Shenzhen Baiguo Yuan Industrial (Group) Co., Ltd. (Baiguo Yuan) has been under pressure in recent years, recording losses for two consecutive years with accumulated losses exceeding 700 million yuan (RMB). The number of stores decreased by about 1625 from 2024 to 2025.
Baiguo Yuan is a large-scale chain enterprise that integrates fruit procurement, planting support, post-harvest preservation, logistics warehousing, standard grading, marketing expansion, brand operation, and retail store operations. It mainly sells fruits, dried fruits, fruit juices, and other fruit products, with two major brands under its umbrella, “Baiguo Yuan” and “Guoduomei.” As a leading enterprise in the fruit retail market, Baiguo Yuan went public on the Hong Kong Stock Exchange in January 2023. However, its performance saw a significant decline in the second year of being listed.
According to Baiguo Yuan Group’s financial report (02411.HK), the company’s revenue was approximately 10.273 billion yuan in 2024, with a net loss attributable to shareholders of about 386 million yuan. In 2025, the revenue decreased to 8.174 billion yuan, a year-on-year decline of about 20.4%, and a net loss attributable to shareholders of about 317 million yuan. The total accumulated loss over two years was about 703 million yuan.
High prices have always been a concern for Baiguo Yuan among consumers. In August 2025, when founder Yu Huiyong responded to criticism about “expensive fruit,” he stated, “We will not cater to consumers; we are educating them to be more mature,” sparking heated discussions.
In the current environment of sustained economic pressure in China and consumers placing more emphasis on value for money, Baiguo Yuan’s original positioning of high-end fruits faces challenges. According to the company’s financial report for 2025, membership fee income decreased by 53% compared to the previous year, reflecting a hit on related revenue sources.
Facing performance pressure, Baiguo Yuan has started adjusting its operational strategy by using promotional activities to attract consumers and closing stores with lower operational efficiency. From 2024 to 2025, the company reduced its net number of stores by about 1625.
In 2025, Baiguo Yuan’s sales from various promotional activities totaled over 500 million yuan, and the company reversed losses in the second half of the year, recording a net profit attributable to shareholders of approximately 25 million yuan. The mid-year performance in 2026 showed that in the first half of the year, the company achieved a 14.5% year-on-year revenue growth, with a net profit attributable to shareholders of 33.564 million yuan, compared to a loss of about 342 million yuan in the same period last year, indicating a turnaround from losses to profits.
This indicates that with promotions, cost control, and store adjustments, the operational situation has improved. However, whether the sales growth brought by promotions can translate into sustainable profitability is still a key concern. Reversing losses to profits does not necessarily mean that the core business has fully recovered, and Baiguo Yuan still faces challenges of sluggish growth in traditional fruit retail business.
On October 13th, “Citrus News” reported that Baiguo Yuan’s adjustments are to some extent about “using profits to drive sales volume.” The company’s 2025 financial report shows a gross profit margin of about 7.3% for the year, meaning for every 10 yuan of goods sold, the gross profit is around 0.73 yuan before deducting operating costs such as rent, labor, and fruit wastage. If relying on continuous price reductions and promotions to boost sales volume, the profit margins could face further pressure.
The report notes that for ordinary people, whether it’s a chain brand or a corner store, where they can buy fresh fruits with suitable value for money, that’s where their money will go.