Investment Rating - The report maintains an "Accumulate" rating for Yonghui Supermarket [1][3]. Core Views - Yonghui Supermarket is undergoing significant adjustments, including store closures and supply chain reforms, leading to fluctuations in revenue and net profit. The company is committed to the "Fat Donglai" strategy, which, combined with support from Fat Donglai and investment from Miniso, is expected to enhance its product offerings in the daily necessities category. The long-term outlook for the company's quality retail strategy is promising [1][7]. Financial Data and Valuation - Total revenue for 2023 is projected at 78,642 million, with a year-on-year decline of 13%. The revenue is expected to decrease further to 67,574 million in 2024, followed by a slight recovery in 2026 and 2027 with projected revenues of 78,680 million and 97,091 million respectively [2][10]. - The company is expected to report a net profit of -1,329 million in 2023, with a forecasted improvement to 727 million by 2026 and 1,521 million by 2027 [2][10]. - The earnings per share (EPS) is projected to be -0.15 in 2023, improving to 0.08 in 2026 and 0.17 in 2027 [2][10]. - The price-to-earnings (PE) ratio is expected to be -33.9 in 2023, improving to 29.7 by 2027 [2][10]. Operational Performance - In the first half of 2025, Yonghui Supermarket reported a revenue of 29,948 million, a decrease of 20.73% year-on-year, and a net profit of -241 million, compared to 275 million in the same period last year. The decline in revenue is attributed to the closure of underperforming stores and the impact of supply chain upgrades [7]. - The company has closed 227 old stores and has signed contracts for 79 new stores that have yet to open. As of the report's end, there are 124 stores undergoing adjustments [7]. - Online sales accounted for 18.33% of total revenue in the first half of 2025, with self-operated home delivery sales reaching 3,140 million [7]. Supply Chain and Product Strategy - Yonghui Supermarket is enhancing its supply chain efficiency by signing contracts with 2,860 suppliers under a direct procurement model, reducing the number of suppliers by approximately 50%. The sourcing ratio for fresh products has increased to over 60% [7]. - The company is also focusing on product innovation, launching customized products such as Yili's fresh milk and redefining its private label strategy to offer high-quality products at competitive prices [7].

Core Viewpoint - The article outlines the establishment and operational guidelines of the Strategic Development Committee of Yonghui Supermarket Co., Ltd., aimed at enhancing the company's core competitiveness and improving decision-making processes [2][5]. Group 1: General Provisions - The Strategic Development Committee is established to adapt to the company's strategic development needs and enhance core competitiveness [2]. - The committee is responsible for conducting feasibility studies on long-term development strategies and major investment decisions, providing recommendations to the board [2][5]. Group 2: Composition of the Committee - The committee consists of three to five directors [4]. - The chairman of the committee is the company's chairman, and the committee's term aligns with that of the current board [7]. Group 3: Responsibilities and Authority - The committee reviews the annual business plan and investment budget, proposing them for board approval [5]. - It studies significant strategic initiatives requiring board approval, including capital operations, asset management, and major investment projects [5]. - The committee has the authority to make decisions on investments exceeding 5% but not more than 10% of the company's latest audited net assets, with certain exceptions [5][9]. Group 4: Decision-Making Procedures - The committee is responsible for preparing materials for decision-making, including feasibility reports and agreements [10][11]. - Meetings must be held with at least two-thirds of the members present, and decisions require a majority vote [16][18]. - The committee can invite external experts for professional advice, with costs covered by the company [19].

