Yonghui Supermarket, which has entered the "era of a thousand stores", suffered Waterloo, and its revenue in the first half of this year 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 consolidated gross profit margin continued to decline, falling below 20%.
More than 10 years after listing, Yonghui Supermarket fell into a loss for the first time, why is it?
It is reported that this is the result of the joint action of internal and external factors. Internally, the company took the initiative to adjust the structure and reduce inventory; externally, it was affected by the low-price expansion of community group buying 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 yuan in half a year
In the first half of 2021, Yonghui Supermarket achieved operating income of about 46.827 billion yuan, down 7.3% year-on-year; net profit attributable to shareholders of listed companies was about -1.083 billion yuan, down 158.41% year-on-year; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was about -925 million yuan, down 166.35% year-on-year.
For the reasons 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 business has a relatively large growth base; in comparison, the decline in revenue in 2021 is mainly affected by the comprehensive impact of internal and external factors, of which the external is affected by the expansion of low prices for community group purchases and the normalization of epidemic prevention and control, and the internal is affected by the company's initiative to adjust the structure and reduce inventory." ”
As for the reasons for net profit loss, Yonghui Supermarket said that there are three main points, namely the impact of the decline in revenue and gross profit margin; the fair price of financial assets held by the company at the end of the reporting period fell by 320 million yuan compared with the beginning of the year; and the implementation of the new lease standard reduced the total profit of the reporting period by 250 million yuan and the net profit by 206 million yuan.
It can be seen from the financial report that during the reporting period, the gross profit margin of the main business of Yonghui Supermarket generally declined.
By industry, its retail gross profit margin was 13.18%, a year-on-year decrease of 3.97%; the gross profit margin of the service industry was 94.19%, an increase of 2.59% year-on-year; by product, the gross profit margin of fresh and processing was 10.27%, a year-on-year decrease of 4.69%; the gross profit margin of food supplies was 15.68%, a year-on-year decrease of 3.54%.
Overall, its consolidated gross margin was 18.82%, down 3.55% year-on-year. In this regard, Yonghui Supermarket believes: "Taking the initiative to reduce inventory, adjusting the structure is the main reason, the competition of community group buying, and the recurrence of the epidemic is an external cause." ”
Shell financial reporter horizontal comparison found that in the 10 A-share supermarket concept stocks, Yonghui Supermarket's gross profit margin is the lowest, and it is also the most serious net profit loss.
At present, Yonghui Supermarket has developed more than 1,000 chain supermarkets in the country, and the semi-annual report shows that Yonghui Supermarket has opened 28 new supermarket stores in the first half of 2021, with a total of 1026 stores (including 20 warehouse stores that have been transformed), 202 reserve stores, covering 29 provinces and municipalities directly under the Central Government, 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, an increase of 49.3% year-on-year, accounting for 14.1% of the main revenue. The "Yonghui Life" APP has covered 995 stores, achieving sales of 3.68 billion yuan, accounting for 54% of online sales, with an average daily order volume of 279,000.
The stock price "fell and fell", the total market value was almost cut compared with the beginning of the year, and the secretary of the board of directors and vice president resigned
Yonghui Supermarket was established in 2001, listed on the A-share market in 2010, and yonghui Supermarket has developed more than 1,000 supermarket chains in the country. It ranks second in the top 100 Chinese supermarkets in 2020 and fourth in the top 100 Chinese chain stores in 2020.
Entering 2021, Yonghui Supermarket's stock price has also "fallen and fallen" while its performance has declined.
As of the close of trading on August 30, the stock price of Yonghui Supermarket 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, the negative news of Yonghui Supermarket is frequent, in addition to the above-mentioned store closure storm, recently, Yonghui Supermarket has also been fined for illegally charging 1 yuan packaging fee.
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 a resignation application submitted by Zhang Jingyi, the secretary of the board of directors, who applied to resign as the secretary of the board of directors because she reached the statutory 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, who formally resigned from the company's vice president to the company's board of directors for personal reasons.
"Luxury circle of friends" blessing, new formats emerge in an endless stream, where is the ace of Yonghui supermarket, can you find a breakthrough road?
"Yonghui Supermarket's performance in the first half of this year was lower than expected", analysts at Everbright Securities believed, and pointed out that the crux of the problem was "impacted by new formats such as community group buying". This can also be seen in the decline in revenue and gross profit margin of its "fresh and processed".
