Chinese IPs go global in the next decade, indicating a strategic shift towards cultural exports [7]. - He believes that the future of China's economy relies on both technological and cultural advancements, moving beyond traditional retail models [7].

Core Insights - The discussion highlighted the rapid growth and strategic initiatives of Miniso, with its founder Ye Guofu sharing insights on the company's development and future plans [1][2][3] Company Development - Miniso was founded in 2013 by Ye Guofu, inspired by foreign lifestyle specialty stores, and achieved a revenue of 10 billion RMB within five years, outpacing Alibaba's Jack Ma [1] - The company has a current in-store conversion rate of 30%, meaning 30 out of 100 visitors make a purchase [1] - The flagship store on Nanjing Road in Shanghai generated sales of 100 million RMB in nine months, with a peak monthly revenue of 16 million RMB [1] Business Strategy - Ye Guofu emphasized the importance of a "trial and error" budget for innovation, suggesting that spending 100 million RMB on experimentation is a safer long-term strategy than avoiding risks [2] - Miniso employs a dual-track model for IP development, collaborating with top brands like Disney and signing artists for unique product designs [2] - The TOP TOY brand under Miniso is projected to achieve revenues of 4 billion RMB by Q2 2025, reflecting a year-on-year growth of 87% [2] Acquisitions and Partnerships - Miniso acquired a 29.4% stake in Yonghui Supermarket for approximately 6.3 billion RMB, becoming its largest shareholder [3] - Ye Guofu praised the collaboration with Pang Donglai, highlighting the importance of product quality and service in retail success [3] Market Position and Future Plans - Miniso reported a total revenue of 4.97 billion RMB for Q2 2025, a 23.1% increase year-on-year, with a gross margin of 44.3% [3] - The company operates 4,305 stores domestically and 3,307 stores internationally, with net additions of 30 and 94 stores in Q2, respectively [3] - Future plans include a significant restructuring of 80% of its stores to shift from retail to cultural and creative offerings [3]