Core Points - Yonghui Supermarket announced a plan to reduce shareholding by up to 90.75 million shares, representing no more than 1% of the total share capital, due to funding needs [2][3] - As of June 30, 2025, the chairman Zhang Xuansong and his associates hold a total of 1.275 billion shares, accounting for 14.05% of the company [3] - The market value of the planned share reduction is approximately 430 million yuan, based on the closing price of 4.74 yuan per share on the announcement date [3] - The company reported a revenue of 42.434 billion yuan for the first three quarters of the year, a year-on-year decline of 22.21%, with a net loss of approximately 710 million yuan, an increase in loss of 811.60% compared to the previous year [3][4] Company Operations - As of the end of Q3 2025, Yonghui Supermarket has opened 450 stores and closed 325 stores, with a target of 775 stores by the end of 2024 [4][5] - The company opened only 2 new stores in Q3 2025, indicating a slowdown in expansion [4][5] - Despite the revenue decline, same-store sales have shown positive growth after optimizing existing stores and focusing on core adjustments [5] Stock Performance - Following the announcement of the share reduction plan, Yonghui Supermarket's stock price fell by 2.74%, closing at 4.61 yuan per share, with a market capitalization of approximately 41.8 billion yuan [6]

Group 1 - The chairman of Yonghui Supermarket, Zhang Xuansong, plans to reduce his shareholding by up to 90.75 million shares, representing no more than 1% of the company's total equity, due to personal funding needs [1] - As of June 30, 2025, Zhang Xuansong and his associates hold a total of 1.275 billion shares, accounting for 14.05% of Yonghui Supermarket [1] - The market value of the shares to be sold is approximately 430 million yuan, based on the closing price of 4.74 yuan per share on the announcement date [1] Group 2 - In the first three quarters of this year, Yonghui Supermarket reported a revenue of 42.434 billion yuan, a year-on-year decline of 22.21%, and a net loss of approximately 710 million yuan, with losses expanding by 811.60% compared to the previous year [3] - The company attributes the revenue decline to intense industry competition, changes in consumer habits, and a decrease in foot traffic and average spending at existing stores [3] - As of the end of the third quarter, Yonghui Supermarket had 450 operating stores and had closed 325 stores, with a target of 775 stores by the end of 2024 [3]

Core Viewpoint - Yonghui Supermarket is closing two stores in Shenzhen due to poor performance and is undergoing a significant reduction in its total number of stores, which is expected to decrease by half over the next two years [1][4]. Group 1: Store Closures - Yonghui Supermarket announced the closure of its Luohu Sun Plaza and Nanshan Raffles City stores, effective November 16 [1]. - As of the end of Q3 2023, Yonghui has closed a total of 325 stores, with 102 closures in Q3 alone, and only 2 new openings [1][4]. - The company plans to reduce its store count from 1,000 by the end of 2023 to 775 by the end of 2024, and further to 450 by Q3 2025 [1]. Group 2: Financial Performance - For the first three quarters of 2023, Yonghui reported a revenue of 42.434 billion yuan, a year-on-year decline of 22.21% [2]. - The net loss attributable to shareholders reached approximately 710 million yuan, an increase of over 8 times compared to the same period last year [2]. - The decline in revenue and gross margin is attributed to increased competition in the retail sector and changes in consumer behavior, leading to reduced foot traffic and average transaction values [4]. Group 3: Strategic Adjustments - Yonghui is actively optimizing its store portfolio, closing underperforming stores while focusing on potential ones [4]. - The company is undergoing a transformation process that includes adjusting product structures and procurement strategies, which has temporarily impacted gross margins [4]. - Despite the challenges, the same-store sales have shown signs of recovery, indicating a positive trend in the performance of the remaining stores [4].