永辉超市股份有限公司总裁工作细则 永辉超市股份有限公司 首席执行官（CEO）工作细则 （2025 年 8 月修订） 第一章 总则 《上市公司治理准则》、 第二章 CEO 聘任与解聘 首席执行官可以在任期届满以前提出辞职。 有关首席执行官任职与辞职的具体程序和办法由首席执行官与公司之间的劳务合 同规定。 得担任公司的高级管理人员。 《公司章程》第一百〇三条关于不得担任董事的情形, 同时适用于高级管理人员。 《公司章程》第一百〇五条关于董事的忠实义务和第一 百〇六关于勤勉义务的规定, 同时适用于高级管理人员。 第三章 首席执行官职权 第一条 为了适应建立现代企业制度的需要，确保公司法人治理结构规范运作，保证公司 经理层贯彻执行和组织实施董事会决议，切实履行公司日常经营管理的职权职责， 根据《中华人民共和国公司法》 、《中华人民共和国证券法》、 《上海证券交易所上市公司自律监管指引第1号——规范运作》和《永辉超市股份 有限公司章程》（以下简称《公司章程》 ）有关规定，特制定本细则。 第二条 本规则适用于公司首席执行官（CEO）、副总裁、首席财务官（CFO）等公司经 营高级管理人员。首席执行官及其他高级管理人员应当遵 ...

永辉超市股份有限公司 信息披露制度 （2025年8月修订） 第一章 总则 第一条 为规范永辉超市股份有限公司(以下简称"公司")信息披露, 促进公司依法规 范运作, 维护公司和投资者的合法权益, 依据《中华人民共和国公司法》《中 华人民共和国证券法》《上市公司治理准则》《上市公司信息披露管理办法》 (以下简称"《管理办法》")、 《上海证券交易所股票上市规则》(以下简称"《上 市规则》")、《永辉超市股份有限公司章程》(以下简称"《公司章程》")及 其他有关法律、法规、证券监管部门的相关规范性文件, 特制定本制度。 本制度所称的信息披露义务人，是指公司及其董事、高级管理人员、 股东、 实际控制人，收购人，重大资产重组、再融资、重大交易有关各方等自然人、 单位及其相关人员，破产管理人及其成员，以及法律、行政法规和中国证券 监督管理委员会（以下简称"中国证监会"）规定的其他承担信息披露义务 的主体。 第二章 信息披露的一般规定 第二条 本制度所称信息披露是指达到证券监管部门关于上市公司信息披露的标准 要求, 根据相关法律、法规、部门规章及证券监管部门的规范性文件, 将可 能对公司股票、公司债券、存托凭证和国务院依 ...

Core Points - The internal audit system aims to enhance internal management and audit supervision, effectively identify and control risks, and protect investors' rights while ensuring healthy business operations [2][4] - The internal audit is defined as an evaluation of the effectiveness of internal controls, risk management, and the authenticity and completeness of financial information [4][10] - The board of directors is responsible for establishing and implementing the internal control system, which must be approved by the board [4][8] Group 1: Internal Audit Structure - The company has established an audit committee under the board of directors to oversee the internal audit department and ensure compliance with regulations [3][7] - The internal audit department is responsible for conducting audits and reporting to the audit committee and the internal control management committee [3][15] - Internal auditors must possess professional knowledge and experience in accounting, auditing, and management, and maintain independence and objectivity [9][11] Group 2: Responsibilities and Procedures - The audit department is tasked with evaluating the completeness and effectiveness of internal controls and auditing financial data for legality and accuracy [15][18] - Internal audit personnel must document audit evidence clearly and maintain confidentiality, with records kept for five years [19][22] - The audit committee reviews the annual internal audit plan and ensures its implementation, while also addressing any significant issues identified during audits [14][30] Group 3: Compliance and Reporting - The company must disclose the internal control self-evaluation report and the auditor's report alongside the annual report [36][38] - Any violations of the internal audit system can lead to administrative penalties or legal action against responsible individuals [18][39] - The internal audit system must align with national auditing regulations, and the internal control management committee is responsible for its interpretation and revision [40][41]

