Core Insights - The market share of RT-Mart in Beijing is gradually shrinking, with the recent closure of its Xihongmen store, leaving only one store remaining in the city [1][4] - RT-Mart's parent company, Gao Xin Retail, reported a revenue of 71.552 billion yuan and a net profit of 386 million yuan for the fiscal year 2025, indicating a turnaround from previous losses [1][8] - The company is undergoing significant operational restructuring, including the closure of several stores and a reduction in operational zones from five to four [6][7] Store Closures - The Xihongmen store has officially ceased operations, with its space being replaced by a 7FRESH supermarket, and the remaining RT-Mart store in Beijing is located in Fengtai District [4] - Consumers expressed mixed reactions to the closure, with some noting the outdated environment and average product value [4] - RT-Mart has proactively closed several stores across various regions, including Wuhan and Jiangsu, to adapt to market challenges [4][5] Financial Performance - Gao Xin Retail has closed eight large stores and one medium-sized supermarket, with one large store being converted into a membership store [5] - The company has faced significant losses over the past three fiscal years, totaling 3.45 billion yuan, prompting a need for cost-cutting measures [6][8] - The reported profit turnaround was largely achieved through a reduction in sales and marketing expenses by 2.95 billion yuan, alongside a decrease in personnel costs [8] Management Changes - Following a significant share sale to Dehong Capital, Gao Xin Retail has undergone management changes, including the resignation of its founder from the board [6][7] - The new management is focused on restructuring operational zones and improving efficiency to better adapt to market demands [7] Strategic Shift - RT-Mart is shifting its focus towards the more popular medium-sized supermarket format, RT-Mart Super, which has shown promising sales growth of 5.9% [8][9] - The medium-sized supermarkets are designed to be more flexible and better suited to current consumer preferences, with a smaller footprint and a curated selection of products [9] - The transition to this new format may involve challenges in supply chain management and operational adjustments [9]

Group 1 - Dazhonghua has adjusted its operational regions from five to four, consolidating the Central China region into the East China region and reallocating stores accordingly [2] - The restructuring aims to enhance efficiency and better serve customers, with a focus on cost reduction [2][3] - Senior retail analyst Wang Guoping noted that the previous organizational structure was less compatible with the current defensive market stance, indicating a need for cost-cutting measures [2] Group 2 - Gao Xin Retail, Dazhonghua's parent company, reported a turnaround in its fiscal year 2025, achieving a net profit of 386 million yuan after a loss of 1.605 billion yuan in the previous fiscal year [3] - Despite a 1.4% decline in revenue to 71.552 billion yuan, significant reductions in sales and administrative expenses contributed to the profitability [3] - The company optimized its employee structure, leading to a decrease in personnel costs and other operational expenses [3] Group 3 - This fiscal report is Gao Xin Retail's first since its separation from Alibaba, which sold its 78.7% stake in the company [4] - Gao Xin Retail operates three store formats, including hypermarkets, and has closed several locations while opening new ones, resulting in a total of 465 hypermarkets as of March 31, 2025 [4][5] - The company has experienced a gradual decline in the number of hypermarkets over the past few fiscal years, indicating a strategic shift in its business model [5] Group 4 - The proportion of Gao Xin Retail's stores in first-tier cities has been decreasing, with only 6.4% of its total stores located in these areas as of March 31, 2025 [6] - The company aims to maintain its competitive edge through a "low price and good quality" strategy, while also adapting to market changes [6] - There is uncertainty regarding Dazhonghua's future direction, as it has not yet established a clear reform strategy [6]

Core Viewpoint - Gao Xin Retail, the parent company of RT-Mart, reported a revenue of 71.552 billion RMB for the fiscal year ending March 31, 2025, reflecting a year-on-year decrease of 1.4%, while achieving a net profit of 386 million RMB, marking a turnaround from a loss in the previous fiscal year [1][2]. Financial Performance - Revenue for the period was 71.552 billion RMB, down from 72.567 billion RMB, a decline of 1.4% [2]. - Gross profit decreased to 17.236 billion RMB, a drop of 4.0% from 17.958 billion RMB [2]. - Operating expenses were reduced to 15.232 billion RMB, down 16.2% from 18.178 billion RMB in the previous fiscal year [3]. - Net profit reached 386 million RMB, compared to a loss of 1.668 billion RMB in the prior year [2][3]. Store Operations - The total number of stores reached 505, covering 207 cities, with a reduction of 7 hypermarkets, bringing the total to 465 [3]. - The mid-sized supermarket format, RT-Mart Super, opened 4 new stores, increasing its total to 33, with same-store sales growth of 5.9% [3]. Strategic Developments - The decline in revenue was attributed to the closure of long-term loss-making stores and a contraction in supply chain businesses such as Tao Cai Cai and Tmall shared inventory [2]. - The company plans to promote the steady development and profitability improvement of various types of stores in the new fiscal year [3]. - Alibaba sold a 78.7% stake in Gao Xin Retail at a price of 1.38 HKD per share in January, exiting the company [3].