Yonghui Supermarket has lost over 10 billion in five years. Is online business the lifeline?

Radar Finance Production Text | Written by Zhou Hui | Edited by Deep Sea

Since the beginning of the year, Yonghui Supermarket’s stock price has fallen over 10%, with a market value below 40 billion yuan, significantly down from its peak.

Recently, Yonghui Supermarket disclosed its 2025 earnings forecast, estimating a full-year net loss of 2.14 billion yuan; after excluding non-recurring gains and losses, the net loss is 2.94 billion yuan. The company explained that this was mainly due to major strategic adjustments during the reporting period.

This is not Yonghui Supermarket’s first loss. From 2021 to 2024, the company has been in a loss-making state, with total losses reaching 9.501 billion yuan. Including the 2025 loss, the cumulative loss over nearly five years will amount to 11.641 billion yuan.

In response to the huge losses, company management has reflected. On February 11, CEO Wang Shoucheng issued a New Year staff letter, admitting that the company previously overemphasized scale, deviating from its original entrepreneurial mission, and failing to meet employees’ efforts and customer trust, for which he apologized on behalf of the company.

At the same time, Wang Shoucheng summarized 2025 in the letter, stating that the year saw the closure of nearly 400 low-quality stores and the comprehensive restructuring of over 300 existing stores, totaling over 2 million square meters of commercial renovation.

Wang Shoucheng pointed out that 2026 will be a year for Yonghui to deepen its focus on happiness and quality retail operations. In terms of products, Yonghui will shift from “procurement” to “co-creation”; in stores, from “transaction venues” to “lifestyle spaces”; organizationally, from “management functions” to “service functions.”

Radar Finance notes that despite the massive losses, Yonghui Supermarket’s online business has achieved phased breakthroughs. In the first half of 2025, online revenue reached 5.49 billion yuan, a decrease of 34.75 million yuan year-over-year, with online store and warehouse formats already fully profitable, contributing positively to the company’s turnaround.

Five Years of Losses Exceeding 10 Billion

Yonghui Supermarket, whose market value has significantly shrunk from its peak, has experienced poor performance in recent years.

On January 20, Yonghui Supermarket announced its 2025 forecast, indicating continued losses.

The announcement shows that, based on preliminary calculations by the company’s finance department, Yonghui expects a net profit attributable to shareholders of -2.14 billion yuan for 2025; after excluding non-recurring gains and losses, the net loss is -2.94 billion yuan.

The company explained that the large losses are mainly due to major strategic adjustments in 2025. During the period, the company deeply restructured 315 stores and closed 381 stores that no longer aligned with its future strategic positioning.

Yonghui pointed out that the store restructuring impacted profits mainly through asset write-offs, revenue losses from store closures and renovations, and one-time startup costs.

Specifically, asset write-offs and one-time investments totaled about 910 million yuan; the gross profit loss from store closures and renovations was estimated at around 300 million yuan. Additionally, the closure of 381 stores resulted in significant losses from asset write-offs, staff layoffs, and lease-related penalties.

External investments and asset impairments further expanded the loss scale. It is reported that in 2025, Yonghui’s overseas equity investments, such as Advantage Solutions stock, saw a continuous decline in stock price, resulting in a fair value change loss of 236 million yuan; the company also expects to recognize long-term asset impairments of 162 million yuan.

Notably, Yonghui also faces a high debt ratio. According to iFinD data, as of the third quarter of 2025, Yonghui’s total assets were 31.62 billion yuan, with total liabilities of 28.129 billion yuan, and an asset-liability ratio of 88.96%.

Radar Finance observes that since 2021, Yonghui has been in a loss-making state.

Financial data shows that from 2021 to 2024, Yonghui’s losses were 3.944 billion yuan, 2.763 billion yuan, 1.329 billion yuan, and 1.465 billion yuan, respectively.

If the 2025 forecast remains unadjusted, the company’s total losses over nearly five years will reach 11.641 billion yuan.

Wang Shoucheng Issues New Year Staff Letter Acknowledging Strategic Mistakes

After consecutive years of losses, Yonghui CEO Wang Shoucheng publicly admitted that the company’s past strategy of “overemphasizing scale” was a mistake.

On February 11, Wang Shoucheng released a New Year staff letter, confessing that in pursuit of scale, the company once deviated from its original entrepreneurial mission, with ambitions exceeding its capabilities, and failed to meet employees’ efforts and customer trust.