Core Viewpoint - The retail industry is undergoing a critical "adjustment period," emphasizing the importance of focusing on the intrinsic needs and values of "people" rather than merely adjusting processes and models [1][2]. Group 1: Current State of the Retail Industry - The supermarket industry has entered a "period of adjustment," shedding the illusion of stability and facing significant challenges as many companies struggle and lose consumer support [2]. - Many retailers are superficially imitating the successful strategies of companies like Pang Donglai without understanding the core principles behind their success [5]. Group 2: Importance of Human Relationships - The true issue plaguing traditional supermarkets lies in their relationship with "people," particularly employees [6]. - Retailers must prioritize understanding and improving relationships with employees, as neglecting this leads to high turnover and poor service quality [9][10]. - Companies should view employees as "core assets" rather than mere "labor costs" to foster a positive work environment [8][10]. Group 3: Employee Engagement and Empowerment - To improve employee satisfaction, companies should provide fair compensation, clear career paths, and training opportunities, fostering a culture of respect and care [13][14][15]. - Empowering frontline employees to make decisions enhances their sense of responsibility and improves customer service [14]. Group 4: Consumer Relationships - Retailers often treat consumers merely as transactional entities, focusing on metrics like "traffic" and "average transaction value" rather than building trust [16][17]. - Successful companies like Pang Donglai have established strong trust with consumers through transparency, quality assurance, and genuine service [18][20]. Group 5: Partnerships with Suppliers - Traditional relationships between supermarkets and suppliers often resemble zero-sum games, leading to mutual distrust and inefficiency [25][26]. - Establishing clear, transparent agreements and fostering long-term partnerships can enhance cooperation and ultimately benefit both parties [28][30][31]. Group 6: Conclusion on Retail Strategy - The essence of retail is not merely transactional but fundamentally about "people," emphasizing the need for genuine care and understanding in all business relationships [32][35]. - A successful retail strategy must prioritize human connections, as the right mindset and approach will lead to sustainable growth and customer loyalty [36].

Core Insights - The retail industry is undergoing a transformation towards "food-focused" supermarkets, emphasizing fresh, prepared, and semi-prepared food items to meet changing consumer demands [5][7][12] - The shift in consumer behavior, particularly among younger demographics, is driving supermarkets to adapt their offerings and shopping experiences [7][23] Industry Trends - The proportion of food sales in supermarkets is projected to reach 68.2% by 2024, up from 59.4% in 2019, with fresh food and prepared meals seeing significant increases in market share [5] - Major retailers like Metro and Yonghui are actively remodeling stores to enhance food offerings, with Metro's first remodeled store opening in August 2023 [5][8] Company Challenges - Yonghui Supermarket has faced continuous losses over four years, totaling over 9.5 billion yuan, prompting a need for significant restructuring [8][10] - The traditional retail sector is struggling against e-commerce and changing consumer preferences, leading to a need for self-reform and innovation [10][12] Operational Difficulties - The transition to food-focused supermarkets presents challenges such as high operational costs, staffing issues, and the need for supply chain restructuring [15][17] - Many supermarkets are experiencing difficulties in achieving profitability in their food processing areas, with daily sales often insufficient to cover labor costs [15][18] Consumer Behavior - Consumers are increasingly favoring convenience and are willing to pay more for ready-to-eat and semi-prepared meals, impacting traditional grocery sales [7][12] - Feedback from consumers indicates that while the remodeled stores are cleaner and more organized, there is a perceived loss of value in fresh produce offerings [21][23]

Investment Dynamics - SoftBank has signed a final securities purchase agreement to invest $2 billion in Intel, making SoftBank the fifth-largest shareholder of Intel, with a share price of $23 per share [3] - Cereal Partners Worldwide (CPW), a joint venture between Nestlé and General Mills, plans to sell two factories in France and the UK, with Ecco Group considering the acquisition, as CPW shifts focus to organic, high-protein, and gluten-free products [5] - a2 Milk Company announced the acquisition of Yashili New Zealand Dairy Company for approximately NZD 282 million (around CNY 1.2 billion), enhancing its supply chain control and market diversification in China [8] Brand Dynamics - Metro's first "fat reform store" has opened in Beijing, optimizing product structure with a reduced SKU count of about 8,000 and increasing the number of baked and prepared food items by nearly six times [13] - Haidilao has launched its first innovative concept store in Beijing, featuring a dessert station and interactive entertainment area, aiming to attract consumers with a diverse dining experience [16] - LANCY has released a new brand campaign featuring global ambassador Song Jia, emphasizing a blend of strength and elegance in its autumn/winter collection [19] - Swatch faced controversy over an advertisement perceived as discriminatory towards Asians, leading to a swift public apology and removal of the related materials [20] - Luzhou Laojiao has established a cultural tourism development company to diversify its revenue streams amid intense competition in the liquor industry [22] Personnel Dynamics - The Body Shop appointed Alia Sirina Hawa as Chief Business and Brand Officer, indicating a strategic shift towards growth after a period of restructuring [25]

