Accelerated slimming under huge losses, Yonghui's assets shrink by nearly 30%.
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For Yonghui Superstores, 2025 is a year of deep adjustment and a year of heavy costs.
The total operating income for the year was approximately 53.508 billion yuan, down 20.8% year-on-year; net profit attributable to shareholders of the listed company was a loss of 2.55 billion yuan, expanding about 74% year-on-year, and exceeding the upper limit of the guidance by 400 million yuan.
Behind these numbers lies the real cost this supermarket chain giant paid to concentrate on clearing inefficient assets left over from historical expansion.
As of the end of 2025, Yonghui’s total assets dropped to 30.482 billion yuan, down 28.7% from the beginning of the year.
The shrinkage in assets mainly has three causes: First, store adjustments and closures resulted in asset write-offs and one-time investments totaling about 880 million yuan, involving lease breach compensation, staff optimization compensation, etc.
Second, impairment of long-term assets was accrued during the reporting period, totaling 308 million yuan.
Third, the stock price of Yonghui’s overseas equity investment, Advantage Solutions, continued to fall, resulting in a loss of 448 million yuan from fair value changes.
These three items total more than 1.6 billion yuan in non-operational losses, which constitute the main part of Yonghui’s 2025 book losses.
The bigger challenge comes from cash flow.
Yonghui Superstores CEO Wang Shoucheng once stated that a single store’s adjustment investment ranges from 5 million to 8 million yuan.
During adjustment, stores are usually closed for 30 to 40 days, so not only is there no income, but rent and labor costs must still be borne. Meanwhile, the year-on-year decline in operating income directly reduces operating cash inflows.
In addition, Yonghui is following the "naked price direct sourcing" model of Pang Dong Lai.
This model theoretically helps compress purchasing costs in the long term, but in the early phase of reform it requires extremely high organizational capabilities and supply chain control; in the short term, it further narrows Yonghui’s already modest profit margin.
However, adjustments progressed faster than expected. According to the plan disclosed a year ago, in 2025 Yonghui planned to adjust about 200 stores and close 250 to 350 stores. In fact, 315 stores underwent deep adjustment, and 381 stores not aligned with future strategy were closed.
As of the end of 2025, Yonghui’s total number of stores dropped to 403, with only about 80 existing stores yet to be adjusted.
This means that if progress goes smoothly, adjustment of all stores may be completed in 2026.
After the store adjustments are fully completed, whether Yonghui can truly emerge from its low point depends on two variables:
First, whether the adjusted stores can achieve sustainable same-store growth; second, whether supply chain reform can control costs while maintaining product quality. The market is waiting for answers to these two questions.
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