Yonghui Supermarket, which has entered the “thousand store era”, suffered Waterloo. In the first half of this year, its revenue fell year-on-year, and its net profit fell into a loss with a loss of more than 1 billion yuan. At the same time, its comprehensive gross profit margin continued to decline, falling below 20%.
After more than 10 years of listing, Yonghui Supermarket suffered a loss for the first time. What was the reason?
It is reported that this is the result of a combination of internal and external factors. Internally, the company took the initiative to adjust its structure and reduce inventory; externally, it was affected by the low-price expansion of community group purchases and the normalization of epidemic prevention and control.
The gross profit margin of the main business generally declined, and Yonghui Supermarket lost more than 1 billion in half a year
In the first half of 2021, Yonghui Supermarket achieved operating income of approximately 46.827 billion yuan, a year-on-year decrease of 7.3%; net profit attributable to shareholders of listed companies was approximately 1.083 billion yuan, a year-on-year decrease of 158.41%; deduction of non-recurring income attributable to shareholders of listed companies The net profit of sexual gains and losses was approximately -925 million yuan, a year-on-year decline of 166.35%.
Regarding the reason for the decline in revenue, Yonghui Supermarket explained: “Mainly due to the impact of the new crown epidemic in 2020, the company’s online and offline businesses have a relatively large growth base; in contrast, the decline in revenue in 2021 is mainly due to internal The comprehensive impact of external factors, including the external impact of the low-price expansion of community group purchases and the normalization of epidemic prevention and control, and the internal impact of the company’s active structural adjustment and inventory reduction.”
For the reasons for the net profit loss, Yonghui Supermarket stated that there are three main reasons, namely the impact of the decline in revenue and gross profit; the fair value of financial assets held by the company at the end of the reporting period fell by 320 million yuan from the beginning of the year; the implementation of the new leasing standards reduced the total profit during the reporting period by 2.5 100 million yuan, net profit decreased by 206 million yuan.
According to the financial report, during the reporting period, the gross profit margin of Yonghui Supermarket’s main business generally declined.
In terms of different industries, its retail gross profit margin was 13.18%, a year-on-year decrease of 3.97%; the service industry gross profit margin was 94.19%, a year-on-year increase of 2.59%; in terms of products, the gross profit margin of fresh food and processing was 10.27%, a year-on-year decrease 4.69%; the gross profit margin of food products was 15.68%, a year-on-year decrease of 3.54%.
Overall, its comprehensive gross profit margin was 18.82%, a year-on-year decrease of 3.55%. In this regard, Yonghui Supermarket believes: “The main reason is to take the initiative to reduce inventory and adjust the structure. The competition of community group buying and the repeated epidemic are external factors.”
The Shell Finance reporter found that among the 10 A-share supermarket concept stocks, Yonghui Supermarket’s gross profit margin is the lowest and the net profit loss is the most serious.
At present, Yonghui Supermarket has developed more than 1,000 chain supermarkets across the country. The semi-annual report shows that Yonghui Supermarket will open 28 supermarket stores in the first half of 2021, a total of 1,026 stores (including 20 renovated warehouse stores), and 202 reserve stores. , Covering 29 provinces and municipalities across the country, with an average store area of 7876.35 square meters. According to its 2020 annual report, one of Yonghui Supermarket’s 2021 business plans is: “80 stores plan to sign contracts and open 80 stores.”
However, the online business of Yonghui Supermarket has been greatly improved. During the reporting period, online sales reached 6.81 billion yuan, a year-on-year increase of 49.3%, accounting for 14.1% of main operating revenue. The “Yonghui Life” APP has covered 995 stores and achieved sales of 3.68 billion yuan, accounting for 54% of online sales, with an average daily order volume of 279,000.
The stock price has been steadily falling, and the total market value has almost been cut in half compared with the beginning of the year. The secretary of the board and the vice president resigned
Yonghui Supermarket was established in 2001 and was listed on the A-share market in 2010. At present, Yonghui Supermarket has developed more than a thousand chain supermarkets across the country. Ranked second among the top 100 Chinese supermarkets in 2020 and fourth among the top 100 Chinese chain stores in 2020.
Entering 2021, while the performance of Yonghui Supermarket is declining, the stock price has also been “falling down endlessly.”
As of the close on August 30, Yonghui Supermarket’s stock price was 3.77 yuan per share, with a total market value of 35.876 billion yuan, a decrease of about 32.451 billion yuan from the end of last year.
At the same time, there have been frequent negative news about Yonghui Supermarket. In addition to the store closures mentioned above, Yonghui Supermarket has recently been fined for charging a packaging fee of 1 yuan in violation of regulations.
In addition, the management of Yonghui Supermarket has also been adjusted this year.
In July this year, the board of directors of Yonghui Supermarket received an application for resignation submitted by the secretary of the board of directors Zhang Jingyi. Zhang Jingyi applied to resign as secretary of the board of directors because he reached the legal retirement age, and no longer held any position in the company after resignation.
In late August, the board of directors of Yonghui Supermarket received the resignation of vice president Jin Bin. Jin Bin formally resigned from the company’s board of directors as vice president due to personal reasons.
