Core Viewpoint - Yonghui Supermarket (SH601933) is expected to report a significant net loss of 2.14 billion yuan for 2025, driven by strategic adjustments and store closures aimed at future growth [1][5][6]. Financial Performance - The projected net loss of 2.14 billion yuan for 2025 represents an increase from the previous year's loss of 1.47 billion yuan, while the adjusted net loss is expected to reach 2.94 billion yuan, up from 2.41 billion yuan [5][6]. - The company anticipates a total loss exceeding 1.2 billion yuan due to its transformation efforts, which include asset write-offs and renovation costs [9][10]. Strategic Adjustments - In 2025, Yonghui Supermarket closed 381 stores that did not align with its new strategic direction, resulting in substantial one-time expenses [3][7]. - The company is shifting its focus from "scale expansion" to "quality growth," rebranding itself as "New Yonghui, New Quality" [6]. Fundraising and Investment Plans - Yonghui Supermarket is planning a private placement to raise up to 3.114 billion yuan, with approximately 2.4 billion yuan earmarked for store upgrades [4][12]. - The fundraising will be allocated to three main areas: store upgrades (2.4 billion yuan), logistics improvements (309 million yuan), and working capital (400 million yuan) [13][14]. Store Upgrade Initiatives - The store upgrade project aims to enhance 216 locations, focusing on improving product offerings and customer experience [14]. - The company projects an internal rate of return of 21.57% for the upgrade project, with a payback period of approximately 4.84 years [15]. Performance Metrics - Stores that underwent renovations in the first nine months of 2025 achieved an average monthly sales per square meter of 3,295 yuan, significantly above the benchmark of 2,800 yuan [15].

Core Insights - The focus of discussions around overseas business for consumer brands has shifted from product and channel strategies to user demographics and team organization [1] - Successful overseas expansion requires understanding local mainstream markets and building culturally empathetic teams [1][11] - Companies should adopt a long-term perspective on overseas business, akin to planting fruit trees rather than vegetables, emphasizing sustainable growth [1] Group 1: Market Entry Strategies - New brands entering overseas markets are increasingly collaborating to expand their category presence [2] - Popular tea brands like Bawang Chaji and Jasmine Milk Tea have opened stores in Los Angeles, indicating a trend of clustering in high-traffic areas [2] - The selection of store locations is critical, as evidenced by the high rental prices in areas with multiple competing tea brands [2] Group 2: Challenges and Adaptations - Some tea brands have faced closures in markets like the UK and Australia due to poor site selection and internal management issues [3] - Companies must recognize that beverage categories may not be the primary market driver; understanding local consumer needs is essential [3] - Fly By Jing has successfully penetrated the U.S. market by diversifying its product applications beyond traditional uses [3][4] Group 3: Cultural Integration and Team Dynamics - Companies like Yili emphasize the importance of local market research and adapting products to meet local tastes [7] - The integration of cross-cultural teams poses challenges, as seen in the experiences of Yili and Dongpeng [8] - Dongpeng's strategy involves a mix of local and Chinese employees to enhance operational effectiveness in overseas markets [8] Group 4: Logistics and Supply Chain Management - Companies are adapting their logistics strategies to minimize losses during transportation, as demonstrated by Yuanqi Forest's testing of shipping methods [9] - Dingdong Maicai focuses on providing fresh produce solutions in overseas markets, leveraging local partnerships for efficient distribution [6] Group 5: Long-term Vision and Cultural Sensitivity - Companies are advised to maintain a zero-based mindset when entering new markets, avoiding reliance on past successes [10][11] - The importance of cultural empathy in team dynamics is highlighted, as companies must respect and integrate diverse cultural backgrounds [13] - Successful overseas operations require a balance of risk-taking and cautious management, fostering an environment where diverse talents can thrive [13]