Market Performance - On August 20, 2025, A-shares saw all three major indices rise, with the Shanghai Composite Index increasing by 1.04%, the Shenzhen Component Index rising by 0.89%, and the ChiNext Index up by 0.23% [1] - The total trading volume in the Shanghai and Shenzhen markets was approximately 24082.34 billion yuan, a decrease of about 1801.35 billion yuan compared to the previous trading day [1] - Hong Kong stocks opened lower but turned positive in the afternoon, with the Hang Seng Index closing up 0.17% or 43.04 points at 25165.94 points, and a total trading volume of 2852.86 billion HKD [1] - The Hang Seng China Enterprises Index rose by 0.08% to 9013.27 points, while the Hang Seng Tech Index fell by 0.01% to 5541.27 points [1] - In the US market, the Dow Jones Industrial Average increased by 16.04 points to 44938.31 points, a rise of 0.04%, while the S&P 500 fell by 15.59 points to 6395.78 points, a decline of 0.24%, and the Nasdaq Composite dropped by 142.09 points to 21172.86 points, a decrease of 0.67% [1] Important News - On August 20, 2025, the Ministry of Finance and the State Taxation Administration announced that child-rearing subsidies issued according to the child-rearing subsidy system will be exempt from personal income tax [2] - The announcement aims to implement the "Implementation Plan for Child-Rearing Subsidy System" issued by the Central Office and the State Council [2] - An information-sharing mechanism will be established between health, finance, and taxation departments to facilitate tax exemption applications for eligible individuals starting from January 1, 2025 [2]

Core Viewpoint - Yonghui Supermarket reported a significant decline in revenue and a net loss in the first half of 2025, primarily due to strategic transformations and the closure of unprofitable stores [1][11]. Financial Performance - The company achieved an operating income of 29.95 billion yuan, a year-on-year decrease of 20.73% [2]. - The net profit attributable to shareholders was a loss of 240.57 million yuan, compared to a profit of 275.31 million yuan in the same period last year [2][3]. - The total profit was reported as a loss of 207.06 million yuan, with a comprehensive gross margin of 20.80%, down 0.78 percentage points from the previous year [3]. Strategic Changes - The revenue decline is attributed to the company's deep strategic transformation initiated in the second half of 2024, which included closing long-term loss-making stores and undergoing store renovations [2][3]. - During the reporting period, the company closed 227 loss-making stores, incurring costs related to lease and personnel compensation, as well as asset write-offs [3]. Online Business Development - In the first half of 2025, online business revenue reached 5.49 billion yuan, accounting for 18.33% of total revenue, with a reduction in losses by 34.75 million yuan compared to the previous year [4]. - The self-operated home delivery service achieved sales of 3.14 billion yuan, with an average daily order volume of 216,000 [4]. Store Network Optimization - The company added 4 new stores during the reporting period, bringing the total number of operating stores to 552 across 26 provinces and municipalities [4]. - As of June 30, 2025, a total of 124 renovated stores were operational [4]. Future Plans - The company plans to further enhance its transformation efforts, focusing on core suppliers and key products, with a goal of incubating 100 billion-yuan level products over the next three years [9]. - Yonghui aims to close 200 stores as part of its ongoing transformation strategy [9].