Yonghui Superstores expects a net loss of 240 million yuan for the first half of 2025, reversing a profit of 280 million yuan a year earlier, the company said in a filing on Monday.
The retailer attributed the loss to a "painful" period of transformation, during which it closed 227 long-term unprofitable stores, incurring costs from lease terminations, staff compensation, inventory clearance, and asset write-offs. It also undertook a major overhaul of its product offerings and supplier base.
These restructuring efforts significantly weighed on both revenue and profit in the short term, the company said.
