Yonghui Superstores Co Ltd

Yonghui Superstores released its 2026 interim report, posting a net profit attributable to shareholders of 253 million yuan in the first half, an increase of 494 million yuan year on year, successfully turning losses into profits. Net profit attributable to shareholders after deducting non-recurring items was 39 million yuan, an increase of 841 million yuan year on year. Gross margin rose by 1.7 percentage points, while the expense ratio fell by 1.8 percentage points. Private label became the key engine for profit recovery, with private label sales reaching 2.533 billion yuan in the first half, accounting for more than 10 percent of total sales. Over 240 single products exceeded 10 million yuan in sales, and 12 single products surpassed 100 million yuan. Store renovations advanced in parallel. By the end of June, 331 stores had been renovated. The first store in Liuzhou achieved sales of over 17 million yuan within 13 days of opening, while the first store in Hohhot posted daily sales exceeding 1 million yuan for a full month, with cumulative sales of 42 million yuan.

Traditional retail companies posted clearly divergent results in the first half of 2026. Yonghui Superstores and Grandbuy turned profitable, while Zhongbai Holdings Group and Liqun Commercial Group remained in the red. Yonghui Superstores expects first-half net profit attributable to shareholders of 250 million yuan and non-GAAP net profit of 30 million yuan, mainly helped by completing renovations at 331 stores, lifting gross margin by 1.6 percentage points year on year and cutting period expense ratio by 1.8 percentage points. However, based on first-quarter figures, its second-quarter non-GAAP net profit was negative 217 million yuan. Grandbuy expects first-half non-GAAP net profit of 20 million to 25 million yuan, returning to profit through cost reduction and efficiency gains. Zhongbai Holdings Group expects a non-GAAP net loss of 269 million to 352 million yuan, while Liqun Commercial Group expects a non-GAAP net loss of 48 million to 65 million yuan, with both weighed down by declining foot traffic, online diversion and persistently high fixed costs. At the same time, community store formats are expanding rapidly. Walmart China opened its 20th community store in Shenzhen, Meituan's community hard-discount supermarket Happy Monkey opened three new stores in Beijing and Tianjin, and Freshippo has made its community discount format Freshippo NB one of its main store types. Among A-share companies, Hongqi Chain expects first-half net profit attributable to shareholders of 266 million to 275 million yuan and non-GAAP net profit of 275 million to 284 million yuan. Its high-density community network is seen by the industry as a key advantage that sets it apart from the hypermarket model.

Yonghui Superstores disclosed in its reply to a Shanghai Stock Exchange inquiry that it recorded a net loss attributable to shareholders of 2.552 billion yuan in 2025, closed 381 stores during the year, and saw its gross margin decline quarter by quarter. Cumulative losses from 2021 to 2025 exceeded 12 billion yuan. The company attributed the 2025 loss mainly to large-scale store adjustments during its strategic transformation period, with store closures and renovations together reducing pre-tax profit by 1.113 billion yuan. In 2026, the operational focus will shift from rapid renovations to refined operations, with no further large-scale closures or renovations. The impact on pre-tax profit from closures and renovations is expected to narrow to 213 million yuan. The company's first-half 2026 profit forecast shows an estimated net profit attributable to shareholders of 250 million yuan, potentially returning to profitability. In addition, Yonghui Superstores' planned private placement to raise approximately 3.1 billion yuan is still in progress, of which 2.405 billion yuan is earmarked for upgrading 216 stores under the Pang Donglai model.

Yonghui Superstores has issued a preliminary first-half 2026 earnings forecast, reporting net profit attributable to shareholders of 250 million yuan, an increase of 490 million yuan year-on-year, successfully swinging back to profitability. Net profit attributable to shareholders after deducting non-recurring items was 30 million yuan, an improvement of 830 million yuan year-on-year. The earnings improvement was mainly driven by the ongoing implementation of operational measures such as store renovations, product mix optimization, supply chain reforms, and cost controls. As of June 30, Yonghui had completed renovations at 331 stores, with overall gross margin up 1.6 percentage points year-on-year and period expense ratio down 1.8 percentage points year-on-year. In the second half of the year, Yonghui will unveil the second phase of renovated stores in cities including Beijing, Guangzhou, Chengdu, and Hohhot, while accelerating the development of its private-label brands.

Yonghui Superstores’ Shidai Longhu store in Pidu, Chengdu, has officially reopened after a revamp, becoming the city’s first full-health-scenario store and marking the entry of Yonghui’s Phase Two revamp into Sichuan. CEO Wang Shoucheng said the Phase Two revamp focuses on health, upgrading health from a product concept to a perceptible, interactive, and trustworthy consumer experience, hoping customers can immerse themselves in a diverse and youthful healthy lifestyle. Chengdu regional general manager Deng Xiaochun said Yonghui’s revamp in Chengdu has entered a new phase, adhering to quality first, with a comprehensive refresh in product mix, service experience, and employee care, redefining the supermarket shopping experience for Chengdu residents. Previously, Yonghui Superstores’ Phase Two revamp report card showed that the Wanda store in Chengzhong, Liuzhou, Guangxi, achieved cumulative sales exceeding 17 million yuan in 13 days after opening, with cumulative footfall surpassing 200,000 visits, single-day sales breaking one million yuan for 11 consecutive days, and private-label products accounting for over 40 percent of standard product sales.

The Ministry of Commerce and eight other departments have issued guidelines to accelerate innovation in the retail industry, aiming to basically form a modern retail system by 2030 that features rational layout, high-quality supply, diverse formats, smart and convenient services, and orderly competition. The guidelines explicitly support strengthening, improving, and expanding retail enterprises, promote the concentration of resources and factors toward physical retail, and strengthen policy integration in areas such as land use guarantees, financing support, and tax and fee reductions. China's retail industry is at a critical stage of transitioning from scale expansion to high-quality development, and sectors such as warehouse membership stores, discount formats, and instant retail will see definite growth. A-share related concept stocks include Zhongbai Group and Yonghui Superstores.

Yonghui Superstores has responded to the guidelines on accelerating retail innovation development jointly issued by the Ministry of Commerce and eight other departments, stating that the guidelines inject confidence into retail innovation and align closely with the reform direction the company has been advancing over the past two years. The company noted that the guidelines' support for innovative scenario upgrades, improving product quality, and encouraging private-label development are precisely the key areas of its nationwide store reforms, product upgrades, and supply chain optimization. To date, Yonghui has completed comprehensive reforms at about 330 stores across the country, with reformed stores showing markedly improved operating quality and significant profit growth. In April this year, CEO Wang Shoucheng announced that the reform has entered a second phase, with the core focus shifting to deeply forging operational capabilities, continuing to concentrate on products, customers, employees, and culture. The current second phase centers on reshaping the product structure around ten major health scenarios, with stores in Shenzhen, Dongguan, Guangzhou, and other cities rolling out simultaneously. The second-phase report card released on July 1 shows that the Wanda Plaza store in Chengzhong district, Liuzhou, Guangxi, achieved cumulative sales exceeding 17 million yuan in the 13 days from its opening on June 18 to June 30, with cumulative foot traffic surpassing 200,000 visits. For 11 consecutive days, daily sales exceeded 1 million yuan, and private-label products accounted for over 40% of standard product sales.