Financial Performance - Group revenue grew by 8.5% to HK$2.9 billion[24] - Gross profit increased by 9.7% to HK$1.3 billion[24] - Profit attributable to equity holders for FY22 was HK$220.8 million, up 20.1% excluding HK$71 million incomes from Employment Support Scheme in FY21[24] - Proposed final dividend is HK cents 12, with an interim dividend of HK cents 10.5 plus a special HK cents 4.2 already paid[24] - Gross margin was 45.7%[31] - Operating margin (excluding incomes under Employment Support Scheme) was 9.5%[31] - Net margin (excluding incomes under Employment Support Scheme) was 7.5%[31] Business Operations - The company has a physical store retail network of 322 stores in Hong Kong, 47 stores in Singapore, and 9 stores in Macau[27] - Hong Kong accounted for 89.3% of the group's revenue, Singapore 9.1%, and Macau 1.6%[36] Strategies and Outlook - The company aims to transform into a convenience GMS (General Merchandise Store) offering a wide range of price-competitive products[43] - The company plans to expand its store network, with a net increase of 5 stores in Hong Kong, 1 in Macau and 1 in Singapore in FY23[61]

Core Insights - Yonghui Supermarket plans to launch over 60 private label products this year, aiming to enhance its product development capabilities [1] Company Strategy - Yonghui Supermarket's CMO, She Xianping, announced the strategy to replicate the high-quality supply chain of competitor Pang Donglai, focusing on product quality and pricing [1]

Core Viewpoint - The recent "reverse rounding" incident at Yonghui Supermarket in Chongqing has raised concerns about the company's operational management and service standards, leading to an apology and commitment to rectify the issue [1][6][8]. Summary by Relevant Sections Incident Overview - Yonghui Supermarket acknowledged the validity of customer complaints regarding the "reverse rounding" practice at its Chongqing Jin Yuan Times store, which reflects operational shortcomings [1][8]. - The practice involved rounding up prices for items with fractional amounts during cash transactions, which was not clearly communicated to customers [5][6]. Company Response - Following the incident, Yonghui Supermarket announced that as of April 29, 2025, all stores will implement a "round down" policy, ensuring that fractional amounts will not be included in customer payments [6][8]. - The company also initiated a compensation program for customers affected by the rounding discrepancies [8]. Financial Performance - Yonghui Supermarket has faced significant financial challenges, reporting a revenue decline of 14.07% to 67.574 billion yuan in 2024, with a net loss of 1.465 billion yuan [9]. - Cumulatively, the company has incurred losses of 9.5 billion yuan over the past four years [9]. Strategic Initiatives - The company is undergoing a strategic transformation, learning from the "Fat Donglai" model to improve store operations and customer service [11][15]. - As of the end of 2024, Yonghui had completed adjustments in 31 stores, with plans to increase this number significantly in the coming years [13][17]. Partnership with Miniso - Miniso announced plans to acquire a 29.4% stake in Yonghui Supermarket for 6.27 billion yuan, positioning itself as the largest shareholder [15]. - Miniso aims to assist Yonghui in developing private label products and improving operational efficiency, focusing on enhancing gross margins [18]. Future Plans - Yonghui plans to adjust approximately 200 stores by 2025 while closing 250-350 underperforming locations [17]. - The company is committed to enhancing its supply chain and product offerings, with a goal of developing 100 billion-level super products in collaboration with core suppliers over the next three years [18].