2025 has been a year of deep adjustment and heavy costs for Yonghui Superstores.
Total operating revenue for the full year reached approximately 53.508 billion yuan, a year-on-year decrease of 20.8%; net profit attributable to shareholders of the listed company was a loss of 2.55 billion yuan, which widened by approximately 74% year-on-year and exceeded the upper limit of the guidance by 400 million yuan.
Behind these figures is the tangible cost paid by this retail giant to focus on clearing out inefficient assets left over from historical expansion.
As of the end of 2025, Yonghui's total assets fell to 30.482 billion yuan, a decrease of 28.7% from the beginning of the period.
The shrinkage in assets is primarily due to three reasons: first, store revamps and closures led to asset write-offs and one-time investments totaling approximately 880 million yuan, as well as lease termination compensation and personnel optimization severance.
Second, cumulative provisions for impairment of long-term assets amounting to 308 million yuan were made during the reporting period.
Third, the share price of Advantage Solutions, an overseas equity investment held by the company, continued to decline, resulting in a recognized loss from changes in fair value of 448 million yuan.
These three items, totaling over 1.6 billion yuan in non-operating losses, constituted the main part of Yonghui's book loss for 2025.
A greater challenge comes from cash flow.
Yonghui Superstores CEO Wang Shoucheng once stated that the investment for revamping a single store ranges from 5 million to 8 million yuan.
During the revamp period, stores are typically closed for 30 to 40 days, which not only results in no revenue but also requires continued payment of rent and labor costs. Meanwhile, the year-on-year decline in operating revenue directly reduced operating cash inflows.
In addition, Yonghui is following the &#34;direct procurement at bare prices&#34; model of Pang Dong Lai.
This model theoretically helps compress procurement costs in the long run, but it places extremely high demands on organizational capability and supply chain control in the early stages of reform, further squeezing Yonghui's already slim profit margins in the short term.
However, the progress of the revamps has exceeded expectations. According to the plan disclosed a year ago, Yonghui intended to revamp approximately 200 stores and close 250 to 350 stores in 2025. In reality, it completed deep revamps of 315 stores and closed 381 stores that did not align with its future strategy.
As of the end of 2025, the total number of Yonghui stores dropped to 403, with only about 80 existing stores yet to be revamped.
This means that if progress goes smoothly, the revamping of all stores is expected to be finalized in 2026.
Once the store revamps are fully completed, whether Yonghui can truly emerge from its trough depends on two variables:
First, whether the revamped stores can achieve sustainable same-store growth; and second, whether supply chain reform can stabilize product quality while controlling costs. The market is waiting for the answers to these two questions.

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Store revamps are nearing completion

Accelerated Downsizing Amid Huge Losses, Yonghui's Assets Shrink by Nearly 30%