Core Viewpoint - The article discusses the decline and impending delisting of *ST Renle (人人乐), once known as the "first private supermarket stock" in China, highlighting its financial struggles and the broader challenges facing the retail industry in China [1][2][7]. Company Overview - *ST Renle was founded in 1996 and initially thrived, achieving peak sales of 12.913 billion yuan in 2012 and operating nearly 150 stores [2]. - The company went public in 2010, marking its status as a significant player in the retail sector [2]. - However, it faced a turning point in 2012 when it reported its first loss post-IPO, leading to a prolonged period of financial difficulties [2][3]. Financial Performance - By 2024, *ST Renle's net assets had deteriorated to -4.04 billion yuan, triggering delisting warnings [1][3]. - The company's revenue plummeted by 49.86% year-on-year to 1.43 billion yuan in 2024, with a further decline of 77.81% to 129.4 million yuan in Q1 2025 [1][3]. - Despite attempts to sell assets and restructure, the company reported a loss exceeding 17 million yuan for the year [4]. Strategic Missteps - The company attempted various business models, including premium supermarkets and community fresh food stores, but was criticized for lacking a coherent strategy [4]. - Management instability, with three changes in leadership within six years, contributed to inconsistent strategic direction [5]. Industry Context - The retail sector in China is experiencing a significant downturn, with at least 782 supermarket closures in 2024, including major players like Yonghui Supermarket [7]. - In contrast, new retail formats such as Sam's Club and the phenomenon of Pang Donglai are thriving, indicating a shift in consumer preferences and market dynamics [7][8]. - The article emphasizes that the essence of retail lies in trust and value rather than mere scale and capital [8].

Core Viewpoint - The announcement of *ST Renle's potential delisting from the Shenzhen Stock Exchange highlights the decline of a once-prominent retail company, with its net assets reported at -404 million yuan and an audit opinion of "unable to express" [1][3]. Group 1: Company Performance and Financials - As of 2024, *ST Renle's audited net assets were -404 million yuan, triggering delisting clauses due to financial instability [1]. - The company's stock price has plummeted over 40% in 2024, with a total market value of only 1.624 billion yuan, a significant drop from its peak market value of 13 billion yuan at the time of its IPO in 2010 [2][3]. - Despite attempts to improve financial conditions through asset sales, the company reported a net loss exceeding 500 million yuan after excluding non-recurring gains, indicating severe financial distress [4][8]. Group 2: Historical Context and Strategic Decisions - Founded in 1996, *ST Renle initially thrived by competing aggressively against foreign giants like Walmart, achieving over 10 billion yuan in sales by 2010 [4]. - The company expanded rapidly from 2011 to 2016, adding 87 stores, but this aggressive growth led to a decline in revenue growth from 30.5% to -11.7% [4]. - The shift to e-commerce was poorly executed, with a lack of strategic planning leading to a failed online presence and a significant loss of market share [5][14]. Group 3: Operational Challenges - By the end of 2024, the number of *ST Renle stores had dwindled to 32, with 45 closures in a single year, reflecting a collapse in operational capacity [9]. - The company faced ongoing supply chain issues, including frequent stock shortages and lawsuits from suppliers, which severely damaged its reputation and customer trust [15][19]. - Governance issues were evident, with three changes in leadership within six years, leading to inconsistent strategic direction and further operational decline [10]. Group 4: Industry Insights - The struggles of *ST Renle mirror broader challenges faced by traditional retail, with competitors like RT-Mart and Yonghui Supermarket also experiencing significant declines and losses [12]. - The retail sector is increasingly pressured by e-commerce platforms and new retail formats, which have eroded the market share of traditional supermarkets [12]. - The failure of *ST Renle serves as a cautionary tale for the retail industry, emphasizing the need for a focus on core competencies, digital transformation, and rebuilding trust with suppliers and consumers [18][19].