Core Viewpoint - The retail sector, particularly traditional supermarkets, continues to face significant pressure, with high competition and weak consumer demand leading to declining revenues for companies like Gao Xin Retail, the parent company of RT-Mart [1][2]. Financial Performance - Gao Xin Retail reported a revenue of 30.502 billion yuan for the six months ending September 30, a year-on-year decline of 12.1%, with merchandise sales down 12.4% [1]. - The company recorded a loss of 127 million yuan in the first half of the 2026 fiscal year, following a brief profitability in the 2025 fiscal year [2]. Strategic Initiatives - Following the acquisition by Dehong Capital, RT-Mart introduced a "three-year strategy" focusing on enhancing product differentiation and cost advantages through national procurement and private label upgrades [3]. - The company established a dual-brand matrix for its private label products, featuring the "Super Savings" series and "RT-Mart Selected" to cater to different customer segments [3]. Store Optimization - RT-Mart is optimizing its store layout to enhance customer experience, including changes like shorter shelves, reduced shelf height, and creating fresh food areas for immediate consumption [4]. - The new generation of large supermarkets will have a controlled area of 6,000 to 7,500 square meters, with a streamlined product range of approximately 15,000 SKUs [5]. Online Sales Growth - Online sales are expected to be a significant growth driver, with the company launching a front warehouse project in five cities, averaging 500 square meters per warehouse and daily sales of about 50,000 yuan [6]. - Gao Xin Retail aims to increase the online sales contribution to 40-50% over the next three years, although current online sales show a trend of increasing volume but decreasing prices [7]. Brand Contribution and Comparisons - As of September 30, the combined sales contribution from RT-Mart's dual brands was over 2% [8]. - In comparison, Yonghui Supermarket, which has been implementing similar brand strategies, reports a sales contribution from its private labels ranging from 5% to 15% [9]. Future Plans and Challenges - The company plans to complete over 30 store renovations by the end of the 2026 fiscal year and over 200 by the end of the 2027 fiscal year, which may lead to short-term financial pressures [10].

Core Insights - Yonghui Supermarket (601933.SH) reported a significant decline in revenue for the first half of 2025, with total revenue of 29.948 billion yuan, representing a year-on-year decrease of 20.73% [1] - The company experienced a net loss attributable to shareholders of 241 million yuan, with a net loss of 802 million yuan after excluding non-recurring gains and losses [1] - Basic loss per share was reported at 0.03 yuan [1] Revenue Performance - The decline in revenue is primarily attributed to the company's strategic and operational transformation initiated in the second half of 2024, which included the closure of long-term loss-making stores and temporary suspensions of store operations for renovations [1] - Despite a significant increase in revenue from renovated stores, it was insufficient to offset the revenue loss from store closures [1] Profitability and Costs - The overall reduction in sales scale contributed to the company's total profit and net profit losses [1] - The company undertook a reform of its product supply chain, resulting in a substantial upgrade and elimination of suppliers and products, which led to a temporary decline in gross margin [1] - The comprehensive gross margin for the reporting period was 20.80%, down 0.78% compared to the same period last year [1] Store Closures and Related Costs - During the reporting period, the company closed 227 loss-making stores, incurring costs related to lease and personnel compensation, product clearance, and asset write-offs [1] - The fair value change loss of the company's holdings in Advantage Solutions stock amounted to 184 million yuan for the year [1]

Core Viewpoint - Yonghui Supermarket is undergoing a significant transformation, facing challenges and losses as it navigates this transition, with a notable shift in ownership and management dynamics [4][7][24]. Group 1: Financial Performance - In the first half of 2025, Yonghui Supermarket is expected to report 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 [7][9]. - The company experienced a revenue of 17.48 billion yuan in Q1 2025, with net profits of 148 million yuan and 137 million yuan respectively, indicating a significant decline in Q2 with estimated losses of approximately 387 million yuan and 967 million yuan [7][9]. - The losses are attributed to the impacts of transformation and reform, including the adjustment and opening of 93 stores and the closure of 227 underperforming stores, which incurred various costs [9][10]. Group 2: Transformation Strategy - Yonghui Supermarket is in a deep transformation phase, referred to as "entering the deep water zone," with increasing operational pains [4][7]. - The company is adopting a new operational model inspired by the successful "Fat Donglai" supermarket, which has gained popularity for its unique business approach [13][14]. - The first "Fat Donglai" style store opened in Zhengzhou achieved sales of 1.88 million yuan on its first day, significantly outperforming previous daily sales figures [18]. Group 3: Management Changes - Following a major shift in ownership, with Miniso's founder becoming the largest shareholder, Yonghui Supermarket is undergoing a leadership transition, with a new reform leadership group established to oversee the transformation [25][29]. - The previous CEO, Zhang Songfeng, was not re-elected to the board, raising concerns about the lack of a CEO appointment during this critical transition period [28][31]. - The company is currently in the process of a global search for a new CEO, reflecting its cautious approach to leadership during the transformation [31].