He stated, “We have deeply realized our problems and sincerely apologize to everyone.”

Reflecting on 2025, Wang Shoucheng described it as the start of a three-year reform period for Yonghui: the company decisively closed nearly 400 low-quality stores, focused on comprehensive restructuring of over 300 existing stores, and completed over 2 million square meters of commercial renovation.

He also disclosed that in 2025, Yonghui distributed nearly 50 million yuan in profit-sharing to employees, sharing the company’s operational results with partners.

Looking ahead to 2026, Wang Shoucheng expressed determination with the words, “If the direction is right, don’t fear the long road. Once started, don’t fear slow progress. If you believe, don’t change.” He emphasized that Yonghui will shift from comprehensive restructuring to deep cultivation of happiness and quality retail.

In terms of products, Yonghui will move from “procurement” to “co-creation,” building 200 core production areas and factories, and creating 100 flagship products with billion-level reputation.

In stores, Yonghui will upgrade from “transaction venues” to “lifestyle spaces,” becoming a “community kitchen” and “neighborhood lounge” providing convenient life services.

Organizationally, Yonghui will promote a shift from “management functions” to “service functions,” and actively explore enterprise-level AI intelligent applications.

Wang Shoucheng also especially thanked Pang Donglai for selfless support, emphasizing: “The health of a company lies in making employees smile and customers satisfied.”

According to Tianyancha, Wang Shoucheng was born in April 1991, holds a master’s degree from Peking University. After graduating in 2017, he joined Yonghui as a “Rongcai” management trainee, and has served as Vice President of Yonghui Supermarket, CEO Business Assistant, Cluster Operations Partner, HR Partner for Fujian Province, HR Director for Min-Gan Province, and General Manager of Shanghai Province.

In Yonghui’s East Come Learning Project, Wang Shoucheng was the restructuring team leader, responsible for leading the construction of operational standards.

Can Online Business Be a Lifeline?

Despite the pain of transformation and huge losses, Yonghui’s online business achieved a phased breakthrough in 2025, potentially becoming a key support in its “deep cultivation year.”

In January 2014, Yonghui Micro Store APP was launched in Fuzhou for trial operation, marking Yonghui’s initial exploration into online business.

In 2015, to promote online-offline integration and develop in-store and home delivery services simultaneously, Yonghui launched the Yonghui Life APP and established Yonghui Yunchuang Technology Co., Ltd. (Yonghui Yunchuang).

In the first half of 2018, Yonghui Yunchuang partnered with Tencent Smart Retail to test the front warehouse model. In September of the same year, Yonghui Life’s “to-home satellite warehouse” debuted in Fuzhou, marking rapid development of online business.

From 2022 onward, as market conditions changed, some stores became unsuitable for continued operation due to urban planning or commercial circle changes. Yonghui then fully promoted the “warehouse-store integration” model and “to-home” services in key cities.

It is reported that “warehouse-store integrated” stores allocate dedicated areas for online order fulfillment, which can effectively reduce rental, water, and electricity costs compared to traditional front warehouse models.

After years of effort, the company’s online business has shown signs of improvement.

Public data shows that in the first half of 2025, Yonghui’s online revenue reached 5.49 billion yuan, accounting for 18.33% of total revenue, with a year-over-year reduction in losses of 34.75 million yuan.

In terms of specific operations, “Yonghui Online Supermarket” self-operated to-home services and third-party store coverage have reached 90%. Self-operated to-home sales amounted to 3.14 billion yuan, with an average daily order volume of 216,000 and a monthly repurchase rate of 56.3%. Third-party platform to-home sales reached 2.36 billion yuan, with an average daily order volume of 143,000.

Notably, Yonghui explicitly stated in its half-year report that its online store and warehouse formats have achieved full profitability.

According to “Business Observer,” market insiders revealed that in Chongqing alone, Yonghui to-home services invested over 300 million yuan in 2025, opening 41 pure front warehouses. Moving into 2026, to-home services will remain a key focus.

However, competition in the online sector is intensifying, with rivals like Meituan Xiaoxiang Supermarket and Pupu Supermarket. As a nationwide retailer, Yonghui’s to-home coverage is extensive, but it has yet to achieve market dominance in any city.