Core Viewpoint - The core of the company's operations is profit-sharing, relying on high quality and employee engagement to maintain excellent service [1] - The transformation efforts of listed supermarket companies often face inherent contradictions between profit maximization and substantial profit-sharing [1] Company Performance - After the entry of Ye Guofu into Yonghui Supermarket, the company's performance did not significantly improve, and it experienced a market devaluation [3][4] - Yonghui Supermarket's revenue for the first half of 2025 was 29.948 billion yuan, a year-on-year decrease of 20.73%, with a net loss of 241 million yuan, a decline of 187.38% [5] - The company's net profit turned from profit to loss, indicating a worsening situation [7] Transformation Challenges - The losses were attributed to the impacts of transformation and reform, including the opening of 93 new stores and the closure of 227 underperforming stores, which incurred various costs [8] - The company is undergoing significant supply chain reforms, which involve upgrading suppliers and products [8] Market Sentiment - The market's patience with Ye Guofu is limited, as concerns about his acquisition of Yonghui have persisted since its announcement [9] - The retail industry is cyclical, and while innovation is crucial, the process can be challenging, as evidenced by past failures of similar transformations [10][16] Financial Strategy - Yonghui Supermarket announced a plan to raise up to 3.992 billion yuan through a private placement to fund store upgrades and repay bank loans [11] - The total investment for store upgrades is projected to be 5.597 billion yuan, with a significant portion allocated to various improvement projects [18] Future Outlook - Yonghui plans to complete the transformation of approximately 200 stores by the end of 2025, while closing 250 to 350 stores [17] - The company's past four years of losses raise concerns about the sustainability of its transformation efforts and the potential for further market devaluation if performance does not improve [19]