Core Viewpoint - Yonghui Supermarket is undergoing a significant transformation, facing increasing operational challenges and financial losses as it adapts to new market conditions and strategies [1][3][6]. Financial Performance - In the first half of 2025, Yonghui Supermarket expects a net loss of 240 million yuan and a non-recurring net loss of 830 million yuan, marking a shift from profit to loss compared to the previous year [3]. - The company reported a revenue of 17.48 billion yuan in Q1 2025, with net profits of 148 million yuan and 137 million yuan for recurring profits, indicating a substantial decline in Q2 with losses of approximately 387 million yuan and 967 million yuan respectively [3]. Store Operations - During the transformation, Yonghui opened 93 stores while closing 227 underperforming locations, incurring costs related to lease compensation, personnel severance, and asset write-offs [4]. - The company is implementing a significant supply chain reform, upgrading suppliers and products to enhance operational efficiency [5]. Strategic Changes - Yonghui Supermarket is adopting a new operational model inspired by the successful "Fat Donglai" retail concept, which has gained popularity in lower-tier cities [7][10]. - The first "Fat Donglai" style store opened in Zhengzhou, achieving sales of 1.88 million yuan on its first day, significantly higher than previous daily averages [11]. Shareholder Dynamics - In September 2022, Miniso's subsidiary invested 6.3 billion yuan to become Yonghui's largest shareholder, holding 29.4% of the shares [15]. - The board of directors underwent a significant reshuffle, with Miniso's founder leading the reform efforts, while the previous CEO was not re-elected [16]. Leadership and Governance - The search for a new CEO is ongoing, with the company taking a cautious approach to leadership appointments during this transformative phase [18].