Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - In Q3 2025, the company reported a revenue of 12.49 billion yuan, a year-on-year decline of 25.5%, and a net loss attributable to shareholders of 470 million yuan, compared to a loss of 350 million yuan in the same period last year. For the first three quarters, the total revenue was 42.43 billion yuan, down 22.2% year-on-year, with a net loss of 710 million yuan. The company is entering a more refined stage of adjustment [2][4]. Summary by Sections Financial Performance - In Q3 2025, the company's revenue decreased by 25.5% year-on-year, primarily due to intense industry competition and the proactive closure of underperforming stores. However, the company has been continuously improving store operations, with a total of 450 stores at the end of Q3, a net decrease of 102 stores. The number of adjusted stores reached 222, with a net increase of 98 stores, indicating a focus on enhancing the quality of existing stores [10]. - The gross profit margin for Q3 was 19.8%, an increase of 0.65 percentage points year-on-year, attributed to improved gross profit structure and enhanced product strength. Additionally, the total expenses for sales, management, finance, and research and development decreased by 18% year-on-year, suggesting an overall improvement in store quality and a potential recovery in profitability [10]. Strategic Adjustments - The company is transitioning from horizontal adjustments to a more refined and in-depth phase. In Q3, it continued to upgrade its supply chain, reducing the supplier base with a 40.4% elimination rate. The company has also launched new products under its own brand, with significant sales growth in certain categories, such as a 195% year-on-year increase in sales of a specific seafood product [10]. - The company aims to establish 200 core strategic partners and develop 100 billion-yuan-level flagship products within three years, positioning itself as a trusted choice for quality living among Chinese families [10]. Future Outlook - The company is committed to a quality retail strategy, focusing on management, supply chain, and store operations to enhance product and service capabilities. As the adjusted stores enter a deeper operational phase, there is potential for profit elasticity if revenue stabilizes and profitability improves. The expected EPS for 2025-2027 is projected to be -0.11, 0.06, and 0.17 yuan, respectively [10].

Core Viewpoint - Yonghui Supermarket's revenue for the first three quarters of 2025 decreased by 22.2% year-on-year, with significant pressure on profits. The company is actively upgrading its supply chain and optimizing its store operations, indicating a strategic shift towards quality retail despite short-term performance challenges [1] Group 1: Financial Performance - Revenue for the first three quarters of 2025 decreased by 22.2% year-on-year [1] - Profitability is under significant pressure due to the revenue decline [1] Group 2: Supply Chain and Vendor Management - The company is continuously upgrading its supply chain and has streamlined its supplier system, achieving a supplier elimination rate of 40.4% by Q3 2025 [1] - The direct sourcing model has shown positive results, with sales of the aquatic product, Chinese mitten crab, reaching 44.53 million yuan in Q3 2025, a year-on-year increase of 195% [1] Group 3: Private Label Development - The company is accelerating the development of its private label products as part of its "product centralization" strategy, having launched 15 quality items across fresh produce, 3R, and standard product categories by the end of October [1] Group 4: Store Optimization - As of the end of September 2025, the company has remodeled 222 stores, with the remodeling process significantly accelerating and entering a systematic and scalable phase [1] - The transition towards quality retail is progressing smoothly, indicating a focus on supply chain reform and store optimization [1]

Core Viewpoint - Yonghui Supermarket's revenue for the first three quarters of 2025 decreased by 22.2% year-on-year, with significant pressure on profits. The company is actively upgrading its supply chain and optimizing its store operations, indicating a strategic shift towards quality retail despite short-term performance challenges [1] Group 1: Financial Performance - Revenue for the first three quarters of 2025 decreased by 22.2% year-on-year [1] - Profitability is under significant pressure due to the ongoing transformation efforts [1] Group 2: Supply Chain and Vendor Management - The company is streamlining its supplier system, achieving a supplier elimination rate of 40.4% by Q3 2025 [1] - The direct sourcing model is showing positive results, with sales of the aquatic product, mud crab, reaching 44.53 million yuan in Q3 2025, a year-on-year increase of 195% [1] Group 3: Private Label Development - The company is accelerating the development of its private label products, launching 15 quality items across fresh produce, 3R, and standard product categories by the end of October [1] - This initiative is part of a "product centralization" strategy aimed at enhancing competitive differentiation [1] Group 4: Store Optimization - As of September 30, 2025, the company has completed the renovation of 222 stores, with the renovation process significantly accelerating [1] - The transformation towards quality retail is progressing smoothly, indicating a systematic and scalable approach to store optimization [1] Group 5: Long-term Outlook - Despite short-term performance pressures, the company is expected to reach a turning point in its long-term operations due to ongoing supply chain reforms and store optimization efforts [1] - The investment rating is maintained at "Buy" based on the anticipated positive long-term outcomes [1]