Core Insights - The company's fundamentals continue to improve in Q3 2025, with a steady increase in store count, and future focus on the revenue recovery pace [1] Financial Performance - In the first three quarters of 2025, the company achieved revenue of 13.588 billion yuan, a year-over-year decrease of 3.8% - The net profit attributable to shareholders was 206 million yuan, a year-over-year increase of 9.4% - The net profit excluding non-recurring items was 197 million yuan, a year-over-year increase of 25.8% [1] - For Q3 2025, the company reported revenue of 4.581 billion yuan, a year-over-year decrease of 3.9% - The net profit attributable to shareholders was 23 million yuan, a year-over-year increase of 24.3% - The net profit excluding non-recurring items was 16 million yuan, a year-over-year increase of 469.6% [1][2] Profitability - The overall gross margin for Q3 2025 was 23.8%, an increase of 1.2 percentage points year-over-year - The financial expenses for Q3 2025 were 43 million yuan, a decrease of 19 million yuan year-over-year - The selling expense ratio was 18.9%, an increase of 0.1 percentage points year-over-year - The management expense ratio was 2.1%, an increase of 0.2 percentage points year-over-year [1][2] Store Expansion - As of the end of Q3 2025, the total number of various store types in the company’s system was 1,090, including 921 directly-operated stores and 169 franchise stores - The number of stores increased by 6 compared to the end of H1 2025 - The breakdown of store types includes 242 comprehensive supermarkets, 400 community fresh food supermarkets, 202 rural supermarkets, 143 snack stores, 7 discount stores, and 96 other types of convenience stores [2] Revenue Outlook - Despite the steady improvement in overall profitability, the revenue has shown a continuous decline in the first three quarters of 2025 - The company anticipates better revenue improvement as store renovations are gradually implemented - As of the end of H1 2025, 30 stores have completed renovations, and the proportion of renovated stores remains low, indicating potential for revenue recovery as this proportion increases [2]