Fosun Group’s flagship platform in the entertainment industry, Yuyuan Co., Ltd. (600655.SH), recently issued a performance forecast, anticipating a net loss attributable to the parent company of approximately 4.8 billion yuan (RMB) in 2025, a shift from profit to loss compared to the previous year, with a non-recurring net loss of about 4.7 billion yuan. This marks the first annual net loss for Yuyuan Co., Ltd. in its 34 years of being listed. On the day of the performance forecast release, the Shanghai Stock Exchange promptly issued a regulatory letter to the company, requesting explanations on its operational and financial situation.
On February 4th, Yuyuan Co., Ltd.’s stock closed at 5.20 yuan per share, with a total market value of 20.2 billion yuan. From the beginning of 2025 until now, the company’s stock price has experienced a cumulative decline of 16.38%.
As one of the “Old Eight Stocks” on the Shanghai Stock Exchange, Yuyuan Co., Ltd. was once a key representative of Shanghai’s local retail business system. In 2018, Fosun Group injected its real estate business into the listed company and positioned Yuyuan Co., Ltd. as the flagship platform for Fosun’s entertainment industry, forming a dual-core business structure of “consumption + real estate”. Subsequently, the company rapidly expanded its consumer footprint through multiple rounds of acquisitions, entering industries such as cosmetics and liquor, at one point establishing a diversified business system spanning jewelry, catering, pharmaceuticals, cosmetics, liquor, and cultural tourism real estate.
“Old Eight Stocks” refer to the eight stocks that were among the earliest to be listed and traded on the Shanghai Stock Exchange around the early 1990s, considered a starting point in China’s securities market.
However, with a deep decline in the real estate industry and overall pressures in the consumer market, Yuyuan Co.’s operational performance has gradually weakened. The company’s net profit attributable to the parent company has decreased from 3.861 billion yuan in 2021 to 125 million yuan in 2024, further turning into a loss in 2025. The company stated that the 2025 losses primarily stemmed from impairment of real estate projects and goodwill, declining selling prices and gross profit margins due to destocking in real estate, as well as synchronous declines in consumer business revenues and gross profits.
In terms of its business structure, jewelry fashion and property development have consistently been the company’s main sources of revenue. As of the end of September 2025, the number of Yuyuan Co.’s jewelry fashion business stores reached 4,128, but the revenue from this business in the first three quarters of 2025 declined by 31.86% year-on-year. On an industry level, the rise in gold prices has led to changes in consumer structure, with a noticeable decrease in gold jewelry consumption and an increase in demand for investment-type gold bars. At the same time, some leading gold and jewelry companies have continued to grow, showing a clear trend of industry competition differentiation.
Apart from the jewelry fashion business, the revenue performance of Yuyuan Co.’s other consumer businesses has seen an overall decline.
Against the backdrop of pressure on its core business, the company’s financial pressure has been steadily increasing. As of the end of September 2025, the total balance of monetary funds and tradable financial assets of the company amounted to 13.118 billion yuan, while short-term borrowings and non-current liabilities due within one year amounted to as high as 21.348 billion yuan, with a difference of nearly 8 billion yuan.
In terms of real estate, the company has been promoting sales growth through destocking with price reductions. Although the property development revenue in the first three quarters of 2025 saw a year-on-year increase of over 50%, the gross profit margin notably decreased, dragging down the overall profit performance.
To address its liquidity challenges, Yuyuan Co. has been “cutting costs and increasing income” in recent years, aiming to both “streamline” operations to recover funds and seek external financing.
Since 2022, Yuyuan Co. has continuously divested assets, such as the control rights of Jin Hui liquor, Resort Hokkaido in Japan, and Starlight Yao Plaza in Shanghai, to recoup funds. However, solely relying on asset divestment cannot fully address the company’s liquidity gap, as it also needs to engage in multi-channel financing in the public market.
In its jewelry fashion business, Yuyuan Co. has chosen to introduce external shareholders. As early as 2023, the company planned to raise funds through private placements for its jewelry fashion business. However, by 2024, the company terminated the private placement issuance plan and instead brought in strategic investors directly for its jewelry fashion subsidiary.
Meanwhile, significant adjustments have been made to the company’s management team. Earlier this year, the board of directors completed a turnover, with several core executives leaving. The market widely perceives that the company is currently undergoing simultaneous adjustments in business structure and management system, yet it still faces challenges in overcoming operational pressures in the near term.
At the company level, Yuyuan Co. has been financing through bonds. In the first half of last year, the company issued nine tranches of corporate bonds, raising 3.7 billion yuan, and in July of the same year, it announced a bond issuance of 4 billion yuan.