The “luxury circle of friends” is blessed, and new formats are emerging one after another. Where is the ace of Yonghui Supermarket and can it find a way to break through?
“Yonghui Supermarket’s performance in the first half of this year was lower than expected,” an analyst at Everbright Securities believes, and pointed out that the crux of the problem lies in “under the impact of community group buying and other new formats.” This is also evident from the decline in its “fresh and processed” revenue and gross profit margin.
In fact, in recent years, Yonghui Supermarket itself has not stopped its pace of developing new formats, and behind it is the blessing of “luxury circle of friends”, which includes Tencent and JD.com.
In 2015, Yonghui Supermarket was under pressure to carry out business cluster reforms, accelerate the expansion and research and development of new business formats, introduce e-commerce strategic partners, and strengthen supply chain thinking and inter-industry joint procurement.
In the first half of 2016, the second business cluster of Yonghui Supermarket operated a total of 82 Bravo stores (including rebranding) and 21 member stores.
In 2017, the Yunchuang team of Yonghui Supermarket concentrated its core advantages to incubate super species. It is reported that Super Species launched 3 major incubation workshops, developed quality customization-Super U Selection, and integrated online and offline smart retail to expand online membership. At the beginning of the year, Super Species opened its first Fuzhou hot spring store. By the end of 2017, Super Species opened a total of 27 stores in 9 major cities.
Faced with the emergence of new formats such as front-end warehouses, home stores, community grouping, and unmanned containers, the market competition is becoming more and more fierce. Therefore, in 2019, Yonghui Supermarket began to explore the new format “Mini Store”.
In addition, there are a variety of new retail formats such as red label stores, green label stores, Yonghui Life, and Caishixian Central Factory… But generally they have not achieved good results.
It is reported that starting from 2019, news of the closure of Super Species has been reported frequently. The most recent time was in April 2021. There were media reports that Super Species had closed stores in Chongqing and Shenzhen. In this regard, the relevant person in charge of Yonghui responded that “It is a normal business adjustment”, the person in charge said, “Super Species is no longer the core business of the group, and Yonghui will return to its main business in the future.”
On May 1 this year, the first Yonghui Minsheng warehousing member store opened in Fujian. As of the end of June, 20 warehousing stores had been reopened nationwide, of which 18 stores opened in June. In the first half of 2021, the sales of warehouse stores reached 150 million yuan, a year-on-year increase of 139%.
The semi-annual report data shows that the warehouse membership store model has a huge effect on the overall sales level of the surrounding areas. However, whether the warehouse member store opened soon, whether it can help Yonghui Supermarket out of the quagmire of performance remains to be tested.
■Extension
The “luxury circle of friends” in Yonghui Supermarket
In 2017, the retail industry capital market was turbulent.
Since Alibaba proposed its new retail strategy in October 2016, it has internally relied on projects such as Hema, Intime, and Retail Link, and externally invested in Suning Yunshang, Sanjiang Shopping, Lianhua Supermarket, Xinhuadu, Gaoxin Retail, and Jiaran Zhijia. A number of retail companies have carried out OTO transformation and obtained a certain first-mover advantage. Tencent came from behind and successively invested in Yonghui Supermarket, BBK, Carrefour, Wanda Commercial, Hailan Home and so on.
It is also against the background of “track players are swarming and competition in the same industry is becoming increasingly fierce”, the “luxury circle of friends” of Yonghui Supermarket has attracted attention from the outside world, and Tencent is just one of them.
The largest shareholder of Yonghui Supermarket is Dairy Co., Ltd., a wholly-owned grandson company of Dairy International and the main business entity of Dairy International in Hong Kong, mainly engaged in general trade and retail business. Milk International (including its affiliates and joint ventures) is a leading pan-Asian retail company, including supermarkets, hypermarkets, convenience stores, pharmacies, household goods stores and restaurants. Its brands include Wellcome, 7- Eleven (7-11), IKEA (IKEA), etc., their annual sales in 2013 exceeded 12 billion U.S. dollars.
Jiangsu Jingdong Bangneng Investment Management Co., Ltd. is the fourth largest shareholder of Yonghui Supermarket, and Jiangsu Zhouzhou E-commerce Co., Ltd. is the sixth largest shareholder of Yonghui Supermarket. Both companies are subsidiaries of Jingdong. Each company holds 45% of the shares.
In addition to the shareholder camp, there are many well-known capital and well-known partners behind Yonghui Supermarket.
In December 2017, Yonghui Supermarket acquired the shares of Hongqi Chain, and the two parties established a comprehensive strategic partnership.
In December 2018, Yonghui Supermarket invested in Dalian Wanda Commercial Management Group Co., Ltd. to further consolidate strategic cooperation in high-quality commercial properties.
In December 2020, Caishixian, a joint venture company of Yonghui Supermarket, received a 1 billion yuan A round of investment, led by a fund of CICC Capital and Tencent.
Beijing News Shell Finance reporter Yan Xia editor Yue Caizhou proofreading Jia NingReturn to Sohu to see more
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