Yonghui Superstores (601933.SH) has been losing money for five consecutive years, with losses exceeding 10 billion. The CEO sent a letter to all employees acknowledging strategic mistakes.

Since the beginning of the year, Yonghui Superstores' stock price has dropped by more than 10%, with a market value of less than 40 billion, significantly shrinking from its peak. Yonghui Superstores recently disclosed its 2025 performance forecast, projecting a full-year net loss of 21.4 billion yuan; with a net loss of 29.4 billion yuan after deducting non-recurring gains and losses. In response, Yonghui Superstores explained that this was mainly due to significant operational strategic adjustments made during the reporting period. This is not the first time that Yonghui Superstores has reported a loss. From 2021 to 2024, Yonghui Superstores has been in a state of losses, with a total loss of 9.01 billion yuan. With the 2025 loss, the company's total loss over the past five years will reach 116.41 billion yuan. In response to the huge losses incurred by Yonghui Superstores, the company's management has also reflected on their actions. On February 11, Yonghui Superstores CEO Wang Shoucheng issued a New Year's letter to all employees, acknowledging that the company had previously pursued scale excessively, deviating from its original entrepreneurial intentions, disappointing the employees' efforts and customers' trust, and expressing apologies on behalf of the company. At the same time, in the letter, Wang Shoucheng summarized the year 2025 and mentioned that the company had closed nearly 400 low-quality stores, revamped over 300 existing stores, and completed more than 2 million square meters of commercial transformation throughout the year. Looking ahead to 2026, Wang Shoucheng said that Yonghui will enter a year of deep cultivation in happiness and quality retail operations. In terms of products, Yonghui will transition from "procurement" to "co-cultivation"; in terms of stores, it will upgrade from "transactional space" to "living space"; organizationally, it will shift from "management functions" to "service functions". Despite the substantial losses, Yonghui Superstores' online business made a breakthrough in 2025. In the first half of the year, the company's online business revenue reached 54.9 billion yuan, with a decrease of 34.75 million yuan compared to the previous year. The online shop-and-warehouse format has achieved overall profitability, which will contribute positively to the company's turnaround efforts. The article was originally published on the "Radar Finance" public account; translated by GMTEight.