2023-12-24 04:21:41
The logo of Yonghui Supermarket, the “Biggest Supermarket Brother” in Mainland China. (CFOTO/Future Publishing via Getty Images△)
[The Epoch Times, December 24, 2023](Epoch Times reporter Liu Yi reported) Chinese supermarket giant Yonghui Supermarket Co., Ltd. (Yonghui Supermarket) is saddled with debt and has recently been selling assets in order to tide over the difficulties. The news topped Baidu’s hot search list on December 24.
Yonghui Supermarket’s financial statements show that the company’s asset-liability ratio reached 86.54% as of the end of the third quarter of this year. Flush iFinD data shows that in the past three years, Yonghui Supermarket’s asset-liability ratio has continued to remain at a high level. At the end of 2021 and 2022, the company’s asset-liability ratio is as high as 84.47% and 87.68%.
In addition, as of September 30, Yonghui Supermarket’s total liabilities reached 47.240 billion yuan (RMB, the same below).
Faced with high debt ratio and huge debt and financial pressure, Yonghui Supermarket began to sell assets in order to tide over the difficulties.
On the evening of December 20, Yonghui Supermarket issued an announcement on the sale of assets, saying that it sold 136 million shares of Hongqi Chain to Sichuan Commercial Investment Co., Ltd. for a total transfer price of approximately 799 million yuan; second, on December 14 On the same day, Yonghui Supermarket announced that it had sold 1.43% of Wanda Commercial Management’s shares to Dalian Yujin Trading Co., Ltd. for a total transfer price of 4.53 billion yuan.
With this transfer of part of the equity of Hongqi Chain, Yonghui Supermarket has recognized a cumulative investment income of 116 million yuan from investment to sale. After the completion of the sale of Wanda Commercial Management equity, the company is expected to achieve an overall income of 612 million yuan.
Outsiders believe that the sale of the above two equity interests will have a positive impact on the financial level of Yonghui Supermarket.
Yonghui Supermarket was established in 2001 and is headquartered in Fuzhou City, Fujian Province. Yonghui Supermarket is one of the first distribution companies in mainland China to introduce fresh agricultural products into modern supermarkets, and is one of the top 500 companies in China.
Although the number of Yonghui Supermarket’s stores in China reached its peak in 2019, it was 1,440. But starting in 2021, Yonghui Supermarket began to decline. At that time, Zhang Jingyi, the secretary-general of Yonghui Supermarket, once said, “We are going down the mountain.”
In 2021, Yonghui Supermarket suffered its first loss after listing, and continued to suffer losses in 2022. In two years, the company lost a total of 6.77 billion yuan.
Entering 2023, Yonghui Supermarket’s operations have not improved. In the first three quarters of 2023, Yonghui Supermarket’s revenue was 62.088 billion yuan, a year-on-year decrease of 12.44%; the net profit attributable to the parent company was 52 million yuan. Specifically, Yonghui Supermarket only achieved a brief turnaround in the first quarter of this year. The net profit attributable to the parent company in the first quarter was 704 million yuan, but it suffered a loss of 330 million yuan in the second quarter and a loss of 321 million yuan in the third quarter.
At the same time, the number of Yonghui Supermarket stores is also decreasing, from 1,440 in 2019 to about 1,000 today.
Faced with the dilemma, in October this year, Yonghui Supermarket added “genuine discount stores” in its stores across China, and simultaneously added discount areas on its online App and mini-programs to provide discounted prices for food and supplies.
In this regard, Zhang Yi, CEO and chief analyst of iiMedia Consulting, said that for Yonghui Supermarket, adding authentic discount stores is the company’s exploration and innovation in the retail industry, and it is a good attempt for the company to break through and adapt to the new consumption era. However, its effectiveness remains to be further observed.
Editor in charge: Sun Yun
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