Yonghui Supermarket Co., Ltd. (Yonghui Supermarket) is expected to report a negative net profit attributable to the shareholders of the listed company for the fiscal year 2025, continuing its loss-making streak since 2021.
In the “Notice of Expected Loss in Performance for the Year 2025” released by Yonghui Supermarket on January 12, it stated: “The preliminary calculations by the financial department indicate that the net profit attributable to the shareholders of the listed company for the year 2025 is expected to be negative, and the operational performance for 2025 will result in a loss.”
The announcement also mentioned: “Please refer to the official 2025 annual report to be disclosed by the company for the final financial data.”
According to the “Third Quarter Report for 2025” released by Yonghui Supermarket on October 31, the company recorded a total operating income of 42.434 billion yuan (RMB) in the first three quarters of 2025, a year-on-year decrease of 22.21%. The net loss attributable to the shareholders was 710 million yuan, compared to a loss of 78 million yuan for the same period in 2024, representing a more than 8-fold increase in losses year-on-year.
Data from the information service provider Wind showed that Yonghui Supermarket has been experiencing widening losses over the past two years. In 2021, revenue started to decline, leading to a turnaround from net profit to losses. While there was a reduction in losses compared to the previous years in 2022 and 2023, the losses expanded by 10% year-on-year in 2024.
In the explanation of the reasons for the losses in the 2025 third-quarter report, Yonghui Supermarket stated: “This is mainly due to the impact of the decline in revenue and gross profit margin.”
A report by The Paper on January 12 mentioned that the current Chinese retail and supermarket industry is in a “collective transformation stage.” Yonghui Supermarket is still experiencing the early pains brought about by restructuring and transformation. Yonghui previously stated in the announcement that store transformations require a substantial process including closure for renovation, investment in new equipment, scrapping of old assets, reopening expenses, skill enhancement for employees, and more. The closure process incurs costs such as lease compensation, personnel compensation, clearance of goods, and asset write-offs.
Yonghui Supermarket Co., Ltd., formerly Yonghui Supermarket, was established in 1998. In 2001, Yonghui Supermarket Co., Ltd. was registered and mainly operates in agricultural and sideline products, aquatic products, grains and oils, food and beverages, alcohol and other snacks, daily necessities, household appliances, and electronic products.
As of January 12, Yonghui Supermarket’s stock price was reported at 5.36 yuan per share, a 3.88% increase, with a total market value of 48.64 billion yuan.