On April 25, Yonghui Superstores released its financial report for fiscal year 2024 and the first quarter of 2025. The company reported revenue of RMB 67.6 billion (USD 9.5 billion) for 2024, alongside a net loss of RMB 1.465 billion (USD 205.1 million). For the first quarter of 2025, Yonghui posted revenue of RMB 17.48 billion (USD 2.4 billion) and a net profit of RMB 148 million (USD 20.7 million).
Yonghui attributed its full-year revenue decline to ongoing strategic and operational transformation initiatives. By the end of March, the company had completed upgrades at 47 stores. These remodeled locations experienced noticeable increases in customer traffic and sales. However, since the upgraded stores represented a small fraction of the overall network—and because 273 underperforming stores were closed compared to the previous year—total revenue for the first quarter showed a year-on-year decline.
The decrease in profitability was primarily due to a 1.35-percentage-point reduction in the gross profit margin compared to the same period last year. Yonghui noted that during the remodeling process, adjustments to its product mix and procurement practices temporarily compressed margins. Following the company’s supplier conference at the end of March, Yonghui expects that changes in product selection and pricing strategies will support gross margin recovery and future growth.
In May 2024, under the leadership of Yu Donglai and his team, Yonghui initiated a nationwide store upgrade campaign based on two approaches: direct support from Pangdonglai and independent remodeling modeled after Pangdonglai’s format. Remodeled stores have reportedly seen improvements in brand reputation, product quality, customer traffic, and sales performance, reinforcing Yonghui’s commitment to a quality-driven retail model.
According to Yonghui, remodeled stores that reopened more than three months ago remained profitable in the first quarter of 2025. As of the end of March, 41 of these stores collectively achieved a single-month profit of RMB 14.7 million (USD 2.1 million) in March and a cumulative first-quarter profit of RMB 74.72 million (USD 10.5 million).
By the report’s release date, Yonghui had completed remodeling 61 stores based on the Pangdonglai model and aims to surpass 124 remodeled stores by the end of June. The company has set a target of completing 300 remodeled stores nationwide by the Lunar New Year in 2026. With a larger share of upgraded stores, the closure of underperforming locations, and continued supply chain reforms, Yonghui expects the next 12–18 months to be critical for realizing the benefits of these initiatives.
At the company’s 2025 supplier conference on March 29, Ye Guofu—founder, chairman, and CEO of Miniso Group, as well as head of Yonghui’s reform leadership team—outlined the company’s updated supply chain strategy. This approach prioritizes partnerships with core suppliers and core products, emphasizing long-term relationships while discouraging supplier changes tied to staff turnover.
As of April 22, Yonghui had entered procurement negotiations with more than 300 leading supply chain companies, including Chinese manufacturers that also supply international retailers such as Sam’s Club and Costco.
The financial report also detailed the performance of Yonghui’s online business, which generated RMB 3.15 billion (USD 441 million) in revenue during the first quarter—representing 18.02% of total revenue. The Yonghui Life app supported 670 stores, achieving RMB 1.75 billion (USD 245 million) in sales, averaging 231,000 orders per day, and maintaining a monthly repurchase rate of 47.6%. Third-party delivery platforms also served 670 stores, delivering RMB 1.4 billion (USD 196 million) in sales with an average of 153,000 orders per day.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Li Xiaoxia for 36Kr.