In fact, in recent years, Yonghui Supermarket itself has not stopped the pace of developing new formats, and there is also the blessing of the "luxury circle of friends" behind it, which includes Tencent, JD.com and so on.
In 2015, Yonghui Supermarket was under pressure to carry out business cluster reform, accelerate the expansion and research and development of new formats, introduce e-commerce strategic partners, and strengthen supply chain thinking and joint procurement in the same industry.
In the first half of 2016, the second business cluster of Yonghui Supermarket operated (including re-standard) Bravo stores and 21 member stores.
In 2017, the Yunchuang team of Yonghui Supermarket concentrated its core advantages to hatch super species, and it is reported that Super Species launched 3 incubation workshops, developed quality customization - super U selection, and integrated online and offline smart retail to expand online members. At the beginning of that year, Super Species opened its first Fuzhou hot spring store, and by the end of 2017, Super Species had opened a total of 27 stores in 9 core cities.
In the face of the emergence of new formats such as front warehouses, store to home, community groups, unmanned containers, etc., the market competition has become increasingly fierce, so 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, color food fresh central factory and so on... But generally did not achieve very good results.
It is reported that since 2019, the news of the closure of super species stores has been frequently reported, the most recent time was in April 2021, there were media reports on the closure of super species in Chongqing and Shenzhen, in this regard, the relevant person in charge of Yonghui responded, "it is a normal business adjustment", the person in charge said, "Super species is no longer the core business of the group, the future Yonghui is still back to the main business." ”
On May 1 this year, the first Yonghui Minsheng warehousing member store opened in Fujian, and by the end of June, 20 warehouse stores had been reopened nationwide, of which 18 stores had opened in June. In the first half of 2021, warehouse sales reached 150 million yuan, an increase of 139% year-on-year.
According to the semi-annual report data, the warehousing club model has a huge effect on improving the overall sales level of the surrounding areas. However, the warehouse member store has not opened soon, and whether it can help Yonghui Supermarket get out of the performance quagmire remains to be tested by time.
■ Extension
Yonghui Supermarket's "Luxury Circle of Friends"
In 2017, the retail industry capital market was surging.
Since Alibaba proposed its new retail strategy in October 2016, it has internally relied on projects such as Hema, Yintai and Retail Pass, and externally has carried out OTO transformation by investing in suning yunshang, Sanjiang Shopping, Lianhua Supermarket, Xinhuadu, Gaoxin Retail, Actually Home and other retail enterprises, and achieved a certain first-mover advantage. Tencent came to the top and successively invested in Yonghui Supermarket, BBK, Carrefour, Wanda Commercial, Heilan Home, etc.
It is also in this context of "track players rushing up, the same industry competition is increasingly fierce", Yonghui Supermarket's "luxury circle of friends" has been concerned by the outside world, Tencent is only one of them.
The largest shareholder of Wing Fai Supermarket is Milk Co., Ltd., a wholly-owned grandson company of Milk International, and the main operating entity of Milk International in Hong Kong, China, mainly engaged in general trading and retail business. Milk International (including its affiliates and joint ventures) is a leading pan-Asian retail company, including supermarkets, hypermarkets, convenience stores, drugstores, homeware stores and restaurants, with brands including Wellcome, 7-Eleven (7-11), IKEA and others, with annual sales of more than US$12 billion in 2013.
Jiangsu Jingdong Bangneng Investment Management Co., Ltd. is the fourth largest shareholder of Yonghui Supermarket, and Jiangsu Yuanzhou E-commerce Co., Ltd. is the sixth largest shareholder of Yonghui Supermarket, both of which are subsidiaries of JD.com, and Liu Qiangdong holds 45% of the shares in these two companies.
In addition to the shareholder camp, Yonghui Supermarket also has many well-known capital and well-known partners behind it.
In December 2017, Yonghui Supermarket was transferred to Hongqi Chain, and the two sides established a comprehensive strategic partnership.
In December 2018, Yonghui Supermarket invested in Dalian Wanda Commercial Management Group Co., Ltd. to further consolidate the strategic cooperation of high-quality commercial properties.
In December 2020, Yonghui Supermarket's joint venture company Caishi Fresh received a round of investment of 1 billion yuan, led by CICC Capital's funds and Tencent.
Beijing News shell financial reporter Yan Xia Editor Yue Caizhou Proofreader Jia Ning