Core Viewpoint - Yonghui Supermarket continues to struggle despite ongoing store closures and adjustments, reporting significant revenue decline and net losses in the first half of 2025 [1][3][8] Financial Performance - In the first half of 2025, Yonghui Supermarket achieved total revenue of 29.948 billion yuan, a year-on-year decrease of 20.73% [1][3] - The company reported a net loss attributable to shareholders of 241 million yuan, compared to a net profit of 275 million yuan in the same period last year, marking a decrease of 516 million yuan [3] - Cumulative losses over the past four years have exceeded 9.5 billion yuan, although the loss amount has shown signs of narrowing [1][3] Reasons for Decline - The revenue decline is attributed to the company's strategic transformation, including the closure of long-term loss-making stores and temporary store adjustments [3][5] - Factors contributing to the losses include reduced overall sales scale, supply chain reforms, and losses from store closures [3][5] - The gross profit margin for the reporting period was 20.80%, down 0.78% from the same period last year [3] Store Adjustments - Yonghui Supermarket closed 227 loss-making stores during the reporting period, incurring costs related to leasing and employee compensation [3][5] - The company has initiated a significant transformation by learning from the "Fat Donglai" model, focusing on core suppliers and long-term strategies [6][7] - As of August 15, 2025, Yonghui had completed adjustments in 160 stores, with expectations to reach 200 by the end of September [6] Online Business Performance - Online business revenue for the first half of 2025 was 5.49 billion yuan, accounting for 18.33% of total revenue, although it still operates at a loss [5] - The company is exploring various innovative models for its online channels, with a focus on integrating online and offline operations [5] Market Reaction - Following the release of the mid-year report, Yonghui's stock price fell to 4.93 yuan per share, a decrease of 0.8%, with a total market capitalization of 44.7 billion yuan [8]